Background of Medical Device Roundtable
Good afternoon, everyone. Welcome to the Penang Medical Device Industry Round table that brings together the representatives from PEMANDU, MDA and SMECorp as well as leaders from the industry. This Medical Device Industry Round table aims to share insights on latest opportunities, trends and challenges faced by the medical device industry. It will be a good networking platform between government agencies and industry leaders to share knowledge, experience. And we hope that through this round table, we are able to harness ideas that help the industry to stay competitive and move up the value chain.
Overview of Medical Device Industry
Medical device industry is one of the targeted development areas for the country, with nearly half of the Health care Entry Point Projects (EPPs) identified for medical device under the Economic Transformation Programme (ETP). Out of the 8 Entry Point Projects related to medical devices, about 6 of the Entry Point Projects is led by medical devices companies in Penang, namely Mediven, Vigilenz, Karl Mueller Scientific, Straits Orthopaedic, Sima Medical, UWC Group and Toshiba Medical.
In fact, the medical device market growth at the compound annual growth rate (CAGR) of 9.5% from year 2008 to 2013, has shown that it is an industry with great promise to drive the transformation of our economy and strengthen the health care landscape of this country. The reliability of Malaysia’s medical devices are being recognized and exported worldwide, with the value of medical device exports from Malaysia surged by 13%, accounted RM 13.49bil in 2014 from RM11.94bil in 2013, and it is forecast to grow by 12% to reach RM15.11 billion this year. The implementation of Medical Device Act 2012 effective since 1 July 2013 which is necessary to ensure Malaysia’s medical device is compliance with of the international standard will further enhance Malaysia’ competitive edge in the global market.
Medical Device Cluster in Penang
Being part of the ASEAN region, Malaysia is a strategic location for medical devices production. This is proven by the continuous expansion of BBraun in Penang with re-investment value of RM1.75billion in 2013. BBraun Penang is the largest manufacturing site outside of Europe and the regional headquarters for Asia Pacific, currently employs more than 7,000 employees. The set up of Haemonetics’ new facility for blood management systems in Batu Kawan Industrial Park and Toshiba Medical establishment of Malaysia’s first diagnostic imaging systems manufacturing in Penang, not only created 900 jobs in total but also has further diversify and value added to the medical device industry in Penang.
As one of the two main medical devices clusters in Malaysia and with more than one third of total medical devices manufacturers and supporting companies in Malaysia located here, Penang offers an ideal ecosystem that is attracting to the large MNCs. Penang has been gaining the attention of world top medical devices manufacturers, where we have received groups of investors from medical devices industry in the past few months, exploring the potential of Penang as their new manufacturing site.
At present, the medical devices industry in Penang is a good combination of large MNCs, home grown LLCs and smaller faster-growing supporting companies. The industry is highly diversified with wide variety of products including implantable devices, orthopedic devices, surgical instruments, diagnostic imaging equipment and many more. Penang is particularly strong in electronic components for medical device, where 44% of the companies in Penang are contract manufacturers of electronic components for medical equipment. The second major subsector are the orthopaedics due to the presence of established supporting industries in precision engineering. About 25% of the total medical devices companies in Penang are orthopaedic and supporting companies.
Approved projects in Penang
There are total of 36 medical device related manufacturing projects that were approved in 2014. Among these projects, 10 are new projects, while 26 are expansion or diversification of existing companies in Penang, and about 55% of the medical device related projects are manufacturing of medical device components, instruments and machineries.
Penang has the potential to be a medical city with an emphasis of convergence of both manufacturing, services and the public sector.
AMMI
The Association of Malaysian Medical Industries (AMMI) which is formed to lead the medical device industry in the country is also facilitating the country to achieve the Health care National Key Economic Areas. With the secretariat of AMMI and about 34% of AMMI’s members in Penang, AMMI can surely help to create synergy within the industry to move up the value chain.
Speakers and Panelists
Last but not least, I would like to take this opportunity to thank the PEMANDU, MDA and SMECorp for supporting this event by sending their distinguished speakers to share with us government programmes, incentives and policies that could benefit the industry. Also, I would like to thank the representatives from the industry, from AMMI, Haemonetics, Vigilenz and Texchem who have taken their time out of their busy schedule to share their valuable insights and experiences. I hope all the participants who are here today will go back with better knowledge and I wish everyone a fruitful session today.
Thank you.