Healthcare in Malaysia Poised to Become Medical Investor's Safe Haven

Great news in the healthcare world! Research provided by BMI, a Fitch Solutions subsidiary, foresees Malaysia’s New Industrial Master Plan (NIMP) 2030 as a catalyst for bolstering the integration of value chains. This strategic move is poised to enhance local production capabilities for active pharmaceutical ingredients, vaccines, and medicines.  

Incentives from the government will continue to be a driving force behind increased local investments in Malaysia’s pharmaceutical sector in the near term.  

According to BMI, Malaysia possesses viable potential to attract further investments and position itself as a frontrunner in the regional pharmaceutical landscape. This is proven by pharmaceutical sales reaching RM 11.2 billion in 2022, with a forecast that medicine sales will surge to RM 15.5 billion by 2027. This projection translates to an impressive compound annual growth rate of 6.7 in local currency terms.  

The 12th Malaysia Plan has pinpointed the pharmaceutical and medical devices sectors as pivotal industries propelling economic growth. The Malaysian government has explicitly expressed its commitment to boosting domestic investments in the pharmaceutical field, concurrently strengthening Malaysia's stature as a regional biomedical hub. 

BMI also highlights Malaysia's proactive measures, exemplified by the extension of preferential tax rate incentives in the 2022 budget. These incentives offer investors a tax rate ranging from zero to 10% for a period of 10+10 years when they engage in local pharmaceutical manufacturing, including vaccines. 

However, BMI acknowledges the persistent challenge posed by medicine pricing controls, which can impact multinational drugmaker profitability and potentially dissuade foreign investment.  

Malaysia implemented price control measures for medicines in May 2019, employing external reference pricing as a basis, which compares local prices to lower drug prices in other markets and establishes ceiling prices based on the average of the three lowest prices identified.  

These price controls, while aiming for affordability, may constrain the profit margins of innovative drug manufacturers and potentially curb multinational investments.  

The BMCC, while acknowledging the challenges in providing affordable medical care, believes that Malaysia’s New Industrial Master Plan 2030 will fortify the pharmaceutical sector with sufficient growth in investment and success.  

The BMCC Healthcare Committee is an advocacy platform for the government, i.e. the Ministry of Health, and an avenue for members to network across sectors, have discussions and showcase healthcare advancement in Malaysia.  

To learn more about the BMCC Healthcare Committee and how BMCC Members can participate in the BMCC Healthcare initiatives, please contact Pravindeep@bmcc.org.my.  

Mark Arthun, BMCC’s Chair, led the engaging conversation with H.E. Ailsa, and it was truly heartwarming to hear her openly share her goals and priorities in her new role as High Commissioner. We couldn't help but share laughter and soak in her wise insights from her experiences in our vibrant country.

As we reflect on this memorable evening, we're filled with excitement about the prospects of working closely with the British High Commission under H.E. Ailsa's inspiring leadership. We're eagerly looking forward to the growth of partnerships and collaborations that will undoubtedly stem from this event.

And what better way to welcome someone to Malaysia than at The RuMa Hotel, where its homy and contemporary ambiance perfectly embodies our nation's hospitality and charm. We sincerely hope that everyone enjoyed the evening as much as we did. A heartfelt thank you to The RuMa Hotel for being our venue partner.

Kent will be generating business opportunities for the UK, while contributing to the growth of sustainable, resilient, and productive economies across the region. In his duty as HMTC, he will lead the UK’s overseas effort to promote UK trade, investment, trade policy and export finance.

Alongside trade and investment, Kent will pursue regional security priorities in his new position, protecting free trade and supply chains and continuing the progression already made by the AUKUS security pact.

We congratulate Martin Kent on his new role and look forward to opportunities to strengthen the economic landscape of the region with his support.

Last but not least, we extend a heartfelt thank you to Natalie Black CBE for her incredible work in improving the trade and investment relations between the UK and Asia Pacific during her tenure. We are thankful for her support towards the BMCC, and wish her the best in her new role back in the UK!

This week, Martin Kent will be launching the first edition of his 'Ask Martin Anything' series. The new Trade Commissioner will be discussing how trade teams in Embassies and High Commissions around the region and in the UK can work with businesses to achieve further success in Asia Pacific. 

If your are a UK investor or business, click here for more. 

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At their Annual EiR Conference, Lancaster University also launched their Global Entrepreneur in Residence programme with British Member of Parliament Cat Smith. 

To read more about this, click the links below. 

Don't let this opportunity pass you by! Click Here to register now or contact us at 012-5532 4480/ 012-532 4482 to find out more.