What is the industry’s current state, and can it meet the government’s expectations in the JS-SEZ?
Muhammad Muza: Half of the RM11.5bil that is exported is rubber products such as gloves and condoms, while the rest are devices such as dialysis machines and ventilators.
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We are the biggest exporter of rubber disposables such as gloves and condoms in the world, but Thailand and Indonesia are starting to challenge us. However, the growth of exports for non-rubber devices is better.
What are some of the obstacles that the industry faces?
Muhammad Muza: Getting international certifications from European regulators and the United States can cost between RM100,000 and RM2mil per product. Some countries also restrict medical device procurement, limiting Malaysian products from entering their markets despite meeting international standards.
Malaysia is primarily a contract manufacturer of medical devices. Because there are very few local medical device brands, we miss out on higher profit margins and brand recognition.
We have eight universities with biomed engineering programmes which teach students how to make medical devices. However, this talent is not absorbed into the industry because of limited collaboration between academia and industry.
Hyzan: The Malaysian government spends a lot of money on research and development, but there is a gap in getting innovations to the market.
With the new JS-SEZ, we must work together to get our innovations out there.
For any zone to grow, it needs a sustainable market, and we have to explore new markets in Africa, the Middle East, and South America.
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What needs to be done for the industry to grow in the JS-SEZ?
Muhammad Muza: First, ease certification costs through government-backed grants. Then, create an innovation ecosystem in the zone so it is not just a manufacturing hub. Easing permits for start-ups, attracting foreign talent, and providing funds for R&D will be welcomed.
Currently, most of the materials that the industry uses are imported. So investing in domestic production of medical-grade raw materials will reduce our reliance on imports for our products.
We must also ensure that graduates are equipped with industry-ready skills. We should also tap into talents from Singapore. as they have good production techniques.
Hyzan: During the US-China trade war, the JS-SEZ can be advantageous as Chinese investors will likely reshore here. However, Malaysia-owned companies must take advantage of this to grow.
To make the zone a success, we must have new markets, and our prime minister is the best salesperson. So we have to create our brands and get access to these markets so that we can grow.
