Bernama.com (Malaysian National News Agency), 29 March, 2007

GLCs Need To Play Pivotal Role To Develop M'sian Herbal Industry

KUALA LUMPUR, March 29 (Bernama) -- Government-linked companies (GLCs) should play a pivotal role in developing Malaysian and global herbal brands as they have the ability to finance such projects on a large scale.

Agriculture and Agro-Based Industry Minister Datuk Seri Muhyiddin Mohd Yassin said today the GLCs "can also become anchor companies which provide a fertile ground for small and medium entrepreneurs in this sector to flourish into towering entrepreneurs.

"The Malaysian herbal products industry is considered to be one of the most dynamic SME sectors, with annual growth estimated at 10 percent a year and worth more than RM8 billion annually," he said when launching the fourth Asia-Pacific Natural Products Expo 2007 (Natpro 2007) here.

It is organised by EcoEvent, the Malaysian Herbal Corporation and the Forest Research Institute of Malaysia.

Muhyiddin said the herbal industry has developed into one of the most lucrative businesses in the world, and can be considered as the next emerging industry after information and communication technology (ICT).

Global sales of herbal medicine have been projected to grow by 10 percent a year, with the global market estimated to be worth US$200 billion (US$1 = RM3.45) by 2008, he said.

"Although North America and Western Europe make up the largest markets for natural, organic and herbal products, it is in Asia where a huge market is emerging and Malaysia has identified herbal and natural products as its industry of the future," he said.

Muhyiddin however pointed out that despite its increasing popularity and use, very few of the herbal and natural products have been tested rigorously for safety and effectiveness.

There is therefore a need for evidence that the products really work and are safe, he said.

The minister later told reporters that Bumiputera entrepreneurs are still in the initial stages of participation in this sector because the size of their businesses is not large.

That is why they need more assistance from both the public and private sectors, he added.

On concerns recently about the effectiveness and safety of herbal products, Muhyiddin said his ministry will ensure that all the herbal products, especially health products, are approved by the Health Ministry before they are marketed.

-- BERNAMA