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MIDA anticipates continuing growth in medical devices sector

MIDA anticipates continuing growth in medical devices sector

30 Nov 2023

The Malaysian Investment Development Authority (MIDA) is anticipating continuing growth in the medical devices sector, especially in diagnostic and point-of-care solutions, a shift towards non-invasive and minimally invasive approaches and the convergence of medical technologies.

MIDA deputy chief executive officer of Investment Promotion and Facilitation Sivasuriyamoorthy Sundara Raja said the future of the medical devices sector looks promising, driven by the increasing prevalence of chronic diseases and a growing emphasis on early diagnosis and treatment.

“This has led to a surge in demand for medical devices, both in developed nations and emerging economies,” he said in his welcoming remarks at a seminar titled ‘Intensifying Malaysian Capabilities to Boost the Medical Devices Sector’’, here today.

Sivasuriyamoorthy said Malaysia’s strength in related sectors, such as precision engineering and pharmaceuticals, has allowed companies to move quickly into medical technology and capture its emerging opportunities.

He said the industry had attracted RM24.5 billion in approved investments from 2018-2022, promising to generate over 40,000 jobs, a testament to the robust growth fuelled by key contributing factors.

“Beyond business operations, the country’s dynamic industry stands as a regional hub for manufacturing, research and development,” he said.

Sivasuriyamoorthy said the medtech sector’s forecasted value of US$3.27 billion (RM15.24 billion) in 2023 is poised to surge, projecting an impressive compound annual growth rate (CAGR) of 7.86 per cent from 2023 to 2028.

“This trajectory indicates not only sustained growth but also positions Malaysia as a key player in the global medtech landscape. Anticipate a remarkable surge, with domestic medical device revenue expected to reach an impressive US$4.78 billion (RM22.27 billion), he said.

Sivasuriyamoorthy said Malaysia’s medical devices sector is strongly supported by precision engineering, machinery and equipment, engineering support services, electronic manufacturing services, plastic components, packaging and sterilisation services.

He said a staggering 99 per cent of the nation’s medical equipment output is destined for international markets, with the majority being in the form of rubber and consumable products.

“Therefore, it is timely that Malaysia intensifies innovation activities in this sector to diversify components of export by focusing on complex products to sustain the industry growth as outlined in the New Industrial Master Plan (NIMP) 2030,” he said.

Sivasuriyamoorthy said Malaysia is striving to be a regional hub for medical device manufacturing, with the government identifying the sector as having high growth potential under the Twelfth Malaysia Plan and this strategic focus is reinforced in Mission 1 of the NIMP 2030.

“The mission, particularly, highlights the medical devices and pharmaceutical industries, leveraging innovation and high-skilled talent to drive a high economic complexity agenda.

“NIMP 2030’s goals include integrating small and medium enterprises and mid-tier companies into domestic and global value chains, and ensuring equitable regional distribution of manufacturing benefits.

“Among the companies are Plexus, Jabil, Tip Corporation, Pentamaster, Greatech, Steris, Masimo Medical Technologies and Steripack,” he said.

Sivasuriyamoorthy said MIDA, as the country’s principal investment promotion and development agency, remains the industry’s key contact point, providing crucial information about valuable government facilities and initiatives.

“MIDA welcomes further investments in the production of medical devices and supporting industries to ensure continuous and uninterrupted supply to both the domestic and international markets as well as to provide national health security,” he added.

Source: Bernama