Boston Scientific bullish on Penang plant
BATU KAWAN: Boston Scientific Corp, a global developer, manufacturer and marketer of medical devices, aims to grow by more than 10% per annum in Penang from 2019 onwards.
Its Asia-Pacific senior vice-president and president Warren Wang said the company would be targeting more than a 10% growth in 2019 when headcount at its Batu Kawan plant increased to 400 from about 200 now.
“Asia-Pacific is growing faster than the United States and Europe. Currently, the market size of AsiaPacific ranks third after the US and Europe.
“The region’s medical technology (medtech) market is expected to grow to US $133bil in 2020, surpassing the European Union as the world’s second-largest medtech market,” he said.
Wang said this was the reason the company set up a manufacturing facility in Penang, its first production site in the Asia-Pacific and also the third largest.
He was speaking at a press conference after the officiation of the new plant in Batu Kawan by International Trade and Industry (Miti) Deputy Minister Datuk Chua Tee Yong, who represented Miti Minister Datuk Seri Mustapa Mohamed.
Also present were Penang Chief Minister Lim Guan Eng, US Ambassador to Malaysia Kamala Shirin Lakhdhir and Boston Scientific Malaysia vice-president and general manager (manufacturing and distribution) Dave Mitchell.
Wang said there were also plans to bring in research and development activities to the Batu Kawan facility.
Meanwhile, Mitchell said the facility enabled the company to expand its presence in the region and provide support for local research and new business development to address patient needs and tackle the increasing cost of healthcare.
On medical investments in the country, Chua said that from 2012 to September 2017, approved investments in the medical devices industry amounted to RM14bil.
The bulk of the investments came from foreign sources, which contributed RM8.3bil or 59%, while domestic sources contributed RM5.7bil or 41%.
“To date, Malaysia’s medical devices industry is made up of over 200 companies, dominated by small and medium-sized companies.
“Notably, more than 30 medical devices multinational corporations from around the globe have made Malaysia their offshore location for their operations.
“This has enhanced Malaysia as an outsourcing destination and global supplier of medical devices’ parts and components,” Chua said.