Malaysia’s healthcare industry spending is expected to reach RM80 billion by 2020, said Health Minister Dzulkefly Ahmad.

He said the industry spending, which recorded RM52 billion in 2017, had increased, fuelled by the demand for healthcare services and the emergence of new care models beyond traditional hospital settings.

“For example, wireless sensors are being used to capture and transmit patient vitals more frequently.

“These signals can provide real-time alerts, so caregivers can respond more promptly to unexpected changes,” he said when opening the 23rd Asian Harmonisation Working Party Annual Meeting and Malaysia Medical Device Expo 2018 (Mymedex 2018) here today.

Dzulkefly said this development presents both challenges and opportunities to the health industry.

He said the government needs to have a strategy to ensure the availability of sustained financial and human resources.

“The present economic and financial climate poses severe challenges to the healthcare system and it is fortunate that there continues to be strong support from the government to meet health needs,” he said.

Dzulkefly said the medical device industry has emerged as an industry that is growing rapidly, and Malaysia is known as the world’s leading manufacturer of rubber-based products such as medical gloves, condoms and catheters.

Malaysia fulfils 80% of the world’s demand for catheters and 60% for rubber gloves.

He said Malaysian manufacturers also produced other medical devices, including syringes, needles, procedure kits, surgical and dental instruments, and products made from plastics, silicone and metal alloys.

Dzulkefly said the medical device industry has shifted focus to the higher end of the product spectrum and diversified into more lucrative sub-sectors, which eventually lead to economic growth and increased employment opportunities.

“The industry consists of over 200 manufacturers with investments of up to RM14.2 billion, making Malaysia an up-and-coming global medical device manufacturing hub.”

He said more than 30 multinational companies have made Malaysia their offshore manufacturing location.

He said that in 2017, the industry recorded total approved investments of RM2.2 billion across six new projects worth RM69.4 million, and 19 expansion or diversification projects worth RM2.1 billion compared with RM2.9 billion in investments across 41 approved projects in 2016.