Malaysia an attractive Asean hub for Indian pharmaceutical firms

Malaysia is fast emerging as a major manufacturing hub for Indian pharmaceutical companies, especially for exports to Southeast Asian countries.

Big names such Ranbaxy, Cipla, Dr Reddy's Labs, Biocon and Strides Arcolab have started operations there, while others may follow soon, Business Standard reported. Malaysia is seen as a cost-competitive country, it said.

It is drawing Indian companies with a 10-year tax holiday, duty exemptions, customised incentives for large investments, access to Asean markets through free-trade agreements and no restrictions on equity.

Such incentives, and the reliable infrastructure there, have encouraged Indian drug makers to make the move, at a time when emerging markets hold the promise of growth, said the business daily.

Ranbaxy - one of the early entrants in Malaysia with a drug manufacturing facility through subsidiary Ranbaxy Malaysia Sdn Bhd - is now working on a second unit.