Malaysian Gateway To India Pharma

08 Jan 2013

Malaysia has become the gateway to Indian pharmaceutical companies to do business in South-East Asia. As a result many of the Indian pharma giants have set up manufacturing units in Malaysia, which is offering, among other things, a 10-year tax holiday. No restrictions on equity, duty exemptions, customized incentives for large investments and access to Asean markets through free trade agreements are the other benefits that Kuala Lumpur is giving.

Indian Ranbaxy has already set up a unit in Malaysia and is planning a second plant with an investment of $40m. The total Indian investment in Malaysia is put at $1b. There are in all 100 Indian firms operating here, including 61 joint ventures.

A cost-competitive country, Malaysian pharma market itself is considered big and worth $3b and growing at the rate of 10 to 12%.