KUALA LUMPUR (Business Times) – The Asia-Pacific biotechnology sector has grown faster than in other parts of the world, having so far recorded a 46 per cent increase in revenue.

Competition is stiff in the region as Asia-Pacific governments turned to biotechnology as their strategic growth sector.

In a report by international consulting firm Ernst & Young, it said foreign companies also like the region because of its growing drug markets, economic liberalization and stronger protection accorded to intellectual property rights.

Countries are beginning to distinguish themselves by focusing on competitive niches in such segments as contract research and manufacturing, vaccines, information technology and bioinformatics, traditional medicines, and stem cells.

"Asian biotechnology executives and policymakers are focusing strategies towards strategic niches in their efforts to remain competitive," said Utkarsh Palnitkar, Industry Leader - Health Sciences, Ernst & Young India Private Ltd.

Malaysia is also investing in the biotechnology industry and as outlined in the recently launched Ninth Malaysia Plan, the Government will allocate RM2 billion to develop the sector.

Although Malaysia is still in the early stages of its 15-year National Biotechnology Plan, it is finding competitive niches, and making progress.

Malaysia is leveraging its biodiversity strengths to develop health-related products, and its ICT experiences to grow the bioinformatics industry, said Carol Wong, industry leader, Malaysia health sciences, Ernst & Young Malaysia.

Globally, it says that revenues of publicly-traded biotechnology companies surpassed $60 billion (RM220 billion) for the first time in the sector's history.