Medical device market to benefit from improved health spending in 2024
LUMPUR: Malaysia’s medical devices market is forecast to record a highsingle digit growth over a fiveyear period, driven by strong government support for medical devices and healthcare sectors, medical tourism and an ageing population, according to BMI, a Fitch Solutions company.
In a note, it said Malaysia’s 2024 health budget will support the medical devices market growth by focusing on the procurement of medical equipment; upgrading hospitals and clinics; and enhancing system capacity.
Domestic medical device production will continue to rise as the government prioritises boosting production within key strategic sectors, it said.
The firm projected that Malaysia’s medical devices market will expand at a 2023-2028 compound annual growth rate of 9.5 per cent in local currency terms and 8.5 per cent in US dollar terms, which will take the market to a value of RM16.6 billion (US$4.5 billion) in 2028.
“Key growth drivers include strong government support for the healthcare and medical device sectors, medical tourism, a rising elderly population and the growing burden of chronic diseases.
“A downside risk to our outlook for the market is Malaysia’s export-oriented economy and ongoing political uncertainty,” it said.
BMI highlighted that the Health Ministry has been allocated RM41.2 billion for 2024, a 12.6 per cent rise from 2023’s RM36.3 billion.
In 2024, RM5.5 billion has been allocated for the procurement of medicines, consumables, reagents and vaccines.
“The government will also prioritise healthcare facilities, including allocations to build new hospitals, and modernising other hospitals and health clinics.
“These initiatives will support Malaysia’s medical devices market growth, improving access to services and ensuring solid demand for products,” it added.
Meanwhile, the firm noted that Malaysia’s medical device exports rose by 16.3 per cent in local currency terms to RM18.5 billion, while exports expanded by 9.5 per cent in US dollar terms to US$4.2 billion in 2022.
“Malaysia’s medical devices exports have recorded growth in local currency terms every year since 2012 with the exception of 2016 and 2020.
“US dollar growth has been more volatile due to a depreciating ringgit in certain years, although growth has been broadly consistent,” it added. -Bernama