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