MELAKA, Jan 13 (Bernama) -- The Melaka Government via Melaka BioTech Holdings Sdn Bhd and a biotechnology company from India, Vivo BioTech Ltd (India), is to sign a memorandum of understanding (MoU) to open a RM500 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 Datuk Seri Mohd Ali Rustam said the MoU would be inked in New Delhi next Wednesday to be witnessed by Prime Minister Datuk Seri 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 increase its investment.

Recron, employing more than 2,000 workers, has the biggest textile plant in Melaka.

"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.

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 Melaka.

"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