Business Potential for Agricultural Biotechnology - Asian Productivity ...

Business Potential for Agricultural Biotechnology Products in Malaysia
estimated to be around USD10,323, an increase of 9.3% compared to 2003. Domestic expenditure
is expected to grow by 4.6%. These indicators show a favorable domestic market potential
for biotechnology products, including agro-based biotechnology products. These include health
care products, pharmaceuticals, cosmetics and toiletries, food products, and ornamental plants. It
was estimated that the total domestic market value for these products is around MYR14 billion
(USD3.6 billion). Estimating agrobiotechnology products to be around 10% of this, its value will
be around MYR1.4 billion per year (Table 2).
Table 2. Domestic Market Value for Selected Sector
Products (estimated, 2004), Malaysia
Item
Health care (including pharmaceutical
Value
(MYR’000)
products and medical devices) 3,428.000
Nutraceuticals 2,000,000
Aromatics products 50,000
Cosmetics and toiletries 1,400,000
Ornamental plants 100,000
Food (including food supplements) 7,000,000
Total
Source: Zainal Abidin., 2004
13,978,000
The biotech industry is dominated by small- to medium-sized companies. Only a few larger
companies are involved in biotechnology; most of them focus on plant tissue culture. Currently
there are about 100 companies registered with the Malaysian Biotechnology Directorate under
the Ministry of Science and Innovation. Of these, 20 are involved in the agricultural sector.
However, there are about 50 companies that utilize biotechnological processes, primarily in food
production, herbal products, and pharmaceuticals (Malaysia, 2005). There is still great potential
for SMEs and large-scale firms in this industry. The newness of this industry is also an advantage
because as a pioneer, a company has the opportunity to spearhead the business.
With 15,000 species of flowering plants, 1,100 ferns, and 100 species of herbal and medicinal
plants, Malaysia has a diverse biosource that is still untapped. These flora and fauna can be
exploited for health care applications, increased food production, and protection of the environment.
The rich biodiversity is ripe for the exploitaton of materials to be used as new food ingredients,
including nutraceuticals, and for bioprospecting new food biocatalysts and bio-ingredients
that will diversify the end uses and enhance the value of food products. There are also
many other areas of food processing and production where biotechnology processes can play a
role.
More than a million tons of agricultural products are imported and used each year that are
produced using agrobiotechnology practices: soybeans, wheat and meslin, malt, maize, and corn.
The amount of agricultural produce imported from the U.S., South Africa, Argentina, and Brazil
increases every year, as shown in Table 3.
Other agrobiotechnology products produced and marketed in Malaysia include food and
health-related herbal products such as tongkat ali (Eurycoma langifolia), pegaga (Centella
asitica) and anoni, cosmetics and toiletries, aromatics, pharmaceuticals, nutraceuticals, tissue
culture plants (oil palm, rubber, orchids, herbal plants), biodiagnostics, industrial enzymes, and
bioactive compounds for health care. These products enjoy a large market and can be produced
locally. There is tremendous potential for growth in the industrial sector, especially for cosmetics
and toiletries, due to the abundance of natural resources like palm oil and herbal plants
and other natural biodiversity. The local cosmetics market is valued at approximately MYR1.4
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