Malaysia needs to tap local and foreign expertise to increase the share of local country’s herbal market, which currently stands at only 5 percent.

Nona Roguy Sdn Bhd Managing Director Hamzah Abu Al Haj said of the estimated RM2 billion Malaysian herbal market in 1999, only RM100 million was locally produced while the remainder was imported from overseas.

He said Malaysia should increase the percentage of local content in the Malaysian herbal market to 15 percent in 2005 and 48 percent by 2010.

" The global market for herbal products is estimated to be worth US$80 billion (US$1= RM3.80) in 2000, and will increase to US$200 billion in 2008 and US$5 trillion in 2050. Assuming we capture just 1 percent of the global market share would translate to a RM190 billion industry," he said.

Speaking at a Seminar on Investment Opportunities in the Agriculture Sector yesterday, Hamzah said Malaysia is among the world in terms of biodiversity, the fourth largest in Asia.

"Malaysia is home to more than 10 percent of all plant species and the oldest rainforest in the world ," he added.

Hamzah said among the strengths of Malaysia’s herbal industry include diversity of genetic resources, excellent tropical resources, excellent tropical climate, increasing research and development (R & D) interest, increasing demand for specialty natural products, and indigenous knowledge.

Among the industry’s weaknesses,however include shortages of local raw material and lack of large scale cultivation activities, domestic grading and standard, technological mechanisation, skilled human resources and scientific evidence for health related claims.

" There are opportunities for development of new and improved products, development of new and improved processing technologies, and use cell culture technology," Hamzah said.

He said possible strategic moves to strengthen the domestic herbal industry include smart partnerships with existing local players, collaboration research institution and with foreign players.

MALAYSIA HERBAL MARKET

Source: Business Times, 25/4/2000