Malaysia - A thriving bioeconomy destination in APAC

Global issues like the COVID-19 pandemic and climate change as well as rapid technology development have opened up important opportunities in the Malaysian bioeconomy.

We have seen a significant boost in the biopharmaceutical business, thanks to the growing world demand for diagnostics, vaccines, medical supplies, and services, as well as personal and healthcare products. Furthermore, the increasing awareness in sustainability has also driven the bio-based business in sectors such as agriculture, healthcare, and industrial, with companies finding alternative, eco-friendly solutions to everyday living, including producing biodegradable packaging, sustainable feed, as well as smart farming.

International players can expect these areas in bioeconomy to continuously thrive in Malaysia, especially with the presence of emerging local startups and early stage SMEs in the biotechnology and bio-based industries. In this matter, Bioeconomy Corporation is nurturing and facilitating them to scale up their growth, encourage technology adoption, and strengthen their business strategies through the Biobased Accelerator Programme (BBA). We also have plenty of local talents, knowledge workers, biological resources, tax incentives, and strong government support through Bioeconomy Corporation to cement Malaysia’s position in the global bioeconomy.

Attracting investments

One of the main support services that Bioeconomy Corporation provides is nurturing companies with the BioNexus Status, an award given by the Malaysian government to qualified biotechnology and bio-based companies in the healthcare, agriculture, and industrial sectors. These companies enjoy fiscal incentives, facilitation, and other guarantees from Bioeconomy Corporation to assist their growth.

BioNexus Status companies continue to be the fuel that drives the growth and success of bioeconomy in Malaysia. Despite the COVID-19 pandemic, 250

BioNexus Status companies recorded total realised investments worth over $964 million (RM4 billion) in the second quarter of 2021, which is a nine per cent increase compared to the second quarter of 2020 ($892 million/RM3.7 billion). Out of these, $361 million (RM1.5 billion) were recorded as foreign direct investments (FDIs) in the second quarter of 2021, which is a 71 per cent increase compared to the same period in 2020 ($215 million /RM891.8 million). There was also a seven per cent increase of knowledge worker employment among the BioNexus Status companies in the second quarter of 2021 (over 1,700 knowledge workers) compared to the same quarter of 2020 (over 1,600 knowledge workers), most notably in the agriculture biotech (AgBiotech) sector. This shows the need for knowledge workers in critical sectors like AgBiotech, which plays an important role in addressing food security and production in the face of crises such as COVID-19.

Besides BioNexus Status companies, Bioeconomy Corporation also facilitates high impact FDI bioeconomy projects in the BioIndustrial and Healthcare Bio sectors, including Biocon’s integrated manufacturing and R&D facility for insulin in Malaysia, one of the largest in

Asia. These projects recorded a total of $1.1 billion (RM4.7 billion) realised investments as of 2020. This is a testament to the resilience, competitiveness, and strength of the BioNexus Status companies and high impact projects in attracting FDIs and providing job opportunities in these challenging times.

National Bioeconomy Blueprint 2021-2031

Bioeconomy Corporation is in the midst of finalising the National Bioeconomy Blueprint, which will serve as a foundation for further growth and opportunities in Malaysia’s bioeconomy from 2021 until 2030. With this blueprint in place, industry players - including those from the public and private sectors as well as local and international players – can expect new strategic directions and action plans that include identifying emerging sectors and technologies to further grow their business in Malaysia’s bioeconomy. This is aligned with the Malaysian government’s policies and vision to embrace new technologies, provide more diverse job opportunities, and address pressing issues and challenges to drive the country’s economic growth.

Through the blueprint, we are not just seeking to grow bioeconomy in Malaysia - we wish to see its benefits spread out and reach other parts of the globe. We look forward to cooperating with more global partners to explore untapped value-added bio-based and biotechnology activities that can bring significant impact to economic, social, and environmental development around the world.”