Biodegradable packaging products made of rice straw waste, which are being produced through a collaboration between Bioeconomy Corporation and BioNexus Status company Free The Seed Sdn Bhd, are projected to reach a market value of RM60 million starting 2025.
The key export destinations include Germany, the Netherlands, Japan and the United Kingdom, the Ministry of Science, Technology and Innovation (MOSTI) and Bioeconomy Corporation said in a joint statement.
Produced at Free The Seed’s facility in Gurun, Kedah, the biodegradable packaging products go though the innovative processing of rice straw using enzyme biotechnology.
MOSTI Minister Chang Lih Kang noted that through the collaboration between Bioeconomy Corporation and Free The Seed, farmers in this region are projected to earn additional RM3 million annually starting in 2025 through the sale of rice straw waste.
“To date, 618 farmers have joined the initiative, with the number expected to grow to 3,700 once full-scale operations commence in 2025,” the minister said.
According to the statement, this demonstrates the immense potential of biotechnology in transforming rice straw waste into ‘green gold’, playing a crucial role in boosting farmers’ incomes, creating job opportunities, driving the circular economy and promoting environmental sustainability.
Bioeconomy Corporation chief executive officer Mohd Khairul Fidzal Abdul Razak said the expanded capacity of this collaboration is expected to produce up to 120 million units of biodegradable packaging annually, catering to the medical, food, industrial and electronics sectors.
“Initially focused on food and healthcare packaging for export, the company has successfully ventured into new sectors, including local healthcare, the semiconductor industry and sustainable energy.
“This support has also enabled Free The Seed to scale up its production capacity to meet the growing market demand in these sectors,” the statement said.
The minister also said that this collaboration has also led to the expansion of operation, creating 120 new job opportunities, 30% of which are filled by skilled Technical and Vocational Education and Training (TVET) workers.
