A new effort to introduce hybrid rice into Malaysia is being led by Tan Sri Chua Hock Chin, one of Malaysia's wealthiest business tycoons. Chua recently resigned as executive vice-chariman of the Road Builder Group, one of the country's largest construction and property development corporations. But, before resigning, he spearheaded the creation of a subsidiary company, called RB Biotech, to develop and commercialise hybrid rice as part of Road Builder's corporate social responsibility programme. Chua owns a 20-30 per cent stake in the company through the Chua Family Foundation and Road Builder owns 5 per cent.
"I have now moved on to another stage of my life where I want to give some of my time to society," said Chua.
The other major shareholders in RB Biotech include the non-profit charitable organisation Yayasan Tuanku Syed Sirajuddin, which has a 20 per cent stake, and the Taiwanese scientist (Thomas) Chen Long Chen, who has a 30 per cent stake through his Singapore-based companies Sunland Agritech Ltd and Hong Kong-based Best Wishes Agritech Holding Ltd.
Yayasan Tuanku Syed Sirajuddin was involved in a previous hybrid rice project in the Malaysian state of Perlis in 2004 that failed to take off. Chen is a veteran of the international hybrid rice business, who claims to have been one of the lead players in launching hybrid rice in the Philippines. Could it be that Sunland Agritech is the same as the SL Agritech operating in the Philippines?
The RB Biotech hybrid rice project is based in Kuala Rompin, in the state of Pahang. The company opened its 27.2 ha R&D centre in May 2006, after an initial investment of RM2.5 million. Currently, there are five Chinese hybrid rice scientists working at the centre, who were formerly involved in developing hybrid rice in the Philippines. In 2007, the company plans to bring in another 5 Chinese scientists and to expand its land area to 293 ha. Chua expects the proposed expansion to cost RM25 million.
The company plans to start selling its seeds to a consortium of farmers owning 400 ha next to the R&D centre. From there, Chua expects seed sales to expand and he says that the company's eventual target is to supply hybrid rice seeds to at least 60 per cent of the country's rice fields. The company has already identified a first variety for commercialisation-- a cross between a basmati variety and a Japanese variety, which it has named "Siraj" in honour of the Sultan of Pahang. Chua says RB Biotech will be registering the intellectual property rights for its varieties in Malaysia.
Chua is, however, playing-up the "charitable" side of the project and framing it as an integral part of the Malaysian government's plan to move the country to 95% self-sufficiency in rice. it's a typical strategy to garner subsidies for hybrid rice, which has been used in other countries. Because, without subsides, farmers simply won't take up hybrid rice. Chua says that the Chua Family Foundation will be used to "make hybrid padi planting a feasible venture" for farmers by channeling "earnings generated from sales of hybrid padi seeds back to the farmers." The company's also carefully crafting ties with the top echelons of power, inviting both the King and the Prime Minister to partake in important PR events. The PR strategy has already paid-off in the form of a land donation from the Pahang government and some unnamed grants from the federal government.
(Sources are from Business Times, The Star, The New Straits Times, The Star)
RB Biotech's Director Tan Sri Chua Hock Chin (left) shows the company's Siraj variety of hybrid rice to Malaysian Prime Minister Abdullah