Strong growth prospect of Malaysia medical devices sector

The Malaysian Investment Development Authority is upbeat on the strong growth prospects for medical devices, given the growing regional demand for medical products. The local medical devices industry, which has been earmarked as a priority sector under the government's National Key Economic Area (NKEA), is a potential gold mine that can contribute substantially to the country's growth.

Its director of life science industry division, Jaswant Singh, said MIDA is working to change the investment trend in the medical devices sector, with the focus on adding value.

"Under the NKEA (healthcare services), the medical devices sector is one of the priority sectors identified for promotion and further development," he told a media briefing recently.

According to the Health Ministry, Malaysia's medical devices industry was valued at about RM3.5 billion last year and is expected to reach RM5.3 billion by 2015. This seems likely given that the global medical device industry is valued at US$320 billion (RM977.6 billion), which represents 25 per cent of the overall healthcare market. The growth will be fuelled by an ageing population, increased access to healthcare, especially in the Asia Pacific, changes in lifestyles and a shifting trend towards health tourism.

By 2020, it is set to contribute RM11.4 billion to the country's revenue and create 86,000 jobs.

Jaswant said in term of investment, the industry recorded RM172 million in the first nine months of this year.

"Although the investment value is small compared to the other sectors, that is not what is important. We are looking from the point of view of adding value," he said.

Malaysia already has a significant devices industry, mainly in catheters, surgical gloves, cannulae and medical instrumentation, in which it supplies 80 per cent of the global market in catheters and 60 per cent of the rubber glove market.

"Many of the essential ingredients are already in place, and in fact, Malaysia already manufactures a wide range of medical devices," Jaswant said.

He said Malaysia has the potential to position itself as a developer, manufacturer and supplier of medNike Air Max 95