PENANG accounted for an average 64% of Malaysia’s exports of optical, precision, medical and surgical instruments, with RM238bil recorded from 2021 to the first half of 2026.
Chief Minister Chow Kon Yeow said nearly two out of every three ringgit Malaysia gained from these exports was earned in Penang.
“Medical technology (medtech) is no longer a niche sector here but a pillar of high-value manufacturing ecosystem.
“Penang is home to seven of the world’s top 30 medtech companies, including Abbott, Boston Scientific, B. Braun, STERIS, Smith+Nephew, Dexcom and Intuitive Surgical,” he said.
Chow said Penang secured RM2.3bil in approved manufacturing investments in the scientific and measuring equipment sector, including medical technology, across 40 projects from 2021 to the first quarter of 2026, creating nearly 4,500 jobs.
He said Penang’s medtech ecosystem had been built on more than 50 years of expertise in the electrical and electronics (E&E) sector.
“These competencies translate directly into surgical instruments, implants and high- accuracy medical devices.
“Penang did not build its medtech ecosystem from scratch.
“We built on the capabilities we already had and moved them into higher-value applications,” he added.
Chow said more than 20 local medtech companies produced devices registered by Medical Device Authority (MDA), ranging from orthopaedic implants and surgical instruments to wound care, dental products, infection- control solutions and medical consumables.
“Together, global leaders and homegrown champions give Penang one of the strongest concentrations of medtech capabilities in Southeast Asia, and position us alongside established offshore hubs such as Puerto Rico, Ireland and Costa Rica,” he said at the Medtech Industry Summit 2026 in Penang.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin, who launched the summit, said Malaysia’s transition towards higher-value medtech would require greater localisation, deeper supply chains and stronger technology sharing between multinational corporations, local suppliers and startups.
“Local small SMEs gain access to high precision engineering standards, international certifications and technical know-how.
“This elevates the capabilities of domestic suppliers, turning local companies into world-class exporters,” he said.
Sim said Malaysia’s 17 free trade agreements (FTAs) comprising nine multilateral and eight bilateral agreements, also gave medtech companies access to markets covering about four billion people.
He urged companies to make greater use of the agreements to expand exports, while Malaysia was working towards an FTA with the European Union.
Sim also said the Government would continue supporting local suppliers through agencies including the Malaysian Investment Development Authority (Mida) and Malaysia External Trade Development Corporation (Matrade), particularly in supply-chain development, automation, technology adoption and access to export markets.
Meanwhile, Association of Malaysian Medical Industries (Ammi) chairman Samuel Pooranakaran said Penang had played a pivotal role in the country’s medtech success story.
“The state continues to foster a strong ecosystem for investment, innovation and talent development, further strengthening its position as a leading medtech powerhouse,” he said.
On Ammi’s Strategic Roadmap 2030, Samuel said it would provide a clear direction for the association and industry over the next five years.
“Our vision is to make Malaysia the leading global medtech ecosystem driven by talent, innovation and manufacturing excellence.
“Our key pillars – Policy Advocacy, Talent Development, Operational Excellence and Strategic Industry Partnerships and Development – continue to guide Ammi’s efforts to strengthen industry competitiveness, foster innovation, develop talent and support the long-term growth of Malaysia’s medtech ecosystem,” he added.
MDA chief executive officer Datuk Dr Muralitharan Paramasua said greater collaboration within the medical device industry was needed to strengthen the sector and expand its regional presence.
“We encourage the medical device industry to collaborate and hope the industries will grow in the region,” he said.
Dr Muralitharan said stronger cooperation between industry players, government agencies and other stakeholders would be important as Malaysia sought to deepen its medtech capabilities and move further up the value chain.
