The British colonisation of Malaya in the late nineteenth century saw a new stage in the use of Western (modern) medicine: hospitals and clinics were built across urban and rural areas, leading to a gradual decline in some traditional practices. However, traditional medicine continued to be important among elders and for certain life-stage uses, such as pregnancy care, post-partum care, and general health maintenance. After Malaysia gained independence in (1957) and was formally established in 1963, traditional and modern medical systems were re-evaluated, and from the 1980s onwards, traditional medicine experienced a resurgence within primary healthcare.
This revival eventually catalysed the growth of traditional medicine companies in Malaysia. A modern, industrialised approach emerged: traditional medicine products were reformulated into standardised formats (capsules, tablets), and regulatory oversight increased, notably through the requirement to register traditional medicinal products with the Ministry of Health. This bolstered consumer confidence in quality, safety, and efficacy. By 2006, there were 160 registered traditional medicine GMP manufacturers, in addition to roughly 103 wholesale companies and 107 importers [1].
In recent years, this growth has accelerated and matured. The Ministry of Health launched the Traditional & Complementary Medicine (T&CM) Blueprint 2019-2027, a national masterplan to further regulate, professionalize, and integrate T&CM into the health system [2]. This includes action plans for medicinal-material quality, research, education, and safe practice.
On the industry side, by 2019, of the 263 pharmaceuticals-sector manufacturers licensed by the Drug Control Authority, 182 (69.2%) were produced traditional medicine. Also in 2019, over 50% of newly registered pharmaceutical products were ‘natural products’ (12,139 units), showing that botanicals remain a core part of the pharmaceuticals/ nutraceutical pipeline. Moreover, the herbal T&CM sector contributes significantly to Malaysia’s economic ambitions; MIDA projects that its gross domestic product (GDP) contribution could reach RM 19-28 billion by 2027 [2]. The authors of the review emphasised the need for stronger, more modern safety-evaluation methods (e.g., in silico modelling, omics) and extensive toxicological data.
To protect consumers, the Ministry of Health has published a consumer guideline to help people make informed choices about T&CM services and products, warning against misuse and encouraging safe, informed use. The Malaysian Medical Association (MMA) also reaffirmed the relevance of T&CM in its 2025 position paper, urging evidence-based integration [2].
The Malaysian government’s role in encouraging and promoting the growth of the traditional medicinal-plant industry has been pivotal. Historically, the government supported Good Manufacturing Practice (GMP) and Good Storage Practice (GSP) among small and medium sized (SME) traditional medicine manufacturers. The implementation of GMP for pharmaceutical products has long been recognised, and this commitment has extended to traditional medicine. The conferment of GMP certification on traditional medicine product manufacturers has enhanced both domestic trust and international credibility, indirectly contributing to the export potential of Malaysian traditional medicine [1].
As of 2006, the Drug Control Authority (DCA) and the National Pharmaceutical Regulatory Agency (NPRA), formally known as the National Pharmaceutical Control Bureau (NPCB), had registered approximately 65,000 traditional medicinal products, while the industry structure comprised 160 GMP manufacturers, 103 wholesalers, and 107 importers (a total of 370 companies) [1]. Over the years, these foundational efforts laid the groundwork for future industrial and regulatory development.
In recent years, regulatory oversight has become even more robust. NPRA issued a 3rd‑edition guidance document for GMP inspections in October 2023, specifically covering for traditional medicines, health supplements and cosmetics, thereby tightening and clarifying the manufacturing standards for producers [3,4]. Simultaneously, Malaysia’s Ministry of Health published a Herbal Medicine Research Guideline (2023), which requires GMP‑ Pharmaceutical Inspection Co-operation Scheme (PIC/S) certification for registered herbal‑medicine manufacturers [1,5], reflecting a new synergy between regulation and research to raise product quality and safety. It encourages scientific validation of traditional products, integrating preclinical and clinical studies into product development.
The government has also acknowledged long-standing challenges in raw material supply. Despite Malaysia’s rich biodiversity (with more than 2,000 potential medicinal plant species), commercial cultivation remains limited. Reports suggest that less than 10% of raw materials used in the herbal industry are locally cultivated, forcing reliance on wild‑collected or imported sources, a practice fraught with sustainability risk [6,7]. To address this, the government has encouraged domestication of key medicinal plants (e.g., Eurycoma longifolia, Labisia pumila) under Malaysia’s Good Agricultural Practices (myGAP), promoting consistent and sustainable production.
Economic and policy measures further demonstrate the sector’s recognised strategic value of the sector. The T&CM Blueprint outlines a national development plan to raise capacity, standardise practice, and integrate T&CM into health services. In addition, the MIDA highlights the country’s biodiversity as a significant asset for herbal industrial development, positioning traditional products for both domestic growth and export. NPRA inspection reports indicate that some traditional medicine manufacturers still fall short in critical GMP aspects, such as documentation, quality control procedures, and production premises. Moreover, the dependence on wild‑harvested or imported botanicals continues to cause supply instability, price volatility, and variable raw‑material quality, despite government efforts to promote cultivation.
The Malaysian government’s role has evolved from providing basic regulatory guidance to implementing a multifaceted strategy that includes stricter manufacturing standards, promoting scientific research, supporting sustainable cultivation, and developing a long-term industrial roadmap. These coordinated efforts not only strengthen the domestic traditional medicine industry but also position it for higher-quality production, greater international recognition, and sustainable growth.
Table 1. List of selected local medicinal plants used by the traditional medicine companies in Peninsular Malaysia.
| Medicinal | Plants | Sources | Total | |
|---|---|---|---|---|
| Local Names | Scientific Names | Local (ton/year) | Import (ton/year) | (ton/year) |
Pegaga Tongkat ali Ganoderma Serai wangi Kacip fatimah Cekur/Kecur Pala Hempedu bumi Asam jawa Kunyit Halia putih/bara Teja sarsi Mengkudu Pakma/patma Lengkuas | Centella asiatica Eurycoma longifolia Ganoderma lucidum Cymbopogon nardus Labisia pumila Kaempfera galanga Myristica fragrans Andrographis paniculata Tamarindus indica Curcuma domestica Zingiber officinale Cinnamomum sp. Morinda citrifolia Rafflesia hasseltii Languas conchigera | 1,202.10 73.50 60.00 38.20 24.40 0.84 6.02 6.55 7.21 1.62 4.38 4.80 0.70 4.02 3.62 | 2.40 1.20 – – – 14.96 4.32 1.21 – 4.40 1.09 – 3.60 – 0.12 | 1,204.40 74.70 60.00 38.20 24.40 15.80 10.34 7.76 7.21 6.02 5.47 4.80 4.30 4.02 3.74 |
Source: Mohamad Satefarzi and Mansor (2001)
Although medicinal plant species such as pegaga (Centella asiatica), tongkat ali (Eurycoma longifolia), cekur/kecur (Kaempferia spp.), kunyit (Curcuma longa), and mengkudu (Morinda citrifolia) can be cultivated locally, manufacturers continue to rely heavily on imported and wild-collected raw materials. Recent analyses indicate that less than 10% of the raw materials used by Malaysia’s herbal industry are cultivated domestically, with the majority sourced from wild populations or imports, resulting persistent supply-chain vulnerabilities. Historical studies also recorded wild-harvest collection ranging from 80 kg to over 2,000 kg per trip per practitioner, reflecting both high demand and unstainable harvesting practices [7,8].
To improve supply consistency and sustainability, the Malaysian government has prioritised high-demand species such as Eurycoma longifolia, Centella asiatica, and Labisia pumila for large-scale cultivation under myGAP programs [6]. However, constraints such as limited cultivable land, competition with other crops, and low technical capacity among SMEs continue to limit widespread cultivation. Biotechnological approaches, including in vitro hairy-root culture systems for E. longifolia, have been developed to produce bioactive compounds without depleting wild populations, providing a sustainable alternative for high-value medicinal species [9].
Despite these efforts, a significant portion of the industry still relies on traditional supply chains. Field studies in Sabah indicated that nearly 70% of medicinal plants sold in local markets were unprocessed, sourced directly from collectors or small traders, highlighting on-going dependence on unmanaged wild or imported resources [10]. This continued reliance contributes to inconsistent quality, price volatility, and sustainability risks.
The processing of medicinal plants in Malaysia faces additional challenges that can reduce competitiveness in global markets. Historically, these included indiscriminate harvesting, poor post-harvest handling, inefficient processing techniques, low yields, inadequate quality control procedures, high energy losses, limited adherence to good manufacturing practices, insufficient research and development, marketing difficulties, limited skilled personnel, and inadequate access to technology and equipment.
Overall, Malaysia’s traditional medicinal plant industry is gradually transitioning from small-scale, low-technical-capacity enterprises to a more structured, regulated, and research-driven sector. Improvements in cultivation, GMP compliance, post-harvest handling, quality control, and research are essential to enhance competitiveness, ensure sustainable supply, and increase export readiness in the global herbal and nutraceutical market.
References:
- Ministry of Health Malaysia. Herbal Medicine Research Guideline 2023. National Medical Research Register (NMRR).
- Malaysian Investment Development Authority (MIDA). Malaysia: A Promising Future for Traditional & Herbal Medicine. [Internet]. MIDA; 2023 [cited 2025 Nov 21].
- National Pharmaceutical Regulatory Agency (NPRA). Guidance Document for Preparation of GMP Inspections on Traditional Medicines, Health Supplements & Cosmetics (3rd Edition). Oct 2023.
- De Silva H. Constraints in medicinal plant processing and industrial competitiveness. 1997.
- NPRA. Press/Announcements: Analysis of Deficiencies Observed During On‑site GMP Inspections of Local and Foreign Manufacturing Premises (Traditional Registered Products). 2023.
- Leong CF, Seah YJ. Domestication and cultivation of medicinal plants in Malaysia: issue and opportunities. FFTC Agricultural Policy Platform [Internet]. 2019 [cited 2025 Nov 21];1385.
- Food and Agriculture Organization of the United Nations (FAO). Trade in medicinal plants. Rome: FAO; 2003.
- Mohd Azmi MI, Norini H. Supply and demand of medicinal plants: a preliminary study in the northern states of Peninsular Malaysia. In: Proceedings of the Seminar on Medicinal and Aromatic Plants; 2000 Sep 12–13; Kuala Lumpur, Malaysia. Forest Research Institute Malaysia (FRIM); 2000.
- TOST UNISE. Medicinal plants in Sabah markets: a survey of traditional supply chains. Trends in Science & Technology [Internet]. 2020 [cited 2025 Nov 21];8(3):627–40.
- Universiti Kebangsaan Malaysia. Hairy-root culture of Eurycoma longifolia for bioactive compound production. 2025.