The pharmaceutical market in Malaysia is one of the fastest growing in Asia Pacific region with the CAGR of 10.5 percent. Currently, the local pharmaceuticals companies have control on the generics and over the counter (OTC) products, while multinational companies have established hold on branded/ethical drugs. According to Frost & Sullivan estimates, the Malaysian pharmaceutical industry is valued at $1,027 million in 2007 and is expected to touch $1,800 million by 2013.

 

The pharmaceutical products manufactured by the Malaysian pharmaceutical industry can be broadly categorized as: Prescription, Over-the-counter (OTC), Traditional medicines and Health and Food Supplement. The prescription medicines comprise patented and generic drugs, the sale and transaction of which are confined to doctors and pharmacists. The OTC, traditional medicines and health/food supplements may be sold by non-professional outlets and to members of the public.

 

The Malaysian government is making a lot of efforts to promote the biotechnology industry in a bid to attract foreign investment and to boost the local economy. Hence, the government has included the sector in its Ninth Malaysia Plan 2006-2010.

 

The biotechnology industry offers opportunities for both domestic and multinational companies. Market capitalization of biotechnology and biotechnology-related healthcare companies listed on the Malaysian Stock Exchange has touched $857 million, with foreign direct investment of close to $286 million. Biotechnology is expected to generate revenue of $71 billion by 2020, and it can open up the door for many biotech companies to establish their shops in Malaysia. And the number of biotech companies might reach 100 in the next couple of years from the current level of 33.

 

Besides reaching out to the local market the leading domestic pharmaceutical players are now increasingly looking abroad for growth. The local pharmaceutical companies have been exporting to over 30 countries including Africa and Central America. Major export destinations for these companies include Singapore, Vietnam, Brunei, Hong Kong, Taiwan, Japan, India and Germany. With the acceptance of Malaysia in the Pharmaceutical Inspection Cooperation (PIC) Scheme, Malaysian companies are now exporting pharma products to PIC countries namely European Union, Canada and Australia.

 

Exports will continue to grow among the local companies as a gateway to increase their revenues. In view of intense competition and globalization, local companies that produce drugs at lower cost with good quality will sustain their growth and make difference for the country.

 

Malaysia Top 3 by revenue

 

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