Environmental Scan 2017: Human Capital Issues within the Medical Devices Sector
1 Project Details 1.1 Project Background
Accelerating human capital development for an advanced nation is one of the key initiatives among the six strategic thrusts of RMK11( 2016- 2020). Medical Devices Sector( MedDev) is one of the 10 Industry Working Groups identified by the MITI-led Industry Skills Committee( ISC). The ISC was established under the Cabinet-level Human Capital Development Council arising from RMK11 as a mechanism to incorporate the involvement of industry in addressing gaps in human resource issues. In RMK11, MedDev has been categorized as one of the key industries with high potential growth and has demonstrated capabilities and potential to product more complex and high value added products.
The medical devices industry in Malaysia comprises 230 manufacturers, of which more than 70 % of them are involved in the production of medical consumables such as surgical / medical gloves, contraceptives, catheters, syringes and wound care product 1. The industry also manufactures higher value-added and technologically advanced products such as cardiac pacemakers, stents, orthopedic implantable devices, electro-medical, therapeutic and monitoring devices. More than 30 medical devices Multinational Corporations( MNCs) producing higher value-added medical devices have made Malaysia their offshore location for their manufacturing operations such as Agilent, B. Braun, St. Jude Medical, C. R. Bard, Symmetry Medical, Teleflex, Resmed, CIBA Vision, Ambu, Toshiba Medical Systems and Haemonetics.
In 2016, exports of medical devices were valued at RM15.8 billion 2. Of this amount, RM7.9 billion( 50 %) were for the export of medical devices other than medical gloves, such as catheters, syringes needles and sutures, orthopedic devices, ophthalmic lenses( including contact lenses), instruments and appliances used in medical, surgical, dental or veterinary sciences. Among the targeted medical devices for exports are electro-medical equipment, cardiovascular devices, orthopedic devices, in-vitro diagnostic products, and products from the convergence of technology( medical devices / pharmaceutical / electronics / ICT / IoT / 3D Printing). These products are high-end, R & D intensive and in accordance with the 11 th Malaysia Plan strategies.
The key challenges faced by the medical devices sector includes: � � � �
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Stricter regulations for registration of medical devices Limited capabilities in R & D among SMEs leading to a lack of innovation and new products Smaller number of companies participating in contract manufacturing activities Lack of skilled workforce whereby new expertise and skills for complex products need to be developed Pricing and profitability pressures
1
Ipsos analysis
2
Malaysia External Trade Development Corporation( MATRADE)
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