Budget 2023: Medical device sector to be given special attention 

by S BIRRUNTHA / source: Tengku Zafrul FB

THE Finance Ministry (MoF) will give special attention to the medical device sector in Budget 2023 due to its penetration in the international market and contribution to the country’s economy. 

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (left) said in that regard, the MoF is committed to continue supporting the medical device sector as one of the main growth sectors.

“This takes into account its contribution to creating 39,000 job opportunities from 2017 to 2021 and contributing RM41.3 billion in exports in 2021,” he said in a statement today.

The statement was issued in conjunction with MoF’s Budget 2023 state tour session to Penang recently to get views and suggestions from the state government, industry, the grassroots and in the federal government’s efforts to draft an annual budget that meets the needs of the people, as well as driving economic growth and national development.

Tengku Zafrul and Penang Chief Minister Chow Kon Yeow (right) have jointly chaired a dialogue session with more than 20 medical device industry players.

Of the 30 largest medical device industry players in the world, 10 operate in Malaysia, including Penang.

In 2021, nearly RM7.7 billion in total investment was attracted by the sector, including several companies that have been operating in Bayan Lepas, Penang, for up to 50 years, and companies that are in the process of building a new factory in Batu Kawan, Penang.

The MoF also held an engagement session with several high-growth technology companies.

The effort was also in line with the establishment of the latest Public Consultation Paper (KKA) on Budget 2023 entitled “Policy on the Use of Goods, Services and Technologies Resulting from Local Research and Development (R&D) in Government Procurement” which aims to protect and develop the capabilities of local technology companies through improving the ecosystem of technology transfer, commercialisation and marketing of local R&D results.

In terms of sustainable development which will also be a focus aspect in Budget 2023, the MoF also held a dialogue with the founder and management of The Habitat in Bukit Bendera, Penang, to obtain the latest status of the Unesco Man & the Biosphere Reserve programme, one of the recipients’ allocations under Budget 2022.

With that provision, it has succeeded in improving efforts to apply the concept of a circular economy as the basis for the development of sustainable eco-tourism in Malaysia.

Support for the eco-tourism industry is a two-pronged strategy to preserve the country’s natural treasures and at the same time, target high-value tourists.

The Budget 2023 tour session to Penang completed the nationwide tour.

In addition, the publication of six KKAs also contributed to the formulation of Budget 2023 which is more comprehensive and takes into account feedback from various parties for the wellbeing of the people and the country.