2. Financing Strategy
Need for a
strategy
Strategic
Contextual Financial Financial
Options for
reality sustainability autonomy
Financing
Earned
Investment Borrowings Investors
Income
3. Contextual Reality
• Perak Bio has no clear income base, or
investment base
• Perak Bio requires clear business focus or
investment focus in the fields relating to
biotechnology
• Perak Bio requires capital to sustain its
existence after 2012
4. Financial stability & Financial autonomy
• To pay:
– Salaries of two existing staff
– Expenses
– Board of directors
• To provide capital for expansion of business
and to create core business
• To be financially autonomous from Perak State
Development Corporation
6. Earned Income
• To have a set of sustainable businesses
• May include Consultancy services e.g.
consultancy on risk assessment and risk
management, biosafety and biosecurity.
• To be have a clear business idea on what to do
with Perak Biotech Park. Issues need to be
cleared:
– Land ownership
– Squatters
– Design and marketing team
8. Investment
• Some business activities may be classified as
investment or transferred as investment.
• Investment only in businesses with good
potentials.
• May invest in the form of:
– Ordinary shares
– Loan stocks with fixed income
– Preference shares with fixed income
• May invest in securities such as listed
shares, government securities etc in the future
9. Investors and Borrowings
• As Perak Bio is state owned company, bank
borrowing may not be an option as directors may
not want to be personally responsible for the
company’s borrowing.
• Borrowing may come in the form of combined
investment. This means that Perak Bio may invite
private investors to invest in Perak Bio and part of
the investment will be in the form of borrowings
such as loan stocks.
• To be able to do this, Perak Bio may have to
implement part or all the business activities
outlined in the Business Plan.
