significant business incentives

Article in BioTechnology news:

Monday, 31 July 2006

AUSTRALIA'S largest ASX-listed health information technology provider, IBA Health, announced today that significant incentives offered by the Malaysian Government had prompted it to make Malaysia its base in Asia.

IBA Health CEO Steve Garrington

The Malaysian Government announced that it was awarding IBA with "Multimedia Super Corridor [MSC] Malaysia Status". The certification recognises IBA's business achievement and investment in Malaysia and its capability to develop and export health information technology in the Asian region.

The award includes significant business incentives to support IBA's investment in Malaysia, including tax-free status for five years and eligibility for R&D grants.

Malaysian International Trade and Investment Minister Rafidah Aziz will present IBA chairman Gary Cohen with a certificate to confer MSC Malaysia Status during the International Trade and Industry investment mission to Australia from July 30 to August 8.

IBA chief executive Steve Garrington said: "Following recent acquisitions, contract wins and the recently announced joint venture with SPK Sdn Bhd, IBA Health is now the dominant provider of health information technology in Malaysia.

"Through the incentives provided by the Malaysian Government, which includes world-class infrastructure, a pro-business environment, taxation incentives and access to a high-value, low-cost, multi-language talent pool, IBA will strengthen its position as a supplier of health information technology to the Malaysian market and across Asia."

Garrington explained that IBA had been working on its marketing strategy for South-East Asia for a couple of years and that the last few months had seen a number of key milestones met.

He said that while IBA would have had a presence in the Malaysia market whether or not the Government had awarded it MSC Malaysia Status, the incentives it includes were fundamental to its decision to make Malaysia its base in the region.

Garrington said the two key factors that provided significant long-term benefits to the company were the free movement of labour, making it easier to bring in relevant expertise, and the tax incentives.

"Not all governments are prepared to be that helpful," he said.

Commenting on the company's expansion into the region, Garrington said: "AusTrade also deserve a mention – their advice and guidance in recent months has been particularly helpful."