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Export of medical device to reach RM17.7b, says AMMI

The Malaysian Reserve – 2 August 2017

By Lydia Nathan

Exports of Malaysia’s medical devices are expected to reach RM17.7 billion this year, compared to the RM15.8 billion worth of products exported in 2016.


According to the Association of Malaysian Medical Industries (AMMI) Medical Device Industry Outlook 2017 that was launched at the Malaysian Investment Development Authority (Mida) headquarters (HQ) yesterday, the increase is a sign that Malaysia has continued to evolve as a hub for medical device manufacturing.

Mida CEO Datuk Azman Mahmud told a press conference that more multinational companies are expected to set up shop in Malaysia, including firms that have never invested in the country before.

He said that the current medical device industry in Malaysia is an area showing great promise and the country has more than 200 medical device manufacturers with implemented investments of RM14.2 billion.

“In 2016, Mida approved a total of 41 projects with investments of RM2.9 billion. These approved projects have created over 7,300 employment opportunities, whereby the majority is in the managerial, professional, supervisory and technical positions,” he said.

The medical device business has also spurred the growth and development of local small and medium-sized enterprises in line with the government initiatives.

According to AMMI, some RM2.84 billion or 63% worth of raw materials and services were locally sourced from within the country, and 37% of raw materials were imported amounting to RM1.65 billion.

For the first-half of this year, Malaysia saw 16 medical devices projects approved, amounting to RM1.95 billion worth of investments, whereas for the same period in 2016 there were 23 projects involved, with a sum of RM1.59 billion investments approved.

A total value of cumulative investments stood at RM6.04 billion as at December 2016, growing 17.1% compound annual growth rate between 2012 and 2016.

Of the total, the collective exports of AMMI members last year rose by 17% to hit RM9.7 billion in 2016.

AMMI chairman Hitemdra Joshi said that 27% of exports from Malaysia go to the US.

“From the figures, we can see that even the US companies based here, are exporting from the region itself. “The growth, exports and potential in Asia are going to be so tremendous that I think the Trump impact will not be so strong for the medical industry,” he said.

Azman added that while the medical device industry sees a bright future ahead, emerging challenges such as digitalisation, consumer empowerment and new competitors are fast reshaping its overall landscape.

“In addition, the pace of innovation in this industry will also continue to accelerate due to the country’s movement towards Industry 4.0. Industry players therefore, must be willing to shift their mindset, embrace technology, adopt research and development and keep innovating,” he said.

As seen on The Malaysian Reserve Online

Export of medical device to reach RM17.7b, says AMMI

Malaysia’s medical devices export to grow 12 pct for 2017

Malay Mail Online, 2 August 2017

KUALA LUMPUR, Aug 2 — Exports by the Malaysian medical devices sector is expected to grow by 12 per cent year-on-year to RM17.74 billion in 2017, supported by growing demands, particularly from the Asia-Pacific region.


The Association of Malaysian Medical Industries (AMMI) Medical Device Industry Outlook Report 2017 revealed that the region accounted for 51.5 per cent of total exports, followed by North America (27.1 per cent) and Europe (19.4 per cent).

“China, India and the Asean countries are major drivers of growth in the region, as the countries give more emphasis to healthcare,” said AMMI Chairman Hitendra Joshi.

Joshi told a media briefing this after launching the AMMI Medical Device Industry Outlook Report 2017.

Also present was Malaysian Investment Development Authority (MIDA) Chief Executive Officer, Datuk Azman Mahmud here, today. — Bernama

As seen in Malay Mail Online

http://www.themalaymailonline.com/money/article/malaysias-medical-devices-export-to-grow-12-pct-for-2017

Local medical industry players to invest RM1.4b this year

New Straits Times, 2 August 2017

by Ayisy Yusof

KUALA LUMPUR: Association of Malaysian Medical Industries (AMMI) said over 70 per cent of its members surveyed are expected to invest a total of RM1.4 billion this year, spurred by investors’ confidence in the country.


AMMI chairman Hitendra Joshi said it recorded a value-added ratio of 57 per cent in manufacturing medical devices with RM2.84 billion or 63 per cent worth of raw materials and services were locally sourced.

“The growth of Malaysian medical devices export is expected to increase by 12 per cent to RM17.74 billion this year. Malaysia has a strong position in medical device and the global demand is increasing mainly in Asean and China,” he said at the AMMI Medical Device Industry Outlook Report 2017 in Kuala Lumpur, today.

He added that AMMI expects its export contribution will be similar as last year about half from the total total export pf medical devices.

“Our members’ collective exports last year rose by 17 per cent to hit RM9.7 billion, which represents over half of Malaysia’s total exports of medical devices last year,” he said.

Meanwhile, Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud said Malaysia continues to evolve as a hub for medical device manufacturing with over 200 medical device manufacturing companies thriving within a well-connected ecosystem.

“While the medical device industry sees a bright future ahead, emerging challenges such as digitalisation, consumer empowerment and new competitors are fast reshaping its overall landscape.

“The pace of innovation in this industry will also continue to accelerate due to the country’s movement towards Industry 4.0, therefore, we must be willing to shift their mindset, embrace technology, adopt research and development as well as keep innovating,” he said.

According to MIDA, a total of 16 investment projects worth RM1.95 billion has been approved in Malaysia in the first-half this year, mainly from foreign investors.

Last year, a total of 41 projects amounted to RM2.9 billion investments were approved in the medical devices sector.

As seen in NST Online

https://www.nst.com.my/business/2017/08/263238/local-medical-industry-players-invest-rm14b-year

Bright prospects for medical device sector, but more talent needed

The Edge Financial Daily, August 07, 2017

by Syahirah Syed Jaafar

KUALA LUMPUR: As the largest medical device market in Asean, Malaysia continues to evolve as a hub for medical device manufacturing, with over 250 companies in the industry thus far. Yet while the industry thrives, a shortage of skilled labour poses a growing problem.


Better awareness is therefore needed to attract the right talent, according to the Association of Malaysian Medical Industries (Ammi). The association was established in 1989 and currently represents 63 medical device firms, with two or three companies joining yearly.

“I think most people don’t actually understand healthcare as an industry,” said Ammi chairman Hitendra Joshi. “They think that working in the medical device industry is about the study of biology and requires hiring biology graduates,” he said.

“It doesn’t. The industry by and large employs engineers because we are manufacturers using machines, equipment,” Joshi told The Edge Financial Daily.

The awareness and understanding of the industry is poor among the student population, said Joshi, who is the head of government affairs and market access for Asia-Pacific at B Braun Medical Industries Sdn Bhd.

“If you ask a student if he wants to join the medical device industry, he probably wouldn’t be too sure what you’re talking about,” he added.

As such, Ammi wants to make it a priority to create more awareness, especially among those in academia. Joshi said future graduates should know that there is a stable career in the industry and that it even contributes to the purpose of saving lives.

The association has started reaching out to universities and hosting career talks, said Joshi, adding that it wants to see more universities implement the medical technology curriculum. The tertiary institutions, he said, should also train undergraduates before they seek employment, which would then save the company’s time and resources.

“We should see professors also being attached to industries, then they’ll have a real understanding of the industry when they [teach students],” said Joshi.

Increasing awareness is important for Ammi as talent pool is the main resource being competed for among companies in the industry.

“What new companies do when they first arrive [in Malaysia] is to take [talent] from existing companies. That’s the easier way out and I don’t think it’s the right thing to do. They do that at the expense of creating a problem for themselves later on because when they increase the salaries it means they are inflating the salaries for no reason,” said Joshi.

Ammi anticipates 1,446 jobs to be created by its members this year, adding on to its current member workforce of over 31,000.

Nonetheless, it’s a positive picture, said Joshi. “Companies that have been here for so long are not moving out, they keep reinvesting. It shows that [Malaysia] is the place for them to be. We just need to keep increasing the right talent pool, so there is enough supply and companies can remain [equally] competitive,” he said.

Last week, the association launched its annual Medical Device Industry Outlook Report 2017, revealing that over 70% of its members expect to invest a total of RM1.4 billion in the country this year, reflecting strong investor confidence in the country.

The report also projects a 12% growth in Malaysia’s medical device exports this year to RM17.74 billion, from RM15.84 billion last year. Over 90% of medical devices manufactured in Malaysia are for exports, with medical gloves accounting for close to 50% of the exports.

Around 60% of Ammi’s members are expected to contribute to this total figure, similar to the ratio of their RM9.7 billion contribution last year.

At a media briefing last week, the Malaysian Investment Development Authority (Mida) said for the first half of 2017 (1H17), fewer medical device projects were approved but the total investment value was higher. Sixteen projects worth RM1.95 billion were approved, against 23 projects worth RM1.59 billion in the 1H16.

For the full year, Mida estimates the number of approved projects for the industry to match last year’s 41 projects worth RM2.9 billion.

Moving forward, Ammi is confident about investor prospects for the industry.

“There is already a visible presence of successful [medical device] companies in Malaysia. That itself would [further] attract interest from other companies to come to this region,” said Joshi.

As see in The Edge Financial Daily

http://www.theedgemarkets.com/article/bright-prospects-medical-device-sector-more-talent-needed

Malaysia’s medical device exports to increase to RM17.74b this year, says association

The Edge Markets, 2 August 2017

KUALA LUMPUR (Aug 2): Malaysia’s medical device exports is expected to increase by 12% this year to RM17.74 billion, from RM15.84 billion last year, according to the Association of Malaysian Medical Industries (AMMI).


Of the amount, AMMI chairman Hitendra Joshi said AMMI expects its member export contribution to total medical device exports to be about the same as last year’s, which was more than half. In 2016, collective member exports rose 17% to RM9.7 billion.

He said this year, over 70% of AMMI’s 63 members are expected to invest a total of RM1.4 billion in the country, signaling strong investor confidence in the country.

“Malaysia has a strong position in medical device and the global demand is increasing, mainly in Asean and China,” said Joshi at the launch of the AMMI Medical Device Industry Outlook Report 2017 today.

Joshi further added AMMI recorded a value-added ratio of 57% in manufacturing medical devices, with RM2.84 billion or 63% worth of raw materials and services being locally sourced.

Meanwhile, Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud said Malaysia continues to evolve as a hub for medical device manufacturing, with over 200 medical device manufacturing companies thriving within a well-connected ecosystem.

According to MIDA, for the first half of this year, a total of 16 projects worth RM1.95 billion have been approved in Malaysia, mainly from foreign investors.

This is an increase from the same corresponding period last year, which saw 23 projects approved for RM1.59 billion, MIDA added.

For the full year 2016, a total of 41 projects amounting to RM2.9 billion investments were approved in the medical devices sector.

“While the medical device industry sees a bright future ahead, emerging challenges such as digitalisation, consumer empowerment and new competitors are fast reshaping its overall landscape.

“The pace of innovation in this industry will also continue to accelerate due to the country’s movement towards Industry 4.0; therefore, we must be willing to shift their mindset, embrace technology, adopt research and development, as well as keep innovating,” Azman added.

As see in The Edge Markets Online

http://www.theedgemarkets.com/article/malaysias-medical-device-exports-increase-rm1774b-year-says-association