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www.asiabiotech.com Boom Indicators Agrobiotechnology Potential in Singapore

Professor Paul S. Teng Head, Natural Science & Science Education National Institute of Education Nanyang Technological University

Dr Andrew D. Powell Chief Executive Officer Asia BioBusiness Pte Ltd

he life sciences is a knowledge intensive and high value added industry currently identified by the Economic TDevelopment Board (EDB) as the fourth pillar of Singapore's sector. While the biomedical science component of life science has received most focus, the agrobiotechnology business in Singapore is also anticipated to grow with the other sub-sectors of life sciences. For Singapore, with limited land resources, relying on capital intensive and high risk agrobiotechnology for fast economic returns becomes a greater challenge than in neighbouring countries with low land cost. With the extensive support of knowledge, infrastructure and a regulatory framework that the government has formulated to drive biotechnology since the 1990s, numerous agrobiotechnology activities are being undertaken in the areas of genetic transformation, molecular breeding, vaccine and diagnostic technology, genomics and bio-informatics. Singapore produces only a small proportion of its food (i.e. 31% of hen eggs, 7% of fish and 5% of vegetables for domestic consumption) but yet is a major player in the world ornamental fish and orchid trade (with S$33 million/US$20.6 million value of orchids and S$72 million (US$45 million) value of ornamental fish for export to markets worldwide). contributed to about 0.1% of Singapore’s gross domestic product (GDP) or about S$159 billion (US$99.4 billion) in 2003. The Agency for Science Technology and Research (A*STAR) is the national body spearheading biotechnology development in Singapore with a broad focus on life sciences. The Agri-Food and Veterinary Authority of Singapore or AVA is the national regulator of safe food supply, animal and plant health and a facilitator of agri-trade and agriculture development. The application of biotechnology in agriculture is driven by AVA together with key R&D institutes. AVA has a key role in partnering with R&D institutes and the private sector in charting the development of agrobiotechnology businesses in Singapore.

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Agrobiotechnology Activities and Products Agrobiotechnology is mainly focused on both food (leafy vegetables, , marine foodfish) and non-food based products (diagnostic kits, vaccines, ornamental fish and plants). A few products have been commercialized to date such as non-food ornamental fish (trademarked GloFish) whilst numerous potential products are in the pipeline of seeking approval from the relevant approving authority. The trademarked GloFish was developed by a Singapore scientist, Dr Zhiyuan Gong, from the National University of Singapore (NUS) who has licensed the tropical fluorescent zebrafish to Yorktown Technologies, L.P. in Florida, US, as pets in Jan 2004. The fish are sold as pets in about US$5 a piece in January 2004 and in Malaysia and Hong Kong after gaining approval from the US authority. MNCs like , , and Cropscience which have regional manufacturing bases in Singapore are involved mainly in the distribution of agricultural chemicals. Food companies like Nestle and Kellogg utilize agricultural products that may be derived from gene technology and are of concern to the food authority or consumers. Such concern has warranted the company’s attention in food safety assurance in accordance with the differing importing country regulations on GM (Genetic Manipulation) derived products and the local consumer preferences and needs. The Singapore government has taken a lead role in supporting the development of an agrobiotechnology sector. The establishment of the Institute of Molecular Agrobiotechnology (IMA) in 1995 started the advent of agrobiotechnology in Singapore. The Center was operated in collaboration with the Chinese Academy of Sciences and the Chinese Ministry of Agriculture with the objective of developing Singapore as a worldclass center in agrobiotechnology research through the clustering of high caliber scientists. With the investment arms of Imagen Holdings, IMA was poised to capitalize fully on possible avenues for collaboration, joint ventures and new agrobiotech business opportunities. In 2002, IMA’s agrobiotectechnology activities were streamlined to further team up with the National University of Singapore (NUS) and the Nanyang Technological University (NTU) with a new focus on Life Sciences. IMA was renamed as the Temasek Life Sciences Laboratory (TLL) to undertake cutting edge research in molecular and in the broad fields of life sciences. Currently, there are 15 research groups working in the areas of cell biology, developmental biology, pathogenesis and bioinformatics. It is undertaking a comprehensive approach in close cooperation with industry and AVA.

AVA has been working closely with TLL, NUS and other tertiary research institutes on agrobiotechnology to develop key applied upstream farming technology in specific areas of food crop research, plant biotechnology, animal and fish health research, fish biotechnology and aquaculture since 2003 in the following agri-food areas: • Vegetable—identification of genes for abiotic and biotic stress resistance in Asian leaf vegetable, downstream field testing, molecular diagnostics for leafy vegetable diseases, GMO testing for food , aeroponics and hydroponics • Rice biotechnology—disease resistance • Aquaculture biotechnology—molecular selective breeding of fish, molecular diagnostics and vaccines for food fish and shrimps, Genetic transformation of indigenous foodfish for improved traits • Animal biotechnology—molecular diagnostic and vaccines against diseases of food safety concern

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Supporting Infrastructure Under a major Government initiative, Technopreneurship21 (in 1999) of the National Science and Technology Plan (NSTP), a framework providing comprehensive support to cultivate innovation and entrepreneurship has been built to ensure that the value from the knowledge creation (from industrial sectors including biotechnology) is extracted, protected and exploited. These initiatives include increasing the availability of equity financing to soft and hard infrastructural support for technopreneurial businesses to grow. The lead government agency, National Science and Technology Board (NSTB, now A*STAR), of this initiative has been working closely with numerous state agencies such as EDB, Jurong Town Corporation (JTC) and Housing Development Board (HDB) etc. and various industry sectors over the years in realizing this vision. This broad support of government agencies and institutions is a feature of the push into the life sciences.

Science Park and Incubators The Science Park, established since 1981, together with incubators designed by government provides a focal point for the high-quality infrastructure essential for industrial R&D in Singapore, as well as an environment conducive for interaction between industry, academia and research groups. The Technopreneur Assistance Center established within the park provides a range of technical, business, training and shared facilities. Other support for early-stage companies includes finance for innovators, venture capital and patent application fund, as well as state agencies providing productivity, quality and design services. All of these have offered the life science companies a quick startup and are underpinned by the supporting advanced telecommunications infrastructure and powerful computing resources for bioinformatics. Today, the Science Park houses some 180 local and MNC tenants within the 270 000 sq m gross floor space and an Innovation Center of 2 000 sq m with 29 start-up companies of the different industrial sectors i.e. information technology, electronics, chemicals, materials and biotechnology. AVA and EDB have also developed the Agri-Bio Park (APB) sited next to the Lim Chu Kang Agrotechnology Park in the northwest of Singapore. The land in lots of one hectare can be allocated on 30-year leases for agrobiotechnology activities. This will further strengthen Singapore as a center of excellence in tropical agro-technology. In addition, the Agrifood and Technologies Pte Ltd (ATP), which is a private arm of AVA was incorporated in Oct 2000 to further support regional developing including the agri-biotechnology business. The agrobiotech companies who are interested to invest in Singapore or in this region for product development, commercialization of laboratory findings and production of agrobiotechnological materials can seek its consultancy, training and certification services.

Investment Financial Support In support of the large-scale financial commitment to the life sciences and biotechnology sector, the government created a number of mechanisms (e.g., Pharmbio Growth Fund, Singapore Bio-Innovations and Life Sciences Investments) to provide funds to the private sector to upgrade technologies and form joint ventures with leading international biotechnology and pharmaceutical companies. It has channeled more than S$1.7 billion (US$1 billion) into biotech funds and has allocated S$1.5 billion (US$0.9 billion) for biotech R&D and S$2 billion (US$1.3 billion) to attract investment local and foreign in biotech start-ups. Such risk-sharing environment also includes numerous investment and start-up assistance schemes (, Patent Application Fund PLUS, Enterprise Investment (Technopreneur) Scheme, Venture Capital) and programs (Growth Financing Program)1 for innovation, R&D and intellectual property managed by EDB. As most of these funds have been targeted at the biomedical science sector, there is an opportunity for the establishment of a fund to look exclusively into agrobiotechnology/food sector including functional food and nutriceuticals derived from agrobiotechnology research.

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Manpower Development Programs Maintaining and building the local talent pool as well as attracting more global talent are keys to maintain a knowledge-based economy. Talent will include the whole spectrum of researchers, entrepreneurs, investment bankers, analysts, venture capitalists, patent and corporate lawyers. Thus, the Singapore government has adopted an open door policy to draw in talent from around the world. Continuing efforts under the NSTP driven by then NSTB and now A*STAR and other government agencies such as EDB include the launch of a five year Life Sciences Manpower Development Program costing S$60 million (S$37.5 billion) in April 2000 to increase the pool of talent to propel Singapore’s push into the life sciences. The initiatives include offering of postgraduate and PhD scholarships, a fellowship program and an exchange program to create a cluster of 245 life science expertise to support the newly developed sector.

Conducive Intellectual Property (IP) Regime The protection of intellectual property (IP) is the key to a thriving biotechnology business which depends wholly on the value of the technology developed. The patents act of Singapore contains no restriction to the patentability of plants and animals or other biotechnological inventions such as DNA or living tissues as long as the bio-intervention does not contradict public morality. However, the IP regime does not have much provision to preserve and maintain traditional knowledge of local and indigenous communities or to provide developing countries with access to technologies in a just and equitable manner. This is currently being addressed under an ASEAN initiative to establish the Framework Agreement on “Access to, and Fair and Equitable Sharing of Benefits Arising from the Utilization of, Biological and Genetic Resources (“the Agreement”)”. While in compliance with the international treaties, the current Singapore IP regime is further strengthened by Singapore’s accession to the Union for the Protection of New Varieties of Plants (UPOV) convention (for the protection of new plant varieties) in 2004 under the requirement of US-Singapore Free Trade Agreement. Granting the breeder of a new variety the exclusive right to exploit his variety would encourage him to invest in and thereby contribute to the development of agriculture, horticulture and forestry. Plant breeders formerly with limited monopoly rights are now accorded better protection to commercialize new plant varieties should it be derived from biotechnology, as well as from traditional breeding methods. This IP regime will give agribiotechnological interventions exclusive protection in Singapore should they be developed and patented there.

Robust Regulatory Framework/ Biosafety As in many countries, the biosafety—regulation of agrobiotechnology on GMOs (Genetically modified organisms) and released agrobiotech products derived from GMOs is a key concern which needs to be strengthened for the assurance of food and public safety and for the benefit of agri-trade. There is a need to safeguard the public and environmental safety while allowing for the commercial use of GMO and GMO-derived products by companies and research institutions in compliance with international standards (CODEX, FAO, Cartegena Protocol etc). In 1999, Singapore established a national Genetic Modification Advisory Committee (GMAC), a multi-agency committee, to oversee and advise on this aspect. The key initiatives of GMAC are in establishing biosafety regulations and guidelines for conduct of GMOs research and commercial release of GMO derived products and in facilitating public education and creating awareness on GM issues. The members of GMAC are drawn from (a) regulatory agencies such as AVA, National Parks Board (NParks), Ministry of Health (MOH), A*STAR and the Attorney

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General Chambers (AGC); (b) academic and research institutes such as the NUS, Nanyang Technological University (NTU) and (NIE), TLL and the Institute of Molecular and Cell Biology (IMCB); and (c) consumer interest groups such as the Consumers Association of Singapore (CASE). Two guidelines, one covering release of GMOs (Singapore Guidelines on the Release of Agriculture-Related GMOs, August 1999) and the other covering research on GMOs (Singapore Biosafety Guidelines for Research on GMOs) have been released. The latter is in its final draft stages and currently available to the public at the GMAC’s website (www.gmac.gov.sg). GMAC, being an advisory committee, leverages on the regulatory powers of various national agencies, which include AVA, MOH and National Environment Agency (NEA), to oversee safe movement, transfer and containment of GMOs, relevant respectively, to food/feed, human health and environment. The AVA is the approving authority for the import and release of agriculture-related GMOs and GM foods in Singapore. Under AVA’s Animals and Birds Act and Control of Plant Act, importers are required to seek approval from AVA prior to importation of agriculture-related GMOs into Singapore. When there is an application to import or release GMOs, GMAC will evaluate the application through expert panels to ensure that food safety as well as environmental issues have been assessed and found to be satisfactory. AVA will take into consideration GMAC’s evaluation before deciding on the permit to import or release the GMOs. Thus far, GMAC and AVA have allowed the sale of GM corn, soybean and canola oil. This is done after reviewing the risk assessments of the specific products and safety tests conducted by the relevant companies (e.g. ) and ensuring the products meet the safety criteria set by the Singapore Guidelines on the Release of Agriculture-Related GMOs. These guidelines were established to ensure safe movement and use of agriculture-related GMOs in Singapore as well as to address the issues related to food safety based on the concept of substantial equivalence, especially in the area of risk assessment in relation to human health and the environment. In addition, GMAC and AVA take into account prior approvals by the authorities of the country from where the specific product originates. To further strengthen the biosafety regulations in Singapore, a Biosafety Bill to deter misuse of biological agents and and to instill life science research confidence in Singapore has been passed in late 2005 following public consultation. In 2003, the ASEAN Genetically Modified Food Testing Network with the objective of helping ASEAN Member Countries to better utilize the expertise and available resources in the region as well as gain better access to information on developing GM testing capabilities for food was established. This GM food testing network will see the adoption of reference methods and materials that are internationally recognized for use in GM food testing in ASEAN, and the sharing of resources and the exchange of expertise within ASEAN with external agencies such as Joint Research Center and the International Life Science Institute in the years to come. A GM food testing laboratory has been established in the AVA as part of the S$30 million (US$19.9 million) Veterinary

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Public Health Center. Conclusion Singapore has the potential to be an attractive and vibrant center for global business and technological activities involving agrobiotechnology in Asia. Singapore’s strategic location is already the reason why four of the top five global agrobiotechnology companies (Monsanto, Syngenta, Bayer and BASF) have located their regional headquarters here. Locally, the Singapore government, through GMAC, has been actively involved in public awareness programs such as the conduct of Public Forum on Bioengineered Foods and the distribution of educational brochures about GM foods (www.gmac.gov. sg). Such market demand is also boosted by the confidence in Singapore’s strong leadership in harmonizing biosafety regulations within ASEAN (i.e. under ASEAN GM initiatives) in the context of food safety assurance. Beside Singapore’s strategic geographical location, the people have an extensive business network supported by efficient logistics to facilitate food and agri-trade distribution. Singapore has good accessibility to the global market and it can be positioned as a regional headquarters to export biotechnological services to the whole of the Asia market. With the sealing of Free Trade Agreements with many countries such as US, Japan, Australia, New Zealand and European Free Trade Association, companies based in Singapore will gain even freer access to more parts of the world. In addition, Singapore is well known for its strong capital, technology and manpower infrastructures which will help to move ideas to the market place in the quickest time. Its committed multi-disciplinary governmental involvement in developing, facilitating and growing the business may further encourage agrobiotech investors to consider the high-risk agrobiotechnology investment in Singapore. With good international cooperation, Singapore may consider providing agrobiotech consultancy, financial and trading services rather than a production base with its limited agriculture land resources by leveraging on its strong network with the Asian mega biotech countries such as and . Collaboration could be in the area of the agrobiotech rice business which has great potential if approved by China. However, R&D in agrobiotechnology has not been excluded in Singapore by its limitation in agriculture activities or space. Singapore’s advantage in this context lies with the disease-free and credible environment for biotech research. Moreover, its strong relations with the nearby Asian mega biotech countries such as China should be tapped for the much required research resources e.g. commercial field trials which see the limitation of space and funding in Singapore. With all this in place, Singapore can become knowledge hub for the agrobiotechnology sector.

Contact Details:

Professor Paul S. Teng Email: [email protected] URL : www.nie.edu.sg

Dr Andrew D.Powell Address : 51 Jervois Rd, #02-05, Singapore 249045 Tel : +65 6737 2151 Fax : +65 6735 2119 Email : [email protected] URL : www.asiabiobusiness.com

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