Healthcare Asia: News, Business & Innovation in Asian Healthcare

KUALA LUMPUR, Malaysia, July 4, 2025

Malaysian Healthcare Adapts to Global Trade Tensions

Strategic shifts buffer tariffs’ sting.

• Malaysia’s healthcare shows resilience amid trade pressures.
• Diversification and regional partnerships are key strategies.
• Advanced tech boosts manufacturing efficiency.
• sustainability drives healthcare packaging trends.
• Local facilities minimize supply chain disruptions.

Malaysia’s healthcare sector demonstrates resilience through strategic sourcing, supply chain diversification, and strengthened regional partnerships, especially as the medical device manufacturing industry faces challenges.

Ms. Laura Wong, Vice President for Healthcare, APAC.

Navigating Tariff Impacts

tariffs have cast a shadow of uncertainty over Malaysia’s healthcare and medical device manufacturing sector.According to Ms. Laura Wong, Vice President for Healthcare, APAC, Malaysia’s medical device exports totaled RM37.03 billion (US$3.07 billion) in 2024, with the U.S.accounting for approximately 37%.

The imposition of tariffs triggered immediate reactions, including order cancellations from some U.S.-based importers.

However,Wong sees a silver lining. Malaysia’s products may become more competitively priced because other manufacturing hubs face even higher tariff rates.

Reader question:-How might smaller Malaysian medical device manufacturers, lacking resources for satellite plants, best navigate these tariff challenges and maintain their U.S. market share? Share your thoughts.

The tariffs’ impact can be lessened. Medical device manufacturers are exploring new markets and considering establishing satellite production plants in the U.S. to supply the American domestic market.

Supply Chain Strategies

Tariffs have disrupted established supply chains, increasing costs for both exporters and the Malaysian healthcare system. Azrul Mohd Khalib, chief executive at Galen Center, notes that uncertainty around the scope and timing of tariffs affects healthcare systems’ ability to plan, particularly in developing countries heavily reliant on global medical supply chains.

Khalib also said that the complexity of these supply chains means they can’t be restructured rapidly.

Overcoming Disruptions

To navigate these disruptions, industry players should consider diversifying their export markets, enhancing intra-ASEAN trade, and investing in supply chain resilience through strategic partnerships and localization of critical manufacturing processes.

Did you know?-ASEAN (Association of Southeast Asian Nations) promotes economic, political, and security cooperation among its ten member states, perhaps offering a buffer against global trade volatility for Malaysian healthcare businesses.

A new advanced healthcare packaging coating facility in Selangor, Malaysia, plays a crucial role in boosting supply chain resilience. the expanded operations create an integrated campus, producing top and bottom substrates for sterile medical device packaging, enhancing supply chain resilience and reducing lead times.

Advanced Technologies and Efficiency

To stay competitive, industry players should leverage advanced manufacturing technologies, automation, and smart production practices to maintain high standards, productivity, and cost control.

Air Knife Coating Technology

One example is air knife coating technology, an innovation designed for medical packaging. As a first in Asia, this technology enables precise control over coating thickness and uniformity, ensuring high-performance barrier properties that protect sensitive medical products and extend shelf-life.

This precision enhances product consistency and reliability, supporting stringent regulatory compliance required by healthcare export markets globally.

Smart Manufacturing

Smart manufacturing practices, including automated quality-control systems, real-time data monitoring, and predictive analytics, enable rapid response to production variances and continuous enhancement in product quality. These technologies boost operational efficiency and ensure that packaging meets international healthcare standards.

Healthcare Packaging Trends

Wong identifies key trends in healthcare packaging that Malaysian manufacturers must embrace to stay globally competitive:

• Enduring materials: There’s a growing global demand for packaging that reduces environmental impact.
• enhanced product protection and compliance: Packaging must evolve to offer superior protection and meet stringent regulatory standards.
• Smarter packaging through digital integration: Technologies allow for better traceability, patient engagement, and anti-counterfeit measures.
• Cost-effective design and lightweighting: Manufacturers must optimize pack design to reduce weight and waste while maintaining functionality.
• Speed-to-market and customization: agile operations and modular packaging designs help manufacturers respond faster to customer needs and changing regulations.

Seizing Opportunities

How does the new advanced coating facility for healthcare packaging in Selangor help fill gaps or open new opportunities in Asia or globally amid the tariff impact? The facility helps fill the gap in healthcare manufacturing by producing coated substrates locally in Malaysia, minimizing dependence on international supply chains and reducing the risk of disruptions.

This enhances agility and responsiveness to changing customer needs,translating into shorter shipping distances and faster turnaround times. Customers benefit from greater predictability, smoother planning, and a more secure, reliable supply of high-quality packaging materials.

By being closer to customers, companies can collaborate more effectively on technical advancement, customization, and innovation. Local teams can deliver advanced, differentiated packaging solutions that meet regional and global healthcare trends.

Advice for the Industry

Companies must adopt a proactive and multifaceted approach to maintain competitiveness while ensuring product quality. Investing in advanced manufacturing technologies is paramount. Automation and digitalization can enhance operational efficiency, reduce reliance on vulnerable supply chains, and maintain high-quality standards.

Pro tip:-Consider government grants and incentives for adopting advanced manufacturing technologies. Many countries offer financial support to help businesses modernize and improve their competitiveness in the global market.

Diversifying markets and building robust supply chain partnerships are crucial strategies to mitigate disruptions resulting from tariffs. By exploring option sourcing options and establishing relationships with multiple suppliers, companies can reduce dependency on any single market or supplier.

Ultimately, it is about providing value to customers. Customers expect more than just a product – they need a trusted partner who can deliver consistent quality, security of supply, and innovative solutions, even in a volatile habitat. Companies that focus on deeply understanding customer needs and collaborating closely with them can co-develop packaging solutions that not only meet stringent regulatory standards but also support broader objectives.

Building a Robust Regional Supply Chain: ASEAN’s Role

As global trade tensions persist, building robust supply chains within the ASEAN region is becoming increasingly critical for Malaysian healthcare businesses. This intra-ASEAN focus provides opportunities for growth. it also offers a hedge against the uncertainties posed by tariffs and other trade barriers. This strategic shift is crucial for the long-term health and stability of Malaysia’s healthcare industry.

According to a recent report by the ASEAN Secretariat, intra-regional trade has been steadily increasing in recent years. This is a trend Malaysian businesses can leverage. The report highlights the benefits of streamlined customs procedures. it also notes harmonized standards implemented across the region. These factors facilitate smoother, more efficient trade within ASEAN.

The Advantages of Intra-ASEAN Trade

Diversifying export markets to include more ASEAN nations presents many advantages.It allows Malaysian manufacturers to:

• Reduce Reliance on Single Markets: Lessen exposure to fluctuations in demand.
• Lower Transportation Costs: Shorter distances and reduced shipping times.
• Benefit from Free Trade Agreements: Tap into preferential tariffs. Improve competitiveness.
• Build Stronger Regional Partnerships: develop collaborative relationships and deepen market insights.
• enhance Supply Chain Adaptability: Diversify sourcing options .

By focusing on these benefits, Malaysian healthcare companies can create a more resilient and competitive position.

Expert Insight:-“Focusing on intra-ASEAN trade is not just about mitigating risks. It’s about seizing new growth opportunities. The collective economic strength of the ASEAN nations creates a large and diverse market. This offers significant potential for Malaysian healthcare businesses,” states Ms. Wong.

Furthermore, investing in local production and expanding the capacity of facilities, such as the new advanced coating facility in Selangor, streamlines the healthcare packaging sector. This reduces lead times, enhances supply chain resilience, and supports customers better than before.

boosting Supply Chain Resilience: Best Practices

There are several best practices that Malaysian healthcare companies can follow to strengthen their supply chains within the ASEAN region. These strategies can reduce the impact of tariffs.

• Strategic Partnerships: Collaborate closely with suppliers and distributors. Create a diversified network of partners across multiple ASEAN countries.
• Localization of Manufacturing: Establish manufacturing or assembly operations.Use local materials to reduce dependency on imports from outside ASEAN.
• Technology Adoption: Adopt advanced manufacturing technologies.This will allow real-time tracking of goods and quicker responses to supply chain disruptions.
• Risk Management: Implement comprehensive risk management plans to identify and address potential disruptions. Regularly assess supply chains for vulnerabilities.
• Regulatory Compliance: Stay abreast of regulatory changes and standardizations within ASEAN.

How can Malaysian healthcare manufacturers effectively utilize ASEAN’s free trade agreements to their advantage? By understanding the specific terms of each agreement, taking advantage of reduced or eliminated tariffs, and streamlining customs procedures, manufacturers can gain a significant competitive advantage in the ASEAN market. Manufacturers should also build strong relationships with local distributors and partners to navigate the regulatory landscape.

case Study: The Success of a Malaysian Medical Device Manufacturer.

A leading Malaysian medical device manufacturer successfully diversified its export markets. The company built strong partnerships with distributors in several ASEAN countries. By doing so, they substantially reduced their reliance on the U.S. market.They also mitigated the impact of tariffs.

The manufacturer invested in local production capabilities in Thailand and Indonesia. This move not only reduced transportation costs and lead times, but also shielded them from supply chain disruptions. This approach helped them boost their competitiveness.

By following these steps, Malaysian healthcare and medical device businesses can transform supply chains across ASEAN. this will lead to more profitable, secure, and adaptable enterprises.

By embracing these strategies, Malaysian healthcare and medical device businesses can foster a more profitable, secure, and resilient future.

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