Healthcare opportunities

An Expert's View about Pharmaceuticals in Malaysia

Last updated: 29 Jul 2011

Boosting the healthcare industry is one of the development objectives of the Malaysian Government during the 10th Five-Year Plan (2010-2015).

Sector briefing Healthcare opportunities in Malaysia Why Malaysia? Malaysia has a healthcare system operating in two tiers; the government-run universal healthcare system and a co-existing private healthcare system. The growing economy has resulted in increased wealth spent on private healthcare. Malaysia sees an increase in demand for healthcare reflected by the increasing healthcare expenditure. The government handles 75% of Malaysia?s healthcare needs.. Boosting the healthcare industry is one of the development objectives of the Malaysian Government during the 10th Five-Year Plan (2010-2015). The Government will reform the potential opportunities and an introduction to healthcare delivery system with focus on 4 key other relevant issues. areas: ? Transforming delivery of the healthcare system ?Malaysia sees an increase in ? Increasing quality, capacity and demand for healthcare coverage of the healthcare structure services reflected by the ? Shifting towards wellness and disease prevention, rather than treatment; increasing healthcare ? Increasing the quality of human expenditure? resources for health Find general information on Malaysian market conditions on UKTI?s website. The Doing Business Guide for Malaysia gives an overview of Malaysia?s economy, business culture, UK Trade & Investment Sector briefing: Healthcare opportunities in Malaysia ageing population which will cause a shortage Opportunities of personnel. A total of 197 new clinics at the cost of Pharmaceuticals RM637m (£127.4m), four new and 4 replacement hospitals that will cost around Increasing healthcare costs and consumer RM600m (£145.5m) will be completed during awareness has boosted overall drug the first half of the plan period. consumption. Prescription and dispensing of medication is presently dealt with by general Opportunities for UK healthcare companies in practitioners which increases the overall value Malaysia include: of the prescription market. There is also a rising demand for treatment of chronic Supply of innovative medical equipment conditions. The Malaysian government has also and devices placed a high priority to prevent and contain diseases outbreaks. UK has traditionally success in supplying medical equipment to Malaysia. Malaysia Emphasis is given to the changing pattern of imports around 85% of the medical equipment communicable and non-communicable diseases and consumables used in the healthcare including mental health. Initiatives are sectors. undertaken to reform healthcare services and the promotion of well being to the general There are also planned investment in the population. expansion of medical facilities both in the private and public sectors. There are Multinationals control about 70% of the opportunities to supply and replace medical pharmaceutical market in terms of innovative equipment and provide E-Health Solutions, and specialised products. The local industry innovative medical devices and technology. remains focused on the production of generics and lower-tech medicines. There is now an Contract Manufacturing of Medical Devices expanding generics market due to rising costs. Malaysia has a developed strength in clean R & D technology. There is strong presence of established supporting industries ranging from Malaysia is keen on joint research projects. The sterilisation services, sterile medical packaging, government?s focus in developing the biotech precision engineering and tool & die making to sector will result in improved investment contract manufacturing and assembly & opportunities which will be favourable for machinery fabrication. A well educated, English businesses and cost effective R & D speaking population, availability of the propositions. There are also tax breaks and supporting industries makes Malaysia an ideal concessions for foreign companies setting up. location for the manufacture of medical devices. Regional Collaborations Training There is also an increasing demand on halal medicine and products, which boots demand in Institutions of higher learning are keen to the Islamic world. Malaysia, a member of the develop healthcare courses and vocational Organisation of Islamic Countries (OIC) training that are internationally recognised. provides access to other global Islamic There are shortages of certain medical markets. professionals including pre-hospital and emergency care; geriatrics and care of the Malaysia also has increased trade and elderly and expanding post-basic training for investment collaboration ties with China and allied healthcare personnel. therefore will benefit from this rising importance. Malaysia is one of the six Driven by increased affluence there is an Association of South East Asian Nations increasing number of private hospitals. (ASEAN) nations that will have their Most Malaysia is also becoming an attractive location Favoured Nations (MRN) rates on Chinese for medical tourism. The demand for better goods reduced to 0% by 2010. In tandem, the services is driven by a growing as well as an UK Trade & Investment Sector briefing: Healthcare opportunities in Malaysia same rules apply to China which will enable Malaysian goods to be duty-free to China. The Ministry of Health announced that at least 70% of the equity in services sector will be opened to foreign participation under ASEAN Free Trade Agreement. Liberalisation of the healthcare sector will allow foreign corporation to open hospitals as well as foreign doctors and insurance companies operate in Malaysia. Foreign healthcare companies in Malaysia Companies with significant local production facilities in Malaysia include B Braun, GSK, Johnson & Johnson and Ranbaxy. Other foreign owned drug companies with established presence in the market include Eli Lilly, GSK, Bayer, Agfa, Pfizer, Novartis, Merck & Co, Sanofi-Aventis, Roche, Bristol-Meyer Squibb and Boehringer. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Healthcare opportunities in Malaysia Major events and activities UKTI contacts BioMalaysia 2011 Angie Yen Dates: 21-24 Nov 2011 Senior Manager for Trade & Investment British High Commission Tel: (00603) 2170 2268 Email: Medical Hospital Malaysia 2011 Dates: 29 June ? 1 July 2011 Asia Medical 2011 Dates: 11-13 October 2011 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Healthcare opportunities in Malaysia Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Malaysian market business in the Malaysian market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Malaysia, with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Malaysian market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Healthcare opportunities in Malaysia
Posted: 28 July 2011, last updated 29 July 2011

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