SIX INDIAN FIRMS TO INVEST IN MALAYSIA

By P. Vijian

NEW DELHI, Feb 12 (Bernama) -- Undeterred by the economic slowdown, six
Indian companies are gearing up to invest in pre-clinical trial units in
Malaysia by end of this year.

BiotechCorp's industry development division (healthcare) senior
vice-president Selvam Ramaraj said the healthcare industry remained robust
despite the global economic crisis and Indian companies were still foraying
abroad.

"The healthcare sector has not changed much, companies are still developing
new drugs and working on new formulations. It is still stable and India
companies are looking for cheaper and quality places to invest," Selvam told
Bernama.

"We see Malaysia as a collaborative partner with India. Certain things
(tests) cannot be done in India due to internal limitations, but can be carried
out in Malaysia. At least two major corporations and another four medium-sized
companies are considering to set up facilities in Malaysia," he said.

Without disclosing the investors' names, Selvam said the two large
corporations are expected to invest nearly RM36 million (US$10 million) each and
likely to set up their facilities by middle of this year.

These companies, mainly from south India, are likely put their investments
in the healthcare biotechnology sector.

Malaysia announced a RM13.7 billion (US$3 billion) allocation under the 2009
Budget to enhance healthcare, which included increasing medicine supply,
intensifying research and enforcement activities, as well as strengthening
growth of healthcare biotechnology.

Kuala Lumpur-based BiotechCorp was established in 2005 to play a key role
in building biotechnology business in Malaysia, by creating a conductive
environment and encourage foreign direct investments in the sector.

-- BERNAMA