Pushing for growth in medical device exports Eur.
Focus Malaysia 08 Nov 2018 13:28
The Malaysia External Trade Development Corporation (MATRADE) capitalises on the growing demand for Malaysian Medical Devices by ramping up the promotion of Malaysian brands at one of the world’s largest Healthcare and Medical Devices exhibitions, MEDICA Dusseldorf. The event is set to take place in Dusseldorf, Germany, from 12th to 15th November 2018.
Ten Malaysian companies are taking part in the MEDICA Dusseldorf and will be showcasing their brands to over 120,000 visitors and 5,000 companies present at the event. This year marks MATRADE’s sixth participation in MEDICA Dusseldorf. To date, a total of 37 companies have benefitted from MATRADE’s mission to the event since 2012.
The companies participating under are mainly manufacturers of diagnostic and test kits, sanitisers and disinfectants, medical graph paper, innovative sheath contraceptives, as well as medical components, among others. The selection of the companies was done based on the companies’ capabilities and MATRADE’s broad based strategies in positioning Malaysia as the preferred sourcing hub for Medical Devices, particularly for Medical Disposables.
MATRADE’s participation in MEDICA Dusseldorf is also expected to witness the breakthrough of a Malaysian medical disposable manufacturer into the European market. The local manufacturer will ink a long term contract with their partner in the United Kingdom with a deal valued at RM15 million.
Malaysia’s exports of Medical Devices to Europe showed steady growth for the past five years from RM 4.4 billion in 2012 to RM 6.4 billion in 2017, with a compounded annual growth rate of 7.5 per cent. Exports to Europe, on average, accounts for 30 per cent of Malaysia’s total exports of Medical Devices during the same period. For the first nine months of 2018, exports of Medical Devices to Europe reached RM5.45 billion, a 12.2 per cent percent increase from the same period last year.
“Participation in MEDICA Dusseldorf would enable local manufacturers to not only establish connections with buyers and distributors but also to understand the market peculiarities such as the stringent regulatory requirements in Europe. Complying with these requirements will certainly ease market access for the Malaysian companies and eventually lead to the increase of their exports to the region,” said Abu Bakar Yusof, Director of Lifestyle and Life Sciences, MATRADE.
Traditionally, exports of Medical Devices to Europe were mostly dominated by Medical Gloves, however there is a change in the export structure where share of Medical Consumables increased from 28 per cent in 2012 to 53 per cent to 2018. The remaining Non-Glove segment too, grew from 28 per cent share in 2012 to 53 per cent in 2017.
“Exports of Non-Medical Glove Segment grew at a compounded annual growth rate of 21 per cent between 2012 to 2017, reflecting the diversification of Malaysian Medical Devices industry,” Abu Bakar noted.
In terms of market, the top five destinations for Malaysian Medical Devices in Europe (for 2017) were Germany (RM 2.29 billion), Belgium (RM 1.54 billion), the Netherlands (RM 450 million), United Kingdom (RM 369 million) and Italy (RM 337 million). Collectively, these markets contributed 77.8 per cent of Malaysia’s exports of Medical Device to Europe in 2017.
For companies interested in participating in any of the events organised by MATRADE, please contact Mr. Mohamed Syafiq Mohamed Khalid at +603 6207 7505 (email@example.com).