Monday, March 14, 2016
Malaysia is aiming to become a regional leader in health care as it pushes its industrial economy toward a knowledge-based one.
Under the 11th Malaysia Plan for national development (2016-20), the medical device industry was identified as key to rapid growth alongside the aerospace, chemical, electronics and machinery sectors.
Due to its strong links to manufacturing and capacities to deliver high-value-added goods, the industry is poised to lead Malaysia’s economy, which has grown at around 5 percent for the past five years, according to the World Bank.
At an investment seminar on Malaysia’s medical devices industry at Lotte Hotel on March. 3, the ASEAN-Korea Center secretary general Kim Young-sun pointed out that Malaysia has achieved healthy growth in the heart of Southeast Asia, with the launch of the ASEAN Economic Community at the end of last year under Malaysian chairmanship.
The event, cohosted by the ASEAN-Korea Center and the Malaysian Investment Development Authority, informed participants of market opportunities, regulatory surroundings and investment strategies. It also provided one-on-one meetings for government officials and business representatives.
The Malaysian delegation to Korea visited the Osong Biovalley, the Wonju Medical Industry Techno Valley and other companies from Feb. 2-4.
“As Malaysia’s population grows from its current 30 million and its society becomes more affluent, consumer demand for quality health care increases,” said Malaysian Ambassador Dato Rohana Ramli in a speech. “Our increasing ageing population also raises demand for quality and affordable medical devices.”
Over 200 small and medium-sized medical manufacturers operate in Malaysia, alongside 30 multinational corporations, including Agilent, B. Braun, St. Jude Medical, Hoya, C.R. Bard, Teleflex Medical, CIBA Vision, Ambu, Toshiba Medical Systems and Haemonetics.
They cover a broad range of products, such as examination gloves, cardiac pacemakers, stents, implantable devices, orthopedics, medical electrodes, diagnostic radiographic equipment, ophthalmic lenses, defibrillators, dialysers and imaging devices.
The industry falls under the Ministry of Health Malaysia. Its regulating body, the Medical Device Authority, and laws, such as the Medical Devices Regulations 2012 and the Medical Devices Act 2012, oversee supervision and administration.
According to the Malaysian Investment Development Authority (MIDA), “Strong support from related sectors, efficient logistical infrastructure, a well-educated workforce, supportive government policies and a vibrant economy” back the industry, which aims to create over 86,000 jobs by 2020.
Ramli highlighted that greater collaboration will be pursued in green energy, information communications technology, biotechnology and health care, especially since the Malaysian government’s “Second Wave of the ‘Look East Policy’” is geared toward broadening and deepening Malaysia-Korea relations toward a knowledge-based economy.
Korea is the seventh largest exporting country to Malaysia with bilateral trade reaching $14.4 billion last year. In terms of investment, Malaysia is the sixth largest destination for Korean companies.
“The medical device industry is an important segment within Malaysia’s industrial landscape,” said the MIDA chairman Dato Azman Mahmud. “This industry is expected to contribute greatly toward our aspirations to be a high-income nation by 2020.”
Regulations have raised market confidence on medical devices produced in Malaysia, he said, adding that domestic firms -- such as ABio Orthopaedics, Straits Orthopaedics, Granulab, Vigilenz Medical Devices, Kossan Latex and Top Glove -- have carved a name for themselves at home and abroad.
Malaysia has become a global leader in the production and export of catheters and surgical and examination gloves, supplying 80 percent of the world’s catheters and 60 percent of its gloves.
As of December last year, more than 347 manufacturing projects with investments over $4.7 billion have been implemented in Malaysia, including eight projects related to medical devices under the Economic Transformation Program.
Thirty projects have been approved by the MIDA, one-third of which are domestic investments and the remainder foreign investments. They encompass metered dose inhalers, surgical instruments, internal fixation implants and artificial joints, bio-scaffold surgical kit and 3-D printed bio-scaffolds.
Support industries include sterilization services, packaging, tool-and-die making, contract molding and assembly, machinery and electronics.
“The pace of innovation in the medical devices industry will continue to accelerate as new players revolutionize product development, manufacturing and business,” said Mahmud. “Innovation is occurring through the convergence of drugs and biologics, electronics, the Internet of Things and 3-D printing.”
As “growth areas” within the industry, the chairman pointed to electro-medical equipment, cardiovascular devices, orthopedic devices, in-vitro diagnostic products, wounded care products, innovations in technology convergence and research and development.
Following the signing of the Trans-Pacific Partnership agreement in early February, of which Malaysia is one of 12 signatories, investors will benefit from tariff reductions and simplified procedures covering safety regulations and distribution, he added.
Source : koreaherald.com
