Medical Devices Manufacturing

Medical microscope

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Medical Devices Manufacturing
Medical Devices Manufacturing
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Medical Technology
Business Model Description

Invest in medical device manufacturers in Malaysia that primarily operate on a B2B business model, supplying healthcare facilities such as hospitals, clinics, distributors, resellers and research institutes. Some manufacturers may also adopt a B2G (or B2G2B) model, selling medical devices to the Ministry of Health. Examples of companies active in this space are:

Vigilenz Medical Devices Sdn Bhd's offerings includes infection control and wound management products. In 2020, Vigilenz was acquired by Bactiguard with a consideration consisting of a cash payment of USD 4.5 million payable at closing and 241,512 shares in Bactiguard equivalent to a value of USD 2 million (45).

B Braun is a global MNC that offers a wide range of medical products including infusion pumps, catheters, surgical instruments, anesthesia workstations, dialysis machines, and wound care dressings. At Group level, B Braun's sales increased by 8 per cent to USD 8.5 billion in 2022. B Braun has invested close to USD 1 billion in its Malaysian facilities since its establishment in 1972 (46, 47).

ResMed Malaysia Sdn Bhd manufactures a range of medical devices including masks, Continuous Positive Airway Pressure (CPAP) machines and Variable Positive Airway Pressure (VPAP) machines, among other devices and accessories. ResMed generates an estimated USD 18.7 million in revenue (50).

Expected Impact

Enhance quality of healthcare services including decreased out of pocket expenses on healthcare, provide healthcare that is better suited for local needs and Malaysian's health behaviour, as well as decrease country's import dependence for medical devices

How is this information gathered?
Updated: 18 Jun, 2023
Malaysia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Net Margin's orthopedic devices are expected to be 10 per cent to 20 per cent (29).
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10) Gender Equality (SDG 5)

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Sector Sources
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IOA Sources
  • 21) Fitch. 2022. Malaysia's Medical Device Market Remains Supported https://www.fitchsolutions.com/medical-devices/malaysias-medical-device-market-remains-supported-despite-near-term-headwinds-26-10-2022?fSWebArticleValidation=true&mkt_tok=NzMyLUNLSC03NjcAAAGKxWhgGEib6-jp7yDbaOine5-PGDwk3Z_jm0wVxtZ9WSTY6nccBT6Rw5DMsla_0u3qbDnJBPNYllohmMkGzMvtVGjDQOvuwrr-H-8l-Ct1JHb4S-dmQA 22) Statista. 2023. Medical Devices - Malaysia https://www.statista.com/outlook/hmo/medical-technology/medical-devices/malaysia 23) Medical Device Authority. 2014. How to Apply for Medical Device Registration under Medical Device Act 2012 (Act 737) https://portal.mda.gov.my/documents/guideline-documents/30-guidelines-on-medical-device-registration-under-act-737-mda-gl-md-01-june-2014-2nd-edition/file.html. 24) Stakeholder Consultation on March 23, 2023 25) The Sunday Mail. 2022. AMMI members plan to pump in RM1.4b for expansion https://www.thesundaily.my/business/ammi-members-plan-to-pump-in-rm14b-for-expansion-MD10204855. 26) AMMI. 2022. AMMI Annual Report 2022. https://ammi.com.my/wp-content/uploads/2023/02/AMMI-Annual-Report-2022.pdf. 27) Malaysian Investment Development Authority (MIDA). 2021. Malaysia’s Medical Devices Industry: Immense Growth Potential. https://www.mida.gov.my/wp-content/uploads/2020/07/Medical-Device-SIB.pdf. 28) Prime Minister Office. 2019. National Policy on Industry 4.0 (IndustryFWRD). https://www.pmo.gov.my/ms/2019/07/dasar-kebangsaan-mengenai-industri-4-0/. 29) Malaysian Investment Development Authority. 2020. Medical devices industry is Penang’s hidden gem. https://www.mida.gov.my/mida-news/medical-devices-industry-is-penangs-hidden-gem/ 30) Ministry of Health Malaysia. 2020. The Impact of Noncommunicable Disaeses and their Risk Factors on Malaysia's Gross Domestic Product. https://www.moh.gov.my/index.php/database_stores/attach_download/554/64. 31) WHO. 2012. Local Production and Technology Transfer to Increase Access to Medical Devices - Addressing the barriers and challenges in low- and middle- income countries. https://www.who.int/publications/i/item/9789241504546. 32) Dominick J. Falcon. 2019. The Health Care Gap in Rural Malaysia. https://core.ac.uk/download/pdf/275906747.pdf. 33) WHO. 2019. Priority medical devices for management of cardiac diseases, stroke, and diabetes. https://www.who.int/news-room/feature-stories/detail/priority-medical-devices-for-management-of-cardiac-diseases-stroke-diabetes. 34) UN Department of Economic and Social Affairs. 2022. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 36) WHO. 2017. National NCD Targets for Malaysia. https://extranet.who.int/ncdccs/Data/MYS_Malaysia_NCD_targets.pdf. 37) Government of Malaysia. 2012. Law of Malaysia, Act 738, Medical Device Authority Act 2012. https://tsquality.ch/wp-content/uploads/2020/02/malaysia-act-738-medical-device-authority-act-9-feb-2012-english.pdf. 38) Government of Malaysia. 2012. Law of Malaysia, Act 737, Medical Device Act 2012. https://www.myrubbercouncil.com/industrynews/pdf/Medical%20Device%20Act%20&%20Authority%20Act%202012%20(ACT%20737%20&%20738).pdf. 39) WHO. 2016. Towards improving access to medical devices through local production. https://www.who.int/publications/i/item/9789241510141. 40) MIDA. 2020. Guide on Medical Devices Industry Malaysia https://mida.gov.my/wp-content/uploads/2020/07/Guide-on-Medical-Devices-Industry-in-Malaysia_21072020.pdf. 41) Biotechnology Corporation. 2005. National Biotechnology Policy. https://www.bioeconomycorporation.my/national-biotech-policy/overview/#:~:text=THE%20NATIONAL%20BIOTECHNOLOGY%20POLICY%20(NBP,status%20of%20a%20developed%20nation. 42) Public Health Foundation of India and & Indian Medical Parliamentarians’ Forum. 2023. Equitable Access to Medical Devices. https://phfi.org/wp-content/uploads/2023/03/2023-Equitable-Access-to-Medical-Devices.pdf. 43) Irza Hanie Abu Samah, et al. 2020. The Impact of Healthcare Expenditure and Healthcare Sector Growth on CO2 Emission using Dynamic Panel Data System GMM Estimation Model during COVID 19 Crisis. https://www.econjournals.com/index.php/ijeep/article/view/9769/5447. 44) Medical Device Network. 2022. Healthier carbon emissions: reducing the environmental impact of healthcare. https://www.medicaldevice-network.com/comment/healthier-carbon-emissions-reducing-the-environmental-impact-of-healthcare/. 50) Zoominfo. 2023. ResMed (Malaysia) Sdn Bhd. https://www.zoominfo.com/c/resmed-malaysia-sdn-bhd/559786481 45) Bactiguard. 2020. Bactiguard makes its first acquisition by acquiring Vigilenz. https://www.bactiguard.com/media/press-releases/bactiguard-makes-its-first-acquisition-by-acquiring-vigilenz/ 46) B Braun. 2022. Annual Report 2022. https://www.bbraun.com/en/about-us/company/facts-and-figures/annual-report-2022.html. 47) Business Today. 2022. Pioneering Malaysian-Made Medical Devices: B. Braun. https://www.businesstoday.com.my/2022/09/09/pioneering-malaysian-made-medical-devices-b-braun/. 51) Government of Malaysia. Economic & Fiscal Outlook and Federal Government Revenue Estimates 2023. 2023. https://budget.mof.gov.my/pdf/belanjawan2023/ekonomi-fiskal/EUFORE2023_270223.pdf 52) Government of Malaysia. Industry4WRD Policy. 2018. https://www.miti.gov.my/index.php/pages/view/4832 49) MIDA. 2020. Incentives for New Investment. https://www.mida.gov.my/wp-content/uploads/2020/07/Chapter-2-Incentives-for-New-Investments.pdf