Page 46 - Malaysian Dietary Supplement Industry Status and Outlook Report 2019-2020 Preview

milks, vitamin-infused coffees or drinks, juices, etc. from the
coverage of the dietary supplements industry.

Product flow in the Malaysian dietary supplements industry
is relatively straightforward but stringent due to multiple
regulatory checkpoints. Upon conceptualization of a product:

• Ingredients are sourced, based on the intended
function and price positioning of the product. The
large majority of dietary supplement ingredients are
imported. Regulatory mechanisms are put in place to
control the quality, safety, and validity of imported
ingredients.
• The process enters the formulation stage.
Ingredients are combined to specific weights, parts,
volumes, and dosages based on functional
characteristics.
• Formulation is combined with a delivery mechanism,
and a sample of the finished product is
manufactured. Dominant delivery mechanisms for
the Malaysian market include tablets, capsules
(standard and soft gel), and powders. Other delivery
mechanisms include liquids, films, and sprays.
• The sample product is sent for R&D and testing (e.g.
for efficacy and stability of the product). R&D and
testing are conducted in accordance to requirements
enforced by the National Pharmaceutical Regulatory
Agency (NPRA). R&D and testing continue in cycle
until all requirements are satisfactory met by the
NPRA, and subsequently the product is registered.
• Once registration is successful, production of the
finished product can begin.
• Similarly, imported finished products require
registration with the NPRA before they can enter the
market. Further R&D/testing may or may not be
needed, depending on whether local requirements
have been satisfied.
• Finished products are marketed and distributed via
retail channels to end consumers. Primary sales
channels are brick-and-mortar (physical retail
channels), direct selling (direct channels), and online
platforms (online channels).

The manufacturing process of dietary supplement products
are relatively similar across categories and subcategories,
and varies based on the formulation and delivery mechanism
of individual products.

Greater processual differentiation occurs in the upstream, at
the ingredients processing stage, involving the extraction of
active ingredients, culture of bio-active ingredients, and
stabilization of processed ingredients.

46