THE Association of Malaysian Medical Industries (AMMI) has estimated an eight to 10 per cent growth in total exports from among its 45 member companies in the medical device industry this year.

AMMI chairman Hitendra Joshi said the association, which accounts for more than 50 per cent of the country's total export revenue for medical devices, had collective exports of RM5.9 billion last year, from two-thirds of AMMI members' surveyed.

"The total exports in the country last year amounted to RM12.9 billion, so AMMI's export revenue of RM5.9 billion is quite substantial.

"As for this year's exports outlook for the medical device industry, it is expected to hit RM13.7 billion," he said at a press conference here yesterday after the announcement of the findings of the medical device industry survey.

Out of the RM12.9 billion in total exports, Hitendra said medical gloves and catheters dominated the medical device industry with a total of RM9.8 billion.

The remaining RM3.1 billion came from medical, surgical and dental instruments, contraceptives, electro mechanical devices, ophthalmic lenses, radiation devices and orthopedic implants.

He said the steady increase in cumulative investments in the sector over the years, from RM1.5 billion in 2008 to RM3.2 billion last year.

"From year-to-year, the investments have been going up. For instance, there was a RM400 million increase in investments last year as compared to 2011.

"And from that figure, 10 per cent or RM44 million, have gone into research and development in the sector," he said.

The AMMI Industry Survey last year also recorded the cost of local and imported raw material amounting to RM1.2 billion and RM1.5 billion respectively.

"RM1.2 billion may come across as a small figure, but in our industry, there is a demand for very high-end quality products and raw materials, so we have to rely very often on imports.

"But whenever possible, we will try to buy locally, because firstly it is in ringgit. Secondly, as a local supplier, deliveries and supplies could be easier.

"Nevertheless, as an industry which caters for the global market, we need to cater to global standards. Hence, imports are also necessary to support the requirements of the manufacturing sector," Hitendra said.

Meanwhile, AMMI secretary S. Balasubramaniam voiced its support for the Medical Device Regulations 2012, the subsidiary legislation under the Medical Device Act 2012, which will come into force on July 1.

"There will be more regulatory control (with this Act) and when there is more regulatory control, patients' safety is also ensured.

"We will be carrying better quality products and quality which is substandard or (products) which are not fully tested may have difficulty being sold in the country. Patients' safety in the country is also enhanced.

"Similarly, foreign multi-nationals who want to invest in Malaysia, they know that Malaysia has this Act. They think there is better regulation in the industry, which will indirectly encourage foreign direct investments into the country," Balasubramaniam said.

source:NST