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AgBiotech & Medical

The East Coast Economic Region (ECER) Secretariat believes that Malaysia has the potential to be a herbal hub of the region with its aims of increasing its herbs production by sixfold in 2020. The total area cultivation would rise to 10,000 up from 2014 ha currently, while four areas of herbal parks have been identified for cultivation, processing and manufacturing purposes. These include the Herbal and Biotech Park in Gua Musang, a satellite farm in Jeli, a herbal park in Lanchang by Felda, a herbal garden in Raub by Technology Park Malaysia and a herbal park in Dungun by Ketengah. Similarly, the ECER also plans to help Malaysia end rice imports by the year 2015 by setting aside RM68.3 million to establish a rice bowl in the ECER through subsidising compund fetilisers, level lands and enhancing agriculture infrasturcture.

 
             

A new bill has been proposed for next year to combat counterfeit medicine with stiffer penalties including mandatory jail time awaiting offenders as authorities step up their game in combating the rash of incidences. During an industry roundtable with representatives from various government and global pharmaceutical organisations have called for stricter regulation and more effective mechanisms against fake medicine. The value of seizures of counterfeit medicine in the Malaysian market last year amounted to RM35.8 million compared with RM25.9 million in 2004.

 
Industry

 

Malladi Drugs & Pharmaceutical Ltd of India of India plans to invest up to US$300 million over the next 3-5 years to set up a global hub in Malaysia. Known to manufacture drug substance known as Active Pharma Ingredient (API), the company intends to make Malaysia its global hub for API manufacturing while helping to employ and train Malaysian talents for this highly specialised and sought after field. Malladi handed over its business plans to Biotech Corp on the first day of BioMalaysia 2008 in Kuala Lumpur.

One of the first seven companies to be awarded BioNexus status, KL Biotech Manufacturing Sdn Bhd has taken steps in ensuring their products would be well-received in US and EU markets. Producing 10 varients of herbal teas under the Biohealth label, and an antioxidant supplement called Actemax Maxplus, the company is now attempting to penetrate the international market by meeting up to the high standards of regulators from these markets. Research on DNA fingerprinting which will help it distinguish plants based on polymerase chain reactions will ensure a method of standardisation which will allow consistency of herb-based products.

             
Policy

Demands on biofuel production would see palm oil prices increase dramatically if current trends continue, according to executive chairman of the Indonesian Palm Oil Association, Derom Bangun, during a Globoil conference in Mumbai. According to Bangun, the use of pal oil would increase as Indonesia and Malaysia attempt to encourage the use of biodiesel. Indonesia has issued a ministerial decree to make the use of biofuel mandatory in 2009. Similarly, the decision to use 5% blend in diesel powered public transport vehicles in Malaysia would shore up palm oil prices in the country.
 

Prime minister Datuk Seri Abdullah Ahmad Badawi believes that biotechnology would be the main driver of the development of the Malaysian economy while improving the quality of life of Malaysians. During his keynote address in BioMalaysia 2008 conference and exhibition in Kuala Lumpur, the Prime Minister also stressed that the aim and spirit of the national biotechnology policy would concentrate on agriculture, industrial, medical and pharmaceutical. Similarly, the Malaysian biotechnology industry is expected to expand by 22% annually driven by the development of oil palm.

 
A RM1.5 billion fund released by Malaysian Debt Ventures which will be used to finance ICT companies, with the rest will go towards to funding biotechnology companies. MDV which is a subsidiary of the Minister of Finance Inc will provide the fund as an alternative to the current existing financing conventions. The plan would be a 15 year programme by which there would be two issuances of RM500 million and RM 1 billion respectively accodring to market conditions.