“According to the iSpirit Business Solution, the global medical device production value is forecast to record a strong growth of almost 6% in 2016, reaching approximately US$315 billion. While North America and Europe are ranked first and second respectively as the largest medical device technologies market in 2015, the Asia-Pacific is considered as an emerging market owing to the advancements in technology and health care infrastructure. With these developments, the demand for medical device parts and components in the Asia-Pacific region is also expected to increase dramatically. As such, I hope that more suppliers and subcontractors will be further encouraged to having or expanding their presence in Malaysia to cater for the Asia Pacific and global markets,” he said.
The one-day conference, jointly organised by MIDA and SME Corporation Malaysia (SME Corp) received an overwhelming response with the attendance of more than 100 participants from over 50 local and foreign companies. Other than presentations by MIDA, SME Corp, anchor companies namely Abbott, KLS Martin and a.p.s. Medical, the conference also featured a business matching session with the participation of 20 potential local suppliers in the areas of fabrication, tooling and jigs, machining, packaging, electronic and manufacturing service, and consumables.
Datuk N. Rajendran further added, “We are excited that Abbott, KLS Martin and a.p.s Medical are committed in developing local suppliers towards a sustainable ecosystem in the medical device industry. This conference demonstrates the companies’ strong level of confidence in Malaysia’s local supporting industry capabilities. To drive this industry to the next level, we have recently established the Medical Device Investment Advisory Panel (MDIAP) with focus areas that include electro medical equipment; cardiovascular devices; orthopedic devices; in-vitro diagnostic products; wound care products; contract manufacturing for R&D, medical devices and equipment; and products from convergence of technologies.Through this platform, we can better facilitate Malaysian-based companies including SMEs to becoming global champions.”
Under the SME Masterplan, there are a number of High Impact Programmes that Malaysian SMEs in the medical device industry can avail themselves. SMEs with high growth potential have an opportunity to participate in the Catalyst Programme (High Impact Programme or HIP 5) implemented by SME Corp. to build up their capacity and link them to financing and markets to integrate them into the global supply chain. Another programme is the Technology Commercialisation Platform (HIP 2) ) implemented by PlaTCOM Ventures, an entity set up under the support of Agensi Inovasi Malaysia and SME Corp. Malaysia to assist in commercialising their products. These initiatives will support SMEs to move up the value chain to higher tier companies and become champions.
To date, Malaysia hosts more than 200 medical device manufacturers with notable players such as Haemonetics, B. Braun Medical, St. Jude Medical, CR Bard, CIBA Vision and Toshiba Medical Systems. The industry continued to attract investments, whereby a total of 293 projects with investments of RM12.3 billion have been implemented from 2002 until December 2015. About 57.7% or RM7.1 billion of these investments were from foreign sources, while the balance of 42.3% or RM5.2 billion were from domestic sources. These projects have created 57,312 employment opportunities.
The medical device industry in Malaysia is an export oriented industry with over 90% of the production exported. Exports of medical devices grew 15% from RM13.5 billion in 2014 to over RM15.5 billion in 2015.
Mr. Aaron Kendrick, Site Director of Abbott Manufacturing Malaysia stressed that Abbott is expanding their manufacturing capabilities to meet the growing demand for cataract surgeries due to an ageing global population. On why Abbott chose Malaysia, he said, “Manufacturing lenses is a highly complex process, and we have chosen to grow our business in Malaysia for many reasons, in large part because of the skilled work force in medical technology. Abbott also continues to choose Malaysia as an important place to do business because of the support from many government agencies, like MIDA, that share our passion for helping people live healthy lives. Being the first manufacturing site for Abbott in Malaysia and with a newly established plant, Abbott is working to further develop local vendor relationships and partnerships”
While Dato’ Hans Brenner, Chief Executive Officer of KLS Martin Malaysia said that, “KLS Martin Malaysia is established with the purpose to provide high quality medical product at an affordable cost. With a company based in Malaysia, it draws us nearer to end users in this region. KLS Martin Malaysia is planning to collaborate with local universities and Small and Medium Enterprises (SMEs) to develop local products by the sixth year of its expansion.”
Being an established manufacturer of high grade disposable medical devices in Malaysia for 18 years, Mr. Chinniah Kalimuthu, Director from a.p.s. Medical said, “We encourage and give priority for local supplier to provide goods and services to our industry rather than overseas suppliers. Opportunities given by MIDA will open up our chances of meeting reliable suppliers.” a.p.s. Medical currently caters 80% to its overseas market. The medical devices manufactured are being used various department in hospital such as surgery, emergency, O&G, central sterile services, wound management and others.
About SME Corp. Malaysia
SME Corp. Malaysia is a Central Coordinating Agency that formulates overall policies and strategies for SMEs and coordinates the implementation of SME Development Programmes across all related Ministries and Agencies. It acts as the central point of reference for research and data dissemination on SMEs, as well as, provides advisory services for SMEs in Malaysia. SME Corp. Malaysia also assumes the role of the Secretariat to the National SME Development Council (NSDC) which is chaired by YAB Prime Minister of Malaysia.
For more information, please visit www.smecorp.gov.my
Abbott Manufacturing Malaysia Sdn. Bhd. was incorporated on 28 March 2014. In September 2014, Abbott had its official groundbreaking ceremony and began its construction in June 2014. In April 2016, Malaysia witnessed the opening of Abbott’s plant for intraocular lenses (IOL) in Kulim, Kedah. An IOL is implanted in people to restore vision after cataract surgery, and lenses here will supply the global market. The project consist of 21.6 acres of land with a total plant area of 160,000 ft2 with total investment of USD60 million. As of April 2016, the company employs about 150 people, of which 99% are Malaysians. The first commercial batch of IOL was produced in February 2016.
About KLS Martin
KLS Martin Malaysia Sdn. Bhd. was incorporated on 17 June 2014. Headquartered in Germany, the name of KLS Martin stands for high-quality and innovative medical technology. Its special strengths are in cranio-maxillofacial surgery, hand surgery, cardio and neurosurgery, HF surgery, operating lights and modular operating room system. The company is the market leader for many products. The drivers of this success are no secret: innovative research & development highly advanced manufacturing facilities and an internationally operating sales organisation. This medical device and equipment company plans to invest RM100 million over the next five years in Juru, Penang. The expansion will involve the setting up a Centre of Excellence (COE)/ Research and Development (R&D) centre for general surgery to serve the industry in Southeast Asia.
About a.p.s Medical
a.p.s. Medical Sdn. Bhd. is a manufacturer of single use, disposable medical devices incorporated in 1998 at Shah Alam, Selangor. The company was accredited by SGS United Kingdom Ltd. with compliance of ISO 13485:2003, ISO9001:2008 and has been awarded CE mark for exporting to the European Community. The production involves wide range of products which include Suction Connecting Tubes, Oxygen Tubes, Drainage Tubes, Amniotic Perforators, Insufflations Tube, Insufflations Filter, Infusion Tubing, Extension Tubing, Pressure Tubing, Veress Needle, Laparoscopic Suction Irrigation with Trumpet Valves sets and Medicine Measures such as Kidney Dishes, Pill Cups, Conical Measures, Gallipots and Feeding Cups. We cater for OEM services as well. a.p.s Medical aims to be a global branded local industry player among the international big giants as well as thrive to grow big and at the same time help to grow the local suppliers to the international market.