TCM, biomedical, big health industries get considerable subsidies in Hengqin

Biomedicine and big health industries in Hengqin will be supported with strong, wide-reaching measures to create a distinctive world-class bastion of related industries for the moderate diversification of Macao's economy.

The Guangdong-Macao In-Depth Cooperation Zone in Hengqin released the measures Oct 31. They will serve Macao's industrial diversity and R&D innovation, back up major and benchmark projects including those from Macao, promote the "Macao registration + Hengqin production" brand, strengthen R&D support, and optimize industrial ecology. A whole-life-cycle support environment for biomedical and big health enterprises in the Cooperation Zone will provide coverage from project settlement to the industrialization stage.

Under the Overall Development Plan for Construction of the Cooperation Zone, Hengqin will foster a new platform for Macao's moderate economic diversification based on the resource endowment and development foundation of Guangdong and Macao. The "Macao Registration + Hengqin Production" brand for traditional Chinese medicine will form a joint force for integrated industrial development.

The measures provide more support for eligible high-quality Macao-funded projects and meantime Hengqin-developed TCM products that register in Macao will be granted an additional 20 percent of standard subsidies.

TCM, food, and healthcare products approved and registered in Macao and produced in the Cooperation Zone will be granted up to 20 million yuan ($2.7 million) for each variety designated "Made Under Supervision in Macao" or "Designed in Macao." Local enterprises are encouraged to apply for relevant production licenses and begin producing Macao-registered products.

In addition, Macao universities will get a maximum annual subsidy of 5 million yuan ($687,000) for each industrial-academic-research demonstration base established in the Cooperation Zone. Biomedicine and big health projects that have received scientific and technological support from the Macao SAR government will be subsidized an additional 8 million yuan ($1.1 million).

Cumulative awards of up to 36 million yuan ($5 million) will encourage enterprises to acquire international registration for their products and strengthen quality standardization management.

TCM Science & Technology Industrial Park of Cooperation Between Guangdong and Macao [Photo courtesy WeChat account: hengqinzaixian2021]

Supporting development of the TCM industry, which is one of Macao's signature industries, is a top priority of the Cooperation Zone and a path toward differentiated development compared with other regions. Hengqin intends to provide the best support policies in the country for the promotion and innovation of traditional Chinese medicine.

Of note, 50 percent of an enterprise's actual research and development fees will be subsidized, while a single institution can obtain an annual 150 million yuan ($21 million) for its TCM innovation drugs.

Currently, industrial spaces in the Cooperation Zone, represented by TCM Science & Technology Industrial Park of Cooperation Between Guangdong & Macao have accelerated clustering of TCM enterprises. To attract more competitive enterprises, Hengqin offers awards and subsidies 20 percent higher than those provided by other regions.

Major projects that play a leading role in the overall situation will get a maximum 600 million yuan ($82 million) for settling in Hengqin. And global benchmark industrial projects attracted to the Cooperation Zone will be subsidized with 30 million yuan ($4.1 million) for registered capital, property purchase, and R&D expenses.

Annual awards of up to 120 million yuan ($16.5 million) will be provided to eligible R&D institutions of biological products and chemical drugs, while medical device R&D institutions will garner maximum annual awards of 18 million yuan ($2.5 million). The maximum annual reward for each institution having obtained relevant registration certificates for healthcare food, formula food for special medical purposes, and special-purpose cosmetics will reach 12 million yuan ($1.7 million).

In terms of professional platform construction, maximum subsidies of 60 million yuan ($8.2 million) will support the establishment of characteristic TCM public service and professional technical service organizations in the fields of R&D (CRO), contract manufacturing (CMO), and contract development and manufacturing (CDMO). Innovation carriers at or above provincial level, including key laboratories, engineering research centers, and enterprise technology centers that settle in Hengqin will get subsidies of up to 36 million yuan.

Maximum annual subsidies of 12 million yuan will be offered to current biomedical and big health public service and professional technical platforms, support GCP (Good Clinical Practice) discipline construction in the Cooperation Zone, introduce related exhibitions and conventions, establish industrial associations, introduce high-end and urgently needed talents, and build talent training bases.

A review mechanism -- the Expert Committee on the Development of Biomedical and Big Health Industries -- will be formed. It will comprise technical experts from Macao and Guangdong drug administration authorities to enhance their accelerated industrial development.