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The Malaysian Investment Development Authority (MIDA) and the Association of Malaysian Medical Industries (AMMI) have unveiled the AMMI’s Medical Device Industry Status and Outlook 2024/2025 Report at the Malaysia Medtech Industry Summit 2024 in Penang. The report positions Malaysia as the leading MedTech hub in Southeast Asia, emphasising its high concentration of multinational MedTech companies and highlighting its strategic significance in the global medical technology landscape.
The report outlines the steady growth of Malaysia’s MedTech industry, supported by a robust ecosystem and proactive government measures. MIDA’s Chief Executive Officer attributed this progress to the nation’s strong talent pool, commitment to quality, and adherence to international standards. The medical device sector’s prioritisation within the Twelfth Malaysia Plan and the New Industrial Master Plan (NIMP) 2030 has also been instrumental in enhancing Malaysia’s competitive edge. By promoting innovation and technological advancements, these initiatives have helped Malaysia emerge as a leading destination for MedTech investments.
MIDA, as the key agency responsible for promoting investment in the country, aims to sustain this momentum through strategic partnerships and industry support. The Chief Executive Officer of MIDA highlighted that the combination of skilled professionals and government-backed initiatives has been pivotal in propelling Malaysia to the forefront of MedTech innovation. He expressed confidence that continued efforts to develop a conducive environment for investment would further strengthen Malaysia’s role in the global MedTech industry.
The AMMI Chairman stated that Malaysia’s medical device market, valued at RM10.6 billion (US$2.3 billion) in 2023, is the largest in Southeast Asia and among Asia’s top ten markets. The country’s diverse MedTech ecosystem has attracted significant investments, establishing Malaysia as a regional leader in sterilisation technology with capabilities in Ethylene Oxide (EtO), Gamma, and E-beam sterilisation. Malaysia is also the first in Southeast Asia to establish an X-ray sterilisation facility, reinforcing its MedTech leadership.
The report reveals that AMMI members are committed to reinforcing Malaysia’s status as a MedTech hub, with plans to invest RM2.7 billion (US$573 million) in expansion, RM927 million (US$200 million) in new product development, and RM162 million (US$35 million) in research and development (R&D), centres of excellence (COE), and Industry 4.0 initiatives. These investments are indicative of the confidence stakeholders have in Malaysia’s potential to remain competitive in the global MedTech industry.
AMMI’s role in bolstering the local economy is also notable. The report highlights that AMMI members collectively sourced RM4.1 billion (US$889 million) of raw materials and RM2.5 billion (US$541 million) of services from local suppliers and small and medium-sized enterprises (SMEs). This local engagement underscores the industry’s impact on the broader economic landscape. Additionally, contracts worth RM1.4 billion (US$303 million) were outsourced to local suppliers, with 95% of these contracts directed towards finished products. Such contributions reflect the industry’s commitment to enhancing the domestic supply chain and supporting local businesses.
Looking ahead, MIDA intends to continue collaborating with reputable industry associations like AMMI to maintain Malaysia’s appeal as a MedTech investment destination. MIDA’s efforts will focus on introducing measures that attract high-quality investments, generate high-income employment opportunities, increase export value, and reinforce Malaysia’s domestic supply chain ecosystem. By sustaining its growth trajectory and leveraging its strong infrastructure and favourable policies, Malaysia is well-positioned to retain its status as a MedTech hub in Southeast Asia and remain competitive in the global market.
The Report serves as a testament to Malaysia’s robust MedTech industry and its ongoing efforts to create a conducive environment for innovation, investment, and long-term growth. With continued support from government agencies like MIDA and active participation from industry players, Malaysia is set to sustain its momentum and expand its presence in the global MedTech sector.
