Market Scenario

Indian Pharmaceutical industry is flourishing as 'pharmacy of the world,’ It jumped from $40 billion in 2021 to an expected $130 billion in 2030, with projections hitting $450 billion by 2047

The Indian pharma industry commands over 20% of the global pharma supply chain and addresses approximately 60% of the worldwide demand for vaccines.

The Malaysia pharmaceutical market was valued at $2.9 billion in the year 2020. The market grew at a CAGR of more than 9% during the period 2013 to 2020. The Malaysia medical devices market was valued at $1.9 billion in the year 2020. The market grew at a CAGR of more than 11% during the period 2016 to 2020. Malaysia provides one of the strongest markets for foreign medical devices manufacturers in Southeast Asia. The medical devices industry was also identified as one of the significant growth areas under the healthcare National Key Economic Area (NKEA) 2020.

INDIA-MALAYSIA TRADE • Malaysia is the 13th largest trading partner for India while India stands amongst the 10 largest trading partners globally. Furthermore, Malaysia has emerged as the third largest trading partner for India from the ASEAN region and India is the largest trading partner for Malaysia among the countries of the Southeast Asian region. • Bilateral trade reached US$ 19.89 billion during 2022-23. • This includes exports worth approx. US$ 7.15 billion and imports worth approx. US$ 12.73 billion. • Malaysia ranks as the 28th largest investor in India with an FDI inflow of US$ 1.17 billion from April 2000-March 2023. • Bilateral trade reached US$ 2.77 billion in April-May 2023-24. This includes exports worth US$ 0.90 billion and imports worth US$ 1.87 billion from April-May 2023-24.

In 2022, India’s exports of pharmaceutical products to Malaysia amounted to USD 96.88 million. The trade included various categories such as:

• Medicaments (Put up in Packings for Retail Sale): USD 80.52 million
• Medicaments: USD 12.50 million
• Human or Animal Blood, Antisera and Other Blood Fractions, Vaccines, Toxins: USD 2.81 million
• Pharmaceutical Goods: USD 799.61 thousand
• Wadding, Gauze, Bandages and Similar Articles: USD 228.05 thousand
• Glands, Other Organs; Extracts of Glands or Other Organs: USD 14.73 thousand1

On the other hand, India’s imports of pharmaceutical products from Malaysia were valued at USD 11.22 million during the same year - Malaysia ranked as the 28th largest investor in India with an FDI inflow of US$ 1.17 billion during the period April 2000-March 2023.

In 2021, India shipped goods worth US$6.63 billion to Malaysia, while Malaysia’s exports to India totaled US$11.4 billion in the same year. By 2022, Malaysia’s exports to India surged to US$12.42 billion.

Investment prospects in both industrial and service sectors, the burgeoning automobile industry, and the promotion of Indian pharmaceuticals in Malaysia have been key focal points to attract investments and broaden business horizons.

As an industry, the pharmaceutical segment has contributed over MYR6 billion toward Malaysia’s gross domestic product (GDP). By 2024, the industry will potentially contribute another MYR10 billion.

Currently, there are more than 445 pharmaceutical companies with a total market value of MYR7.5 billion (2018) invested in two categories of products which span across the healthcare supply chain in Malaysia and representing professionals from many fields.