Malaysia’s medical device market is expected to grow faster than regional peers due to factors like government support, increasing healthcare expenditure, and modernization of healthcare facilities. Key drivers include rising chronic diseases and government health spending. The market benefits from tax incentives, streamlined regulations, and a growing private healthcare sector. Malaysia’s commitment to healthcare infrastructure and public-private partnerships will further drive market growth, positioning it as a key player in the global medical device industry.
Key View
- Malaysia’s medical device market will grow faster than regional peers including Thailand and Indonesia.
- Malaysia’s New Industrial Master Plan (NIMP) 2030 will be a key driver of medical device export growth over our forecast period.
- The US will remain a leading destination for Malaysia’s medical device exports, particularly for advanced product categories such as orthopaedics and diagnostics.
Malaysia’s medical device market will grow faster than regional peers including Thailand and Indonesia. We forecast that Malaysia’s medical device market will grow by a 2023-2028 compound annual growth rate (CAGR) of 8.2% in local currency terms and 7.8% in US dollar terms, taking the market to a value of MYR15.4bn (USD3.3bn) by 2028. This will make it one of the fastest growing in the Association of Southeast Asian Nations (ASEAN), with only Vietnam and Singapore experiencing faster growth of 9.9% and 8.9% respectively. Key growth drivers for Malaysia’s medical device market include the rising burden of chronic diseases, increasing government health expenditure, and modernisation of healthcare facilities, which will continue supporting demand for new and modern medical equipment. Malaysia’s medical device market will benefit from an acceleration in Malaysian real GDP growth to 4.4% in 2024 and 4.5% in 2025, up from 3.7% in 2023, which will support healthcare and medical device spending, including investments in product procurement, research and development. Downside risks to the market include Malaysia’s export-oriented economy, which makes it vulnerable to external economic slowdowns. Our anticipation of weakening growth in key markets including Mainland China and the US could weigh on market growth in the near term given Malaysia’s large medical device trade with both markets.
Malaysia’s medical device market is swiftly emerging as one of the most rapidly expanding sectors in the ASEAN region. Fueled by increasing healthcare expenditure and substantial government support, the market is poised for significant growth. The Malaysian government’s initiatives, such as tax incentives and streamlined regulatory processes, have been pivotal in attracting foreign investments and promoting local innovations. This nurturing environment fosters a dynamic ecosystem conducive to the development and introduction of advanced medical technologies.
According to industry analysis, the market’s robust expansion is driven by an aging population and a rising prevalence of chronic diseases, which are propelling the demand for sophisticated medical devices. The private healthcare sector in Malaysia is also witnessing considerable growth, further augmenting the need for cutting-edge equipment and technologies. Companies operating in the market benefit from Malaysia’s strategic location, providing easy access to other booming ASEAN markets and enhancing regional integration and trade.
Malaysia’s commitment to strengthening its healthcare infrastructure and fostering public-private partnerships is key to this burgeoning market. The country is setting itself apart with strong regulatory frameworks that ensure product quality and patient safety. As the market continues to evolve, Malaysia is likely to see an influx of innovations that will not only cater to domestic needs but also position it as a significant player in the global medical device industry. The impressive trajectory of Malaysia’s medical device market signals a promising future, with the potential to revolutionize healthcare delivery across the ASEAN region.
Source : Malaysia’s Medical Device Market To Be Among Fastest Growing In ASEAN