KUALA LUMPUR: Malaysia’s foray into the multi-billion ringgit biotechnology sector is entering its final and most crucial phase this year in becoming a major contributor to the economy.
The National Biotechnology Policy (NBP), introduced in 2005, has completed the first two phases — Capacity Building (2005-2010) and Science to Business (2011-2015) — with the third phase, developing Global Business, to start this year and ends 2020.
The NBP aims to further develop three economic sectors, namely agriculture, healthcare and industrial manufacturing.
To date, the policy had contributed an estimated RM20 billion to national revenue and RM29.1 billion to investments, said Malaysian Biotechnology Corp (BiotechCorp) chief executive officer Datuk Dr Nazlee Kamal in an email interview.
It increased the number of jobs in the bio-based industry by 54,776 in the first phase and 84,000 in the second phase, for a total of 138,776 jobs created.
“The NBP contributed 2.2 per cent to gross domestic product (GDP) by end-2010. With the introduction and implementation of bioeconomy initiatives, the bioeconomy contribution to GDP is expected to be eight to 10 per cent in 2020,” said Nazlee, who was appointed to the BiotechCorp board in 2011.
He said foreign direct investments (FDIs) in the local biotechnology sector had been on the rise, reaching RM11.6 billion between 2007 and 2015.
“Most of these investments are from the United States, the United Kingdom, Australia, Belgium, Singapore, Taiwan, India, Belgium, Holland, Germany, Denmark, South Korea, Japan, and France,” said Nazlee,
In gearing up for the final phase of the NBP, BiotechCorp has identified several key strategies to transform Malaysia into a world-class bio-based hub.
“The first is to create a global market access for BioNexus-status companies as we believe we can achieve this by focusing on our entrepreneurship programmes like BioNext, BioNexus Go Global and BioShoppe, as well as continuing our global engagement by leveraging our San Francisco office,” said Nazlee.
The second strategy is to strengthen the bioeconomy value chain through continuous implementation of the Bioeconomy Transformation Programme (BTP) and Bioeconomy Community Development Programme, which will contribute to Malaysia’s gross national income (GNI), provide job opportunities and attract more investments.
In the works are plans to improve the bio-based industry ecosystem via engagements with several organisations, such as the National Science Council and the National Bioeconomy Council, as well as through key events like GSIAC, Bio-IAP, BioMalaysia, Asean Bioeconomy and Bioeconomy Day.
Nazlee, who was instrumental in the establishment of Inno Biologics Sdn Bhd — the first contract manufacturing organisation for biopharmaceuticals in Malaysia, said another important strategy would be to increase the number of professionals and companies in bio-based industry.
“We are looking to achieve this by creating more bio-based industry start-ups through BioNext and the QB3 BioEntrepreneurship programme, as well as enhancing the roles of the Bioeconomy Academy through programmes such as MBA Bioeconomy and BioCareer.”
BiotechCorp also plays a big role in the biotechnology small and medium enterprises (SME) landscape through its BioNexus-status companies, which have contributed significantly to the country’s bioeconomy.
“The number of BioNexus companies has increased from five companies in 2006 to 267 with AgBiotech making a lion’s portion of it with 152 companies, followed by BioIndustrial (43) and BioMedical (72),” said Nazlee.
“These companies have generated RM6.54 billion worth of approved investments and some of them have been actively involved in export activities,” he said.
There are 76 BioNexus-status companies that have foreign interest and accumulated approved investments amounting to RM2.92 billion.
These companies have created 10,718 jobs and contributed 3,735 knowledge workers to the local bio-based industry. From 2008 until the third quarter of last year, BioNexus-status companies generated RM6.7 billion in revenue.
“BiotechCorp has been revving up its strategy to strengthen and enhance the presence of BioShoppe, which has more than 300 store-keeping units (SKUs) from about 50 BioNexus-status companies. We now have three physical stores across Malaysia and recently partnered online shopping website Lazada,” said Nazlee.
“In terms of marketing BioShoppe products overseas, we have taken the initiative to showcase some of the products overseas, including at Expo Milano in Italy in June last year. This was part of our strategy to enhance the exports of BioNexus-status companies, especially to the European market,” he said.
The feedback from the European stakeholders was favourable and Nazlee is hopeful that more European companies will invest in BioShoppe’s wellness and cosmetics business.
In the meantime, BiotechCorp is working towards establishing a BioShoppe flagship store through Public Private Partnership and franchising.
“Ultimately, bioeconomy is to benefit the rakyat and enrich their lives as it provides the opportunity for people, including farmers, agro-preneurs and bio-entrepreneurs, to increase their income and help their children secure the future,” said Nazlee.
“This is aligned with the 11th Malaysia Plan, which focuses on people’s well-being and high-income achievement through inclusive and sustainable development. The growth of Malaysia’s bioeconomy will ensure the success of the final five years of Malaysia’s push towards becoming a high-income advanced economy by 2020.”