Singapore, Feb 27, 2008:  Malaysia is likely to be a leader in the global pharmaceutical industry. It is expected to see a definite rise in the pharmaceutical industry in 2008. This is through increasing numbers of pharmaceutical manufacturers that have sought to outsource or in-license their operations, according to the Frost & Sullivan’s 2008 Malaysian Pharmaceutical Outlook report.

 

“Malaysia’s pharmaceutical industry has become increasingly reputable. Therefore the key drivers that are building the reputation globally are medical tourism, the generic market, specialist driven therapy market, dietary supplement market and herbal or traditional medicines” said Ms. Lin Hui Tham, Consultant of Healthcare Asia Pacific at Frost & Sullivan, Malaysia.

 

“Frost & Sullivan estimates that by 2013, the industry will be valued at about US$1800 million, growing at a CAGR of 10.5% boosted by changing demographics and rising healthcare expectations. Malaysia’s increase in export value has made the country a member of the Pharmaceutical Inspection Co-operation Scheme (PICS). The Pharmaceutical industry in Malaysia is mainly dominated by the MNCs,” she added.

 

Ms Lin Hui added that Malaysia has actively been exporting to its neighboring countries to gain growth revenue. The total export in 2004 amounted to US$131 million. These were just mainly for locally manufactured pharmaceutical products. The export from Malaysia for the vitamin market currently covers more than 30 countries including Africa and Central America. Also, major export destinations are Singapore, Vietnam, Brunei, Hong Kong, Taiwan, Japan and Germany.

 

The Malaysian government has played a big role in providing initiatives to the pharmaceutical industry. Grants and financing schemes has been provided to support R&D initiatives, pharmaceutical inspection co-operation scheme (PICS), the industrial master plan 3 (IMP3, 2006-2020) and the Malaysia’s Intellectual Property Laws. Various types of incentives have also been given and put into good use.

 

Ms Lin Hui further said, “At present, there are various market opportunities in the pharmaceutical industry for one to look at. The Biotechnology industry is expanding at an exciting rate. The Bio-Generic industry which is relatively unexplored is estimated to grow at an annual average of more than US$16 billion by 2011. Malaysia is targeted to lead (one of a few countries) the herbal market, thus numerous incentives such as research grants are being offered to local companies in this market. Lastly, the vitamin sector has scored great progress in the last few years. The vitamin and dietary supplements market for Malaysia reached US$ 131 million in 2006. Hence, further enhanced growth is to be seen in 2008.”

 

The report noted that Malaysia’s healthcare growth spending rate was 5^th in ranking, behind Philippines, India, South Korea, and China. Malaysia is considered small in population size in comparison to the other four countries. But the healthcare spending of Malaysians are incredibly high, reflecting the trend of Malaysians towards a healthy lifestyle. Hence this opens big opportunities for pharmaceutical companies to gear up their manufacturing in order to meet the increasing demands of healthcare products.