GLOBAL & LOCAL SCENARIOS OF

HERBAL/PHYTOCHEMICAL INDUSTRY
RAMLAN AZIZ
PENGARAH
INSTITUT PEMBANGUNAN BIOPRODUK
UNIVERSITI TEKNOLOGI MALAYSIA
AHLI, LEMBAGA PEMBANGUNAN HERBA MALAYSIA
www.ibd.utm.my

WORLD HEALTH FACTS

Chronic disease is responsible for 60% (17 million) of all deaths worldwide with
Health
Related
issues ofcountries.
the 21st Century
80% deaths
occur
in developing
Almost half of chronic disease deaths occur in people under the age of 70

The major risk factors for chronic disease are an unhealthy diet, physical
inactivity, and tobacco use
One billion adults are overweight and this figure estimated will surpass 1.5
billion by 2015 if no action is taken.

22 million children under five years old are overweight

Source: WHO. 2005 Statistic Data

Source: WHO

6 in every 100 Malaysians are diagnosed

with Diabetic related diseases
1 in every10 Malaysians have Kidney
related diseases

1 in every 4 Malaysians faces the risk of

any
In

Cancer

every hour, there are 6 Malaysians are

hit by

Stroke

More than 14.5 millions Malaysians

suffering
from
diabetes,
hypertension and high cholesterol

High cholesterol topped the list with

6.2 millions people followed by
hypertension (5.8 millions) and
diabetes (2.6 millions). There are
also 2.5 millions people suffering
from obesity

Statistics obtained from

latest
National Health and Morbidity Survey
showed that the obesity rate had
tripled over the past 15 years,
growing from 4.4% in 1996 to
15.1% last year

Diabetes and hypertension also

increased from 11.6% to 15.2% and
32.2% to 32.7% respectively from
2006 until 2011, adding that the

Source: thestar online, 8 April 201

DEADLY
DISEASES
The World Health Organization warns that cancer, heart
disease, stroke, diabetes, osteoporosis, arthritis, alzheimers,
obesity and other chronic conditions, which already kill more
than 24 million people a year, will impose increasing burdens
of suffering and disability on hundreds of millions of others.

CANCER INCIDENCE
By Clifton Leaf March 22, 2004 (FORTUNE Magazine)

>> $200 billion spent since 1970

>> 1.56 million papers
>> 150,855 experimental studies published on mice
>> 10.9 million new cases per year (1.5M in USA)

>> 6.7 million people die every year (563,700 in US)

*Age-adjusted to 2000 US standard population

Source: 1950, Mortality Data CDC/NCHS, NVSS, Mortality Revised
2002 Mortality Data: US Mortality Public Use Data Tape, 2002, NCHS, Centers for Disease Control and Prevention ,2004

OBESITI

UNHEALTHY DIET

GOVERNMENTEXPENDITUREONMEDICINE
UPWARD SPIRAL OF HEALTHCARE COST

Price of medicines increases 5-15% every year

We eat to die (bad quality and big quantity) as
compared to citizens of poor countries who died
because of lack of food
Go for prevention rather than cure

1400

RM 1200
Million

1200
RM 900
Million

1000
800
600
400

RM 300
Million

200
0
1995

2004

2010

2010 Ref: Lek 2005, NST 2004, Hill S 2010

KURANGKAN
PENGGUNAAN GULA!!

KEGEMUKAN

FASTFOOD

MAKANAN SEGERA = SEGERA MASUK KUBUR

FAST FOOD = FAST TO THE GRAVE

TRADITIONAL

MODERN

WELLNESS
INDUSTRY

VS

SICKNESS
INDUSTRY

Introduction
to Traditional Complementary
Medicine (T/CM)

YOGA

HYDROTHERAPY

TRADITIONAL
CHINESE MEDICINE

HOMEOPATHY

AYURVEDA

REFLEXOLOGY

AROMATHERAPY

TRADITIONAL
MALAY MEDICINE

CHIROPRACTIC

ACUPUNCTURE

NATUROPATHY

THAI MASSAGE

TRADITIONAL COMPLIMENTARY THERAPY

HISTORY OF HERBAL MEDICINES

EGYPT 2900 BC
Collection of 800 prescription on 700
types of medicine (mostly plants)

MESOPOTAMIA 2600 BC
First text recorded on diseases
symptoms

CHINESE 2000 BC
Emperor Shen Nong had tested the efficacy
of herbs on himself and also wrote 365 type
of medicine in a book called Ben Cao.
Amongst the popular herbs are Rhubarb
(Rheum), Ginseng and Cassia Bark

HISTORY OF HERBAL MEDICINES

ANCIENT GREECE 300 BC
Theophrastus Father of Botany

MEDICINE FORMULATION 2

nd

Century

GALEN The person who introduced formulation

through mixing a few plants

ISLAM 8

th

Century

The first Medicine Shop were introduced

Popular in Baghdad in 8th Century.
Herbs are from India, China and Persia
e.g: camphor, cassia, clove, cubeb, musk, nutmeg, ruhubarb,
sandalwood, senna and tamarind

HISTORY OF HERBAL MEDICINES

IBN SINA 980 1037 AD

Avicenna, The Persian Galen
Pharmacist, Physicist, Philosopher and Diplomat
His writing on pharmaceutical well accepted by
western in 17th century

MODERN MEDICINE 18

th

Century

Pioneered by Shakers (1709) and commercialized

in 1870

ISLAMIC CONCEPT OF
WELLNESS
"For every malady Allah has created he also
created its cure and one who acquires such
knowledge will benefit from it and one who
ignores it will forego such benefits" Hadith
Bukhari

WORLDS HEALING POWERS

Chinese Herbalism

Ayurvedic
Western Herbalism
Homeopathic Remedies
Native Tribes of the Americas
Traditional Malay Medicine
Modern Herbalism
Antioxidant

Definitions
Complementary Medicine (CM)
Diverse practices and products that are not presently
considered to be part of conventional (modern) medicine
Used together with conventional medicine

Alternative Medicine

Bomoh/
Witch
Doctor

Medicine used in place of conventional medicine

Traditional Medicine
Traditional medicine is based on theory, beliefs and
experiences that are indigenous to the different cultures, and
that is developed and handed down from generation to
generation.

Ayurveda

Integrated / Integrative Medicine

Medicine that combines mainstream medical therapies and
TCM therapies for which there is some high-quality scientific
evidence of safety and effectiveness
Chinese Sinseh

Evolution of Integrated Medicine

Before 18th Century :
Traditional Medicine is the only form of Medicine in the
East.
Traditional
Survival and Quality of Life dependent on Traditional
Medicine
Medicine
Modern
Medicine
19th Century
Influx of Modern Medicine
-noted for its ease and
effectiveness

Increasing
popularity
of TCM

Modern
Medicine

20th century

Integrated
Medicine

21st Century
Efforts towards
Integration of
Modern and TCM

Integrated Medicine
Integrated Medicine
attempts to combine the best of both systems,
but it is not just about adding a bit of
acupuncture to the aspirin; it is about restoring
an understanding of the patient, his or her
attitudes, beliefs, personal history, and life
situation to health care
Jack Czauderna, Centre for Institute of Integrated Medicine, Sheffield

GLOBAL TRENDS
TRADITIONAL AND ALTERNATIVE MEDICINE
Traditional medicine has been fully integrated into the health
systems of China, North and South Korea and Vietnam
In western countries, growing numbers of patients rely on
alternative medicine for preventive or palliative care
In France, 75% of the population has used complementary
medicine at least once
In Germany, 77% of pain clinics provide acupuncture
The global market for traditional therapies stands at US$ 60
billion a year and is steadily growing

HERBS then as Traditional and now a

Complementary Alternative Medicine

Herbs and botanicals have been used for centuries for a variety of ailments.

Growing interest in alternative medicine and natural remedies to modern

medicines has led to a dramatic growth in the herbal market over the last decade.
But herbs increasingly finding application in a variety of foods being promoted on

a health platform.
(Leatherhead Food Research Association)

WHAT IS PHYTOCHEMICAL?

From Greek word PHYTO = PLANT

Phytochemical refers to every naturally occurring
chemical present in plants

Non-nutritive plant chemicals that have protective

or disease preventive properties

Definition of Herbs?
As defined by Merriam-Websters Dictionary:
Herb is a plant or parts of plant valued for its medicinal, savory or
aromatic qualities
' Tumbuhan atau bahagian tumbuhan yang bernilai dari segi
perubatan, masakan atau haruman

Herb Society of America describe Herbs as :

Any plant that may be used for pleasure, fragrance
or physics
' Mana-mana tumbuhan yang boleh digunakan
untuk tujuan hiburan, haruman atau fizik'

Definition Of Terms
PHYTOCHEMICAL comes from the Greek word Phyto for plant. It refers to every
naturally occurring chemical presents in plants. Plant are also the source many modern
pharmaceutical (drugs). It is estimated that approximately one quarter drugs contain plant
extract or active ingredients obtained from plant substances.
COSMECEUTICAL is the term used to describe cosmetic containing ingredients that
are bioactive, exerting effects on people. It is a blend of cosmetic and pharmaceutical
which has appeared only in the nineties. Examples are anti-wrinkles creams, baldness
treatments, moisturizers and sunscreens.
NUTRACEUTICAL can be any substance that may be considered a food or part of a
food that provide medical and health benefits, including the prevention and treatment of
disease. Under this broad definition, nutraceutical might be isolated nutrients, dietary
supplements or diets, processed foods, herbal products or genetically engineered
designer foods.

LOCAL SCENARIO
SCOPE OF HERBAL INDUSTRY
Cosmetics/Cosm
eceuticals and
Toileteries
Insect Repellent,
Pesticides and
Household Items

Essential Oils,
Flavours, Colours and
Fragrance
HERBAL
PRODUCTS
INDUSTRY

Pharmaceuticals

Herbal/Traditional
Medicine

Healthcare/Nutraceuticals

Biopharmaceuticals

HERBAL INDUSTRY

global

MALAYSIA ?
THAILAND

PHILLIPINES

Global producer of mint,

citronella, eucalyptus, mint
and jasmine oil flavors &
fragrances

Major supplier essential oils:

ylangylang, patchouli and
citronella

Becoming known globally strong support from

government on trade
exhibitions

Products have penetrated

Japanese market

High priority in research

VIETNAM

INDONESIA

Target to produce medicines

indigenously by year 2010
Set up Institute
MateriaMedica - an
integrated research center
Organised large scale
cultivation for export

SINGAPORE
Among the top 12 major exporting
country of medicinal plants
Positioned as a major clinical trial
center: over 150 clinical trials a year
Allocation of S$2 billion for herbal
research

Source: ICS UNIDO, 2003; Focus Group Discussions

Known for Jamu traditional

medicines, e.g. MustikaRatu
exports to over 20 countries
around the world

HERBAL INDUSTRY
GROWTH DRIVERS
Health concerns
Major markets are looking for new ingredients
Increasing appreciation towards maintaining health with natural products versus curing disease with
chemical drugs
Side effects of drug

Increasing awareness about side effects of synthetic drugs, e.g. anti-biotic, pain killers
Increasing cost of drugs and hospitalisation
Higher confidence
Upward trend of time tested traditional healing
Scientific validation and quality products of traditional medicines

Competitive pricing
Herbal extracts and powders are comparatively cheaper than synthetic drugs and formulations
Act as an alternate for those who cannot afford the synthetic drugs
Demographics
Growing middle income class
Increasing aging population and related demands for health solutions: anti-aging, weight control, joint and
bone health, cognition

Source: Burrill & Co 2007; Malaysian Herbal Industry Outlook 2004

KEYMARKETDRIVERS
Increasing aging
population with
increasing
interest in
healthy living

An emphasis on
preventive
measures to
control health
care costs

Increasing
awareness
about adverse
effects of
synthetic drugs

Herbal extracts
and powder are
comparatively
cheaper than
synthetic drugs

An increase
consumer
interest in
alternative
medicines

Increased
acceptance
among doctors,
pharmacists
and other
health
professionals

Increase
demand of
HALAL based
products

ESTIMATEDGLOBALMARKETFOR
WELLNESSPRODUCTS
WELLNESS PARADIGM

REACTIVE

PROACTIVE

TREATMENT PARADIGM
Complementary & Alternative Medicine $113.0
Spa $60.3
Healthy Eating/Nutrition/Weight Loss $276.5
Preventive / Personalized Health $243.0

Medical Tourism $50.0

Total market
value

> USD1.9
trillion

Wellness Tourism $106.0

Workplace Wellness $30.7

Fitness & Mind Body $390.1

ADAPTED From
Dr John W, Traviss
Wellness Illness
Continuum

Beauty & Anti Aging $679.1

Value in USD billions

Ref: Spas and the Wellness Market Synergies and Opportunities | May 2010, SRI International

HERBAL INDUSTRY IN
GLOBAL AND
MALAYSIA DEMAND

GLOBAL

MALAYSIAN

Global Demand for Herbal Products,

1997 - 2020
USD billion

Malaysian Demand for Herbal

Products, 1999 - 2020
USD billion

600
9.4

CAGR =
10.5%

CAGR =
13.8%

210

3.1

60
1997

0.6
2006

2020

1999

2009

Source: Burrill & Co 2007; Malaysian Herbal Industry Outlook 2004

2020

GLOBAL SCENARIO
The world health care industry is driven by two dominant trends:
Tremendous development of biotechnology industry
More recognition, acceptance and use of Traditional Medicine as natural
medicine, health food and food supplements at National, Regional and
Global level.
Key Emerging Trends
Discerning consumers concern with:
- quality
- safety
- efficacy, &
- traceability of health products
(Controlling product quality & safety in the entire supply chain & trading network, FROM SEED TO SHELF)

Increasing significant portion of herbal medicine taken as

prophylactic/preventive rather than curative/remedy.
However, periodic negative press or concern regarding safety & efficacy of
herbal medicine largely because of fraudulent claims & unscrupulous
manufactures.

GLOBAL TRENDS
World Health Organization (WHO) consistently reported that 80% of the
worlds population depends on herbal medicine.
Tropical forests contribute 25% of the worlds medicinal products and
nearly half of the prescription drugs are plant derived.
The global herbal trend shows that herbal therapy enters the mainstream
medicine from 1970 -2000.

WHO estimated USD 60 billion in 2003

MIGHT market will reach USD 200 billion in 2008
World Bank market to reach USD 5 Trillion in 2050

Europe is the largest herbal products market

-USD 6 billion (led by Germany & France.
Japan USD 2.1 million
Asia excluding Japan USD 2.3 billion
North America USD 1.5 billion.
Middle East countries become largely untapped

GLOBAL TRENDS
BIG BLOCKBUSTER DRUGS PULLED OUT FROM THE MARKET GAVE
INVESTORS CONCERN
COST TO DO R&D AND TO BRING NEW DRUGS TO THE MARKET ARE
GETTING SO EXPENSIVE
BIG PHARMA AND COSMETIC COMPANIES LOOKING AT TRADITIONAL HERBS
FOR CLUES FOR FUTURE LEAD COMPOUNDS
COSTS TO TREAT CHRONIC DISEASES APPROACHING USD 1 TRILLION BUT
DO NOT DELIVER WHAT IS POSSIBLE. PEOPLE LIVING LONGER
BUT NOT HEALTHIER
Eg. IN MALAYSIA, COST OF MEDICINES INCREASES DRAMATICALLY
FROM RM228(1996), RM800(2004) TO RM1.2 BILLION (2006)

Global Market Value of Herbal Industry

USD 5 trillion

USD 200b
USD 160b
USD 60b

Source: World Bank

GLOBAL TRENDS
TRADITIONAL AND ALTERNATIVE MEDICINE
Traditional medicine has been fully integrated into the health
systems of China, North and South Korea and Vietnam
In western countries, growing numbers of patients rely on
alternative medicine for preventive or palliative care
In France, 75% of the population has used complementary
medicine at least once
In Germany, 77% of pain clinics provide acupuncture
The global market for traditional therapies stands at US$ 60
billion a year and is steadily growing

MALAYSIAN SCENARIO

Strategic Analysis-core competencies

Strong
Competencies
Strong
Competencies

Weak
Competencies

Strong
Competencies

Bioresources
Natural
Bioactive
Compounds

Identification of
suitable herbs

Product design
& development

Development of
Required herb for
Industry / New
Herbal outlets

Weak
Competencies
Primary
processing
Of herbs
(post-harvest
Processing)

Commercial
production of
Required
herbs

Weak
Competencies

New herbal
products

Clinical
research

Weak
Competencies

Strong
Competencies
Weak
Competencies

Ref : Malaysian Herbal Industry Outlook (Might)

Weak
Competencies

marketing

Manufacturing

Strong
Competencies

Strong
Competencies

End
users

Distribution

Weak
Competencies

LOCAL MARKET VALUE

The total value of the domestic market for herbal and medicinal
plants is now estimated to reach up to RM4.55 billion.
TYPE

VALUE (RM)

Flavour & Fragrance

1.60 billion

Pharmaceuticals/Nutraceuticals

0.95 billion

T/CM and Herbal Rremedies

2.00 billion*

TOTAL

4.55 billion

* Based on local T/CM and herbal industry growth rate at 10% annually, it
was estimated that the value of the industry was at RM 7.97 billion in 2006

( Source: MARDI, 1999 )

WELLNESS
INDUSTRY

VS

SICKNESS
INDUSTRY

KEY IMPORTANT TRAITS HERBAL INDUSTRY

NEED TO ADOPT IN ORDER TO GET MARKET
ACCEPTANCE AND GO GLOBAL

QUALITY

SAFETY
EFFICACY
TRACEABILITY

PORTAL BIRO PENGAWALAN FARMASEUTIKAL KEBANGSAAN

(BPFK), KEMENTERIAN KESIHATAN MALAYSIA.

http://portal.bpfk.gov.my/index.cfm

DUA KEISTIMEWAN: BELI & MAKAN RACUN

CANNABIS FOR HEALTH (KETUM?)

Source : Annual Report 2011, Ministry of Health

Fine Chemicals
Pharmaceuticals

Personal & Healthcare

Products

Agrochemicals

NPs
Discovery &
Development
Opportunities

Cosmetics

Nutraceuticals

Research & Development

- Raw Material
- Grading, Accreditation & Standards
- Scientists Evidence
- Technology / R & D
- Biotechnology
- Human Resource Development
- Training
- Education
- Skilled and Knowledgeable Human Resource

Bioresources
Natural bioactive
compounds
Identification of
Suitable herbs
Development of required herbs
for industry / new herbal entity

Manufacturing
- Technology / R&D
- Human Resource Development
Training
Education
Skilled and knowledgeable
Human Resource

Product design &

development
Commercial production
of required herbs
Primary processing of herbs
(post-harvest processing)

Marketing & Packaging

Clinical research
New herbal products
Manufacturing
Marketing
Distribution
End user

Ref : Malaysian Herbal Industry Outlook (Might)

- Awareness
Programme Through
Media / IT
- Packaging
- Advertising
- Technology / R&D
- Human Resource
Development
- Training
- Education
- Skilled and
knowledgeable
Human Resource

Malaysia is well positioned to

promote the growth and
competitiveness of the herbal
industry
Strengths

Weaknesses

Rich bio-diversity and associated traditional

knowledge of herbs

Poor industrial infrastructure (extraction,

monograph, toxicology labs)

Unique and yet to be explored

Low sustainability of production

Strong research and scientific expertise; good

botanists, biochemists, biologists

Low innovation capacities due to scattered funds

and lack of facilities for clinical validation

GMP capabilities

Consumer cynicism; lack of information on the

benefits of Malaysian herbs

Strong government to drive growth

Multiple competing stakeholders e.g. government

and regulatory bodies
Cumbersome and unfriendly regulations and
policies

Opportunities

Threats

Growing international demand; trend for

new/novel/natural healthy products

Tainted products (heavy metals & spiked with

illegal ingredients)

Undiscovered herbs potentials

Commoditisation of the functional food,

cosmetics and personal care markets

Alliances/networks with international partners

for better control of supply chain

Increased regulations in target markets

Create a unique Malaysia positioning through

geographic indication protection

Lack of validation tests are threatening

sustainability of production

Major player of tropical natural product

Biopiracy limits local innovation and exports

Competitive from other established traditions e.g.
India and China

Malaysia has vast

untapped potential in
herbal products
discovery and
development
The industry is still at
its early stages; the
Health & Wellness
multi-sectorial
segments have not
been fully exploited
Drug discovery
program using the
herbal products
research and
development platform
has great potential

I believe that this has had a positive

effect, both domestically and
internationally. This brings us a step
closer towards transforming Malaysia
into a globally competitive investment
destination.
The Economic Transformation Programme is a
focused, inclusive and sustainable initiative that
will transform Malaysia into a high-income nation
by 2020.

bottlenecks.

"The NKEAs will have dedicated focus from the Prime Minister and will have fast-track
mechanisms to resolve disputes or bottlenecks

EPP1:
High value
herbal
products

BIODIVERSITYOFMALAYSIA

One of the Worlds

OLDEST rainforest
One of the 17
Megadiversity
countries

Home to about
12% of all the
plant species on
earth, which has
not been fully
exploited and
cultivated

Estimated
15,000 known
plant species,
3,700 are
known to be
useful, 2,000
species with
medicinal
value and the
balance
remain largely
unexploited

MALAYSIAFORESTHERITAGE
th
10

BIODIVERSITY

In the World

1200
700sp
spesies
with
165sp
medicinal
birds
values
amphibian
350sp
reptiles

15,000

flowering
plants

MICRO
organism

th
4
In Asia

300sp 300sp
fish mammals

MILLIONS
invertebrate

If we do not do anything, we will face the risk of losing our bio-diversity potentials
to others

A case of bio-piracy : Lemba

Other countries are aggressively doing research and coming
up with new discoveries based on our local herbs:

Japan patents (18)

Curculin, taste modifier composition, chewing gum,
composition for oral cavity, beverage

- Inventor & applicants: Japanese

US patents (8)
Curculin, taste modifier composition, chewing gum
- Inventor & applicants: Japanese

Lemba
(Curculigo latifolia)

Europe patents (3)

Taste modifier composition, chewing gum
Inventor & applicants: Japanese

To achieve GNI of RM2.2 billion by

2020
To produce safe, high quality and
efficacious high-end herbal
products

To strengthen the supplies across

the value chain
To enhance R&D in herbs and to
secure the IPR from local herbs

ENTRY POINT PROJECTS (EPPs) FOR AGRICULTURAL

This is due to concentrated efforts in the primary processing, cultivation and extraction,
but not in other high-value add activities
Level of
activities
in
Malaysia

Value

Current Malaysias
scenario
Ideal curve

+
Discovery &
Identification of
Herbal Targets
and IP

Increase in value
Devt of Pre &
Post Clinical
Testing

Primary
Processing of
Herbs

Increase in value
Cultivation

Extract & Product

Special
Development
Formulation &
GMP
Manufacturing

Internationall
Marketing
&
Distribution

In the last 10 years, we have seen an increase in local products registration, but
our products remain in the lower-end of the value chain
1 month
consumption

Products registered with NPCB, MOH

Percent
100% =

5,019

Imported

55

Local

45

GMP
manufac
-turers

20,071
40

60

Nutraceuticals

1998

2009

88

175

Malaysian natural products industry, 2007

Percent
100% = USD 2.5 billion
Pharmaceutic
als/
Nutraceuticals

19%

*
46%
35%

Flavor and
fragrances

Status of the
current
Malaysian
herbal industry

Botanical Drugs

Herbal
remedies

* Nutraceutical products not based on Malaysian herbs

Cosmeceuticals

Dietary supplements

E.g. pegaga
capsule, garlic,
Functional foods
ginseng
E.g. pegaga tea, noni
juice, energy drink
Cosmetics and personal care

E.g. pegaga soap,

shampoo

RM150 /
bottle

RM120 /
bottle

RM120 /
bottle

RM80 /
bottle

RM30 /
box

RM10 /
box

18 SELECTED local HERBS to be developed into a

global wellness products

Hempedu Bumi

Mengkudu

Pegaga

Misai Kucing
Kacip
Fatimah
Tongkat Ali

Rosel

Halia

Mas cotek
Belalai Gajah

Dukung Anak

Lempoyang

Gelenggang

Sireh / Kaduk

Sambung Nyawa

Senduduk

Peria Katak

Merunggai

To embark on initiative to develop new high-value herbal products

A

Tongkat Ali

High-Value Herbal Products

Kacip Fatimah

Misai Kucing

Dukung Anak

Hempedu Bumi

+6
Halia

Pegaga
Supporting
Initiatives

Mengkudu

Mas Cotek

Belalai Gajah

C
Herbal Cultivation
Park

Commercial cultivation based on contract

farming model

Multi-Crop
Extraction Facilities

Strengthening herbal extraction processing

facilities

Identified 1,400 ha in Kelantan, Terengganu and

Pahang

Key
Enabler

Roselle

Production of high-quality extracts to open up

opportunities to develop wide range of
products

D
Establishment of Herbal Development Board / Office

Empowered to spearhead initiatives

One-stop-centre on matters related to herbal industry
Coordinate across all relevant ministries and agencies
Promote smart partnerships between government and herbal industry
stakeholders

HDO
Herbal Development Office

NKEA EPP#1 - AS AT SEPT 2013

R&D Grant approved
(RM22.45m)

Other grants approved

(22.43m)

56 R&D PAPERS APPROVED

Discovery

Crop
Production &
Agronomy

MARDI
UPM
FRIM

Standardization
& Product

Development

Processing
Technology

UPM
FRIM
UKM
UM
IPHARM

USM
UPM
TPM
UTM
UKM
SIRIM

UTM
FRIM
UPM

MONOGRAF

IMR

OECD MAD
GLP lab status

TK Malay /
TK/
TKDL
TKDL

NKEA EPP#1 ANCHOR COMPANIES : PRODUCTS

ALREADY UNDERGOING PRE-CLINICAL & CLINICAL
TRIALS
COMPANY

BIOALPHA INT. SDN. BHD.

NATURECEUTICALS SDN. BHD.
PHYTO BIZNET SDN. BHD.

PRODUCTS ON
PRE-CLINICAL
TRIAL

PRODUCTS ON
CLINICAL TRIAL

PHYTO IZNET

ANING RESOURCES SDN. BHD.

NATURAL WELLNESS BIOTECH (M) SDN. BHD.

NOVA LABORATORIES SDN. BHD.

BIOTROPICS MALAYSIA BERHAD

THE MITOMASA SDN. BHD.

HDO

Herbal Development

> 1Million of substances

10000 substances

1 product
10 products

20 substances

Research
phase
Active molecule
determination

10

0
Pre clinic
phase
Patent
Tests on animal
Efficiency
Tolerance
Production of
Active substance
Galenic form

Clinic phase
Phase 1
Test on healthy volunteers

15

20

Commercialisation
Phase 4
Pharmaco vigilance
AMM

Phase 2
Dose determination
Phase 3
Action on patients
Patent expiry

www.ibd.utm.my

TARGETS
3 herbal
cultivation parks
to produce
herbs on a
commercial
scale

5 botanical
drugs launched
in 2015

5 nutraceuticals
with pre-clinical
claim launched
in 2012

Key Enabler
Establishment of Herbal Development Division in MOA

Empowered to spearhead initiatives

One-stop-centre on matters related to
herbal industry
Coordinate across all relevant ministries and
agencies
Promote smart partnerships between
government and herbal industry
stakeholders

WHAT IF WE DO NOTHING
Lose the opportunity to capitalize on Malaysias
biodiversity Malaysias true possession for competitive
advantage
Biopiracy will continue to benefit other nations
and foreign companies
Lose opportunities to harvest low hanging fruits in the near
future
Lose the chance to develop our own science in the longer
term, from fundamental R&D to industrial application

Industry may regress & some industry

players may EXIT !

www.cepp.utm.my

Institute of Bioproduct Development

Universiti Teknologi Malaysia
(formerly known as CEPP)

CONTINUOUS REQUIREMENT
FROM THE GOVERNMENT
CONTINUOUS R&D PROMOTION AT IHLs and RIs

DEVELOPING RELEVANT HUMAN CAPITAL

PROVIDING PROBUSINESS ENVIRONMENT WITH APPROPRIATE
INFRASTRUCTURE SUPPORTS AND INCENTIVES FROM
SEED TO SHELF
CREATE ONE STOP CENTRE TO DEAL ALL ISSUES PERTAINING
TO THE INDUSTRY
DYNAMIC REGULATORY BODY TO PROMOTE HIGH STANDARD TO
LOCAL INDUSTRY IN FACING GLOBAL CHALLENGES. AND BETTER
ENFORCEMENT TO WEEDOUT THE BLACK SHEEP

CONTINUOUS REQUIREMENT
FROM THE INDUSTRY
CONTINUOUS R&D EFFORT TO ADD VALUE TO THE PRODUCTS
AND TO COMPLY WITH INTERNATIONAL STANDARDS
CONTINUOUS HUMAN CAPITAL DEVELOPMENT
PROMOTE GLOBAL BRANDING AND MARKETING STRATEGY

HALAL AND EFFECTIVE PRODUCTS FOR

THE VAST MUSLIM MARKET
PROMOTE IHLS AND RIs INDUSTRY COLLABORATION
USE LOCAL RAW MATERIALS AND EXPERTISE
PROMOTE ETHICAL BUSINESS AND WEEDOUT THE BLACK SHEEP
periodic negative press or concern regarding safety & efficacy
of herbal medicine largely because of fraudulent claims
& unscrupulous manufacturers

CONTINUOUS REQUIREMENT
FROM THE CONSUMERS

CONTINUOUS AWARENESS ON PLANT BASED

HEALTH AND BEAUTY PRODUCTS THROUGH EDUCATION
NOT TO BE TAKEN FOR A RIDE BY SALES GIMMICK

BE EYES AND EARS FOR THE REGULATORY AUTHORITIES

USE HALAL AND EFFECTIVE PRODUCTS
AVOID SEGERA SINDROM: ANYTHING SEGERA, SEGERA TO THE GRAVE
BUY LOCAL PRODUCTS IF YOU CAN

CONCLUSION

PHYTOCHEMICAL (HERBAL) INDUSTRY WILL BE THE NEXT

MULTIBILLION INDUSTRY. EVERY EFFORT MUST BE FOCUSSED IN
TURNING INDUSTRY UNIQUE TO THIS BIODIVERSE COUNTRY OF OURS.
THIS INDUSTRY WILL PROMOTE WELLNESS PRODUCTS UTILISING

OUR BEAUTIFUL AND RICH FLORA AND FAUNA, AND ENSURE

OUR FUTURE GENERATIONS WILL HAVE THE SAME OR BETTER

OPPORTUNITIES TO LIVE IN A PEACEFUL, HEALTHY AND SUSTAINABLE

ENVIRONMENT.

THANK YOU , TERIMA KASIH

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