KUALA LUMPUR: Malaysian Bioeconomy Development Corp (MBDC) Sdn Bhd plans to help companies in the Middle East and Africa harness the potential of bioeconomy as a new source of economic growth.
“They have approached us. They want us to develop their bioeconomy.
“We are in discussions, starting with Egypt and Senegal,” said MBDC chief executive officer Datuk Dr Mohd Nazlee Kamal.
Bioeconomy encompasses the production of renewable biological resources and their conversion into food, feed, bio-based products and bioenergy through innovative and efficient technologies.
It offers opportunities and solutions to major societal, environmental and economic challenges, including climate change mitigation, energy and food security and resource efficiency.
Malaysia has established itself as a global player in bioeconomy. It was the first country in Southeast Asia to launch a bioeconomy initiative and the second in Asia after China.
The Malaysian bioeconomy is worth more than US$5 billion (RM20.5 billion) today.
Under the Bioeconomy Transformation Programme (BTP), Malaysia is targeting investments amounting to RM50 billion, creation of 170,000 jobs and a gross national income (GNI) of RM48 billion by 2020.
There are 267 BioNexus companies in Malaysia (152 AgBiotech, 72 BioMedical, 43 BioIndustrial) to help achieve the target.
Between 2008 until the third quarter of last year, these BioNexus companies have generated RM6.7 billion in revenue.
Meanwhile, Mohd Nazlee said there was strong flow of foreign direct investments (FDIs) into the local biotechnology sector.
FDIs reached RM11.6 billion between 2007 and last year and have surpassed RM12 billion today.
Most of the FDIs are from the United States, the United Kingdom, Australia, Belgium, Singapore, Taiwan, India, Belgium, Holland, Germany, Denmark, South Korea, Japan, and France.
“Foreign firms are keen to invest in the biotechnology sector here as Malaysia offers good infrastructure and a strong workforce comprising skilled and non-skilled workers,” he said.
Among the biggest foreign investors in the sector is India’s Biocon Ltd, which is developing Asia’s largest integrated insulin production plant in Nusajaya, Johor.
The US$160 million plant will serve global needs of diabetic patients for affordable insulin and insulin analogs.
French group Arkema and its South Korean partner CJ CheilJedang are investing US$450 million in a plant in Kerteh, Terengganu, to manufacture L-methionine, an amino acid commonly used in animal feed.
MBDC recently announced that it was joining forces with France-based industry association Cosmetic Valley to develop a RM500 million customised cluster model Langkawi Cosmetic Island in Kedah.