Acknowledgement
 
Mr. Hitendra Joshi
Chairman of the Association of Malaysian Medical Industries (AMMI)
 
Members of the Media
 
Distinguished Guests
 
Ladies and Gentlemen
 
MIDA is greatly honoured to once again collaborate with AMMI to host the launching of its Medical Device Industry Outlook Report 2016. AMMI has certainly played a prominent role in positioning Malaysia as a manufacturing hub for the medical device industry as well as its growth in the country.
 
I would like to commend AMMI’s efforts in putting together this report, which focuses on our current status of medical devices based on the survey undertaken among the AMMI members.
 
I am sure this report, which is indispensable to industry players from all levels will give us important insights to the outlook and future prospects of the medical device industry.
 
Ladies and Gentlemen,
 
The medical device industry is indeed an important segment within Malaysia’s industrial landscape. Its importance is reinforced under the 11^th Malaysia Plan. This industry has been identified as one of the high potential growth industries alongside aerospace and 3 other catalytic subsectors, namely chemical, electrical & electronics and machinery & equipment that will re-energise the manufacturing sector of the country. We believe that technology development is the cornerstone in realising this agenda. To that effect, MIDA is working closely with the Economic Planning Unit (EPU) and other government agencies to boost R&D activities in Malaysia, leading to enhanced level of innovation, productivity as well as Malaysia’s competitiveness.
 
To date, the medical device industry in Malaysia is made of more than 190 companies dominated by small and medium-sized companies (SMEs). More than 30 Multinational Corporations (MNCs) such as B. Braun Medical (Germany), St. Jude Medical (USA), Haemonetics (USA), Teleflex Medical (USA), CR Bard (USA), Abbott (USA), CIBA Vision (Switzerland) and Toshiba Medical Systems (Japan) have made Malaysia their home for offshore operations.
 
The presence of MNCs in this industry has contributed to the development of a comprehensive local supply chain benefitting many local players. Most of these local companies have acquired advanced technology and knowledge to meet the requirements of international standards.
 
I would like to share some success stories of companies in the medical device industry that have made Malaysia their profit centre in the region. Haemonetics, a global provider of blood and plasma supplies and services, is collaborating with Sanmina-SCI Systems, a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services for the medical industry, to produce medical hardware for the blood diagnostic system. Haemonetics has appointed local vendors for some of its services with RM8 million in contracts in 2016, and will increase to RM23 million by 2017. The company provides high income and knowledge-based job opportunities to Malaysians. By 2017, the company will increase its workforce to 800 people through the activities of Shared Services, R&D Centre of Excellence and International Procurement Centre (IPC).
 
Recently, Malaysia witnessed the opening of Abbott’s Medical Optics Intraocular Lenses (IOLs) plant in Kulim, Kedah. This state-of-the-art ophthalmic project will be a catalyst to boost the development of the medical device ecosystem in the country. It is poised to attract not just players in this industry but also pharmaceutical and food supplement companies. Being a knowledge and research intensive company, Abbott provides highly skilled and technical job opportunities in the field of medical technology. This will generate a total of 300 employment opportunities at full capacity, whereby majority will be filled by Malaysians.
 
The ground breaking of Boston Scientific’s new manufacturing plant in Batu Kawan, Penang marked a significant milestone for Malaysia’s cardiovascular segment. Before Boston Scientific, St. Jude was the only company producing cardiovascular devices in Malaysia. Boston Scientific began its construction work of their regional manufacturing hub in April this year and it is expected to be completed by the fourth quarter of 2017. Being Boston Scientific’s first manufacturing plant in Asia, it will not only be producing cardiovascular devices but will also be a capital equipment service and repair depot in Malaysia. This project will definitely enhance the knowledge of our local talents through training programmes and the transfer of advanced technology into Malaysia.
 
Ladies and Gentlemen,
 
The medical device industry continues to attract investments both locally and internationally. Malaysia has recorded a total of RM8.6 billion investment of implemented projects since 1980s. In 2015, a total of 30 projects with total investments of RM1.8 billion were approved. There are currently over 46,000 persons employed in this industry, a majority are in the managerial, professional, supervisory and technical staff levels.
 
In the first quarter of 2016, approved investments increased by 79% to RM841 million as compared to RM468 million in the corresponding period last year. About 76% or RM639 million of these investments were from foreign sources, while the balance of 24% or RM201 million were from domestic investments. These projects will create 2,380 employment opportunities which are mostly high income and high skilled positions.
 
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. In January to May this year, exports were a total of RM6.3 billion. Among the top 3 export destinations were US, Europe (which mainly Germany and Belgium), and Japan. Major products exported include surgical and examination gloves; disposable tubes; catheters; ultrasound scanning apparatus; orthopaedic appliances/ instruments/ devices; sheath contraceptives and contact lenses.
Ladies and Gentlemen,
 
We believe that the pace of innovation in this industry will continue to accelerate as new innovations and players revolutionise product development, manufacturing processes and business models. Examples of innovative products include products of convergence of technologies such as drugs and biologics, electronics, Internet of Things, and 3D Printing, which are used in combination with medical devices. As limitations are constantly being expanded, we look forward to more innovation and progress being made in this industry. With the established industry ecosystem in the country, we expect more companies to leverage on Malaysia's excellent competitive advantages and develop expertise in all aspects along the value chain.
 
With this goal in mind, today’s report will certainly serve as a good reference to highlight the opportunities in the medical device industry in the Malaysia. On that note, I would like to congratulate AMMI and all who have contributed to the report on yet another important contribution to the development in the medical device industry. MIDA looks forward to future mutually beneficial collaborations within this industry in years to come.
 
Thank you.

SOURCE: Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT:  
Name : Khairul Amir Alais
Information and Communications Division
Malaysian Investment Development Authority
Tel: 03-2267 3505
Fax: 03-2274 8470
Email : khairulamir@mida.gov.my
Website: www.mida.gov.my

--BERNAMA