The medical device industry is a burgeoning one. As one of the ‘3+2’ high-growth subsectors under the 11th Malaysia Plan, the industry has been identified as an integral growth area in the country’s economy.

With over 200 manufacturers and implemented investments valued at over RM14 billion, Malaysia is definitely on its way as an up-and-coming global medical device manufacturing hub. Nevertheless, the industry still has a long road ahead. One of the major concerns is the level of technological prowess of local players.

Malaysia is in the midst of the fourth industrial revolution. However the research and development capabilities of medical device manufacturers remain low presently. This can be attributed to several factors, including a low focus on technological advancements and product innovation.

Medical Device Innovation Centre (MDIC)

For one, the small and medium enterprises (SMEs) tend to have a smaller budget allocation for research and development. Typically, less than six per cent of the company’s total spending is directed to research and development. Many of these companies are not yet ready to invest in high technology.

 As high technology requires a higher investment and possibly longer waiting period for returns, the companies will keep to simpler, more generic products or acquire the technology and expertise they need from abroad.

In addressing this issue, SIRIM’s Medical Device Innovation Centre (MDIC) aims to develop the nation’s medical device industry and enhance its competitiveness.

MDIC will assist in building capabilities to address the market access gaps of the local medical device products as well as growing the product innovation capabilities of medical device manufacturers in the country.

The centre offers a wide range of services that include biomodelling and prototyping, industrial research and product innovation, technology commercialisation, accredited testing, certifications, training and consultation.

As finances can be a huge deterrent especially for start-ups and SMEs, the business incubator concept can be employed where SIRIM can rent out its facilities to this category of industry players for them to enhance their technology and innovation.

Need for institutional support

In order to ensure the success of the MDIC, all parties involved, such as the government, industry and research institutes, have to work closely together.

We need institutional support from the government, including funding, infrastructure and regulatory support. For example, countries like South Korea and Taiwan have policies in place that prioritise the use of local medical devices. Perhaps, the government could help the local medical device industry by doing something similar.

Collaboration with research institutes

Industry players can also collaborate with research institutes to develop more innovations. We need to develop the necessary talent and attain a certain level of skill to catalyse innovation.

Whether the collaborations are between industries and research institutes or among industry players themselves, this means that they will not have to take on every manufacturing aspect themselves.

This could happen during the marketing stage or production line stage. The larger companies could also outsource some of the tasks to smaller vendors.

Essentially, the establishment of a solid platform will allow all industry players to move forward together for the benefit of both industry and the nation and ensure that nobody is left behind.