KUALA LUMPUR, Dec 5 (Bernama) -- The Malaysian Investment Development Authority (MIDA) and the Association of Malaysian Medical Industries (AMMI) today released the AMMI Medical Device Industry Status and Outlook Report 2019/2020. The Report highlighted that AMMI members collectively sourced RM4.2 billion of raw materials and services from local suppliers and small and medium-sized enterprises (SMEs) within the country. This reflects AMMI’s commitment in supporting government initiatives to develop vendor development programs and local SMEs. 
 
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.  AMMI survey respondents plan to invest a collective amount of RM765 million in plant expansion, new product development and R&D in 2020.
 
Global exports of medical devices from Malaysia rose by a healthy 15% from RM19.8 billion in 2017 to RM22.9 billion in 2018. Significantly, AMMI members collectively accounted for over 55% 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% year-on-year growth.
 
In 2018, the total value of cumulative investments by AMMI members totalled RM7.8 billion, nearly doubling 2014’s total of RM4.3 billion. Based on AMMI’s analysis, the value of cumulative investments reported by AMMI members grew at an impressive CAGR of 16.4% between 2014 and 2018. AMMI members doubled their R&D spending from RM58 million in 2017 to RM115 million in 2018. R&D personnel also increased significantly, growing 33% from 348 in 2017 to 462 personnel. AMMI members collectively employed a 36,249 strong workforce in 2018. This is a growth of 12% compared to 2017. This upward trend indicates AMMI members’ confidence in the value and strengths of Malaysia as a hub for medical device manufacturing, as well as their commitment to growing and evolving in tandem with the industry.
 
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. The medical devices industry manufactures higher value-added and technologically-advanced products such as cardiac pacemakers, stents, orthopedic implantable devices, electro-medical, therapeutic and monitoring devices is expected to have a positive impact on the Malaysian economy. As of 2018, 382 medical devices projects with investments worth RM18.4 billion have been implemented in Malaysia, creating more than 71,000 jobs for the country. In addition, MIDA has approved 21 projects in the medical devices industry worth RM2.12 billion from January - September of 2019.”

“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 to further this agenda,” added Dato’ Azman.
 
AMMI Chairman, Mr Christophe Marque noted that “AMMI is striving to be the catalyst among industry players: 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 medical industry.”
 
The Report which is based on a survey completed by 42 AMMI members, constituting a 57% response rate. The respondents are major players that represent over 80% of the business volume. The report contains a 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 2020.
 
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 74 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.  

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.
 

SOURCE : Malaysian Investment Development Authority (MIDA) 

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Puan Balkish Mohd Yasin
Director of Life Sciences & Medical Technology Division, MIDA
Tel : 03-22673458
Email : balkish@mida.gov.my
 

Email : secretariat@ammi.com.my --BERNAMA