This article first appeared in Digital Edge, The Edge Malaysia Weekly on March 24, 2025 - March 30, 2025

In research labs across the country, scientists are experimenting with biofertilisers that could enhance agricultural productivity, mapping the genetic blueprint of rubber trees and refining oil palm waste for biofuels. At the same time, policymakers are making big bets on biotechnology, seeing it as the next frontier for economic growth.

With the National Biotechnology Policy 2.0 (NBP 2.0), launched in September 2022, the country is working towards becoming a regional powerhouse in bio-based industries, from sustainable agriculture to healthcare innovation.

But as neighbouring countries like Thailand and Indonesia ramp up their own biotech efforts, Malaysia faces a pivotal question: can it turn its scientific advantages into a globally competitive industry?

Datuk Dr Lee Boon Chye, chairman of Bioeconomy Corporation, is confident this can happen. “Malaysia has several advantages compared to its Southeast Asian neighbours in sectors like agricultural biotechnology and food security. For instance, two areas that are mature and very well developed are the oil palm and rubber sectors.”

Last year, the Ministry of Science, Technology and Innovation (Mosti) had aimed for a revenue contribution of RM2 billion to the country’s gross domestic product (GDP) from biotechnology and bio-based industries. Between January and May 2024, Malaysia’s biotech and bio-based sectors recorded RM1.5 billion in revenue and attracted RM838 million in new investments, signalling strong interest.

Yet, turning policy into profit remains a challenge. The Bioeconomy Corporation, tasked with leading this charge, must navigate industry fragmentation, talent gaps and global competition.

Established in 2005, the Bioeconomy Corporation is the dedicated economic development agency for biotechnology and bio-based industries in Malaysia. Its role includes executing the objectives of the National Biotechnology Policy (NBP), identifying value propositions in both research and development (R&D) and commerce, and supporting these ventures via financial assistance and developmental services.

Concurrent with the founding of the Bioeconomy Corporation in 2005, Malaysia launched the first iteration of the NBP to advance the agriculture, healthcare and industrial manufacturing sectors and foster a collaborative ecosystem among scientific, academic and business stakeholders.

The NBP was envisioned to be executed over three phases: Phase 1 for capacity building (2005-2010), Phase 2 on science to business (2011-2015) and Phase 3 to develop global business (2016-2020).

“The current landscape of biotechnology in Malaysia is dynamic and rapidly evolving across these sectors, driven by NBP 2.0 as well as a strong focus on sustainability, innovation and national priorities, including agricultural biotechnology, food security initiatives, healthcare and well-being, biotechnology R&D and renewable energy,” says Lee.

In the agricultural biotechnology and food security sector, biotechnology-driven farming practices are becoming increasingly common. These include the use of biofertilisers, precision farming techniques and soil amendment products to enhance crop yield and sustainability.

In healthcare, Lee highlights the government’s growing focus on preventive medicine through various initiatives. This includes advancements in biopharmaceuticals and precision medicine, which aim to improve early disease detection and personalised treatments.

Underscoring this momentum, ALPS Global Holding Bhd cemented its position as a key player in the industry last year when it became the country’s second unicorn.

A key objective of the NBP 2.0 is to develop three bio-innovation companies into unicorns, a goal recently achieved by ALPS Global Holding through the collaborative efforts of the Bioeconomy Corporation and Mosti.

“The Bio-Based Accelerator (BBA) programme and BioNexus Status under Bioeconomy Corporation both play a crucial role in supporting biotech start-ups as well as small and medium enterprises in achieving unicorn status under the NBP 2.0,” says Lee.

The BBA programme offers resources such as training, mentorship, funding assistance and access to strategic networks, which help companies enhance their business models and accelerate growth.

“By providing guidance on meeting the criteria for BioNexus Status, the BBA equips these start-ups with the tools needed to leverage additional incentives and support, increasing their chances of success and innovation in the biotechnology sector,” he adds.

The BioNexus Status is a special designation awarded to qualified companies engaged in biotechnology activities. Companies with this status are eligible for various benefits, including fiscal and tax incentives, funding opportunities, investment facilitation and advisory services to support their growth.

Lee says there are three bio-based and biotechnology companies with the potential to achieve both unicorn status and BioNexus Status: GoodMorning Global Sdn Bhd, MTC Orec Sdn Bhd and Glyken Bio Products Sdn Bhd.

While obtaining BioNexus Status is a rigorous process, GoodMorning Global — a multigrain-based product company founded in 2008 — is optimistic about this milestone, with support from the Bioeconomy Corporation.

“The entire programme depends on the readiness of the company. Yes, there’s going to be a lengthy process, but it’s also a self-reflection because one of the criteria is that your technology has to be novel, the first of its kind,” says Charles Cheng Fang Chin, CEO of GoodMorning Global.

GoodMorning Global began its application for BioNexus Status a year and a half ago to access venture capital (VC) funding for bio-commercialisation and business expansion. Initially established as a downstream fast-moving consumer goods (FMCG) company, it has since embarked on a biotech transformation plan to move up the value chain and integrate upstream operations.

“For biotech SMEs, we cannot work in silos. We need to have access to the ecosystem, and who is overseeing the entire ecosystem? It’s the [Bioeconomy Corporation], the custody agency,” says Cheng.

This is why the company has engaged with the Bioeconomy Corporation to gain access to Malaysia’s broader biotech ecosystem and leverage its resources for growth.

“Up to the second quarter of 2024, we have facilitated close to 350 BioNexus Status companies, 191 BBA companies (up to September 2024) and three companies involved in high-impact projects,” says Lee.

These companies have collectively achieved over RM14 billion in approved investments, RM9 billion in realised investments, over RM37 billion in revenue contribution to the nation’s GDP and more than 17,000 job creations, Lee points out.

“We are looking at over 50 BBA and BioNexus Status companies to be in the pipeline next year,” he adds.

According to a statement by Mosti on March 7, the Bioeconomy Corporation has channelled financing of RM38 million to companies innovating in the field of biotechnology and bio-based industries through the Agro-Based Venture Fund, which was introduced in 2021.

While Malaysia anticipates significant progress in its biotechnology sector, Lee admits that the implementation of NBP 2.0 has faced challenges in areas such as regulatory compliance, funding and investment, talent acquisition and the development of necessary infrastructure and resources.

“In many cases, regulatory requirements have become more complex with time. Adding to this complication is cross-sector regulatory compliance, and also regional and international regulatory compliance. All of these tend to significantly slow down progress,” he says.

As for funding and investments, securing sufficient funding for the R&D and commercialisation and innovation (C&I) of biotechnology can be difficult, especially for start-ups and small businesses that may struggle to attract investments, says Lee.

However, he stresses that there is increased funding and support from the government, especially through various funding mechanisms. These include grants, VC investments and public-private partnerships to support biotech research and innovation.

On its end, the Bioeconomy Corporation is establishing talent development programmes to enhance workforce development through partnerships between universities and industry, creating specialised training programmes and internships that prepare graduates for careers in the biotech space.

They include the BeST 2.0 programme, and training at BioAcademy where the academy is focused on developing and nurturing industry-driven talents, workforce capabilities and bio-entrepreneurs to contribute towards building Malaysia as a high-tech nation.

“In the next two to three years, Bioeconomy Corporation aspires to solidify its position as the leading entity in Malaysia and the wider region, spearheading the adoption of biotechnology across various sectors,” says Lee.

“We aim to improve our facilitation and support services as well as foster more collaborations and partnerships with various stakeholders such as GoodMorning Global to bring biotechnology-based solutions to the market as a more sustainable and viable option for national problems, besides developing more biotechnology-based entities that contribute to the economic prosperity of Malaysia.”

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