LOCAL HERBAL INDUSTRY EXPECTED TO GROW 8-15 PERCENT ANNUALLY

KUALA LUMPUR, Nov 14 (Bernama) -- The herbal industry in Malaysia, expected
to reach almost RM10 billion (US$2.78 billion) in market value this year, is
likely to grow eight to 15 percent annually based on the growing acceptance of
natural medicine.

During an economic downturn, herbal medication is a more acceptable
alternative for consumers due to the lower cost when compared to modern
medicine, said chairman and founder of Global Bio-Herbs Economic Forum Council,
Yeat Sew Chuong.

Stating that the herbal industry is an anti-crisis industry, Yeat said it
has been growing steadily in recent years, from about RM7 billion (US$1.95
billion) in 2006 to RM9 billion (US$2.50 billion) last year.

He was speaking to reporters today in conjunction with the Second Global
Bio-Herbs Economic Forum starting here tomorrow. The three-day forum will be
launched by Health Minister Datuk Liow Tiong Lai.

Expected to draw 3,000 local and overseas participants, the forum will be
presenting various topics and issues on the bio-herbs industry as well as
business networking sessions.

It will also be a platform for industry players to widen their network,
exchange ideas and showcasing the latest health products from China, the United
States, the Philippines, Hong Kong, Thailand, Indonesia, Singapore and
Vietnam.

To support the local herbal industry growth, Yeat said efforts were needed
now to spur local enterprises in tapping the huge potential of the
industry.

He said the government should also identify the industry as a potential
growth area to develop small and medium entrepreneurs (SMEs) as the global
herbal industry is projected to worth US$5 trillion by 2050 from US$200 billion
currently.

"Local SMEs are mostly involved in low value-added activities such as
processing dried plant materials for herbal powders and fermentation for
medicinal tonics," Yeat said.

"In order for them to broaden their market, they need to move up the value
chain by upgrading their production to a higher level of technology," he said,
adding that currently, over 1,000 local companies are involved in the
industry.

Due to lack of scientific evidence and research on safety, efficacy and
standardisation of herbal products, Asean countries have lost their share of the
global industry worth US$200 billion.

Of the global market, Yeat said Germany led with 28 percent market share
while Asean accounted for 18 percent and Japan has about 13 percent.

Despite herbal usage being common in Asia, he said the acceptance rate in
the region was low at only eight percent of the total population in Asia
compared to up to 20 percent in some Western countries.

According to him, the higher acceptance rate is due to the public being
aware of the importance of natural medicine in maintaining their health as well
as the high level of research and development, safety and branding involved in
the herbal products.

He added to encourage the public to use natural herbal products, industry
players are encouraged to have 3G -- good agriculture practices, good
manufacturing practices and good laboratory practices.

Yeat, who is also chief executive officer of INS Bioscience Bhd which
produces herbal health supplements under the Easy Pha-max brand name, said
opportunities were available for Malaysia to produce halal herbal
products.

"Malaysia has huge herbal resources and hence there are good opportunities
to supply to the 1.3 billion Muslims worldwide," he said.
-- BERNAMA