Malaysia’s medical devices market expected to grow 8.5% CAGR from 2023 to 2028

The Ministry of Health saw a 12.6% YoY growth in budget in 2024.

The medical devices market is expected to increase at an 8.5% compound annual growth rate from 2023 to 2028 to reach $4.5b on the back of strong government support for the sector.

In a report, BMI said Malaysia’s 2024 budget will boost the medical devices market with a focus on the procurement of medical equipment, upgrading hospitals and clinics and enhancing system capacity.

The Ministry of Health’s budget grew 12.6% year-on-year in 2024 to reach $8.6b. This is the largest increase amongst ministries and the second double-digit growth for the ministry.

$1.2b has been allotted for the procurement of medicine, consumables, reagents and vaccines.

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“The government will also prioritise healthcare facilities, including allocations to build new hospitals and modernising other hospitals and health clinics,” BMI said.

“These initiatives will support Malaysia’s medical devices market growth, improving access to services and ensuring solid demand for products,” it added.

BMI, however, added that Malaysia’s export-oriented economy and ongoing political uncertainty will be the downside risks for the market’s outlook, noting that it will make the country vulnerable to economic slowdowns in key markets such as Mainland China, the US and Europe.