The AMMI Medical Device Industry Outlook Report 2017, launched at the Malaysian Investment Development Authority (MIDA) HQ yesterday, highlighted that AMMI recorded an outstanding value-added ratio of 57% in manufacturing medical devices in Malaysia.
Equally impressive is the fact that some RM2.84 billion or 63% worth of raw materials and services were locally sourced from within the country. This reflects AMMI’s commitment in supporting government initiatives to develop local small and medium-sized enterprises (SMEs).
The Report also highlighted that over 70% of AMMI members surveyed are expected to invest a total of RM1.4 billion in the country in 2017 - a strong signal by way of investor confidence in the Malaysia.
The total value of cumulative investments reported by respondents to the association's survey stood at RM6.04 billion, as at December 2016. The value of its cumulative investments grew by a 17.1% compound annual growth rate (CAGR) between 2012 and 2016.
AMMI Chairman Hitendra Joshi stated that its members’ collective exports last year rose by 17% to hit RM9.7 billion and this figure represents over half of Malaysia's total exports of medical devices in 2016. Malaysia’s medical device exports is expected to reach RM17.7 billion by 2017.
“The presence of many MNCs such as B. Braun Medical (Germany), Abbott (USA), Haemonetics (USA), Teleflex Medical (USA), CR Bard (USA), Johnson & Johnson Vision (USA), CIBA Vision (Switzerland), Ambu (Denmark), ITL BioMedical (Australia), Medipro (Japan) and Toshiba Medical Systems (Japan) 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. These include companies providing services to MNCs such as UWC, Sin Yong Guan Industries, Epsilon, Professional Tools & Dies and Zeito Plastic Components,” said Dato’ Azman Mahmud, Chief Executive Officer of MIDA during the launch of the report.
“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 R&D and keep innovating,” added Azman.
Malaysia continues to evolve as a hub for medical device manufacturing, with over 200 medical device manufacturing companies thriving within a well-connected industry eco-system. Medical devices produced in Malaysia are of world-class quality and recognised for its adherence to international standards as well as global regulatory compliance systems. This is backed by the fact that over 90% of medical devices manufactured are for export. In 2016, exports of Malaysian made medical devices were valued at RM15.8 billion.