The AMMI Medical Device Industry Outlook Report 2016 estimates that this year’s export outlook for the medical device industry is expected to reach RM17.8 billion, a 15% growth in total exports from last year. The AMMI Chairman, Hitendra Joshi highlighted that its members’ collective exports last year have increased by 20% to reach RM8.3 billion. This represents more than 50% of Malaysia’s total exports of medical devices of RM15.5 billion in 2015.
The AMMI Chairman also said that its members’ cumulative investments amounted to RM5.09 billion last year, as compared to RM4.27 billion in 2014. The increase reflects investors’ confidence in Malaysia. AMMI’s survey recorded an outstanding value-added ratio of 60% in manufacturing medical devices in Malaysia. A high percentage of about RM1.97 billion or 55% worth of raw materials and services were locally sourced from within Malaysia. This reinforces the country’s standing as an ideal hub for medical device manufacturing.
In tandem with this optimistic outlook, AMMI members are expected to create another 1,900 employment opportunities in 2016 to its current pool of 31,000 skilled workforce. Due to the gradual shift towards higher-value added and frontier medical devices, AMMI members also spent a total of RM45 million in research & development (R&D) activities for the whole of 2015.
On complimenting AMMI’s efforts in putting together this report, Dato’ Azman Mahmud, Chief Executive Officer of MIDA said, “This report certainly serves as a good reference to highlight the opportunities in the medical device industry in the Malaysia. I am sure this report, which is indispensable to industry players at all levels, will give us important insights on the outlook and future prospects of the medical device industry.”
“The medical device industry continues to attract investments both local and foreign. Malaysia has recorded a total of RM8.6 billion investment of implemented projects since 1980s. In the first quarter of 2016, approved investments increased by 79% to RM841 million as compared to RM468 million in the corresponding period last year. This will create 2,380 employment opportunities. About 76% or RM639 million of these investments were from foreign sources, while the balance of 24% or RM201 million were from domestic investments,” said Dato’ Azman.
To date, the medical device industry in Malaysia is made of more than 190 companies dominated by small and medium-sized companies (SMEs). More than 30 Multinational Corporations (MNCs) such as B. Braun Medical (Germany), St. Jude Medical (USA), Haemonetics (USA), Teleflex Medical (USA), CR Bard (USA), Abbott (USA), CIBA Vision (Switzerland) and Toshiba Medical Systems (Japan) have made Malaysia their home for offshore operations.
“We believe that the pace of innovation in this industry will continue to accelerate as new innovations and players revolutionise product development, manufacturing processes and business models. With the established industry ecosystem in the country, we expect more companies to leverage on Malaysia’s excellent competitive advantages and develop expertise in all aspects along the value chain,” he added.
The Medical Device Industry Outlook Report 2016 by the Association of Malaysian Medical Industries (AMMI) was launched at the Malaysian Investment Development Authority (MIDA) HQ today. The report, which focuses on our current status of medical devices based on the survey undertaken among the AMMI members.