6 Powerful Reasons Medical Device and Pharma Companies Are Shifting Manufacturing Projects to Malaysia

Malaysia is rapidly becoming a favored manufacturing hub for medical device manufacturing and pharmaceutical companies. 

According to recent reports, 10 of the top 20 global medical technology companies have already established a manufacturing operation in Malaysia

The same research notes that Malaysia, along with Puerto Rico and Ireland, is now one of the world’s top three offshore manufacturing hubs.  Today more than 300 medical device manufacturing companies are operating in some capacity in Malaysia, creating a vibrant MedTech and pharma ecosystem within this small country of just over 528,000 square kilometers.

In our search for the very best manufacturing environments for our customers, SteriPack discovered Malaysia’s unique benefits for manufacturing and ecommerce operations some time ago. In 2007 our company built an 86,000 square foot facility that houses a 24,000 square foot ISO Class 8 clean room for manufacturing sterile, single-use medical devices, as well as pharmaceutical packaging.  Today SteriPack Malaysia, located just a few hours from Singapore and only four miles from the nearest port, is delivering massive return-on-investment for our customers based in part on the country’s lower production costs, highly skilled and efficient labor, agile manufacturing capabilities, and favorable prospects for economic growth.

More and more medical device and pharma companies are considering transferring their contract manufacturing projects to locations outside of China. Having discovered the benefits of Malaysia over 15 years, ago, SteriPack’s Malaysian operation is one of the most advanced and well-respected in the country.   

Let’s consider the top six reasons medical device and pharma companies are choosing SteriPack Malaysia when transferring projects to a new contract manufacturer:  

  1. Lower production costs.  According to a recent survey from U.S. News & World Report, Malaysia ranks #9 in a list of countries with the lowest cost of manufacturing.  More importantly, Malaysia ranks #1 on KPMG’s CoDB Primary Cost Index, which analyzes manufacturing cost by country according to a variety of different factors including real estate costs, hourly costs, and corporate tax rates.  Costs are also reduced by Malaysian’s considerable government incentives, which heavily favor advanced technology and manufacturing operations.
  2. A solid infrastructure. Malaysia infrastructure investments help consistently rank the country in the top four manufacturing countries in South Asia, and in the top ten globally. These investments continued even during the pandemic, resulting, for example, in telecommunications networks that are considered the fastest, most robust, and saftest in Asia. breakout box copy [In 2021, editors at Bloomberg named Malaysia the “quiet leader in cybersecurity” for its collection of broad international security alliances.] Along with its impressive digital infrastructure, the country boasts several industrial parks focused on high tech manufacturing. Malaysia is also easily accessible by land, air, and sea with seven major ports and of course its state-of-the-art airport in Kuala Lumpur.
  3. Healthy economic conditions. Malaysia has posted an annual growth rate of over 5% for well over a decade. Despite this year’s global economic slowdown, in Q3 of 2022 Malaysia reported its fastest economic growth in over a year (over 14%) surpassing government predictions and beating most forecasts. The economy is supported in part by Malaysia’s significant reserves of oil and natural gas. According to the World Bank, Malaysia is one of the most open countries in the world in terms of trade to GDP ratio, with about 40% of all jobs linked to export activities.
  4. Commitment to commerce. For the past 20 years, Malaysia has been working with international companies and trade organizations to make doing business easier and more profitable in the country. Malaysia has strengthened its supply chain, offered all kinds of bonuses and cash incentives for companies to relocate, and worked towards providing a skilled workforce ready to go to work.
  5. An educated, well-trained workforce.  The Malaysian government has spent more than a quarter of a century focused on programs to improve the quality and availability of its workforce, achieving an overarching goal of training over one-third of its workforce for manufacturing jobs. These highly skilled workers are dedicated to strict compliance and rigorous standards for quality and consistency. In addition, Malaysia boasts a diverse population contributing to a multi-lingual society of people who speak Malay along with Mandarin, Cantonese, Philippine, and of course, English.
  6. Sustainable practices.   For many organizations, environmental, social and governance (ESG) have become major success factors and even a competitive differentiator.  Along with its competitive business programs, Malaysia rewards organizations for contributing to the “common good” with even more tax incentives, helping promote practices that contribute to the health of not only our global economy, but our communities and our planet as well.

For more than two decades the Malaysia government has been working with international companies and trade organizations to make doing business in this beautiful Asian country easier and more profitable. As a result of these efforts, Malaysia has strengthened its supply chain, offered numerous incentives for companies to relocate, and created programs to create one of the most highly skilled manufacturing workforces in the world.  Today it’s clear that any medical device or pharmaceutical manufacturer must consider Malaysia as a serious option when considering new location options.    


Source: SteriPack Malaysia


About SteriPack Malaysia

SteriPack Malaysia is a member of the Association of Malaysian Medical Industries (AMMI), an organization whose members represent the leading medical device manufacturers in Malaysia. In fact, AMMI members account for more than half of the total export revenue for “Made-in-Malaysia” medical devices. 

SteriPack Malaysia offers a full range of contract services from  

  • Development to final products 
  • Clean room injection molding  
  • Manual to automatic assembly 
  • Kitting and packing 
  • Development and project management  
  • Primary and secondary pharmaceutical packing 

Our operation is ISO 13485 certified, and FDA registered and audited with no critical observations. Our production lines are operated by skilled employees who are dedicated to strict compliance and rigorous standards of quality and consistency. Our experienced project transfer teams have a proven track record of success, navigating even the most complex transitions and product localizations while our diverse, English-speaking management team ensures a smooth flow of communication.  

Serving both as a finished medical device manufacturing location and sub-component/ sub-assembly manufacturing site working with sister sites in the US and Poland, SteriPack’s Malaysia facility is also an ideal option for complex supply chains requiring sourcing in multiple global locations. 

Ensuring an optimal project transfer from anywhere in the world is a top priority at SteriPack Malaysia. You can trust us to not only meet your needs, but exceed your expectations regarding flexibility, cost competitiveness and speed of project delivery—hallmarks of SteriPack’s values. 

To see if SteriPack Malaysia is the right fit for your project transfer, just fill out our contact form. You can also call us directly at +60 33167 3596 or email [email protected]



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