Article Prepared by:

Mohd Khairul Fidzal Abdul Razak
Chief Executive Officer
Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation)

BIO BREAKTHROUGHS: UNLOCKING WEALTH WITH BIO-BASED & BIOTECH IN MALAYSIA

As the global economy shifts towards sustainability, biotechnology and bio-based industries are emerging as lucrative sectors that align with current trends in food security, healthcare innovation, and environmental responsibility. Malaysia, with its abundant natural resources, robust infrastructure, dynamic research and development ecosystem, and government-backed incentives and policies, is positioned as a leader in bioeconomy. It is an economy that utilises biological resources, technology, and processes to drive economic growth, enhance societal well-being, and unlock high-value opportunities across multiple industries. For top industry players looking to diversify, investing in bio-based and biotechnology industries is not only a strategic move for business expansion but also a contribution to sustainable development.

The Rising Bioeconomy: A Global and National Perspective

The global bioeconomy is currently valued at approximately USD 4 trillion and is projected to surge to USD 30 trillion by 2050^[1] – accounting for nearly one-third of the world’s total economic value. Malaysia, recognising this opportunity, has been actively developing its bioeconomy through targeted policies and incentives, including the National Biotechnology Policy 2.0 (NBP 2.0) under the Ministry of Science, Technology and Innovation (MOSTI). Its vision is to transform Malaysia into a high-tech nation that is progressive, prosperous, inclusive, and sustainable by 2030, driven by bio-based and biotechnology industries. To achieve this, NBP 2.0 focuses on advancing three core areas within the biotechnology and bio-based industries that are crucial to Malaysia’s development, namely agriculture, healthcare, and industrial biotechnology.

Transforming Agriculture for Food Security

Biotechnology is helping to develop high-yielding, resilient crops, livestock, and fish that can better withstand diseases and climate challenges. Beneficial microorganisms used as biofertilisers and natural pest control reduce the need for chemical fertilisers and pesticides, making agriculture greener and food safer to eat. In livestock and aquaculture, these good microbes also help cut down antibiotic use, promoting healthier and more sustainable food production. Meanwhile, alternative protein sources like Black Soldier Fly (BSF) larvae and macro- and microalgae provide a nutrient-rich, affordable option for animal feed. By reducing reliance on imported protein, they help ensure a steady and locally available supply. Backed by policies like NBP 2.0 and the National Agrofood Policy 2.0, these innovations are strengthening Malaysia’s food security while supporting a more resilient and sustainable food system.

Advancing Healthcare with Biotechnology

Malaysia’s healthcare sector is embracing biotechnology for smarter, more personalised treatments. Vaccines, genetic testing, and targeted therapies allow earlier disease detection and more precise treatments. Developments in local insulin production and stem cell innovation are strengthening the nation’s medical security and enhancing quality of life. Wearable biosensors can track health in real time, 3D-printed implants offer better fits for patients, while AI-powered diagnostics help doctors detect diseases earlier. Beyond medicine, bio-based wellness products, such as bird’s nest skincare and Kacip Fatimah supplements, cater to growing consumer demand for natural health solutions, while Malaysia’s position in healthcare tourism continues to strengthen.

Powering a Sustainable Industrial Future

Rising environmental challenges and the need for sustainability are driving bio-based and biotech innovations in the industrial sector. These solutions support the circular economy by turning waste into valuable resources, reducing pollution, and promoting renewable alternatives. Rice straw and palm oil residues are repurposed into packaging and paper that decompose naturally instead of being burned. Biogas, a fuel made from organic waste, generates electricity and heat for homes and businesses. Even used cooking oil is being turned into Sustainable Aviation Fuel, a cleaner jet fuel that lowers carbon emissions, with Malaysia set to begin production by 2027. Meanwhile, plant-based plastics and eco-friendly construction materials offer greener alternatives to conventional single-use plastics and concrete. With policies like NBP 2.0, National Biomass Action Plan 2023-2030, and the National Energy Transition Roadmap driving bio-based industries, businesses can tap into new opportunities while contributing to Malaysia’s circular economy.

Supporting Success in Bioeconomy

To fully seize the opportunities in biotechnology and bio-based industries, businesses need the right support – whether in forming partnerships, working with policymakers, expanding into new markets, developing talent, or securing funding. This is where Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) plays a key role. As an agency under MOSTI, it connects businesses with government, research institutions, academia, and local communities to accelerate growth and technology adoption. Through initiatives like BioNexus Status and the Bio-based Accelerator (BBA) programme, Bioeconomy Corporation provides tax incentives, training, funding support, and market access to help businesses scale up and stay competitive.

Since 2006, Bioeconomy Corporation has supported over 600 companies, attracting more than RM14 billion in approved investments and generating over RM38 billion in revenue for Malaysia’s economy. It has also helped create more than 16,400 jobs, strengthening the nation’s biotechnology and bio-based industries.

As Bioeconomy Corporation nears its 20th anniversary, it remains committed to driving “bioeconomy for all” – ensuring businesses, communities, and the nation benefit from sustainable innovations. By working with Bioeconomy Corporation, companies gain access to the expertise, resources, and networks needed to thrive in Malaysia’s growing bioeconomy, unlocking new opportunities in high-value, sustainable industries.