Malaysia's medical devices sector to continue growing at 8pc

Business Times THE Malaysian medical devices industry is expected to continue to register an average year-on-year growth of 8 per cent over the next few years, says the Association of Malaysian Medical Industries (AMMI).
Last year, the revenue from its members alone totalled RM3.4 billion. The Third Industrial Master Plan (IMP3) estimates that including non- members, the revenue of the entire industry is over RM5 billion.
The medical devices industry in Malaysia is dominated by the surgical and examination gloves, catheters and condoms which accounted for 85 per cent of exports worth RM4.5 billion in 2005.
Other medical devices manufactured locally include needles, medical and surgical instruments and appliances and orthopaedic appliances.
AMMI chairman Lim Bee Leong projects growth over the next few years to be spurred by existing and new products as well as the entry of new players in the country.
While the 8 per cent growth is based on AMMI's 26 members, Lim said the data is reflective of the entire industry as the association's members are key players.
"Malaysia produces 80 per cent of the world's rubber- based catheters and 60 per cent of the world's surgical gloves," Lim said.
"(Now) The growth (in each of these two segments) is not as big as other products," Lim said, adding that these products already have a high base and is now facing price competition from other countries.
Accordingly, other medical devices produced here like non-rubber catheters, surgical drapes and gowns and medical tubing are expected to make a big leap over the next few years.
Demand for these products are also in line with the overall increase in life expectancy, better education, higher demand from hospitals as well as factors like diseases and war.
"There are opportunities to bring production from the US and Japan here or by doing contract manufacturing for foreign firms," Lim added.
He added that there are on-going discussions for new players to begin new production in the area of implantable products (like hip joints), combination products ( drug coated devices) and home care (dialysis machine).
AMMI was established in 1989 initially with 11 members including multinational players like Johnson & Johnson's, B Braun and Rusch.
The association's aim was to work with the government agencies to help in areas dealing with international standards on medical devices and to form linkages to supporting industries.
AMMI also does training, provides a platform for networking as well as guidance on world regulation such as The Food & Drug Administration (FDA) in the US and Therapeutic Goods Act 1989 (TGA) of Australia.
Lim added that the association is also instrumental in helping the Ministry of Health draw up the Medical Devices Act to regulate whether medical devices in the market comply with international standards and whether it harmonises with other countries.
Among the top foreign medical devices producers in Malaysia are B Braun, Ansell, Regent Hospital Products and Ambu.
Top Malaysian producers are Top Glove, Wembley Rubber Products and Dispo-med.