Putra Jaya: A joint venture signed between two Malaysian companies and a medical group from China in the area of orthopaedics products manufacturing is expected to position Malaysia as the orthopaedics hub in the region, Health Minister Datuk Seri Liow Tiong Lai said Monday. He said the collaboration between The Naton Medical Group of China (Naton), OSA Niaga Sdn Bhd (OSA) and Straits Orthopaedics (Mfg) Sdn Bhd of Malaysia to manufacture orthopaedic devises, comprising trauma, spine and arthroplasty products would also enable Malaysians to enjoy 30 to 50 per cent discount of the products in future.
"I have been informed that the industry is ready and willing to advance to the next level, with companies planning to scale up their operations, win new contracts from global customers, engage in more technical and higher-value R&D projects as well as make Malaysian brands and products more visible in the export markets of Asean.
"Thus, should Malaysia achieve the distinction of becoming the orthopaedics capital of the east, it will further provide a marvellous platform for entrepreneurs and companies to venture into other clinical discipline such as cardiovascular surgical devices," he said after witnessing the signing between Naton, OSA and Straits Orthopaedics here Monday.
Liow said the field of orthopaedics offered a huge industry potential for Malaysia with players are already leveraging on Malaysia's excellent comparative advantage and developing expertise in all aspects including research and development (R&D), products development, commercialisation and distribution.
"Under the National Key Economic Area (NKEA), we have identified medical devices as one of the important sector that can contribute to national economic growth. We have identified about RM11.4 billion gross national income (GNI) under medical devices and the creation of 86,000 job opportunities by 2020.
"For orthopaedic, we should be able to create RM4.5 billion in revenue.
It is a big industry we should focus as we have the strength and capability.
With Naton coming to invest and expand the market, we should be able to become a regional hub."
Under the joint venture arrangement, Liow said Sima Medical Sdn Bhd will be formed and expected to start its production by first quarter of next year.
In the next five years, the joint venture company is expected to sell to the Asean and Middle East markets products worth US$100 million, while the investment needed to realise the goal has been estimated at RM200 million.
He said Naton would manufacture its products comprising implants and instrumentation in trauma, spine, arthroplasty and dentals in Malaysia and the products will be labelled as Made in Malaysia.
He said the products would register with the regulatory bodies and distribute at affordable prices in Malaysia, Asean and Middle East.
"Under the collaboration, Naton and OSA will innovate and develop new orthopaedics and dental products. Besides that, pre-clinical and clinical trials of new products will be conducted in Malaysia."
Meanwhile, Liow said Straits Orthopaedics, which has a reputation for world-class quality manufacturing would provide manufacturing solutions for the joint venture company, including transferring capabilities - Titanium type 2 anodizing for trauma and spine implants, forgings and castings to medical grade for trauma plates and arthroplasty and coatings for arthroplasty implants. - Bernama
