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2013 Medical Equipment Industry Overview in ASEAN Markets

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2013 Medical Equipment Industry Overview in ASEAN

Markets
Summary : The driving forces of gl
obal economic and trade developm
ent are gradually shifting towards s
outheastern Asian countries by em
erging countries and inter-regional
economic and trade cooperation. A
ccording to the Business Monitor International (BMI) survey,
the total amount of medical equipment market in Indonesia,
Philippines, Vietnam, Thailand, and Malaysia in 2012 reache
d 3,798 million US Dollars and this number is expected to re
ach 7,480 million US Dollars by 2017 with CAGR of 14.5%. I
t is necessary to understand the potential of ASEAN region i
n order to get the subsequent marketing opportunities.
Text:
The global economic and trade development are shifting tow
ards leadership by emerging countries and inter-regional ec
onomic and trade cooperation in southeastern Asian countri
es, including Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Philippines, Singapore, Thailand, and Vietnam. In
spite of the small individual markets, the countries have for
med the Association of Southeast Asian Nations (ASEAN) or
ganization through alliance and transformed into an econom
y that owns enormous market of domestic demand and rich
resources, which will become the new development center f
or global economy and trade. Moreover, the cooperation bet
ween mainland China and ASEAN formed the plus one adva
ntage for ASEAN, which will inevitably affect the subsequent
entrance opportunity and competiveness in the ASEAN mark
et. Situated in Asia-Pacific Region, Taiwan must not take ab
sence from this opportunity of development and it is foremo
st important to understand the potential of ASEAN region in
order to get the subsequent marketing opportunities.
According to the Business Monitor International (BMI) surve
y, the total amount of medical equipment market in Indones
ia, Philippines, Vietnam, Thailand, and Malaysia in 2012 rea
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2013 Medical Equipment Industry Overview in ASEAN Markets

ched 3,798 million US Dollars and this number is expected t

o reach 7,480 million US Dollars by 2017 with CAGR of 14.5
%. It is a market with high growth rate as shown in Table 1.
The import supply ration of the five countries shows that the
regional medical equipment all relies on import while the loc
al medical equipment suppliers merely engage in the produc
tion of lower-level medical equipment and products, which i
s deemed as field waiting to be developed by the medical eq
uipment suppliers in Taiwan.
The observation on the development opportunities for future
medical equipment indicates that the demand for medical eq
uipment in Indonesia will mostly consist of diagnostic imagi
ng products in the next five years. Nonetheless, other medic
al equipment including wheelchairs, ophthalmological equip
ment, anesthesia instrument, dialysis equipment, endoscop
e equipment, and medical furniture are the medical equipm
ent and products with the fastest growing speed. In Philippi
nes, dental products and orthopedic and implants account fo
r the products with the fastest grow while Vietnam is one of
the fast growing country in terms of Chinese medicinal equi
pment market among Southeastern Asian countries. The dia
gnostic imaging products show the largest market size while
bone plates and other wound fixture products show the fast
est growth. Thailand also relies on diagnostic imaging produ
cts while dental products and orthopedic implants are the pr
oducts with fastest growth in the medical equipment market
of Malaysia.
Table 1 2012~2017 Major ASEAN State Medical Equipment
Market Development Trends
Country
Population ( 20 20 2012~20 Import Su
100 million) 12 17 17 CAGR pply Ratio
Indonesia

2.45

49 88
3 6

12.44

92.9

Philippines

0.95

26 41
9 0

8.22

87.6

0.90

1,
63 48
4 7

18.59

93.1

12.30

84.9

Competent
Authority

Scope of C
ontrol

0.69

1, 1,
07 91

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2013 Medical Equipment Industry Overview in ASEAN Markets

1
Products of
Control

0.29

1, 2,
33 78
1 4

15.90

75.9

Unit: Million Source: Espicom(2012). Prepared by ITRI IEK

USD, %
(2012/08)
In particular, the regulations for medical equipment become
the foremost important threshold for industries to enter ASE
AN market. ASEAN is an economic alliance formed by many
States but each State owns its proprietary medical equipme
nt regulations and law, forming an entrance threshold. ASEA
N has formed the Association of South East Asian Nations C
onsultative Committee for Standards and Quality- Product
Working Group on Medical Device, ACCSQ-MDPWG with agg
ressive actions in mediating the medical equipment regulati
ons. Currently, the Group is steered by Singapore and Malay
sia. Due to the high growth potential in SEAN market, Taiwa
n companies also find new opportunities in this market. In t
he future, Taiwan government should assist the domestic in
dustries to obtain real-time regulation mediation and promo
tion in ASEAN States in order to reduce the regulatory barri
ers faced by exporters of medical equipment.
Due to the smaller market size of individual medical equipm
ent market in ASEAN States, it is necessary for the Govern
ment to assist suppliers with expansion of market regulation
s required and marketing channel information for the suppli
ers to engage in easy marketing. The industries are also adv
ised to form marketing alliance, whereas companies expand
in larger individual market, followed by adopting co-marketi
ng strategies to enter each State market.
Since Taiwan overlaps and competes with China and South
Korea in medical equipment, the suppliers not only need to
compete with foreign suppliers of medical equipment in Taiw
an but also compete on the global level. In the future, Taiwa
n government should assists with industry upgrade in order
to turn Taiwan into top choice of medical equipment manufa
cturing center apart from coordination and negations with m
arketing in China and ASEAN countries through trading cond
itions. Consequently, the suppliers will be capable of compet
ing with Japanese and Korean medical equipment suppliers
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2013 Medical Equipment Industry Overview in ASEAN Markets

on the international market, shaping the image of Taiwans

excellent medical equipment quality.
Since Taiwan overlaps and competes with China and South
Korea in medical equipment, the suppliers not only need to
compete with foreign suppliers of medical equipment in Taiw
an but also compete on the global level. In the future, Taiwa
n government should assists with industry upgrade in order
to turn Taiwan into top choice of medical equipment manufa
cturing center apart from coordination and negations with m
arketing in China and ASEAN countries through trading cond
itions. Consequently, the suppliers will be capable of compet
ing with Japanese and Korean medical equipment suppliers
on the international market, shaping the image of Taiwans
excellent medical equipment quality.

ITRI IEK Tsz-Yin Chang

Senior Industry Analysis/ Research Manager

2014/04/07

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