KUALA LUMPUR: Integrated health supplement company Bioalpha Holdings Bhd's (BHB) wholly-owned subsidiary, Bioalpha Wellness Sdn Bhd (BWSB), signed a manage and operate agreement with the Langkawi Development Authority (LADA) to develop an agro park in Langkawi, Kedah.
BHB group managing director William Hon said this innovative partnership with LADA aims to advance Langkawi's status as a prominent tourist destination by establishing the Langkawi Agro Park.
"Endorsed by LADA, we are confident that the agro park will be an exciting complementary addition to the island's existing places of interest, boosting tourist arrivals," he said in a statement.
LADA is an agency under Malaysia's Ministry of Finance tasked to propel the tourism economy of Langkawi to advance the island to become a world-renowned tourist destination.
"We aim to tap into our agricultural expertise to promote and educate about Malaysia's high-value herbs to both local and international tourists.
"Our goal is to create a holistic edutainment experience for visitors, where they can gain greater cultural and learning awareness through the activities," Hon said.
Beyond commercial benefits, this project is set to stimulate the local economy by creating more than 100 direct job opportunities for Langkawi residents.
BHB will also engage local farmers to procure herbal raw ingredients to produce herbal-based products.
The company intends to produce a range of more than 100 high-value herbal-based products.
This initiative also facilitates knowledge transfer and sharing herbal and cultivation insights and skills with the local community.
These positive impacts are expected to contribute to the island's sustainable development, creating a ripple effect that enhances economic activity throughout the local community.
The park will be built on an 8-acre land in a prime location at Padang Matsirat, approximately 1 km from the Langkawi International Airport.
LADA, as the landowner, will grant BHB the land use rights for 30 years, effective from the signing date.
BHB's scope is to develop the agro park, and upon completion, it will undertake the management and operations of the park.
The company plans to develop the park, showcasing the integrated facility encompassing the full spectrum of the supply chain, from herbal farming and research and development (R&D) to product processing.
The agro park will be capable of catering to international meetings, incentives, conferences and exhibitions (MICE) events about herbal farming and agriculture.
Development of the park is slated to commence immediately, with the park opening targeted in three years.
The estimated investment of RM15 million by BHB will be funded by internally generated funds and bank borrowings.
As of December 31, 2022, BHB has cash balances of RM39.8 million.
"We are eager to commence work and expect contributions from the park starting in 2027.
"With a diverse range of attractions, we are confident that the public will enthusiastically embrace the park," Hon said.