Pharmaniaga Eyes Indonesia as Export Hub in Asean

PETALING JAYA (Selangor, Malaysia), March 29 (Bernama) -- Integrated healthcare company Pharmaniaga Bhd plans to make Indonesia its export hub in the ASEAN region, tapping into the country's low manufacturing cost. Managing Director Farshilla Emran said due to the company's lower profitability in 2015 and volatility of the ringgit, it needs to have stable growth and contain its cost of doing business as much as possible. "We decided to focus on Indonesia because the market is also bigger and cheaper. "Our presence in Indonesia is already big and we are optimistic about Indonesia as we own an 85 per cent stake in PT Errita Pharma, a manufacturing pharmaceutical plant, and a 55 per cent stake in PT Millenium Pharmacon International Tbk, a distribution and logistics company," she told reporters after the firm's annual general meeting and extraordinary general meeting here Tuesday. She said the capital expenditure (capex) for the company is set at RM70 million this year (US$17.51 million), with RM40 million to upgrade its manufacturing facilities including RM10 million for the Indonesian operations. "The remaining RM30 million of the capex is set to improve the logistics, information system, infrastructure and warehouse facilities," said Farshilla. She said with the company's strong presence in Indonesia, it is also planning to register its products manufactured in Malaysia for export to Indonesia. Meanwhile, Chairman Lodin Wok Kamaruddin said the company also intends to export to European Union (EU) countries. "We target to have the first batch of our products in the EU by 2018. "Currently, reviews of selected products are on-going in order to complete the necessary registration," said Lodin. On the Trans-Pacific Partnership Agreement (TPPA), he said with its effect to be felt in two years' time, the company is still studying the full impact but is confident of getting a bigger opportunity to market to TPPA member countries. "With the harmonisation of the TPPA, there will be a common platform for us to penetrate TPPA member countries, enabling us to grow even larger in the industry," he added. -- BERNAMA