Pharmaceutical companies from India are focusing on making Malaysia their hub to grow their markets in South-East Asia.
Business Standard in India reported that major players like Ranbaxy, Cipla, Dr Reddy's Labs, Biocon and Strides Arcolab have already set up operations in Malaysia and some others could do likewise, as Malaysia is viewed as a cost-competitive country.
Malaysia’s attractions include a 10-year tax holiday, import duty exemptions, customized incentives for major investments as well as 100% foreign equity ownership and reliable infrastructure. Companies can also have better access to other Asean markets via free-trade agreements.
These attributes have drawn Indian companies which are keen to tap the growth in emerging markets in the region.
Ranbaxy, which has already built a strong presence in Malaysia, has recently announced plans to invest US$40million (RM121.6 million) to set up its second plant under its subsidiary- Ranbaxy Malaysia Sdn Bhd.
Ranbaxy Chief Executive Officer and Managing Director, Arun Sawhney said the company viewed Malaysia as a promising market with good potential, adding that the Malaysia offers a favourable environment to the generic pharmaceutical industry, as the Malaysian Government provides free medication especially generic products in all public hospitals and polyclinics.
With the new plant, the company will be able to increase its production capacity to supply to the Malaysian as well as other markets in Asean.