Double-digit growth seen for Malaysia’s pharmaceutical market until 2020

A prospering economy, improved drug regulations, wider healthcare provision, medical tourism and modernization are pushing Malaysia’s pharmaceutical market to double-digit growth rate from 2010 to 2020.

New analysis from Frost & Sullivan shows that the promising investment climate, coupled with citizens' rising willingness to pay out-of-pocket for expensive drugs, has allowed the country to improve medical access and provide pharmaceutical companies with significant revenue-generating opportunities. "Malaysia is emerging a hot favorite among investors in the pharmaceutical market due to its expanding population base and the increasing life expectancy of its citizens," said Frost & Sullivan Healthcare Research Analyst Rageshwary Ramupillai.

The research firm noted that the government has thrown its weight behind the market with the Entry Project Point (EPP3) under the Healthcare National Key Economic Area (NKEA). This flexible regulatory landscape enhances the scope for both local and international investment in the pharmaceutical market. "While, on the one hand, the policies under the Healthcare NKEA encourage Malaysian companies to make and export generic drugs, on the other, the protection of the local drug manufacturing companies hinders the entry of foreign players," observed Rageshwary.

"Therefore, partnerships with the domestic drug manufacturers and distributors along with acquisitions are important for a quick entry to the market,” he added. Furthermore, the Malaysian pharmaceutical market is bolstered by its reputation as one of the world's leading exporters of halal ingredients required in various industries. This has placed it on the path to becoming a top global participant in the manufacture and certification of halal medicines, according to Frost & Sullivan.

Sourced from: enterpriseinnovation.net|18 October 2015