KUALA LUMPUR: Association of Malaysian Medical Industries’ (AMMI) survey respondents plan to collectively invest RM765 mil in plant expansion, new product development as well as research and development (R&D) in 2020.
At a time when the global economic outlook is unfavourable amidst new trade and economic challenges, the outlook for Malaysia’s medical device industry remains very positive, the association said on Dec 5, with the majority of the respondents bullish on their business prospects in 2020 and the years to come.
The AMMI Medical Device Industry Status and Outlook Report 2019/2020 released by the Malaysian Investment Development Authority (MIDA) and the association disclosed that AMMI members collectively sourced RM4.2 bil of raw materials and services from local suppliers and SMEs.
This reflects AMMI’s commitment in supporting government initiatives to develop vendor development programmes and local SMEs, the association stressed.
Global exports of medical devices from Malaysia rose by 15% from RM19.8 bil in 2017 to RM22.9 bil in 2018. AMMI members collectively accounted for over 55% of the export value.
According to AMMI’s analysis, the export of medical devices from Malaysia will likely achieve RM25.7 bil in 2019 and RM28.8 bil in 2020, based on the projected 12% year-on-year growth.
Commending the industry, MIDA CEO Datuk Azman Mahmud said Malaysia continues to evolve as a manufacturing hub for medical devices in Asia.
“The medical devices industry, which manufactures higher value-added and technologically-advanced products such as cardiac pacemakers, stents, orthopaedic implantable devices as well as electro-medical, therapeutic and monitoring devices, is expected to have a positive impact on the Malaysian economy.
“As at 2018, a total of 382 medical devices projects with investments worth RM18.4 bil were implemented in Malaysia, creating more than 71,000 jobs,” he said.
According to Azman, MIDA approved 21 projects in the medical devices industry worth RM2.12 bil in January-September 2019.
“To remain competitive and relevant in the global medical devices industry, local companies are encouraged to prioritise productivity, accelerate automation and innovation, undertake more R&D and implement best practices. Initiatives such as forming strategic alliances with multinationals, universities and research institutions will help further this agenda,” he added.
AMMI chairman Christophe Marque said the association is striving to be the catalyst for industry players, comprising device manufacturers, services providers and connected stakeholders.
“AMMI members will achieve manufacturing excellence by focusing on key matters and spurring exchanges of insightful knowledge. As iron sharpens iron, collectively AMMI members are shaping the landscape of Malaysia’s medical industry,” he added.
The report is based on a survey completed by 42 AMMI members, constituting a 57% response rate. The respondents are major players that represent over 80% of the business volume. – Bernama
