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KUALA LUMPUR: Bioalpha Holdings Bhd's wholly-owned subsidiary, Bioalpha (Hainan) Development Ltd has entered into a collaboration agreement with Gaolin Village Council to jointly develop Gaolin Village in Hainan Province, China, to be named Malaysian Agricultural Hub.

In a statement, the integrated health supplement company said the hub will be spearheaded by Bioalpha and entail the construction of a factory complex consisting of 30 units of factories.

“The hub will have an initial paid-up capital of RMB10 million (about RM6.6mil) and authorised capital of RMB50 million (about RM33mil)” it said.

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The initial phase of the hub will focus on the upstream and downstream activities such as formulation, manufacturing and commercialisation of food products using Malaysian indigenous and tropical herbs, such as Misai Kucing and Kacip Fatimah for the local Chinese market.

Managing director William Hon said the Malaysian Agricultural Hub is a unique model that focuses on the complete integration supply chain for Malaysian agricultural 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 allows the group to better gauge the domestic demand in order to roll out related products in the shortest time possible.

“For future phases, we may even plant our indigenous herbs as this could reduce logistics costs of importing raw materials from overseas,” he said.