Sustainability-Oriented Products and Services

We are mindful that as a business entity, our primary role in supporting the United Nations’ Sustainable Development Agenda is through the provision of products and services that deliver environmental, social and economic benefits, thereby contributing towards the attainment of the goals. The following are some of our initiatives to deliver such products and services:
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Renewable Energy

The adoption of renewable energy will play a key role in the transition to a low-carbon economy, in line with SDG 7. To date, Boustead has invested in several renewable energy solutions within our operations. Under the BIJAU Agenda, however, we have identified renewable energy as a new growth engine and are entering into strategic partnerships with green technology players to become a key contributor in this fast-growing and high-impact area.

Algae Biofuel

We have entered into a partnership with NextGen Group in its venture to develop 15,378 ha of algae plantation to derive algae biofuel as an alternative source of renewable energy. NextGen Group has developed and patented A-MAP technology that represents a method of cultivation and harvesting micro algae to deliver exponentially higher yields on an industrial scale at a commercially viable cost.

Under our partnership, Boustead is leasing 405 ha of land belonging to our Plantation Division for algae cultivation, while also developing 15 million algae farm tanks and oil extraction facilities with an aggregate capacity of 34 million tonnes. In addition, we will provide more than 100,000 trained workers for the project.

Algae oil has many advantages over vegetable oils as a source of biofuel:

  • Algae is high-yielding therefore requires less land to extract the same quantity of oil compared to vegetable oils.
  • Algae can grow where food crops cannot, therefore does not compete for land that could be used to grow foods for human consumption.
  • It can grow using seawater and wastewater; conventional crops cannot.
  • Through NextGen Group’s A-MAP technology, it can even grow on rooftops, deserts, oceans, wastewater treatment plants, etc. All it needs is sunlight.

Solar Energy

Boustead has signed an MoU with Sinohydro to develop various solar-related projects in Malaysia. These include the development of a land-based solar farm on Boustead land and participation in large-scale solar projects, while exploring rooftop solar businesses as well as Solar Photovoltaic (PV) manufacturing. In addition, we intend to explore solar battery storage solutions and the development of a waste-to-energy plant. Sinohydro is a subsidiary of Power Co Corp of China (PowerChina), a market leader in engineering and construction projects with expertise in solar-related developments.

In addition to developing a viable source of renewable energy, through this venture we will be involving more Small and Medium-sized Enterprises (SMEs) in the renewable energy segment, building skills and capabilities in an important economic sector. To fulfil our commitment to supply trained workers, moreover, we will also encourage the participation of army veterans, thus provide income generating opportunities to an important stakeholder group.

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Socially Equitable Blockchain Technology

Following an MoU with Accubits Technologies (Accubits), we intend to use blockchain to create greater social equity, especially with regard to wealth creation and distribution. We seek to leverage Accubits’ expertise in blockchain innovations to explore the use of asset tokenisation and green tokens in Malaysia, starting with the property market. With the acquisition of affordable tokens, even those from the lower-income groups will be able to own equity in properties which they can live in. This is set to be a game-changer in the property segment, and will go a long way towards ensuring access for all to adequate, safe and affordable housing.

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Sustainably-Produced Palm Oil

Palm oil remains one of the most affordable and therefore widely used vegetable oils in food production. In producing sustainable palm oil, therefore, we contribute towards accessible and affordable food, helping to reduce hunger, in line with UN’s Zero Hunger ambition.

Committed to ensuring that its operations and products meet international ESG standards, six palm oil mills and 21 estates across 39,450 ha within our Plantation Division are RSPO certified, while certification is in progress for the remaining mills and estates. Meanwhile, all our mills and estates, covering 97,961 ha of our landbank, are MSPO certified.

During the year, we produced a total of 150,527 MT of CSPO and 25,751 MT of CSPK. Ensuring the sustainability of the entire supply chain, the Division has established a Traceability Monitoring Programme to track the flow of FFB. To date, six mills have attained RSPO Supply Chain Certification Standard (SCCS), while four are MSPO SCCS certified.

 

Fresh fruit bunches at one of our RSPO-certified mills

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Access & Availability Of Quality Healthcare Products

Pharmaceutical Products

Through our Pharmaceutical Division, we fully support UN’s goal of Good Health and Well-being by making quality
pharmaceutical products affordable and accessible to patients in Malaysia and Indonesia. Supporting this goal, the
Division has a 10-year development programme in place product pipeline from 2021-2028 that will see the launch of
139 new products.

In 2021 itself, the following was achieved:

  • Registered 17 new products with the regulatory authorities in Malaysia. Additionally, received registration approval for 13 products in other countries
  • Transfer of technology completed for the Sinovac COVID-19 vaccine
  • Successfully completed bio-equivalence (BE) studies for five products
  • Total of seven products were launched, including:
    • Biopharmaceuticals: Sinovac COVID-19 vaccine
    • Pharmaceuticals: Rabirox 200mg and 400mg (the first generic for the 400mg in Malaysia)
    • Pharmaniaga’s first nutraceutical, Arnia Madu Kelulut, in collaboration with University Malaysia Terengganu (UMT)

A key achievement was being granted conditional registration for Ravidasvir to treat chronic Hepatitis C infection, making Malaysia the first country in the world to approve its use. With a 97% cure rate, increasing the availability of this more affordable alternative can help to eliminate Hepatitis C, which causes 290,000 deaths each year. Ravidasvir was developed by a public-private partnership involving MOH, Pharmaniaga, the Drugs for Neglected Diseases initiative (DNDi), Egyptian pharmaceutical company Pharco, and Doctors Without Borders (MSF). It is expected to be available in 2022.

COVID-19 Vaccine

Delivery of Sinovac COVID-19 vaccine to Government clinic

In order to help the Government meet its COVID-19 vaccine requirements, our Pharmaceutical Division imported bulk vaccines from China’s Sinovac Life Sciences Co., Ltd while also completing the fill and finish for the Sinovac COVID-19 vaccine at its high-tech Small Volume Injectable (SVI) plant in Puchong. The latter allowed us to provide the vaccine to the Government. In total, we supplied 20.4 million doses of the vaccine to the National Immunisation Programme, accounting for the vaccination of 35% of the Malaysian population. Meanwhile, approximately 2.5 million doses were supplied to the private sector.

Halal Pharmaceuticals

In line with our objective of Halal-certifying all of our pharmaceutical products, 23 products were certified Halal by the Islamic Development Department Malaysia (JAKIM) in 2021.

At the same time, Pharmaniaga is establishing itself as a thought leader in Halal pharmaceuticals through active involvement in the Halal Development Corporation (HDC), where it is:

  • A committee member of the Sectoral Working Group for Halal pharmaceuticals under Halal Development Corporation Bhd (HDC).
  • A panel member to review module training for Halal pharmaceuticals by HDC.
  • A panel member in developing Written Instructional Material (WIM) for Halal Supervision and Operations (Levels 3 & 4, Phase II) under HDC.

Pharmaniaga has also been appointed as an alternative member of the Malaysian Organisation of Pharmaceutical Industries (MOPI) for Technical Committee (TC) for Halal Cosmetics, Pharmaceutical and Medical Devices under Department of Standards Malaysia.