Herbal Industry To Grow At 15 Per Cent

KUALA LUMPUR, Nov 26 (Bernama) -- There is a great potential for growth in the local herbal industry market, which is estimated to grow at 15 per cent per annum, with the market value rising from RM7 billion in 2010 to some RM29 billion by 2020.
Health Minister, Datuk Seri Liow Tiong Lai, said herbal products currently made up less than 10 per cent of Malaysia's exports of medicine and the number was growing.
"The country's exports of medicine currently stand at over RM400 million and are expected to hit RM600 million by year-end," he said at the media briefing on the 5th Global Bio-herbs Economic Forum here today.
Liow said the local herbal industry has attracted many multinational companies (MNCs) from the West to come to Malaysia to set up joint corporations with the local entities to conduct research and development.
He cited Novartis of Switzerland as an example, which has signed a memorandum of understanding (MOU) with Sarawak Biodiversity Centre and Malaysian Biotech Corp to explore bioactive compounds from natural resources.
The MOU also gave Novartis a chance to leverage on Malaysia's biodiversity for the development of novel medical opportunities, he said.
Liow said the herbal industry has big potential.
"As far as I know, there are a few (MNCs) in the country. At the moment, I can see Novartis is working with the Sarawak State Government in this area in Sarawak, looking into herbs and identifying certain herbal products.
"Once you turn these into medicine, you can export it," he said.
He said the global trade of natural products has been reported to amount to RM777 billion in 2006 and was projected to triple to over RM2 trillion by 2020.
Liow said the herbal industry has become a powerful engine of economic growth, due to demographic shifts such as extended longevity as well as greater affluence and changing life style.