Malaysia Pharmaceuticals & Healthcare Report

Providing expert analysis, independent forecasts and competitive intelligence on the pharmaceuticals and healthcare industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Pharmaceuticals and Healthcare Risk Reward Index, Market Summary, Economic Forecasts, Company Profiles and Competitive Landscape.

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  • Get a full view of the competitive landscape to assess your market position
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Malaysia Pharmaceuticals & Healthcare Report
Product Price
$1,295.00

BMI View: After years of rapid expansion, the outlook for Malaysia ' s pharmaceutical market is very positive , with medicine demand being driven by a growing population and rising disease burden We expect the government ' s commitment to the improvement of healthcare services and the expanding list of zero-rated medicines to help mitigate the negative effects of the Goods and Services Tax (GST) implemented last year. However, economic headwinds and continued political instability may harm growth prospects in the short-term.

Headline Expenditure Projections

  • Pharmaceuticals: MYR7.88bn (USD2.02bn) in 2015 to MYR8.58bn (USD2.09bn) in 2016; +8.9% in local currency and +3.8% in US dollar terms. Forecast in line with last quarter.

  • Healthcare: MYR49.31bn (USD12.63bn) in 2015 to MYR54.40bn (USD13.27bn) in 2016; +10.3% in local currency and +5.1% in US dollar terms. Forecast revised upwards from last quarter.

Headline Pharmaceuticals & Healthcare Forecasts (Malaysia 2014-2020)
2014 2015 2016f 2017f 2018f 2019f 2020f
f = BMI forecast. Source: domestic companies, local press, BMI
Pharmaceutical sales, USDbn 2.210 2.020 2.090 2.380 2.620 2.880 3.160
Pharmaceutical sales, % of GDP 0.67 0.68 0.69 0.70 0.71 0.72 0.74
Pharmaceutical sales, % of health expenditure 16.2 16.0 15.8 15.6 15.4 15.3 15.1
Health spending, USDbn 13.630 12.630 13.270 15.260 16.990 18.890 20.960

Risk/Reward Index

Malaysia's Pharmaceutical Risk/Reward Index (RRI) score for Q316 is 59.0 out of 100, unchanged from the previous quarter's score. The country is ranked as the eighth most attractive pharmaceutical market in the Asia Pacific region, just below Singapore (59.7) but above New Zealand (51.0). Malaysia scores above the regional average for each indicator of our matrix.

Latest Updates

  • In April 2016, National Health and Morbidity Research revealed that mental health issues among 16-year-old Malaysian youths increased from 10.7% in 2011 to 29.2% in 2015.

  • According to the Ministry of Health, there have been over 42,000 dengue cases reported in Malaysia from January 1 to April 22 2016.

  • In April 2016, the Malaysian parliament approved the motion to double the list of zero-rated medicines under the Goods and Services Tax, bringing the number to 8,630.

  • The Malaysian government hopes to decide by June whether to use Sanofi's Dengvaxia, the world's first dengue vaccine, already licensed in Mexico, Brazil, El Salvador and the Philippines.

  • In March 2016, the Malaysian Health Minister stated that the medical tourism sector hopes to provide MYR1.30bn (USD326mn) to the country's revenue this year.

BMI Economic View

The Malaysian economy continues to face multiple challenges, as reflected in high frequency data such as trade and inflation. Continued political instability and external headwinds will be hurdles to higher growth, and we forecast real GDP growth to come in at 4.5% in 2016 (versus 5.0% in 2015).

BMI Political View

The signing of the Citizens' Declaration and Mahathir's resignation from UMNO has strengthened the party's resolve and will prompt it to close ranks and rally behind Najib for survival. With support from the grassroots being key to Najib's power, we expect his position to remain secure for as long as he has the backing of UMNO's division heads, ensuring policy continuity.

BMI Industry View
7
Table: Headline Pharmaceuticals & Healthcare Forecasts (Malaysia 2014-2020)
7
SWOT
9
Industry Forecast
11
Pharmaceutical Market Forecast
11
Table: Pharmaceutical Sales, Historical Data And Forecasts (Malaysia 2012-2020)
13
Healthcare Market Forecast
14
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Malaysia 2012-2020)
16
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Malaysia 2012-2020)
17
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Malaysia 2012-2020)
17
Prescription Drug Market Forecast
18
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Malaysia 2012-2020)
19
Patented Drug Market Forecast
20
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Malaysia 2012-2020)
21
Generic Drug Market Forecast
22
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Malaysia 2012-2020)
24
OTC Medicine Market Forecast
25
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Malaysia 2012-2020)
27
Pharmaceutical Trade Forecast
28
Table: Pharmaceutical Trade Data And Forecasts (Malaysia 2014-2020)
30
Table: Pharmaceutical Trade Data And Forecasts local currency (Malaysia 2014-2020)
30
Industry Risk/Reward Index
31
Asia Pacific Risk/Reward Index - Q3 2016
31
Malaysia Risk/Reward Index
37
Rewards
37
Risks
37
Market Overview
39
Healthcare Sector
39
Table: 2011 Entry Point Projects Summary
41
Table: Healthcare Resources (Malaysia 2010-2015)
42
Table: Healthcare Personnel (Malaysia 2010-2015)
42
Table: Healthcare Activity (Malaysia 2010-2015)
43
Healthcare Insurance
43
Table: Main Features Of 1Care
43
Medical Tourism
46
Research & Development
47
Clinical Trials
49
Epidemiology
51
Regulatory Review
53
Table: Drug Applications by Type, 2002-2010
55
Table: Registered Pharmaceutical Products by Type, 2002-2010
55
Intellectual Property Issues
60
Pricing Regime
64
Competitive Landscape
66
Research-Based Industry
66
Table: Table: Multinational Market Activity
67
Generic Drugmakers
68
Culture-Specific Medicines
70
Pharmaceutical Distribution
72
Table: Drug Wholesalers & Importers, 2002-2010
73
Pharmaceutical Retail Sector
73
Company Profile
75
Chemical Company Of Malaysia
75
Kotra Pharma
78
Novartis
80
Ranbaxy Malaysia
82
Sanofi
84
Demographic Forecast
86
Table: Population Headline Indicators (Malaysia 1990-2025)
87
Table: Key Population Ratios (Malaysia 1990-2025)
87
Table: Urban/Rural Population & Life Expectancy (Malaysia 1990-2025)
88
Table: Population By Age Group (Malaysia 1990-2025)
88
Table: Population By Age Group % (Malaysia 1990-2025)
89
Glossary
91
Methodology
93
Pharmaceutical Expenditure Forecast Model
93
Healthcare Expenditure Forecast Model
93
Notes On Methodology
94
Risk/Reward Index Methodology
95
Index Overview
96
Table: Pharmaceutical Risk/Reward Index Indicators
96
Indicator Weightings
97

The Malaysia Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Malaysia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Malaysia pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market forecasts for Malaysia, to test other views - a key input for successful budgeting and strategic business planning in the Malaysian pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Malaysian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Malaysia.
  • Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.

Coverage

BMI Industry View

An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.