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