Economic development: Malaysia plays catch-up for biotech business

As the worldwide biotech industry is predicted to top $1 trillion by the year 2015, many countries are scrambling to grab a piece of the action. And Asia has presented itself as the hot new area for companies to take their biotech business. Hoping to capitalize on these trends, Malaysia has made a number of moves this year to position its biotech industry to take advantage of this growth.

Yesterday, Malasyia’s Prime Minister Datuk Seri Abdullah Ahmad Badawi outlined the country’s efforts at the Malaysia Bio Industry Organization (MBio) 2006 meeting. Malaysia has launching the BioNexus, the $150 million Malaysian Life Sciences Capital fund, venture capital agencies, tax breaks and other incentives to attract business.

But despite the fact the country has poured money and resources in to this push, it may still lack the power to attract the most important ingredient: human capital. Biotech salaries in Malaysia can’t compete with those offered in Singapore, Malaysia’s neighbor and rival. Singapore has emerged as one of the most active pursuers of biotech business, and salaries for biotech positions can be five times higher there than in Malaysia. That’s a tough difference for Malaysia to overcome.

Rather than use the same approaches Singapore is employing to draw in biotech, the Prime Minister said Malasyia will focusing on a different tactic. "It is not just about placing the big companies here to operate. Our approach is different. I believe we have the strength to do a lot of things and develop our own biotech companies with unique strengths and products that have comparative advantages." Malaysia is hoping to specialize in nutraceuticals and traditional medicines based on local natural resources. The country aims to establish 400 home-grown biotech companies by 2010.

For more on Malasyia’s biotech moves:
- read this report [1]
- and this article [2]