Business Potential for Agricultural Biotechnology - Asian Productivity ...

Business Potential for Agricultural Biotechnology Products
billion with 11% growth (SIRIM, 2004). Malaysia also exports products like beauty cream and
skin care items to Singapore, Hong Kong, Thailand, Japan, and Australia.
Table 3. Imports by Selected Commodity of
Agricultural Produce (2001), Malaysia
Item Value
(USD’000)
Soya sauce 36,870
Corn (grain) 50,800
Corn (starch) 5,463
Corn (oil) 236,137
Corn flake and prepared food 134,454
Total 463,724
The production of orchids via tissue culture is another example of activities carried out by
SMEs with an eye to the potential market. Annual production of orchids via tissue culture alone
was been at USD13 million for 2003, of which USD8.7 million was for the export market.
The production of herbal products as food supplements and for medicinal use also shows
tremendous market potential. The annual local market for herbal remedies is valued at USD789
million. The strengths and weaknesses of the biotechnology industry are analyzed in Table 4.
Table 4. Strengths and Weaknesses, Opportunities and Threats in the Biotechnology
Industry, Malaysia
Strengths Weaknesses
Strong financial support, R&D Lack of expertise in biotechnology
facilities, and incentives
High priority in biotechnology
R&D in government institutions
and universities
Government has identified biotechnology
as a core technology
to be given priority
Private sector is reluctant to invest in
R&D and industries based on biotech-
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nology
Lack of molecular and genetic information
on crops important to the
country
Opportunities Threats
Increased demand for biotech- Opposition to genetically engineered
nology products and services products
Growing business opportunities
for specialized agricultural products
to meet increasing demand
INCENTIVES FOR THE BIOTECHNOLOGY INDUSTRY
To spur growth and further development of the biotechnology industry, the government
offers attractive investment incentives to local and foreign-owned companies:
• For high-tech companies, pioneer status with full tax exemption of statutory income for
five years or an investment tax allowance of 60% on qualifying capital expenditure for
five years to be offset against 100% of the statutory income.
• For strategic projects, pioneering status with a full tax exemption of 100% of statutory
income for 10 years or an investment tax allowance of 100% on qualifying capital
expenditure for five years to be offset against 100% of the statutory income.
• Incentives for R&D.