The French medical device industry has plans to expand operations in Asia.

France is the fifth largest medical device market in the world behind the United States, Japan, Germany and the United Kingdom. Because France is saturated with too many competitors, many in the industry are forced to look outside of Europe to tap market potential elsewhere.

According to Dr. Jaber Bensename, director of medical, economic and technical affairs of SNITEM, (trade association that represents more than 230 member companies from France's medical technology sectors) the national association of the medical technology industry in France, Malaysia's strategic location is ideal as a gateway to expand marketing opportunities, and it is quite unknown to the French business community.

Most of the 2,000 French companies in the medical device manufacturing sector are small- and medium-sized enterprises (SMEs) involved in numerous activities ranging from operating theatre equipment, anaesthetics, rehabilitation, orthopaedics and intra-ocular implants, home care and non-invasive therapy.

SNITEM members are looking to this part of the world, especially in growing Asia, and increasing demands are already being seen in China, India, Japan and South Korea.

Dr Bensenane said the health expenditure to the countries' gross domestic product (GDP) ratio also improves as they further develop and it can grow to more than 10 per cent of the GDP.

A former surgeon, Dr Bensenane grew curious about Malaysia's competitiveness as an investment location for fellow French businesses when he visited the Malaysia Industrial Development Authority (Mida) in Paris. He believes that Malaysia is a good destination due to its strategic location as a gateway to the large Asian market. He said that the skilled and cheap labor force and tax incentives also enhanced its attractiveness.

Dr Bensanane has met with officials from the Association of the Malaysian Medical Industry and the Malaysian Medical Device Association in Kuala Lumpur. He has also visited large-scale manufacturers such as B Braun (German), Ambu (Danish), both located in Penang, and supporting companies Isotron (Swedish) in Kuala Ketil, Kedah, and Rawang-based Sterilgamma.

There are about 179 medical device manufacturers in the country, with the majority of the Malaysian-owned companies concentrated in the production of surgical and examination gloves.

The major foreign-owned companies, other than producing gloves, are also involved in the manufacture of higher value products such as catheters, safety intravenous cannula needles, orthopaedic products, medical electrodes, dialysers and contact lenses.

Major foreign companies with manufacturing facilities in the country are B.Braun Melsungun AG, Ansell Ltd, CR Bard Ltd, Rusch Inc, Tyco Healthcare International ltd, Ambu Inc and Japan Medical Products.

Homegrown companies which have a strong market share in the industry include Top Glove, WRP Asia Pacific and Supermax.

B.Braun, a global supplier of healthcare products, has further invested in Penang to facilitate the production of its intravenous catheters (IVCs) above the RM200 million which has been invested.

Mida has approved 25 projects with investments worth about RM526.9 million in 2007.

Dr. Bensenane explained that the fragility of medical devices meant that the less handling of shipments the better, and manufacturers therefore preferred to have manufacturing facilities in this part of the world.

He plans to bring a delegation of French companies to Malaysia to discover the country's medical devices industry.

See also:
https://www.dotmed.com/news/story/7816/

More Industry Headlines