1. National Key Economic Area
Healthcare
Seminar on National Key Economic Areas:
Tourism; Education & Healthcare
Chinese Chamber of Commerce & Industry of
Kuala Lumpur and Selangor (KLSCCCI)
12 May 2012

2. 3 Things I Want To Share
With You Today…
1. Healthcare Industry
2. Healthcare NKEA
3. How can you participate?

3. NKEA Healthcare Overview
Incremental GNI (2020)
RM billions
Oil, Gas & Energy 131
Palm Oil & Rubber 125
Financial Services 121
Wholesale & Retail 108
Tourism 67
Business Services 59
E&E 53
CCI 36
Healthcare 35
Education 34
Agriculture 29
Greater KL/KV 1 392
1 Other NKEA GNI impact that directly contributes to Greater KL/KV’s GNI
3

4. Malaysian Healthcare spending
continues to grow at a fast rate…
Expenditure growth is about 11 % on Curative care has 57% share of the
average per year over the past 12 years expenditure in 2009
33.7 Public Others, 8%
health, 5%
30.6
Capital
26.4 formation,
24.2 8% Curative
19.9 20.1 care,
18.4
Administra 57%
14.6 tion, 10%
13.2
11.6
9.7
8.0 8.8 Medical
goods 12%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total Expenditure on Health (RM B)
Total Health Expenditure by
Functions of Healthcare
Source: Malaysia National Health Accounts: Health Expenditure Report (2009 -Unpublished) 4

5. Most headlines in local news are
hospital-related..
5

6. But healthcare industry is
more than hospitals…
Pharmaceuticals
Medical Devices Medical
Education
Healthcare Healthcare Medical
Facilities Industry Technology
Healthcare Traditional &
Financing Complimentary
Consultancy
Services Medicine

7. …4 out of 5
healthcare companies
in the ‘FBM KLCI top
100 companies’ are
medical devices
(gloves)
manufacturers…
7

8. “Pharmaceuticals”
...and many more
public-listed
“Medical Devices”
companies are
from healthcare
sector…
“Trading Services”
8

9. ...there are other fast-growing
healthcare-related companies too
Medical Laboratories Pharmacies Dental Home Care/Nursing
Services
Physiotherapy Eye Care Ambulance Services
*The list is not exhaustive 9

10. Ministry of Health takes on an
additional role
Accelerated growth
Organic growth
Traditional Role of MOH New Role of MOH
10

11. 6 Entry Point Projects
Foreign Workers Clinical Research Malaysian
Health Insurance Malaysia Pharmaceuticals
Mandate private Create a complete Leverage patent
health insurance ecosystem to grow expiry cliff by
for all foreign 1,000 new clinical pursuing generic
workers trials by 2020 opportunities
11

12. 6 Entry Point Projects
Healthcare Travel Diagnostic UM Health
Services Nexus Metropolis
To position Malaysia Create a scale of Provide clinical
as the preferred domestic care, research and
destination for teleradiology service education in one
world-class ” for in-sourcing economically
healthcare services. internationally sustaining campus
12

13. 2 Business Opportunities
Medical Devices Seniors Living
Creating a conducive
environment for Meeting the need to
MNC entry and build an ecosystem
developing the that provides holistic
nascent local aged care for the
medical devices middle to long term
players
13

14. In July 2011, the Medical
Devices Lab have
converted the Medical
Devices BO into 7
implementable EPPs..
14

15. Medical Devices EPPs (EPP 7 – 10)
Leverage research & patented technologies to set
Scale Malaysia up Asian champion in neglected prevalent in
IVD Industry developing countries
Move the value chain towards high value
Next Gen Core products on core SUD products & build showcase
of SUD for MD industry – focus on catheters, woundcare
Products and single-use components for instruments
Hub for high Becoming contract manufacturer for high value
value med dev orthopedic products, e.g. screws and instruments
contract for global MNC brands
manufacturing
Create Creating an enabling environment for Malaysian
Malaysian entrepreneurs to innovate in clinical devices and
Clinical Device create their own brands in bone grafts and other
Champions orthopedic implants
15

16. Medical Devices EPPs (EPP 11 – 13)
Become turnkey production orchestrator for
Medical MNCs- from component sourcing via supplier
equipment audit to packing and sterilisation and logistics; as
supply chain well as providing in-house quality assurance
orchestration
Attract MNC to establish authorized medical
Medical equipment refurbishment facility in Malaysia for
Equipment CT scanners, MR and molecular imaging
Refurbishment
Develop a medical furniture and hardware cluster,
Medical with a 2-pronged strategy; focusing on home care
furniture and in developed markets, while riding the wave of
hardware infrastructure build up for hospital furniture in
cluster emerging countries
16

17. Medical Devices to increase Healthcare NKEA's
GNI impact to RM42.2 B, with 263k jobs created
17

18. First year Healthcare NKEA results
117% 123% 80%
Foreign Workers Clinical Research Malaysian
Health Insurance Malaysia Pharmaceuticals
11 Economic Sectors
Healthcare +
NKEA Greater 103%
Kuala Lumpur
110% 95% 95%
Diagnostic Services Electrical
Healthcare Travel Health Metropolis
Nexus & Electronics
18

19. NKEA Overall KPI
Key Achievements in 2011 Achievement:
EPP2: Clinical Research Malaysia 103%
Target: Actual: KPI Achievement:
260 321 123%
KPI: Number of Researches Conducted 7
EPP3: Malaysian Pharmaceuticals New EPPs
under
Economic Council approved the MOH has announced revision of Medical
Pharmaceuticals Off-Take compulsory service for Devices
Government Procurement pharmacists from three years to
Agreement for New Local one, with the option to extend
Manufactured Pharmaceuticals service for an additional year.
EPP4: Healthcare Travel
Target: Actual: KPI Achievement:
RM431 mil RM474mil 110%
KPI: Revenue collected from healthcare travel
Malaysian Healthcare Travel Council (MHTC) was corporatised in
October 2011
7 New hospitals were announced
For complete list of achievements, please refer to the ETP Annual Report 2011

20. How can you participate in
Healthcare NKEA?
NKEA Labs
Sources Agencies e.g. AIM,
Biotech Corp, SME
of EPPs Corp, Commercial
Banks, etc
Independent
Proposals
20

21. Health-Related EPPs - Proposals
Financial
Incentives? Nat’l Investment
Committee
or Economic
Proposal Council
Bionexus
Status?
GNI (2020), Jobs, Healthcare
EPP? Investment, SC
Project Milestones
Endorsement
Regulatory?
Market PM
Access? ETP Update
PEMANDU Starts Tracking
21

22. We track all NKEA on weekly basis
[Discipline of action]
Weekly reports
Healthcare NKEA weekly report as at 20 April 2012
22

23. Thank you
Dr. Chua Hong Teck,
Director, Healthcare NKEA & Low Income Households
chuahongteck@pemandu.gov.my
For more information, please visit our website - www.pemandu.gov.my
Twitter:
GTP -@gtp_roadmap
ETP - @etp_roadmap
Feedback/enquiries:
GTP- feedback.gtp@pemandu.gov.my
ETP- etp.enquiries@pemandu.gov.my
23