Malaysia: 2008 Pharmaceutical Outlook

Frost & Sullivan says Malaysia is expected to see a definite rise in the pharmaceutical industry in 2008. This is through increasing numbers of pharmaceutical manufacturers that have sought to outsource or in-license their operations.

From then moving onto big pharmaceutical companies that have began to outsource clinical work to contract research organizations (CROs) and also locate the clinical trials in the most cost-competitive sites. This can only be done if there are sufficient medical research capabilities available.

Its future market trends are shifting towards generics consumption as well as biotech and specialist driven therapy.

Hence, the opportunity for healthcare companies venturing into Malaysia looks bright. This in return enables the country to expand its global footprint in the Asia Pacific healthcare industry.

Malaysia's healthcare growth spending rate was 5th in ranking, behind Philippines, India, South Korea, and China. Malaysia is considered small in population size in comparison to the other four countries.

But the healthcare spending of Malaysians are incredibly high, reflecting the trend of Malaysians towards a healthy lifestyle. Hence this opens big opportunities for pharmaceutical companies to gear up their manufacturing in order to meet the increasing demands of healthcare products.

Says Lin Hui Tham, Consultant of Healthcare Asia Pacific at Frost & Sullivan," Frost & Sullivan estimates that by 2013, the industry will be valued at about $1800 million, growing at a CAGR of 10.5% boosted by changing demographics and rising healthcare expectations.”

“Malaysia's increase in export value has made the country a member of the Pharmaceutical Inspection Co-operation Scheme (PICS). The Pharmaceutical industry in Malaysia is mainly dominated by the MNCs."

Lin Hui added that Malaysia has actively been exporting to its neighbouring countries to gain growth revenue. The total export in 2004 amounted to US$131 million.

These were just mainly for locally manufactured pharmaceutical products. The export from Malaysia for the vitamin market currently covers more than 30 countries including Africa and Central America. Also, major export destinations are Singapore Vietnam, Brunei, Hong Kong, Taiwan, Japan and Germany.