VIVO BIOTECH INDIA TO OPEN US$149.3 MIL MEDICAL PLANT IN MALACCA

MELAKA, Jan 13 (Bernama) -- The Malacca (Melaka) Government via Melaka
BioTech Holdings Sdn Bhd and a biotechnology company from India, Vivo BioTech
Ltd (India), is to
sign a memorandum of mnderstanding (MoU) to open a RM500 million (about US$149.3
million) medical facility at the Bukit Rambai High-Tech Park to produce vaccines
for tropical ailments.

The MoU will pave the way for the creation of a joint-venture company, Vivo
BioTech (Malaysia) Sdn Bhd, which has been accorded "BioNexus status" by the
Malaysian Biotechnology Corporation Sdn Bhd.

A BioNexus Status company, among others, is entitled to a concessionary 20
per
cent tax. Currently, there are 51 BioNexus-status companies in Malaysia, of
which, 47 are local entities and four foreign companies.

Chief Minister Mohd Ali Rustam said the MoU would be inked in New
Delhi next Wednesday to be witnessed by Prime Minister Najib Tun
Razak who would be on an official visit to India from Tuesday.

Mohd Ali will be in the prime minister's entourage.

Melaka BioTech is a wholly-owned subsidiary of Melaka Biotechnology
Corporation engaged in product commercialisation, research, training and
biotechnology services.

Mohd Ali said the biotech-Vivo plant was the first investment of Vivo
BioTech in this region whose products are for the Malaysian market and export.

He said efforts would be made for another company from India, Recron
(Malaysia) Sdn Bhd, which has been operating at the Tangga Batu Industrial Park
for three years to inrease its investment.

Recron, employing more than 2,000 workers, has the biggest textile plant in
Malacca, located in the southern region of the Malay Peninsula, on the Straits
of Malacca.

"I will take advantage of the prime minister's visit to India to lobby for
Recron to either open a new plant or increase its investment," he added.

-- BERNAMA