News at Home  
AgBiotech & Health

Two decades ago, Malaysia began work formulating the possibility of palm-oil powered engines which may drive the country instead of being reliant to fossil fuels. Today, that vision is coming alive as green fuel is being increasingly put into focus within the industry. With the trial period of B5 in 2006, the country is beginning to turn to alternative fuels instead of being susceptible to fluctuating oil prices.
 
Fresh hopes for Type II diabetes patients. A research group from Universiti Teknologi Malaysia in Skudai has confirmed findings that cinnamon bark has properties that may lower sugar levels. Type II diabetes is caused by the gradual loss of sensitivity of cells towards insulin which may in turn lower glucose levels by removing excess glucose. The findings have shown that cinnamon may reverse such effects by increasing cell sensitivity towards insulin.
 
In other news, a simulation testing the country’s battle plan against the bird flu pandemic is set to take place in March. The exercise is part of the Government’s battle plan against the dreaded spread of the disease. Committees and taskforces have been set up by the Government to handle the event of a possible outbreak, and the simulation would be ideal to test their mettle in the event of a crisis.
  
                       
Industry
Pioneers in Malaysian biodiesel, Golden Hope Plantations Bhd., Kumpulan Fima Bhd. and Carotino Sdn. Bhd. joined with the Malaysian Palm Oil Board by signing agreements on joint-venture biodiesel plants. The plants, costing RM40 million each are expected to produce a total of 180,000 tonnes of biodiesel annually which would be utilized for export.
However, speculators say that the move is a likely platform for the Government’s aggressive shift for biodiesel usage. Such a move by Carotino Sdn. Bhd., a subsidiary of JC Chang group of companies was seen as a gradual shift, as they begin to move their focus from oil-palm based cooking oil to biodiesel.
 

Similarly, Kulim (Malaysia) Bhd. and Germany’s CremerOleo Gmbh have reached agreement in the setting up of two biodiesel plants worth RM 152 million. The plants, to be located in Johor and Singapore resepectively will be focused on producing biofuels and downstream derivatives. The plants are estimated to have a production of capacity of 100,000 tonnes and may start production by 2007.
   
Investment
Sabah is expected to house the world’s biggest biodiesel plant should planning and investments go through. The plant, slated to cost RM 300 million will be able to produce 300,000 tonnes of biodiesel per annum and would push Malaysian biodiesel into prominence. The first phase of the project is expected to be completed by the end of the year.
 

In other news, Malaysia has poised itself to venture into the international food business. Agriculture and Agro-based Industries Minister Tan Sri Muhyiddin Yassin proposed the purchase of an international food company to put up Malaysian food stuff upon supermarket shelves globally. In addition, the minister also mentioned the huge potential in the halal food trade which is estimated to be around RM7.9 trillion.

  

The Government has allocated RM 500 million for the establishment of the National Food and Agriculture Company. The NFAC, slated to debut in early 2006, will be the hub for agriculture and food-based technologies and is expected to play an active role in the Government’s push in the industry. The formation of the company was announced by the Prime Minister during the 2006 Budget last year.
Policy
Biotech is slated to be the new vogue as economists size up the contribution of the industry. If market trends were to be believed, the industry is showing a global market capitalization of RM2.6 trillion with an annual turnover of RM 189 billion. It’s no wonder the Government is enthusiastic to hop upon the bandwagon. The industry is expected to generate RM 270 billion in revenue by 2020 while creating 280,000 jobs in effect.
 
Industry players are lauding the formation of a Life Sciences fund to help develop the fledging industry. However, they cautioned against bureaucracy and urged for the streamlining of approvals and increased funding. The Malaysian Life Sciences Fund was established by the contribution of RM100 million by the Government in the 2006 Budget.
 

 
Malaysians will begin to hear about a Green Book programme and the Green book campaign should Agriculture and Agro-based Industries Minister Tan Sri Muhyiddin Yassin have his way. The campaign is slated to transform the agricultural sector and model it into a profitable and dynamic modern industry. The campaign is said to be modeled after the Red Book Campaign launched by the Second Prime Minister Tun Razak.