2013-02-24 15:20:13 - Recently published research from Business Monitor International, "Malaysia Pharmaceuticals & Healthcare Report Q1 2013", is now available at Fast Market Research
BMI View: Malaysia's healthcare sector is showing strong signs of growth, with increased internal and investment in pharmaceutical manufacturing facilities in a move to boost exports. Key growth areas include biotechnology; namely drug discovery, new product development, technology acquisition and licensing; generic drug production; and the recent release of halal pharmaceutical guidelines means Malaysia has the potential to take a leading role in the fast-growing halal pharmaceutical market. While concerns remain regarding intellectual property - Malaysia has presented objections to elements in the Trans-Pacific Partnership Agreement - it is making progress in terms of trade relations: the government began negotiations over the creation of a European Free Trade Agreement in November 2012. Malaysia suffers a burden of both communicable and
non-communicable diseases, with diabetes a growing concern for policymakers: the government forecasts there will be 4.5mn sufferers of the disease by 2020, compared to 2.6mn in 2011.
Full Report Details at
- www.fastmr.com/prod/536513_malaysia_pharmaceuticals_healthcare_r ..
Headline Expenditure Projections
* Pharmaceuticals: MYR5.55bn (US$1.81bn) in 2011 to MYR6.1bn (US$1.93bn) in 2012; +10.2% in local currency and +6.2% in US dollars. Forecast unchanged from Q412.
* ?? Healthcare: MYR36.35bn (US$11.88bn) in 2011 to MYR38.85bn (US$12.24bn) in 2012; +6.9% in local currency and +3.0% in US dollars. Forecast lowered from Q412 on account of macroeconomic factors.
* Medical devices: MYR3.97bn (US$1.30bn) in 2011 to MYR4.29bn (US$1.35bn) in 2012; +8.2% in local currency and +4.3% in US dollars. Forecast lowered from Q412 on account of new historical data.
Risk/Reward Rating: In our latest proprietary Pharmaceutical Risk/Reward Ratings (RRRs) matrix for Asia Pacific, Malaysia ranks an unchanged eighth out of the 18 countries surveyed regionally. Its composite score is also unchanged at 59.3 out of 100. Malaysia is an attractive market for international investors, particularly in the biotechnology sector, though its longer-term rewards are dragged down by factors such as low per capita spending on pharmaceuticals.
Key Trends And Developments
* The government released the Malaysia Standards Halal Pharmaceuticals - General Guidelines in October 2012, which aim to address halal integrity in the pharmaceutical supply chain. These guidelines make Malaysia one of the forerunners in the halal pharmaceutical sector.
* Investment in Malaysia's growing biotechnology sector continues to rise, with the government revising its 2015 biotechnology investment target upwards from MYR9bn (US$2.9bn) to MYR26bn (US$8.5bn). Novartis is one firm considering Malaysia as a potential location for a healthcare biotechnology investment.
* Government proposals for a Traditional and Complementary Medicines Act will drive traditional medicine practitioners without qualifications out of practice, according to the President of the Malaysian Society for Complementary Medicine.
BMI Economic View: We have downgraded our 2012 full year real GDP growth forecasts for Malaysia to 3.8%, although the country's prospects are better in 2013, when we forecast growth will increase to 4.6%. Sluggish external demand and subdued private sector investment are two weak elements of the economy. On the upside, local firms are being boosted by the government's Economic Transformation Programme.
BMI Political View: The Malay Economic Congress passed a resolution in October 2012 proposing that government tenders valued at less than MYR100mn will be directly negotiated with Malay companies, a move that will gain domestic support by may deter international investors. We believe that the latest move announced by Prime Minister Najib Razak will help to boost the ruling Barisan Nasional's popularity among Malay voters as the country prepares to hold general elections in early 2013.
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