Healthy Growth Projected For Medical Device Export In 2019
Exports of medical devices from Malaysia is expected to cross MYR 23 billion (USD 5.6 billion) in 2019, with the Association of Malaysian Medical Industries (AMMI) projecting exports to achieve 8% year-on-year growth. In 2017 AMMI members recorded a combined export sales of MYR 11.4 billion (USD 2.8 billion) compared to MYR 9.7 billion (USD 2.4 billion) in 2016. This brings the compound annual growth rate (CAGR) of the export sales to a healthy 16.3% between 2013 and 2017, beating most global indices in the sector. A strong national medical devices manufacturers association, AMMI members contributed to 58% of the country’s total exports of all Made in Malaysia medical devices including medical glove.
In a recent survey involving 46 AMMI members, 74% of them said they are planning to expand their operation in terms of buildings, machinery, equipment, facilities and product lines. The projected value of the probable future expansion plans when combined was about MYR 1.5 billion (USD 360 million). As of December 2017, the total value of cumulative investments reported by the members responded to the survey mounted to MYR 7 billion (USD 1.7 billion), up from MYR 3.4 billion (USD 830 million) in 2013. Collective yearly investments also soared to MYR 967.9 million (USD 235.5 million) in 2017 from MYR 215.2 million (USD 52.36 million) in 2013. The findings of the survey are recorded in AMMI’s Medical Device Industry Status and Outlook Report 2018/2019.
According to the survey the on-going trade war between the United States and China is not expected to worsen the market for Malaysian exports of medical devices. On the contrary, the situation is expected to benefit local manufacturers. Around 50% of AMMI members were hopeful of achieving double-digit growth in 2019. Malaysia is predicted to keep growing as a hub for medical device manufacturing in the region with the presence of over 200 medical device manufacturing companies in the country flourishing within a supportive ecosystem in the industry.
(Sources: The Star; Malaysian Investment Development Authority)