LETTERS: The Science, Technology and Innovation Ministry recently announced ambitious plans to generate RM400 million within the next three years through the sale of locally produced biotechnology products, from natural resources in Malaysia.
While this highlights the potential of the sector, we must go beyond agro-based biotechnology products and think bigger.
The global biopharmaceutical market is booming, and Malaysia, with its strengths in pharmaceutical manufacturing, is well-positioned to become a regional leader in biopharmaceutical products, if we are willing to make the necessary investments.
This means going beyond the small-molecule chemical-based generic drugs, which are our main focus now, and setting our sights on high-value biopharmaceuticals, like vaccines, biosimilars and other advanced therapeutics.
Some of these biopharmaceutical products are used for treatment of cancer, diabetes and other chronic diseases. This will require a bold and multi-pronged approach.
First, attracting significant investments is crucial. Biopharmaceutical manufacturing demands substantial capital investment, far exceeding that of traditional small-molecule production. For example, Biocon Sdn Bhd, Asia's largest integrated insulin manufacturer, invested over US$350 million in its Malaysian facility.
To attract similar investments and encourage local companies to move up the value chain, a comprehensive incentive package involving multiple government agencies is needed. This could include tax breaks, grants, subsidised land and streamlined regulatory processes.
Second, government procurement can be a powerful tool to support this essential and growing industry. By prioritising locally manufactured biopharmaceuticals in government tenders and healthcare programmes, we can create a stable and substantial market for these products.
This guaranteed demand provides a safety net for investors, de-risks large capital outlays, and allows companies to achieve faster returns on investment. It also creates a ripple effect throughout the economy, driving high-knowledge job creation, technology transfer and increased tax revenue.
Third, having a local biopharmaceutical industry will provide security of affordable biosimilars for patients. Biopharmaceutical medicines are generally about 50 per cent cheaper than the original biologics.
Studies in the United States and Europe show that biosimilars have contributed huge savings for government healthcare and patients' out of pocket expenses.
Finally, we must address the need for a highly skilled workforce.
Beyond simply nurturing local talent, we need to attract and retain top-tier scientists, engineers and regulatory experts.
This requires competitive salaries, world-class research facilities, and a supportive environment that encourages innovation and collaboration.
Malaysia has the potential to be a major player in the global biopharmaceutical market. By combining strategic investment, smart procurement policies and a focus on developing a world-class workforce, we can elevate our pharmaceutical manufacturing industry from "Malaysian made" to "Made in Malaysia, for the World".
SHARVIN A. SUBRAMANIAM
Senior policy manager, Malaysian Organisation of Pharmaceutical Industries, Petaling Jaya, Selangor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times