Medical Technology – Medical Devices

Medical device manufacturing investors can explore the opportunities in diagnostic imaging equipment, point-of-care devices, and high-end consumable products. Non-communicable diseases (NCDs) such as heart disease, cancer, chronic respiratory diseases, and diabetes require constant management through monitoring and prevention. The Government emphasises a healthy lifestyle to prevent the rise of lifestyle-related and NCDs, which have collectively contributed to a high percentage of deaths in Malaysia.

Malaysia is strategically located to serve as a regional hub for global medical technology companies, especially within the Asian region. Ten of the world’s top medical device companies, including Multinational Corporations (MNCs) such as Abbott, B. Braun, Dexcom, St. Jude Medical, Boston Scientific, Smith & Nephew, Symmetry Medical, Teleflex, have established manufacturing operations in Malaysia. This has positioned Malaysia in league with other global medical device hubs like Ireland, Puerto Rico and Costa Rica. These MNCs are producing high value-added medical devices and are helping Malaysia diversify its medical device export portfolio, moving beyond glove production to advanced devices manufacturing.

Although Malaysia’s market size is relatively smaller, its steady growth and strategic position within Southeast Asia make it an attractive destination for medical device manufacturers and suppliers due to its proximity to the Asian market.

The market is expected to increase at a CAGR of 8.5 per cent from 2023 to 2028, reaching a market volume of US$4.5 billion by 2028. This represents a significant fraction of the Southeast Asia market, which is estimated to reach US$15.8 billion by 2028.

Medical devices industry investors have a wide range of choices as the value chain spreads across sectors, including machinery and equipment (M&E), precision engineering and supporting services, electronic manufacturing services, plastic and rubber-based components, packaging, and sterilisation services. Having a more tightly integrated medical devices sector is crucial to boost Malaysia’s competitiveness, as a more holistic ecosystem leading to cost reduction, increased innovation, and enhanced product complexity and efficiency, aligning with the goals of the New Industrial Master Plan 2030 (NIMP 2030).

The focus areas of the medical devices industry have been identified under the NIMP 2030:

The medical devices sector is strategically shifting its focus towards higher-value products. This evolution drives innovation, propelling the industry beyond basic consumables to the development and production of advanced and complex items such as advanced catheters, specialty gloves, and advanced wound dressings. The adoption of these higher-end medical device consumables promises significant benefits, including enhanced patient outcomes, a reduction in complications, improved procedural efficiency, and greater safety for both patients and healthcare practitioners.

The investment performance of the medical devices industry for the period of 2020-2024 is as below:

The investment performance of the medical devices industry for the period of 2020-2024 is as below:

1. Presence of global multinational corporations (MNCs) in Malaysia;
2. Strong supporting industry clusters including EMS, engineering supporting services, plastics and rubbers; and
3. Harmonised medical device regulation, as well as standardised technical documents and classification system.

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