BMI View: Malaysia's epidemiological profile will remain attractive to pharmaceutical companies as the country sees a rising burden of both communicable and non-communicable diseases. This commercial opportunity is further reinforced by the government's commitment to improve healthcare in its FY2015 budget. However, poor intellectual property protection and the implementation of a Goods and Service Tax continue dampen opportunities for innovative drugmakers.
Headline Expenditure Projections
Pharmaceuticals: MYR7.22bn (USD2.21bn) in 2014 to MYR7.88bn (USD1.97bn) in 2015; +9.2% in local currency and -10.7% in US dollar terms. Forecast in line with last quarter.
Healthcare: MYR42.62bn (USD13.02bn) in 2014 to MYR45.85bn (USD11.46bn) in 2015; +7.6% in local currency and -12.0% in US dollar terms. Forecast revised downwards from last quarter.
Malaysia's Pharmaceutical Risk/Reward Index (RRI) score for Q415 is 58.9 out of 100, making it the eighth most attractive pharmaceutical market in the Asia Pacific region. It posts above-average scores for every indicator.
Key Trends And Developments
The prices of imported drugs might rise as a result of a weak Malaysian ringgit, according to Health Minister Subramaniam Sathasivam . However, the increase would not be permanent and the situation will not be limited to Malaysia - occurring in other countries as well as it is a global phenomenon, Subramaniam added. The minister assured that government hospitals and clinics will remain unaffected by the increase in drug costs.
Malaysia-based private healthcare chain KPJ Healthcare will set up 10 new hospitals with an investment of MYR1.5bn (USD373.76mn) over the coming five years, according to KPJ president and managing director, Datuk Amiruddin Abdul Satar. The group plans to build two hospitals each year with average cost of the hospitals expected to be around MYR100mn (USD25mn), noted Amiruddin. It will allocate funds worth MYR200mn (USD50mn)...
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.
- 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.
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.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
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.
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.
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.
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.