BIONEXUS APPLICATION AND INCENTIVES 20 th December 2012 Presentation at the Marine Fish Farmers Association (MFFAM) Seminar Penang

Organization Structure International Advisory Panel Implementation Council Ministry of Science Technology & Innovation Chairman Board of Directors CEO Honorable Prime Minister of Malaysia YAB Dato’ Seri Najib Tun Razak Ministry of Finance Federal Lands Commisioner (JKPTG)

BIOTECHCORP - The Agency Innovation to create wealth by utilising and advancing biotechnology for socio-economic benefits of the nation in accordance with established social and ethical norms Established in 2005 Primary Government Development Agency for Malaysia’s biotech industry Identify value propositions in R&D and commerce and support these ventures via financial assistance and developmental services. BiotechCorp’s key mandates Act as a one-stop-centre Nurture and accelerate growth of Malaysian biotechnology companies Create conducive environment for biotechnology Actively promote FDI in biotechnology MALAYSIAN BIOTECHNOLOGY CORPORATION Position biotechnology as the new economic engine to enhance prosperity and wellness of the nation by 2020 through Healthcare, Industrial and Agriculture biotechnology Enhance R&D and Tech Acquisition, Human Capital Development, Legal and Financial Structure VISION MISSION

BioNexus Status Incentives INCENTIVES BILL OF GUARANTEES TAX HOLIDAY FACILITATION SERVICES ONE STOP CENTRE

List of Tax Incentives Available for BioNexus Status Company For BioNexus Status Companies: 1.Income tax exemption on statutory income for 10 years or 5 years (expansion project) 2.Income tax exemption for qualifying capital expenditure 3.20% tax rate after tax exempt period 4.Double deduction on expenditure incurred for research & development 5.Double deduction on expenditure incurred for promotion of export 6.Import duty & sales tax exemption 7.Industrial Building Allowance 8.Stamp duty & real property gain tax exemption for merger or acquisition For Investors / shareholders: 9.Deduction for investment in BioNexus status companies 10.Tax exempt dividend income

FACILITATION SERVICES-One stop Centre For BioNexus Status Companies: 1.BiotechCorp has various divisions and departments eg: Financial transaction, Business Development, Government Liason, Training, BioNexus Development Division, Immigration 2.Work with Economic Corridors such as ECER, NCIA, Iskandar (IRDA), SCORE, SEDIA, Yayasan Sabah etc for incentives, funding, land etc. 3.Universities For research collaborations, joint fund applications and capacity building 4. Technology partnerships eg. CMDV (Centre for Development and Validation) 5. Funding: Soft Loan

AQUA/MARINE Breeding Fish Algae Crustaceans Saltwater Brackish Freshwater PrawnsCrabs Microalgae Health Vaccines Diagnostic Kits Feed / Nutrition MAS/GENOMICS FOCUS AREA: AQUA/MARINE BIOTECHNOLOGY FishPrawns Macroalgae HatcheryBroodstockCultivation Lobsters Mollusc

Eligibility Criteria Establish a separate legal entity for BioNexus qualifying business activities Provider of Products or Services based on Life sciences or substantially using life-science processes in production or agriculture Possess capability and conducts research in thrust area and knowledge worker employment Complies with environmental and ethical laws and guidelines

BiotechCorp to be part of this ecosystem working together with the various stakeholders (DOF, MOA, Economic Corridors and the industry players, NGOs) to ensure that the aquaculture industry grows to ensure food security and sustainability and with the highest standards of best aquaculture practices Thank You