The implementation of the Medical Devices Regulations (MDR) is not expected to have an immediate significant impact on market share and growth. But over time, it may result in as much as an 8% to 10% annual growth.

An industry expert, citing the current estimated revenue for 2013 is RM3.7 billion, said the number should grow to a RM5.1 billion by 2015.

In terms of medical devices manufacturing, while products in Malaysia are worthy of being showcased in Malaysian and global markets, no import substitution is expected to take place.

Perhaps in time, the Malaysian industry can benchmark itself against industry giants like Ireland, which has become Europe’s premiere cluster for the medical devices industry based in the Galway region.

Eight of the world’s 10 largest medical devices companies are located in Ireland, and these include Abbott, Bayer and Johnson & Johnson. The sector employs more than 24,000 people in 160 companies with annual sales in excess of €6 billion (RM24.95 billion).

Ireland draws it strength from the fact that more than half of the medical technology companies based there are research and development (R&D) driven, with the government committing €8.2 billion for investment in science and technology research up until this year.

Even as Malaysia increases its capability in automation and innovation, there is a need to be cautious and not be merely competitive in terms of volume and cost, but instead invest in a labour-intensive and dependent system that can create cost efficiency for the industry.

While most companies, particularly multinational corporations, are looking into R&D on their own, smaller, local companies are also benefiting from such efforts.

The contract manufacturing sector accounts largely for growth of the medical devices industry, among non-latex, and this is expected to grow further with universities doing testing.

However, currently the universities research prototypes have not been successful in meeting regulatory standards and hence cannot be commercialised and monetised.

Talent development is one of the gaps that need to be addressed by the Malaysian Industrial Development Authority and the Northern Corridor Economic Region (NCER).

NCER, currently the largest hub for medical devices industry in Malaysia, covers the states of Kedah, Perak, Penang and Perlis. There is also an existing cluster in the central region (Klang Valley), with new companies emerging in the Iskandar Malaysia region.

source:AMMI