PETALING JAYA: Japan Bio Products Co Ltd (JBP) and Reyoung Bio Sdn Bhd will invest RM1 billion in Malaysia's healthcare and wellness industry over the next five years.
The investment comprises establishing up to eight JBP centres in key cities nationwide, in addition to a 100,000-square-foot manufacturing facility in Selangor, according to Reyoung Group chairman Stephen Wong King Siong.
Wong told Business Times that JBP will head a joint venture that is set to be formed soon for the purpose.
The JV company will look for strategic sites in Selangor (three locations), Johor, Kuantan, Penang, Kuching and Kota Kinabalu to set up the JBP centres.
"We are currently looking for the ideal location for the manufacturing facility, but Selangor will probably be the choice. Since it's biotechnology, it needs to be green, environmentally friendly and logistically feasible," he said.
According to Wong, the manufacturing plant is anticipated to start operation in 2025, and the products will be exported to countries in Southeast Asia.
He explained that there are two possibilities for the plant: either the joint venture company will buy an existing factory or begin construction from the ground up.
"The global market for health, wellness and beauty is growing, so we want to get started as soon as possible. Even before the pandemic, the industry was expanding by double digits, making this a lucrative venture," he said.
Reyound Bio has exclusive product distribution rights in Malaysia for JBP's range of supplements, medicines, cosmetics and medical devices.
Both parties signed a Memorandum of Agreement (MoA) here today.
They also jointly established the first JBP centre in Selangor, located on Jalan Gasing in Petaling Jaya.
Japan has been Malaysia's fourth-largest trading partner for eight consecutive years since 2015.
In 2022, the trade volume between Malaysia and Japan accounted for 6.4 per cent of the country's total trade, reaching US$41.26 billion (RM181.73 billion).
Malaysia is expected to receive over US$30 billion in foreign direct investment (FDI) from Japan this year.
Wong said the partnership with JBP, a 70-year-old company that pioneered stem cell technology, took two years to form.
He said JBP had decided to invest there because "Malaysia is one of the world's largest halal hubs and an environmentally friendly country."
"For Chinese tourists, Malaysia is the best country in Southeast Asia. JBP will use Malaysia as a springboard to grow throughout the Southeast Asian region," he said.
Wong added that in five years, Reyoung Bio plans to launch an initial public offering for further expansion in the healthcare and wellness industry.
Frank Hong Seok Lim, chief executive officer of JBP, said the collaboration is a significant milestone for the Japanese firm.
"We are delighted to bring JBP's quality products and services to Malaysia, thereby enhancing the economic output of the healthcare sector in both countries," he said, at the opening of the JBP centre and MoA signing ceremony.