Malaysia forecasts growth for its biotechnology industry
At an average rate of 15% a year, according to Frost & Sullivan
The biotechnology industry in Malaysia is expected to grow at an average rate of 15% a year, according to Frost & Sullivan.
The country's rich biodiversity, multi-ethnic population, lower cost, regulatory support and financial incentives, such as tax incentives and funding schemes, are favourable attributes in promoting the country as a biotechnology hub, says F&S.
By 2020, the Malaysian government envisages that the biotechnology industry will employ up to 160,000 people and contribute to 5% of the country's GDP. Healthcare revenue will experience the a compound annual growth rate of 20%, followed by agriculture (15%) and industrial (10%).
"By 2013 the industry is expected to generate RM45bn (US$12.7bn; £7.8bn) in revenue," says Frost & Sullivan's global vp for pharmaceuticals, Rhenu Bhuller.
Malaysia has launched five regional economic channels for growth: the Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sarawak Corridor of Renewable Energy (SCORE), Sabah Development Corridor (SDC) and Iskandar Malaysia. These corridors aim to encourage companies seeking new growth opportunities in healthcare biotechnology and its implementation.
The Malaysian government and BiotechCorp are working towards meeting the challenges that the nascent Malaysian biotech industry faces in terms of technology - moving from lab-based research to commercialisation, as well as meeting human resource needs. In the short term, these challenges are holding back the sector, but programmes such as technology acquisition and transfer as well as educational needs are being looked into to meet these challenges.
The Malaysian government has set up BiotechCorp to support the development of Malaysian companies in the biotechnology sector. A key focus for BiotechCorp in moving forward is commercialisation, which may come in the form of technology transfer and licensing. This will ensure that IP rights are fully protected in collaborations and partnerships that seek to commercialise r&d.
"This is the time to strengthen the private-public sector partnership and scientific collaborations between Malaysian centres of excellence and global companies that could further grow the biotech business when things turn around," added Bhuller.
Deals in the Malaysian biotech industry in 2008 included Enzyme Technology Sdn Bhd and Insect Biotech of Korea forming a partnership to establish an industrial enzyme manufacturing facility in Malaysia. BiotechCorp acquired technology for the supercritical fluid extraction of natural substances that occur in plants from Dutch company, FeyeCon. Agricultural biotechnology saw the largest number of partnerships between local and foreign companies, ranging from genome technology to microbial research.
In addition Hovid Berhad bought a controlling stake in Biodeak Pharmaceuticals. Starting out as a single product company in 1945, Hovid today has 12 global patents and a presence in 40 countries worldwide. The company set up another unit, Carotech Bhd, which started production in 1995 and has since become a leading supplier of phytonutrients worldwide, with the US, Europe, Japan and Australia its main markets.