Malaysian prime minister Mahathir Mohamad launched an ambitious bio-technology hub as part of Malaysia's push to become a developed nation by 2020.

Mahathir, performing the groundbreaking ceremony for the BioValley project, invited foreign scientists and investors to set up base there to tap Malaysia's rich bio-diversity.

He said the government would invest 100 million ringgit (263 million US dollars) in the initial phase to build infrastructure and facilities, including three research institutions dealing in genomics, pharmaceuticals and agriculture by 2006.

"I do hope that foreign scientists and foreign companies will come to Malaysia and work with our scientists to ensure that we get the best out of nature's gifts to Malaysia," the premier said.

"By developing our biodiversity, we hope it will help us overcome our present economic difficulties" and help Malaysia accelerate its aim of achieving developed status by 2020, he added.

The BioValley, covering a 2,000-acre site in the Multimedia Super Corridor hi-tech zone south of Kuala Lumpur, got off to a good start with three companies signing intent letters to set up base there.