Malaysia: Rethink nation's bioeconomy strategy

Malaysia: Rethink nation's bioeconomy strategy

It was more than two decades ago when the country first became serious about
using biotechnology as another viable platform to drive growth. Many around
the world hailed the sector as the new economic wonder. The concern over
climate change and the search for greener solutions were some of the factors
driving global interest in biotechnology. A Directorate of Biotechnology was
established under the then Science, Technology and Environment Ministry to
chart the direction for the nation's bioeconomy ambitions.

In 2005, the National Biotechnology Policy was launched to drive the
nation's biotech agenda, designed to deliver another important revenue
stream for the country. The end-game was to make biotechnology industry
another key economic engine of growth. The nation's Biotechnology
Corporation was given the task to implement the decisions articulated in the
policy. Its job was to sow the seeds that would sprout into the nation's
future biotechnology industry. The strategy adopted then was to attract and
use foreign investments to spur the growth of domestic biotech firms.
Incentives include giving bionexus status to recognised biotech companies,
enabling them to enjoy access to grants and soft financing.

It all started well. Many foreign investors announced keen interest. A
number promised to invest billions in the country. Many in the country
became convinced of the bright career prospects in biotechnology, and the
promise of lucrative job opportunities. As expected, many students were
coaxed by their parents to take up biotechnology. Universities, both public
and private, took advantage of the growing demand. The number of programmes
with the biotechnology name saw noticeable increase. As expected, the number
of biotechnology graduates in the country soon witnessed a big jump. Add to
that, the number returning from overseas, it was no surprise that the number
of graduates looking for jobs in biotechnology literally ballooned.

Unfortunately, the demand could not be matched by an industry still in its
infancy. The growth of the local biotechnology industry did not materialise
as planned. Much of the promised foreign investments was not delivered. Many
of the bionexus firms did not make much headway either. The promised jobs
were not there. As a result, many among the biotechnology graduates ended up
working elsewhere. Many in fact ended up selling credit cards!

Notwithstanding that misfortune, biotechnology is still seen as a discipline
that promises new business opportunities for the world. What is needed is to
rethink the nation's strategy to build and sustain the biotechnology
industry. We need a new approach.

We need an integrated national programme to build not only business
leadership, but also technology strengths in the field. In the past, the
focus was too much on business. Technology development was largely ignored.
We were also overdependent on foreign investment. There was no concerted
effort to build our own indigenous capacity for both technology and
business.

Take the project on biomass, for example. Duplication is rampant. No less
than four government entities are involved in the oil palm biomass project.
And, they do similar things. No wonder the progress has been poor. What we
need is a national programme involving the many relevant institutions
working together to build global leadership in biomass technology which we
can later export.

It is not impossible. South Korea has done it for electronics, ship
building, nuclear technology and many more. Biotech Corp can be the driver.
But, this time, it must involve the others, especially universities, the
National Institute of Biotechnology Malaysia, Malaysia Palm Oil Board and
other technology centres. The national programme should not be limited to
biomass. We must look at other potential business areas, including plant
based biopharma, insect biotechnology, and even bioreactor technology for
producing palm oil, rubber and cocoa.

Yes, it is long term. Existing entities that struggle to be relevant, such
as Inno Biologics Sdn Bhd, can be partners. A new strategic plan is needed
to effect the overhaul. Only then can we truly deliver the promised jobs in
biotechnology. Only then can we truly harness biotechnology as a new
economic growth engine for the country.

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Ref:
http://www.nst.com.my/news/2016/11/186091/rethink-nations-bioeconomy-strateg
y

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com