KUALA LUMPUR: Malaysia is sharpening its focus on becoming a regional hub for healthcare innovation and trade, as its medical-related exports continue to climb and strategic opportunities in Asean expand.
Malaysia External Trade Development Corporation (Matrade) deputy CEO (export acceleration) Mansor Shah Wahid shared Malaysia’s progress in healthcare-related exports, stating that in 2024 alone, the country’s trade in medical devices and pharmaceuticals hit RM61.31 billion.
He noted that medical devices made up 76% of that value, with a 31.6% year-on-year growth, while pharmaceutical exports rose by 4% to RM3.04 billion.
“These figures are not just data points; they reflect the credibility of our regulatory system, the strength of our manufacturers, and the growing trust in made-in-Malaysia products,” Mansor said at the Malaysia Healthcare Day Forum, part of the International Healthcare Week 2025 held recently.
He added that Malaysia’s export destinations now stretch beyond Asean, with the United States, Germany, Japan and Australia emerging as top markets.
Notably, eight of the world’s top 30 medical device manufacturers operate in Malaysia, affirming the country’s reputation in diagnostics, disposables and implantables.
Mansor emphasised that Malaysia’s strategic location in the 680-million-strong Asean market, along with its multilingual talent pool and trade agreements, positions it well to capture a larger share of the global medical devices market, which is projected to reach US$695.6 billion (RM2.95 trillion) by 2028.
“In the age of AI disruption, healthcare remains one of the few sectors where human care and judgment are irreplaceable. That’s what makes this industry uniquely impactful,” he noted.
Expanding on Malaysia’s regional positioning, Abdul Halim Mohamed Shariff, deputy director of lifestyle and life sciences at Matrade, delivered a detailed presentation titled “Malaysia Healthcare Trade Outlook: Trade Opportunities in Asean.”
He highlighted that Asean is now the third-largest region globally by population and the fourth-largest in terms of trade volume, creating a highly lucrative landscape for healthcare expansion.
“When incomes rise, healthcare demand grows, not just in quantity but in complexity. This shift is being felt across Asean, especially in Indonesia, Vietnam, Thailand and the Philippines,” Halim said.
He cited the rapid urbanisation and lifestyle changes across the region as key factors driving increased healthcare expenditure.
Countries like Indonesia, with the highest population in Southeast Asia, and Singapore, with the highest per capita healthcare spending, are leading indicators of the sector’s growth.
Despite strong exports, Malaysia remains a significant importer of pharmaceutical products, particularly patented and specialty drugs, from Germany, the US and China.
Nonetheless, the local pharmaceutical sector fulfils 70% to 80% of domestic demand for generic medications, and the government expects the local pharmaceutical market to reach US$3.5 billion by 2028.
According to Halim, prescription drugs dominate the market and are forecasted to reach US$3 billion by 2028, with patented and generic drugs each contributing over US$1.4 billion. Over-the-counter (OTC) products round out the remaining market share.
Malaysia’s medical device exports remain its most significant healthcare segment, driven largely by the glove industry and supported by other products, such as catheters and electromedical equipment.
In 2024, Malaysia’s medical device exports reached US$8.7 billion, solidifying its position among the top five manufacturing sites globally, alongside countries such as Costa Rica and Puerto Rico.
“Malaysia is spending more per capita on medical equipment than several larger economies in the region. This shows our strong commitment to innovation and accessibility in medical technology,” said Halim.
He added that spending on medical devices and equipment in Malaysia is expected to increase at a compound annual growth rate of 9.5%, reaching US$3.64 billion by 2028, surpassing regional counterparts in growth momentum.
Countries such as Vietnam and Indonesia are also becoming increasingly attractive due to economic development and healthcare reforms.
Halim cited Vietnam’s accelerated urbanisation as a sign of shifting healthcare expectations and rising demand for better services and infrastructure.
“Every challenge, whether it’s ageing populations, financing gaps, or healthcare reform, opens the door to new business models. We’re seeing strong growth in healthtech, AI-driven diagnostics, and insurance solutions across Asean,” he said.
Mansor and Halim reiterated Matrade’s role as a bridge for international buyers and Malaysian exporters, with overseas offices and databases accessible to businesses seeking partners, market data, or regulatory guidance.
Matrade’s presence at major international expos will continue to anchor Malaysia’s brand globally.
At the same time, initiatives such as the eTrade Programme and Business Information Centre aim to provide exporters and foreign partners with the tools to navigate cross-border opportunities.
“We encourage foreign players to reach out to our offices worldwide. You could browse the internet, yes, but we offer more than just information. We connect you with vetted partners and real market opportunities,” said Halim.
International Healthcare Week 2025, co-organised with Informa Markets, is a testament to Malaysia’s ambitions.
From showcasing 10 home-grown brands at the Malaysian Pavilion to convening key regulatory and investment bodies, the event reflects a unified effort to position Malaysia as a regional leader in healthcare trade.
“Malaysia is not just an entry point, it’s a launchpad for the Asean region,” said Mansor. “Let us not miss the opportunity to form partnerships that shape lives and businesses far beyond our borders.”
