The Association of Malaysian Medical Industries (AMMI) today announced its Medical Device Industry Status and Outlook Report 2018/2019 which is based on a survey completed by 46 AMMI members, constituting a 69% response rate. The report contains comprehensive analysis of export overview, sourcing of raw materials and components, growth in cumulative investments and challenges faced by the industry as well as the medical device industry’s outlook for 2019.

The Association of Malaysian Medical Industries (AMMI) today announced its Medical Device Industry Status and Outlook Report 2018/2019 which is based on a survey completed by 46 AMMI members, constituting a 69% response rate. The report contains comprehensive analysis of export overview, sourcing of raw materials and components, growth in cumulative investments and challenges faced by the industry as well as the medical device industry’s outlook for 2019.

According to the report, AMMI members recorded an outstanding value-added ratio of 52% in the medical device industry in Malaysia. Equally impressive is the fact that some RM3.43 billion or 59% worth of raw materials and services were locally sourced from within the country. This reflects AMMI’s commitment in supporting government initiatives to develop local small and medium-sized enterprises (SMEs).

The report also highlighted that 74% of the AMMI members surveyed indicated that they have future expansion plans in the pipeline, involving buildings, machinery, equipment, facilities and product lines. The combined projected value of these foreseeable future expansion plans is about RM1.5 billion (USD361 million).

The total value of cumulative investments reported by respondents to the association’s survey stood at RM7.0 billion, as at December 2017 – more than doubling 2013’s total of RM3.4 billion. Collective yearly investments for 2017 jumped four-fold to RM967.9 million from just RM215.2 million in 2013.

AMMI Chairman, Mr Christophe Marque noted that, “AMMI members reported that combined export sales rose to RM11.4 billion, up from RM9.7 billion the previous year. This outpaces most global indices, with a healthy 16.3% compound annual growth rate (CAGR) between 2013 and 2017. Significantly AMMI members accounted for 58% of Malaysia’s total export value of all Made in Malaysia medical devices, including medical gloves.”

“Medical devices remain among the high potential growth subsectors that are prioritised under the mid-term review of the 11 Malaysia Plan. In January-September 2018, a total of 15 manufacturing projects in this industry were approved by MIDA with investments of RM641.2 million. These projects involving implantable hearing devices, orthopaedic, endoscopy and peripheral products will contribute significantly in terms of business and job opportunities to the country,” said YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI).

“As the industry is increasingly being driven by emerging technology, we encourage the local industry players to tap into the growing opportunities available and forge ahead with new strategies to stay competitive. Companies also need to focus on upskilling their talents, prioritise productivity, accelerate automation and innovation, and implement industry best practices,” added the Deputy MITI Minister.

In commending AMMI’s latest industry report, Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) said, “Malaysia continues to evolve as a manufacturing hub for medical devices in Asia, with a big majority of the medical devices manufactured in the country are meant for exports. The industry has also grown in terms of sophistication of the type of products manufactured in the medical consumables, diagnostic imaging, orthopedics and prosthetics, patient aids and other medical devices sub-sectors. Companies, especially local players, must leverage on our competitive and comparative advantages particularly in our comprehensive electrical and electronic, and machinery and equipment base in addition to the strong network of local suppliers. The medical devices industry has seen continuous new investments and expansion by domestic and foreign industry players and this trend is expected to remain in the upcoming years with investors showing strong confidence in the industry outlook.”

AMMI highlighted that the US-China trade war will have a positive impact on Malaysia. 50% of AMMI members surveyed are optimistic of double digit growth in export sales. Malaysia continues to evolve as a hub for medical device manufacturing, with over 200 medical device manufacturing companies thriving within a well-connected industry ecosystem. Based on AMMI analysis, the export of medical devices from Malaysia is expected to cross RM23 billion (USD5.5 billion) in 2019 with projected 8% on year on year growth.

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About AMMI

Formed in 1989, the Association of Malaysian Medical Industries (AMMI), represents leading medical device manufacturing companies in the medical technology industry in Malaysia. AMMI currently has 71 member companies and collectively, they account for more than half of the total export revenue for “Made-in-Malaysia” medical devices.

AMMI members share a common commitment to quality and are reputable international and local firms that strictly adhere to the quality management system codes laid down by governmental agencies. AMMI companies continue to be the growth base of the medical device industry in Malaysia and consist of three main types of industry players: manufacturers; suppliers of raw materials and services to the medical devices manufacturing companies; and importers and exporters of medical devices, all of whom employ a sizable workforce in their production facilities.

Press contact:

Association of Malaysian Medical Industries

Email : [email protected]

About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

For more information, please contact:

Puan Balkish Mohd Yasin,

Director of Life Sciences & Medical Technology Division, MIDA

Tel: 03-22673458

Email: [email protected]

Download  AMMI Industry Report

Export of Made-in-Malaysia Medical Devices Expected to Cross RM23 Billion in 2019

Kuala Lumpur, 20 December 2018 – Malaysia attracted a total of RM139.3 billion worth of investments in the manufacturing, services and primary sectors for the first nine months of 2018. This was an 18% increase from the RM118.1 billion approved in the same period last year. The total investments approved in January-September 2018 were from 3,243 projects and are expected to generate 93,379 job opportunities for Malaysia.

Approved foreign direct investments (FDI) increased by 109.7% to RM64.1 billion in January-September 2018 from RM30.5 billion in the same period last year. This was mainly driven by the manufacturing sector which recorded a strong increase of 249.4% in January-September 2018. Approved FDI in the primary sector also rose by 99.3%. This indicates that investor confidence in Malaysia remains high despite the challenging global economic environment. Meanwhile, domestic investments led with RM75.2 billion, contributing 54% to the total approved investments in all three sectors.

Manufacturing Sector

Malaysia continues to be a competitive location for manufacturing projects. A total of 468 projects worth RM59.1 billion were approved in January-September 2018 compared with RM34.6 billion in 463 projects in the corresponding period of 2017, representing an increase of 70.5% in capital investments.

Foreign investments approved in the manufacturing sector recorded a total of RM48.8 billion for January-September 2018, a rise of 249.4% from RM13.9 billion in the same period last year. China accounted for RM15.6 billion or 32% of total foreign investments, followed by Indonesia (18.4%), the Netherlands (17%), US (6.3%), Korea (4.9%) and Japan (4.3%).

Notable investments include a new manufacturing project from Leaf Malaysia OpCo, a US based company that will be setting up a facility in Johor to convert plant-based biomass into fermentable sugars. “The first plant is expected to begin operations in 2021 and will create 60 job opportunities for highly skilled local workforce. Our 2G biomass products have a wide range of applications for domestic and export markets, including energy, fuels, bio-plastics and high value specialty chemicals. We have also identified a strategic local partner for our Johor BioHub operations,” said Leaf Malaysia’s Managing Director, Jason Jones.

Another quality project is an expansion by STMicroelectronics, a global semiconductor MNC which has been in Malaysia since four decades ago. Its Malaysian plant is a key manufacturing facility for STMicroelectronics’ global assembly and test manufacturing. It is also the centre of excellence for development and manufacturing of automotive semiconductors. Approximately 70% of the semiconductors produced in this plant are dedicated to the automotive sector.

Malaysia has huge potentials to collaborate with these foreign companies and benefit from the transfer of knowledge and expertise across many industries. As the principal investment promotion agency of the country, MIDA continues to encourage local sourcing by foreign companies. Through the outsourcing of manufacturing, FDI has been driving technology by nurturing Malaysian companies to become global champions. For example, domestic industry players Vitrox, Pentamaster and Walta have established a one-stop metal component supply chain hub initiative known as the Penang Automation Cluster (PAC). The group leverages on the capabilities of human resources and availability of technical and vocational education in the country, which provides technical skills training to meet the demands of high precision and high quality metal fabrication parts and modules by multinational companies and large local companies.

“Our new investment will focus on building and managing the local supply chain ecosystem of advanced and precision engineering of metal fabrication. This will improve cost competitiveness through local sourcing of high precision parts and produce competitive products for the international market. Besides, with the adoption of Industrial 4.0 world class smart manufacturing in PAC, we will further attract high impact FDI and create job opportunities in the region. PAC will be the showcase of a successful model in stimulating more SME clustering concepts to support nation building,” said Mr Chu Jenn Weng, Director of PAC.

Under the 11th Malaysia Plan Mid-Term Review, the targeted catalytic and high potential growth subsectors namely electrical and electronics, chemicals and chemical products, machinery and equipment, medical devices and aerospace, continue to be emphasised. These industries contributed 31.5% (RM18.6 billion) to the total approved investments in the manufacturing sector. Other industries which recorded increased investments are petroleum products (including petrochemicals); basic metal products; paper, printing and publishing; rubber products; machinery and equipment; and transport equipment. These six industries constituted 63.5% (RM37.5 billion) of total investments approved during this period.

Investors have responded positively to the Government’s initiatives towards attracting investments in capital-intensive, high-value added and high technology projects. This is reflected in the increase of the capital investment per employee (CIPE) ratio to RM1,439,583 in the first nine months of 2018 from RM1,062,113 during the same period of this year.

The approved manufacturing projects will create 41,033 job opportunities. The jobs created include 775 electrical and electronics engineers, 867 mechanical engineers and 142 chemical engineers. In addition, the approved manufacturing projects will also require about 5,628 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

Services Sector

For the period of January-September 2018, approved investments in the services sector amounted to RM69.9 billion compared with RM74.2 billion recorded in the corresponding period of 2017. These investments were from a total of 2,721 projects and are expected to create 50,896 job opportunities. Domestic investments made up the largest portion, recording RM60.4 billion or 86.4% of the total approved investments for the services sector during this period. The rest or RM9.5 billion were from foreign sources. The services subsectors that showed an increase in approved investments were healthcare, education, global establishments, real estate and supporting services.

The approved investments for the supporting services sub-sector recorded a rise of 24.8% to RM4.8 billion in the first nine months of this year from RM3.9 billion in the corresponding period last year. The bulk of the approved investments were from green technology activities with investments of RM2.7 billion, whereby 96.8% were from domestic investments. These activities were led by energy generation projects with approved investments of RM2.4 billion, followed by energy conservation (RM120.1 million), green services (RM91.7 million), green building (RM23.8 million) and waste management projects (RM16 million).

A notable energy generation project that was approved during this period is an expansion project by Tadau Energy. According to its Managing Director, Ms Susanna Lim,“Our base in Kudat, Sabah is an ideal location for a solar power plant as the northern Sabah district has clear and unpolluted skies, and gets a large amount of direct sunlight. The development of this project has the greatest potential for Malaysia especially Sabah to transition to clean energy as it will save the environment from approximately 50,000 metric tonnes of carbon dioxide (CO₂) emission and can power more than 30,000 homes annually. Overall, the company has created more than 200 job opportunities for the local community.”

Approved investments for global establishments also saw an increase of 95.7% during the first nine months of 2018. MIDA approved 149 projects proposing to make Malaysia their Principal Hubs, Regional Offices or Representative Offices. Investments in these projects amounted to RM4.1 billion, with significant spin-off effects on the economy. These activities are expected to create job opportunities for 1,598 knowledge-based or highly technical-skilled workers, as well as positioning Malaysia on course for greater integration into the global supply chains/global value chains.

Out of the total, MIDA has approved four Principal Hubs with investments worth RM3.8 billion. Among them is a business venture by Jobstreet.com, a leading online employment marketplace in Asia. “After having merged with a Hong Kong based company in 2014, Jobstreet had an important task to decide where to locate the Principal Hub of the newly created venture. Malaysia was chosen because it is strategically located in the region, enjoys strong government support in the technology industry as well as the availability of incentive to help businesses like JobStreet. Our investment in Malaysia will also bring tangible benefits to the country, through the creation of employment especially in high value and managerial positions and, our capital and operational spending will allow us to contribute back to the economy,” said Mr Jakson Peters, the company’s Chief Financial Officer.

Primary Sector

In January – September 2018, the primary sector attracted investments worth RM10.3 billion or 7.4% of total approved investments in this period. This sector comprises three main sub-sectors namely agriculture, mining and, plantation and commodities. Investments by foreign sources totalled RM5.8 billion (56.3%) while domestic investments contributed RM4.5 billion (43.7%). The mining sub-sector took the lead with approved investments of RM9.7 billion in 22 projects, followed by the plantation and commodities sub-sector with investments of RM501.5 million, and the agriculture sub-sector making up the rest of approved investments.

Conclusion

The Government will ensure that the Malaysian economy remains on a sustainable growth trajectory by providing a conducive and favourable environment to attract investors and businesses. Quality FDI continues to assume an important role in the development of Malaysia due to its multiplier impact on the economy. The strong presence of foreign investments in the manufacturing sector, in particular, has helped to enlarge the market through the growth of the local supply chain ecosystem and related services industry. MIDA continues to urge industries to leverage on growing opportunities by embracing advanced technology to enhance productivity and competitiveness.

*****Posted on : 20 December 2018

Malaysia Records RM139.3 Billion of Approved Investments For January-September 2018

The Malaysian Investment Development Authority (MIDA) collaborated with the Federation of Malaysian Manufacturers (FMM) and Sabah state authorities to organise the fourth and last installation of its industrial park forum series, held today at the Marriot Hotel, Sabah. The event was graced by YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI). Also present was YB Tuan Chong Chen Bin, Assistant Minister of the Ministry of Trade and Industries, Sabah and Senior Executive Director of MIDA, Mr. Zabidi Mahbar

17 December 2018, Kota Kinabalu – The Malaysian Investment Development Authority (MIDA) collaborated with the Federation of Malaysian Manufacturers (FMM) and Sabah state authorities to organise the fourth and last installation of its industrial park forum series, held today at the Marriot Hotel, Sabah. The event was graced by YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI). Also present was YB Tuan Chong Chen Bin, Assistant Minister of the Ministry of Trade and Industries, Sabah and Senior Executive Director of MIDA, Mr. Zabidi Mahbar.

During his keynote address, the Deputy MITI Minister highlighted that Sabah has many opportunities for investments in new growth areas. “Each region in Malaysia is unique in its comparative and competitive advantages. For Sabah, its abundance of natural and agricultural resources has long made this state a base for industrial development. Building on these strengths, there are many untapped opportunities for resource-based manufacturing facilities, particularly in moving downstream and producing high quality goods and services. Having the upstream and downstream industry players in close proximity improves speed and cost of production,” said YB Dr. Ong.

“For Sabah to attract the type of quality investments that we desire, the state needs good industrial parks that can meet the requirements of these industries. It is important to find win-win solutions, and not to keep investors waiting for infrastructure to be built especially in the provision of electricity, water and roads, as these are the basic infrastructure needs for any industry to operate. I urge technical agencies and utility providers such as Telekom Malaysia, Tenaga Nasional Berhad, and Gas Malaysia to come on board and be proactive in supporting investors in these areas,” added YB Deputy Minister of MITI.

Mr Zabidi, in his welcome speech, said, “Sabah is certainly one of Malaysia’s destinations for investment. Following our Invest Sabah briefing held at the MIDA HQ in October, we have received encouraging interest. Tomorrow, there will be 19 eager investors from 11 companies flying into Sabah to explore for themselves the opportunities available in the areas of Oil & Gas, Logistics, Engineering Services, Infrastructure Development and Consulting Services, for their expansion plans.”

As at December 2017, a total of 761 manufacturing projects with investments worth RM15.1 billion have been implemented in Sabah. More than 90,000 jobs have been created from these projects particularly in the food manufacturing, paper, printing & publishing, wood & wood products, chemical & chemical products, and non – metallic mineral products sectors. For the first 9 months of 2018, Sabah continues to attract additional approved investments of RM140.9 million, mainly in basic metal products, food manufacturing, petroleum products including petrochemicals and non-metallic mineral products.

The Industrial Park and Investment Facilitation Forum was well attended by over 250 participants from various fields, including business chambers, local authorities, park developers & managers, utility companies, manufacturers and potential investors. The forum featured two panel discussions that focused on the industrial park ecosystem and investment facilitation.

The first panel session involved sharings from three Sabah industrial park developers namely the Kota Kinabalu Industrial Park (KKIP), POIC Sabah and Sabah Oil & Gas Development Corporation (SOGDC) as well as representatives from the Eastern Sabah Security Command (ESSCOM), RWDC Industries Asia Pacific and OFO Tech. The session was moderated by Datuk Chong Hon Len, President of the Federation of Sabah Industries (FSI). Meanwhile, the second session was moderated by Datuk Dr. Mohd Yaakub Haji Johari, Chief Executive of the Sabah Economic Development and Investment Authority (SEDIA) and featured representatives from MITI, MIDA, Malaysia External Trade Development Corporation (MATRADE), Export-Import Bank of Malaysia Bhd (Exim Bank), SIRIM and Malaysian Industrial Development Finance (MIDF).

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For more information, please contact:

Mr. Syed Kamal Muzaffa

Deputy Director, Domestic Investment and Supply Chain Coordination Division, MIDA

Tel.: 03-2267 3636 | Email:[email protected]

Speech by Deputy Minister of International Trade & Industry_Sabah Industrial Park

Speech by Senior Executive Director of MIDA_Sabah Industrial Park

MIDA Industrial Park Forum Highlights Investment Potential in Sabah

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