Malaysia’s medical device market will grow 8.2% annually, driven by NIMP 2030, chronic diseases, and increased health spending.
Key View
- Malaysia’s medical device market will grow faster than regional peers including Thailand and Indonesia.
- Malaysia’s New Industrial Master Plan (NIMP) 2030 will be a key driver of medical device export growth over our forecast period.
- The US will remain a leading destination for Malaysia’s medical device exports, particularly for advanced product categories such as orthopaedics and diagnostics.
Malaysia’s medical device market will grow faster than regional peers including Thailand and Indonesia. We forecast that Malaysia’s medical device market will grow by a 2023-2028 compound annual growth rate (CAGR) of 8.2% in local currency terms and 7.8% in US dollar terms, taking the market to a value of MYR15.4bn (USD3.3bn) by 2028. This will make it one of the fastest growing in the Association of Southeast Asian Nations (ASEAN), with only Vietnam and Singapore experiencing faster growth of 9.9% and 8.9% respectively. Key growth drivers for Malaysia’s medical device market include the rising burden of chronic diseases, increasing government health expenditure, and modernisation of healthcare facilities, which will continue supporting demand for new and modern medical equipment. Malaysia’s medical device market will benefit from an acceleration in Malaysian real GDP growth to 4.4% in 2024 and 4.5% in 2025, up from 3.7% in 2023, which will support healthcare and medical device spending, including investments in product procurement, research and development. Downside risks to the market include Malaysia’s export-oriented economy, which makes it vulnerable to external economic slowdowns. Our anticipation of weakening growth in key markets including Mainland China and the US could weigh on market growth in the near term given Malaysia’s large medical device trade with both markets.
Malaysia’s medical device market is poised to become one of the fastest-growing in the ASEAN region, driven by increasing healthcare demands and advancements in technology. The country’s strategic location, coupled with a robust healthcare infrastructure, supports the growth of medical device manufacturing and innovation. As Malaysia continues to enhance its healthcare services, investments in medical technologies are expected to accelerate, further propelling market growth.
The government’s commitment to improving healthcare access through initiatives like the Malaysia Healthcare Travel Council (MHTC) has also spurred the demand for high-quality medical devices. As the population ages and chronic diseases become more prevalent, the need for advanced medical solutions has never been greater. This landscape invites both local and international players to invest in the market, creating a competitive environment that fosters innovation and development.
Moreover, Malaysia’s regulatory framework, which aims to align with international standards, enhances its appeal as a hub for medical device manufacturing. With efforts directed at facilitating research and development, the country is on track to achieving its vision of becoming a leading player in the ASEAN medical device market. As such, Malaysia is not only set for substantial growth but also poised to influence the overall advancement of healthcare technologies in the region.
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