Pharmaceutical industry in Malaysia looking good
The pharmaceutical industry in Malaysia will continue to grow despite the intense economic pressure affecting all parts of the world at the moment.
According to Frost & Sullivan, a popular research firm, the pharmaceutical market in the country will continue to record growth in year 2009, as it did in 2008.
The Malaysia market was valued at RM3.5 billion in 2007, which grew to RM3.8 billion last year. It will grow steadily and exceed RM4 billion marks this year, boosted by a number of positive factors, such as demographic change, increase of healthcare awareness, good medical facilities, high manufacturing standard and growth in tourism sector.
China, which was previously a popular destination for pharmaceutical outsourcing, has been suffering from a number of issues, mainly on quality and regulations, with the latest being the melamine contamination. As such, it is losing its attractiveness as an avenue for multinational pharmaceutical companies and this will benefit Malaysia further as an alternative replacement.
In October, two prominent companies – Trustgen LLP from US and Malladi Drugs & Pharmaceutical Ltd from India announced their decision to invest a combined $600 million investment in Malaysia to set up manufacturing facilities and their respective regional and global hubs.
The pharmaceutical industry is also expected to perform better than the neighbouring rival, Singapore, which is a host for many well established international companies in medical and pharmaceutical research. Singapore is hit hard by the economic turbulence and the richest county in South East Asia became the first country in Asia to enter recession.