Global Scenario and

The Medical Device Industry in Malaysia

by
Mr. Hitendra Joshi
Chairman
Association of Malaysian Medical Industries (AMMI)
31 October 2013

Agenda
Global Scenario
Medical Device Industry in
Malaysia

About AMMI

Global Scenario
USD Billion
500
440.5

450
400
350
300

298

250

Global
Medical Device
Market Size

200
150
100
50
0
2013
Source: Espicom, AMMI analysis

2018

Medical Device Market By Region

Western
Europe
24%
Middle
East/Africa
3%
Eastern
Europe
4%

USA
45%

Malaysian Market:
USD1.2 Billion

Asia/Pacific
24%

USA Market:
USD127 Billion
Source: Espicom, AMMI analysis

Asia Pacific
Medical Device Market

9%
CAGR

80
69.9

70

64.1
58.8

60

USD 50
Billion
40

54.1
44.7

46.2

2008

2009

38.2

30
20
10
0
2007

Source: Espicom, AMMI analysis

2010

2011

2012

2013

Agenda
Global Scenario
Medical Device Industry in
Malaysia

About AMMI

Medical Device Market in Malaysia

RM
Million
6,000

CAGR
8%

5,000
4,000
3,000

5,100
3,600

2,000
2,400
1,000
2005
Source: PEMANDU (NKEA), MIDA

2010

2015

Year

Malaysia
Exports of Medical Devices

Medical Gloves
and catheters
RM
9.8
Billion

RM
3.1
Billion

Instruments for medical, surgical and dental

Electro mechanical devices
Contraceptives

3.1
Ophthalmic lenses

Radiation devices
Orthopedic implants

Total Exports in 2012: RM12.9 Billion

Source: MIDA

Export Outlook of
Medical Devices from Malaysia
Export

RM
Million

14,000
13,500
13,000
12,500

13,700

12,000
11,500
11,000

12,900
11,700

10,500
2011

Source: AMMI analysis

2012

2013

Year

Medical Devices Manufactured

in Malaysia

Medical Devices Manufactured

in Malaysia

Medical Devices Manufactured

in Malaysia

Structure of the Industry in Malaysia

MNCs

LLCs

About 26 companies
Bigger share of export revenue
Follow global standards and are
fully compliant
About 47 companies
Follow global standards and are
fully compliant

Local Large Companies

(>RM25Mil., >150 employees)

SMEs
Small and Medium Enterprises
Total: 180+ companies in Malaysia

About 109 companies

Targeting domestic market
Not fully compliant, some
exceptions

Medical Device Industry in Malaysia

- Regional Clusters
NCER:
Perlis, Kedah,
Penang, Perak

Cluster
Klang Valley
Cluster

New companies in Iskandar

Medical Device Cluster in Koridor Utara

PERLIS
PERLIS

KEDAH
KEDAH

PULAU
PULAU PINANG
PINANG
PERAK
PERAK

KELANTAN
KELANTAN

Medical Device Industry Ecosystem in Malaysia

Materials: Rubber, Plastics, Steel, Electronics, etc.

Surgical Instruments,
Implants & Clinical Devices

Consumables
Technology
Products

Latex
Plastic

Metal

Glove, Contraceptives,
Catheters, Woundcare,
Orthalmology, IVD, SUD

Machining

Healthcare
Equipment
Electronics

Pacemaker, Orthopedics,
Surgical Instrument

Furniture

Radiation Equipment,
Life Science Instrument,
Electrodes, Hospital Beds

Companies

Supporting Infrastructure
Sterilization

Packaging

Certification

Biocompatibility
and Clinical Trial
UKM,
Info
Kinetics

Industry
Groups

Education
Training

Regulatory

UM, USM, UKM,

UniMap, PSDC,
Medsociate,
Neville Clarke

Agenda
Global Scenario
Medical Device Industry in
Malaysia

About AMMI

About AMMI
Total Workforce

25,606

RM5.9 Billion
Exports Reported
Collectively
Source: 2012 Industry Survey from AMMI member companies (67% response rate)

Export of Medical Devices

RM12.9 Billion

Total Exports
in Malaysia

2012

RM5.9 Billion

Collective Exports
from 2/3 of AMMI
members surveyed

Source: MIDA & 2012 Industry Survey from AMMI member companies (67% response rate)

Cumulative Investments
Cumulative Investments
4.0

RM Billion

3.0
2.0

2.8
1.5

1.8

3.2

2.2

1.0
0.0
2008

2009

2010

2011

2012

2008
2009
2010
2011
2012
Investments (RM'000) 1,483,738 1,829,729 2,226,958 2,813,272 3,214,532
Source: 2012 Industry Survey from AMMI member companies (67% response rate)

Investment in R&D
R&D:
RM44 Million

10%

3.5
3

RM2.8
Billion

RM401
Million

RM3.2
Billion

2.5
2011
Cumulative
Investment

2012
New
Investment

2012
Cumulative
Investment

Source: 2012 Industry Survey from AMMI member companies (67% response rate)

Significant Value Add

Cost of Raw Materials VS Sales
8.0

6.5

RM Billion

6.0
4.0

Value
Add: 58%

2.7

2.0
0.0
2012

Raw Materials (RM'000)

Sales (RM'000)

2012
2,707,684
6,496,170

Source: 2012 Industry Survey from AMMI member companies (67% response rate)

Government - AMMI Partnership

Regional Cooperation
ASEAN

APEC

Training & Development

MedTech Graduate
Training Program

Regulatory & Technical

Moving Forward:
AMMI Strategy 2015
Best in class
manufacturing
Appropriate
processes, structures,
policies

Skilled workforce
Graduates
Sharing of knowledge
Manufacturing
and
Operational
Excellence

Innovation

Market driven
innovation and R&D
Synergies between
industry, academia
and clinicians
Align industry support

and
R&D

Talent
Development

Shared

Services

Identify potential
shared services

Thank you
AMMI Secretariat
C/O Medsociate Sdn. Bhd.
PSDC Building
No.1, Jalan Sultan Azlan Shah, Bayan Lepas
11900 Penang, Malaysia
Mobile: +6012 4766 558
Tel
: +604 6420 288
Fax
: +604 6442 289
Email : secretariat@ammi.com.my