Annual Report 2017

99 D E L I V E R I N G V A L U E LIFESTYLE AND LIFE SCIENCES Life Sciences Snapshot The Life Sciences Unit at MATRADE is specifically focused on the development of healthcare-related products and services. In the broad definition of life sciences, MATRADE places emphasis on the promotion of medical devices as well as pharmaceuticals. In accordance with the Medical Device Act 2012, medical devices are defined as all products except medicines used in the healthcare industry (from diagnosis to treatment). In order to qualify for MATRADE’s assistance, a product must first be registered under Medical Device Authority (MDA) Malaysia and categorised according to MDA’s classification system. In the case of pharmaceuticals, the industry is governed by the Sales Drug Act 1952, hence companies involved in the manufacturing or distribution of pharmaceutical goods must register with the National Pharmaceutical Regulatory Agency (NPRA) Malaysia prior to engaging MATRADE to explore any export opportunities. In general, Malaysia’s medical device industry can generally be categorised into (i) gloves and (ii) non-gloves. Gloves : Malaysia’s strength lies in medical gloves (both latex and nitrile) whereby statistically, the country’s medical gloves controls 60% of the US$5.7 billion (RM23.14 billion) global market in 2017 Malaysia’s strength in this product category has to do with its geographical proximity to natural rubber latex supply, enabling the industry to consolidate its position supported by constant technological improvements and research in the manufacturing process of medical gloves. This is evident given the high-tech manufacturing plants operated by top manufacturers such as Top Glove Corporation Bhd, Supermax Corporation Bhd and Hartalega Holdings Bhd. Non-Gloves: Malaysia’s strength also lies in medical consumables and disposables such as catheters, needles and syringes. Having experienced accelerated growth for the past five years, this subsector rose by 48% in 2017. Key Potential Though the non-glove subsector is predominantly contributed by foreign direct investments (FDIs) of multinational corporations (MNCs), there is a growing proportion of local manufacturers in the subsector who have begun exporting to North America, Europe and West Asia. Taking into account the operational competitive advantage of Malaysian manufacturers, MATRADE expects to see continued rapid growth within this subsector for many years to come. As for the pharmaceutical industry, Malaysia’s key strength is in the manufacturing of generic drugs as well as over-the- counter (OTC) medications. Malaysia has yet to develop a strong, local base of research-based pharmaceutical companies, taking into account the significant amount of capital investment as well as the risks involved in the development of new products. The bulk of the Active Pharmaceutical Ingredient (APIs) used in the manufacturing of generic and OTC drugs are imported mostly fromChina, India and Europe. Among the major local players in the industry are Pharmaniaga Bhd, Hovid Bhd and CCM Duopharma Biotech Bhd. Exports of pharmaceuticals saw double digit growth of 13.6% to RM1.65 billion Exports of medical devices grew 24.9% to RM19.78 billion in 2017 “ Malaysia’s producers are pioneers in the production of latex products and have the most extensive expertise in this sector. Our long experience in dealing with Malaysia leads us to the conclusion that Malaysian companies are open and flexible in doing business.” ZARYS International Group, Poland Abu Bakar Yusof Director, Lifestyle and Life Sciences Section “ The Life Sciences sector which give emphasis on medical devices is significantly growing and local manufacturers of non- glove medical devices are urged to establish a single platform to represent the Malaysian industry in boosting exports”