Malaysia’s steady march toward MedTech dominance

The MedTech sector has been on a steady rise, especially with the advent of cutting-edge technologies and innovations, all in the pursuit of providing high quality and accessible healthcare for everyone. MedTech refers to the technologies that diagnose, treat and/or improve prevention, diagnosis, monitoring, treatment and care of patients. This technology is supported by the healthcare offshoot of the Internet of Things (IoT) known as the Internet of Medical Things (IoMT). IoMT refers to the use of mobile computing, medical sensors, communication technologies, and cloud computing to monitor patients in real-time and allow this data to be accessible to physicians for improved diagnostic and treatment outcomes.

MedTech is about more than treating patients – it is about revolutionising healthcare. It leverages the advanced Artificial Intelligence (AI) capabilities of IoMT to enhance early detection of disease, create preventative plans, offer minimally invasive surgery options, and offer patients more personalised care options. It ultimately transforming patients experience and the healthcare industry as a whole.

Strong medical devices backbone

In October 2024, the Association of Malaysian Medical Industries (AMMI) unveiled its Medical Device Industry Status and Outlook 2024/2025 Report: Malaysia, A Medtech Success Story. The report found that Malaysia boasts the largest medical device market in Southeast Asia, with its market size reaching RM10.6 billion in 2023, and ranked among the top 10 markets in Asia.

In 2023, the medical devices industry saw the approval of 26 projects, attracting investments totalling RM2.1 billion. Among these, nine new projects accounted for RM773.9 million (36.3%) of the investments, while the remaining 17 were expansion or diversification projects, contributing RM1.4 billion (63.7%).

Malaysia’s vibrant medical device ecosystem has been instrumental in attracting numerous investments to the country. It extends far beyond traditional manufacturing, offering robust capabilities in sterilisation, biocompatibility testing, packaging and conformity assessment.

Malaysia hosts the largest sterilisation capacity in Southeast Asia, providing the most comprehensive range of sterilisation technologies in the region. These include Ethylene Oxide (EtO), Gamma, and Electron beam (E-beam) sterilisation. Malaysia is also the first country in Southeast Asia to establish an X-ray sterilisation facility.

Driven by sophisticated infrastructure, adherence to international standards, and strong government support via the prioritisation of the industry in both the Twelfth Malaysia Plan and the New Industrial Master Plan (NIMP) 2030, Malaysia is well-positioned to remain competitive on the global stage.

Demonstrating their confidence in Malaysia’s viability as a MedTech hub, AMMI members have steadily increased their investments, with plans to invest a collective amount of RM2.7 billion in expansion, RM927 million in new products and RM162 million in R&D, centre of excellence (COE) and Industry 4.0 initiatives.

AI-assisted medical diagnoses

In April 2023, Malaysian healthtech startup Queuemed Healthtech Sdn Bhd (Qmed Asia) raised RM5.1 million (US$1.16 million) through an equity crowdfunding (ECF) campaign on Leet Capital. Qmed attracted 110 investors, including angel investors, the Malaysia Co-Investment Fund (MyCIF) and 1337 Ventures.

Initially set up to address long queues in hospitals, Qmed now serves over 4,000 healthcare providers, with more than three million active patients to date. It pivoted recently into AI-powered medical diagnosis to help reduce doctors’ administrative load so they can focus more on patient care.

Its three AI-powered innovations are Qmed Copilot, an AI chatbot to assist doctors; Qmed AI Vision, an AI tool that provides rapid and precise insights on medical images like X-rays; and Qmed LabLens, which simplifies data entry of lab reports for hospital systems.

Deploying AI and digital healthcare across public hospitals

Source: Astro Awani

In September 2024, British-Swedish pharma giant AstraZeneca announced that it had expanded its digital and AI initiatives in Malaysia, broadening its focus from AI-powered chest X-rays for lung cancer detection to ultrasound echocardiography for heart failure diagnosis to screen 40,000 high-risk individuals. AstraZeneca aims to deploy additional AI and digital solutions to support the Ministry of Health’s digital health agenda.

Previously in October 2023, AstraZeneca Malaysia launched the ‘mySihatPal’ digital portal in collaboration with several health-based societies. mySihatPal provides the public with direct access to disease information, wellness content, connection to allied health providers, private hospitals, primary care clinics, government clinics to virtual consultation with healthcare professionals and pharmacists for expert insights.

A stroke network for Malaysia

In October 2022, Japan-based digital healthcare service provider Allm Inc made Greater Kuala Lumpur (GKL) its Southeast Asia base, participating in InvestKL’s GKL Live Lab initiative. Allm’s secure, medically-certified app ‘Join’ leverages mobile devices and cloud technology to reduce communication delays and errors in time-sensitive, critical emergencies, thereby enhancing real-time clinical decision-making and improving patient outcomes.

GKL Live Lab enabled Allm’s collaborations with Hospital Canselor Tuanku Muhriz UKM, Hospital UiTM, and Universiti Putra Malaysia Teaching Hospital for its Telestroke research, which evaluate 'Join' in improving end-to-end stroke care management. Allm also conducted clinical trials with two Health Ministry hospitals to gather data on the benefits of using 'Join' as a telemedicine tool in acute stroke management, towards its ultimate objective of establishing a stroke network across Malaysia.

Cloud hospital services

In March 2024, Malaysian cloud hospital and mobile health services provider UCrest Berhad partnered with clinics managing group Mediprima Healthcare (M) Sdn Bhd to digitise medical services using the IoMT.

UCrest’s digital health platform, iMedic, is powered by the integrated technologies of AI, IoMT, big data, and blockchain, with the capability to connect to over 30 wireless medical devices including ECG, blood pressure monitor, oximeter, ultrasound, BMI machines, CPAP, and fundus cameras.

Mediprima will deploy iMedic to its 18 clinics offering telemedicine, preventive care programmes, chronic disease management, and robust digital health screening programmes.

A month later in April 2024, UCrest partnered with dental clinic chain MDC Asia Link Berhad, making MDC the first dental clinic chain in Malaysia to use IoMT and 3D printing technologies.

iMedic will be MDC’s Clinic Management System, through which patients can track vital signs, biomarkers, and manage their dental care via a mobile app. MDC also plans to deploy a fundus camera with AILab from UCrest to diagnose diabetic retinopathy non-invasively.

Call for more hearing implants

In April 2024, Australian-headquartered global implantable hearing solutions provider Cochlear announced that it would be expanding its investment in Malaysian by RM10 million, excluding tools and equipment. This announcement follows an injection of more than RM30 million in 2022. Since the company set up its manufacturing facilities in Malaysia in 2016, Cochlear has invested close to RM50 million in total in the country.

The growing need for hearing solutions is also what drew Danish hearing healthcare and audio technology group Demant to choose Greater KL as its first tech hub outside Europe, in August 2023. Greater KL is Demant’s largest diagnostics hub outside Europe, housing 65% of its global engineers and specialists, and focusing on Asian markets, particularly China.

Diabetes management technology

In August 2024, U.S.-based diabetes management solutions provider Insulet Corporation, opened its new Omnipod 5 manufacturing facility in Johor. The facility spans 400,000 square feet, representing a US$200 million (RM1 billion) investment. It will initially employ 350 highly skilled workers, with plans to expand the workforce to 1,000 in the coming years.

The Omnipod 5 insulin management system, which will be produced at the new facility, is the only tubeless automated insulin delivery system integrated with multiple CGMs for proactive glucose control, no multiple daily injections, and is fully controlled by a compatible Android smartphone. The Pod is enhanced with SmartAdjust technology to continuously adjust and correct insulin delivery using a customisable glucose target.

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