SERDANG: Herbal product manufacturers and distributors in Asia need to develop "solid" product ranges and strong distribution networks to tap the global market, says INS Bioscience Bhd chief executive officer Datuk Yeat Sew Chuong.

He said demand for herbal products had improved over the years on growing awareness of the benefits of consuming herbal products.

Citing bio-herbs as an example, he said more nations were investing more efforts and resources in bio-herb development and the global herbal medical industry was estimated to be worth US$400bil this year.

"Indeed, the industry has rapidly grown at between 10% and 20% annually for the past few years.

"The prospect of the bio-herbs industry is boundless and it is predicted that the emergence of the information and communications technology and herbal medicine will spearhead the world economy in the next wave," he said.

Bestowed with an abundance of herbal resources and coupled with advanced technology of the West, Asia was working towards cultivating a greater value for these natural resources, he said at the 4th Global Bio-Herbs Economic Forum on Saturday.

On tapping the global market, Yeat said manufacturers and distributors needed to build a strong product base before expanding their business regionally.

"It will be very risky if you have a flaw in your products and this will definitely affect the brand perspective in the market," he told StarBiz at the sideline of the forum.

The financial capability of a company was also a consideration in business expansion as a lot of capital was needed to venture into overseas markets, he said, citing the high product registration cost as an example.

Besides, he said manufacturers and distributors should consider forming collaborations with partners on their overseas ventures in order to enlarge their capability, adding that it was important to have integration among manufacturers in the market as a way to establish strong global channels.

"Building a strong distribution channel is not an easy task but it is essential in expanding your business," he said.

Themed Building Global Channels, Steering Herbs Economy, the forum was held from Nov 5 to 7.

The forum explored the economic aspect of bio-technology and herbs in Asia, provided a plaform for further collaboration among Malaysian and Asian herbal industry players while increasing the awareness of herbs among the public.

- The Star Online