Malaysian Biotechnology Sector
KUALA LUMPUR, Apr. 2 /PRNewswire-AsiaNet/ --
The Impact of the Global Economic Crisis
The global credit crisis and subsequent decline in worldwide economic
activity has spawned a growing crisis that has engulfed the Asia Pacific
region. Countries within the APAC community are heavily dependent on export
earnings from major markets in the US and EU - collapsing demand in these
countries is decreasing revenue flows into the region.
Frost and Sullivan, Senior Vice President of Healthcare Asia Pacific
Reenita Das anticipates, "The economy will continue to decline in the first
half of 2009 and will stage a modest recovery in the first half of 2010. The
biotechnology sector is a diverse sector, and the economic crisis has had a
disproportionate impact on different parts of this sector."
Das further elaborates, "The biotech industry is expected to continue to
grow by about 10 to 15 percent globally reaching USD271 billion by 2011. The
healthcare segment is the largest contributor to the overall Biotechnology
sectors revenues (62.6 percent in 2007). Bio-agriculture is the second
largest segment, accounting for 11.5 percent of total revenues. Others
include areas such as bio-fuels and industrial biotechnology."
Having said the above, activities in the bio-fuels sectors have declined
substantially while the healthcare biotechnology sector has declined by a
modest amount relative to the global economy.
As a result, 2009 will continue to pose challenges to the region life
sciences company that are in the development stage due to the limited capital
availability. The global pharmaceutical industry is facing an unprecedented
opportunity. Over the next decade by 2020, the pharmaceutical market will
double in size reaching USD1.3 trillion to meet the medical needs of the
aging global population and a surge in demand from emerging countries.
"It is said that the overall revenue in the biotechnology is expected to
grow continuously on a yearly basis. In 2005-2006 there was a 12.6 percent
increase in global biotechnology revenues," said Das.
Biotechnology is a diverse sector and contain key areas that are less
exposed to shifts in consumer demand. The current crisis will slow the growth
of the global biotechnology sector but this will not change its long term
optimistic outlook. A renewed focus on the sector is critical as several key
Malaysian exports are highly dependent on continued consumer spending by
western consumers.
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Contact:
Emmie Kaur
Corporate Communications -Healthcare, Asia Pacific
DID: +603 6204 5913
Email: emmie.kaur@frost.com
Jasminder Kaur
Corporate Communications -Healthcare, Asia Pacific
DID: +65 6890 0937
Email: jkaur@frost.com
SOURCE Frost & Sullivan
CONTACT: Emmie Kaur, DID: +603 6204 5913, emmie.kaur@frost.com, or
Jasminder Kaur, DID: +65 6890 0937, jkaur@frost.com, both of Frost & Sullivan
Corporate Communications -Healthcare, Asia Pacific
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