Business Potential for Agricultural Biotechnology - Asian Productivity ...

9. BUSINESS POTENTIAL FOR AGRICULTURAL
BIOTECHNOLOGY PRODUCTS IN MALAYSIA
INTRODUCTION
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Rozhan Abu Dardak
Malaysian Agricultural Research and
Development Institute
Kuala Lumpur
Daud Bin Otheman
Department of Agriculture
Daerah Hulu Langat
Kajang, Selangor
Biotechnology has been shown to contribute significantly to advances in science and technology
as well as to the health, pharmaceutical, agriculture, and biorelated industries. It is said to
be the technology of the 21st century that will drive economic and social development. Lifestyles
in the current and future decades will be increasingly shaped by advances in biotechnology,
for example in the health, environment, manufacturing, and agricultural sectors.
In general, biotechnology is a technique or process which uses science related to living
things—micro-organisms, animals, plants—for solving problems or making products that are
useful to humankind (T.C. Seng, 2003). It has been used for many centuries in food processing,
for example in the fermentation process, and in crop agriculture in selecting breeder seeds.
In Malaysia, the biotechnology industry is relatively new, especially in the agricultural
sector. However, the government has focused on biotechnology since the mid-1990s, as reflected
in the Prime Minister’s recent statement: “Biotechnology has a great potential in Malaysia, and it
could be the catalyst for new growth areas in the country’s economy as well as a source of new
wealth and income for the people” (Prime Minister’s Department, 2004). Biotechnology has
been identified as the new engine of growth for Malaysia. The country’s abundant flora and
fauna provide potentially rich reservoirs of natural resources for health care applications, food
production, and solutions for a clean environment, and it can be useful in many other areas: livestock
farming, the herbal industry, and traditional and modern medicine.
The development of biotechnology as a source of economic growth was championed by
Malaysia’s former Prime Minister Tun Dr. Mahatir Mohamad. This movement aimed to put
Malaysia on the world’s biotechnology map. The Malaysian government launched its biovalley
initiative in 2003 to provide a more integrated environment for the development of the biotechnology
industry, allocating more than MYR100 million (USD26.3 million) for infrastructure and
facilities. The biovalley is expected to attract around USD12.0 billion in investment over the
next 10 years. By 2010, it is anticipated to house more than 250 new companies that can produce
or commercialize biotechnology products, including agricultural biotechnology products.
The concept of the biovalley was modified when the new biotechnology policy was
launched in 2005. Under the new strategy, the development of biotechnology will be spread out
using the concept of a bionexus network, in which the development of biotechnology will be
divided into three main fields: pharmaceutical and nutraceutical, agrobiotechnology, and genomic
and molecular biology. The value proposition of the bionexus network is that it will leverage
on the facilities, infrastructure, and capabilities of existing universities and research institutes.
For example, a Pharmaceutical and Nutraceutical Institute will be established at the present
biovalley site at Dengkil. The Institute of Agrobiotechnology is situated at MARDI, Serdang,