Bioalpha Holdings partners Gaolin Village Council to develop Malaysian agricultural hub in China

NST Mon, Jul 18, 2022 07:04pm - 1 year View Original


KUALA LUMPUR: Bioalpha Holdings Bhd's wholly owned subsidiary, Bioalpha (Hainan) Development Ltd, is partnering with Gaolin Village Council to develop the Malaysian agricultural hub in the Hainan province jointly.

The integrated health supplement company said this was in line with the company's strategy to firm up plans to bolster its presence in China.

The development of the hub, which Bioalpha will spearhead, will entail the construction of a factory complex consisting of 30 units.

The hub will have an initial paid-up capital of 10 million renminbi (RM6.6 million) and an authorised capital of 50 million renminbi (RM33 million).

Managing director William Hon said the Malaysian agricultural hub is a unique model that focuses on the complete integration supply chain of Malaysian farm products.

"With the hub, we can conduct research and development (R&D) activities, formulate and manufacture our herbal-based products, as well as eventually commercialise said products under one roof for the Chinese market.

"The abovementioned endeavour would provide the local Chinese population immediate access to our products as well as allow the company to better gauge the domestic demand to roll out related products in the shortest time possible," he said in a statement today.

Bioalpha said the initial phase of the hub focuses on the upstream and downstream activities such as formulation, manufacturing and even commercialisation of functional food products using Malaysian indigenous and tropical herbs, such as Misai Kucing and Kacip Fatimah, targeted for the local Chinese market.

In addition, the hub enables other Malaysian agricultural players, such as manufacturers of durian and cocoa products, to venture into China by investing and stationing at the hub.

Hon said that for future phases, the company might even plant its indigenous herbs as this could reduce the logistics costs of importing raw materials from overseas.

To recap, Bioalpha has a supply contract to deliver health food ingredients to customers in Guizhou, China.

The company will utilise these ingredients to prepare healthy food and nutritional meals for the private and public sectors there.

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