At a time where the global economic outlook is unfavourable amidst new trade challenges, the future outlook for Malaysia’s medical device industry remains very positive, with the majority of AMMI respondents bullish about their business prospects in 2020 and the years to come.
This was unveiled in the AMMI Medical Device Industry Status and Outlook Report 2019/2020 released by the Malaysian Investment Development Authority (MIDA) and the association, here today.
The industry report highlighted that AMMI members collectively sourced RM4.2 billion of raw materials and services from local suppliers and small and medium enterprises (SMEs) within the country.
This reflects AMMI’s commitment in supporting government initiatives to develop vendor development programmes and local SMEs.
Global exports of medical devices from Malaysia rose by a healthy 15 per cent from RM19.8 billion in 2017 to RM22.9 billion in 2018. Significantly, AMMI members collectively accounted for over 55 per cent of the export value.
According to AMMI's analysis, the export of medical devices from Malaysia will likely achieve RM25.7 billion in 2019 and RM28.8 billion in 2020, based on the projected 12 per cent year-on-year growth.
Commending the report, MIDA chief executive officer Datuk Azman Mahmud said Malaysia continues to evolve as a manufacturing hub for medical devices in Asia.
"The medical devices industry, which manufactures higher value-added and technologically-advanced products such as cardiac pacemakers, stents, orthopaedic implantable devices, electro-medical, therapeutic and monitoring devices, is expected to have a positive impact on the Malaysian economy.
"As at 2018, 382 medical devices projects with investments worth RM18.4 billion have been implemented in Malaysia, creating more than 71,000 jobs in the country," he said.
Azman said MIDA approved 21 projects in the medical devices industry worth RM2.12 billion during the January-September 2019 period.
“To remain competitive and relevant in the global medical devices industry, local companies, in particular, are encouraged to prioritise productivity, accelerate automation and innovation, undertake more R&D, and implement best practices. Initiatives such as forming strategic alliances with MNCs, universities, and research institutions will help further this agenda,” added Azman.
Meanwhile, AMMI chairman Christophe Marque noted that the association is striving to be the catalyst among industry players, comprising device manufacturers, services providers and connected stakeholders.
"AMMI members will achieve manufacturing excellence by focusing on key matters and spurring exchanges of insightful knowledge. As iron sharpens iron, collectively AMMI members are shaping the landscape of Malaysia’s medical industry," he said.
The report is based on a survey completed by 42 AMMI members, constituting a 57 per cent response rate. The respondents are major players that represent over 80 per cent of the business volume.