Malaysia’s first halal gelatin park targets 2021 completion

Malaysian company BCA International Sdn Bhd is targeting mid-2021 for the completion of the first phase of construction for the Melaka Halal Gelatin Industrial Park (MHGIP).

The subsidiary of listed firm Sanichi Technology Berhad has identified a 212-acre land in the state of Malacca with amenities, and close proximity to logistics infrastructure such as a port, airport and highways, Sanichi said in a statement on Monday (Dec 2).

The first phase of development aims for the Halal Gelatin Plant to start operations mid-2021, followed by the completion of the industrial park by 2025.

Sanichi said gross development value will run up to 1.3 billion ringgit ($311.48 million).

“This capital-intensive investment would provide a natural barrier of entry against competition from other players in our lucrative niche market,” said BCA CEO Mohd Hanif Tan.

The company forecasts halal gelatin plant production value of up to 250 million ringgit per annum.

The park will serve related downstream industrial activities for applications across food, pharmaceuticals, cosmetics, and films, said Sanichi.

These include for yogurt, jelly, gummy sweets, beverages, styptic cotton, hard capsule, soft gel, tablets, vitamin capsulation, hair and skin products, toothpaste, lotion, adhesives, paper manufacturing, box making, rill films, and x-ray films.

Malaysia currently imports 100% of halal gelatin, said the statement from Sanichi.

BCA has inked an agreement with New Zealand-based Taranaki Bio Extracts Ltd to supply raw materials such as halal-certified dry bone chips for production of halal gelatin.

It will also work with New Zealand-based Oceania Halal Academy Limited  on research and development to source, produce and supply halal dry bone chips.

BCA also signed a memorandum of understanding with Universiti Malaysia Pahang (UMP) and UMP Green Technology Sdn Bhd on investment collaboration of its research and development and Halal Gelatin Incubator Plant in Pekan, Pahang, which secured an investment grant of 20 million ringgit from Majlis Amanah Rakyat.

($1 = 4.1736 Malaysian ringgit)

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