Global Scenario and 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
Source: Espicom, AMMI analysis Global Scenario USD Billion 500 450 400 350 300 250 200 150 100 50 0 298 Global Medical Device Market Size 440.5 2013 2018
Medical Device Market By Region Middle East/Africa 3% Eastern Europe 4% Western Europe 24% Asia/Pacific 24% USA 45% Malaysian Market: USD1.2 Billion Source: Espicom, AMMI analysis USA Market: USD127 Billion
Source: Espicom, AMMI analysis Asia Pacific Medical Device Market 80 70 60 54.1 58.8 64.1 69.9 9% CAGR 50 44.7 46.2 40 38.2 30 20 10 0 2007 2008 2009 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 2,000 1,000 2,400 3,600 5,100-2005 2010 2015 Year Source: PEMANDU (NKEA), MIDA
Source: MIDA Malaysia Exports of Medical Devices Medical Gloves and catheters Instruments for medical, surgical and dental Electro mechanical devices RM RM 9.8 3.1 3.1 Billion Billion Contraceptives Ophthalmic lenses Radiation devices Orthopedic implants Total Exports in 2012: RM12.9 Billion
Source: AMMI analysis Export Outlook of Medical Devices from Malaysia RM Million 14,000 13,500 13,000 12,500 12,000 11,500 11,000 10,500 Export 13,700 12,900 11,700 2011 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 Local Large Companies (>RM25Mil., >150 employees) SMEs Small and Medium Enterprises Total: 180+ companies in Malaysia 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 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 KEDAH PULAU PINANG PERAK KELANTAN
Medical Device Industry Ecosystem in Malaysia Materials: Rubber, Plastics, Steel, Electronics, etc. Consumables Surgical Instruments, Implants & Clinical Devices Healthcare Equipment Technology Products Latex Plastic Glove, Contraceptives, Catheters, Woundcare, Orthalmology, IVD, SUD Metal Machining Electronics Furniture Pacemaker, Orthopedics, Surgical Instrument Radiation Equipment, Life Science Instrument, Electrodes, Hospital Beds Companies Supporting Infrastructure Sterilization Packaging Certification Biocompatibility and Clinical Trial Industry Groups Education Training Regulatory UKM, Info Kinetics UM, USM, UKM, UniMap, PSDC, Medsociate, Neville Clarke
Agenda Global Scenario Medical Device Industry in Malaysia About AMMI
Source: 2012 Industry Survey from AMMI member companies (67% response rate) About AMMI Total Workforce 25,606 RM5.9 Billion Exports Reported Collectively
Source: MIDA & 2012 Industry Survey from AMMI member companies (67% response rate) Export of Medical Devices RM12.9 Billion 2012 RM5.9 Billion Total Exports in Malaysia Collective Exports from 2/3 of AMMI members surveyed
RM Billion Source: 2012 Industry Survey from AMMI member companies (67% response rate) Cumulative Investments 4.0 Cumulative Investments 3.0 2.0 1.5 1.8 2.2 2.8 3.2 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 2012 2012 New Investment Cumulative Investment Cumulative Investment
RM Billion Source: 2012 Industry Survey from AMMI member companies (67% response rate) Significance Value Add Cost of Raw Materials VS Sales 8.0 6.5 6.0 4.0 2.7 Value Add: 58% 2.0 0.0 2012 2012 Raw Materials (RM'000) 2,707,684 Sales (RM'000) 6,496,170
Government - AMMI Partnership
Regional Cooperation South East Asia APEC
Training & Development MedTech Graduate Training Program
Regulatory & Technical
Moving Forward: AMMI Strategy 2015 Best in class manufacturing Appropriate processes, structures, policies Manufacturing and Operational Excellence Talent Development Skilled workforce Graduates Sharing of knowledge Market driven innovation and R&D Synergies between industry, academia and clinicians Align industry support Innovation and R&D Shared Services Identify potential shared services
Thank you Association of Malaysian Medical Industries (AMMI) C/O Medsociate Sdn Bhd Info Kinetics Centre 5 th Floor (Old Wing), Gleneagles Penang Building 1, Jalan Pangkor, 10050 Penang Hotling : +6012 4766 558 Tel : +604 228 5760 (ext. 105) Fax : +604 228 5715 Email : secretariat@ammi.com.my