THE HEALTH | OCTOBER , 2023

This strategic initiative aims to foster the integration of value chains , leading to enhanced local production of critical pharmaceutical components , vaccines , and medicines . BMI , a Fitch Solutions company , has noted that government incentives will continue stimulating local investments in Malaysia ’ s pharmaceutical sector in the foreseeable future .

According to BMI , Malaysia holds the potential to become a regional leader in the pharmaceutical industry by attracting more investments . In 2022 , pharmaceutical sales in the country reached RM11.2 billion , and BMI ’ s forecast suggests that this figure will rise to RM15.5 billion by 2027 . This growth signifies a compound annual

growth rate ( CAGR ) of 6.7 per cent in local currency .

The 12th Malaysia Plan , a national development blueprint , emphasises the significance of the pharmaceutical and medical devices sectors in driving economic growth in the coming years . The Malaysian government is committed to boosting domestic investment within the pharmaceutical industry , reinforcing Malaysia ’ s status as a regional biomedical hub .

BMI highlights the Malaysian government ’ s proactive measures to encourage investment in the pharmaceutical sector . Notably , the

2022 budget extension of preferential tax rate incentives has garnered attention . These incentives offer investors a tax rate ranging from zero to 10 per cent for 10 + 10 years if they engage in local pharmaceutical manufacturing , including vaccines . However , it ’ s important to note that Malaysia ’ s approach to medicine pricing is based on a system of controls , which may impact multinational drugmaker profits and potentially deter foreign investments . The government introduced price control measures for medicines in May 2019 . These measures employ external reference pricing , benchmark local prices against lower drug prices in other markets , and ultimately establish ceiling prices , representing an average of the three lowest identified prices .

BMI anticipates that these price controls will significantly influence the profit margins of innovative drugmakers operating in Malaysia , potentially constraining multinational investments . Nevertheless , Malaysia ’ s overall direction of the pharmaceutical industry is promising , with strong government support and initiatives set to enhance domestic pharmaceutical production and economic growth .

Lim Wee Chai ( middle ) at the briefing on Top Glove ’ s financial results .

TOP Glove Corporation Berhad , one of the world ’ s leading glove manufacturers , is looking forward to an upturn in average selling prices ( ASP ) for its gloves , which it anticipates will lead to profitability for its financial year 2025 ( FY25 ). It ’ s Executive Chairman Tan Sri Dr Lim Wee Chai , expressed optimism about the glove market ’ s prospects and expects the current low prices to rebound .

He noted that glove ASPs had reached “ an all-time low ,” particularly for nitrile gloves , a trend unseen in the past three decades . He said prices typically rebound when they hit such lows , following the natural business cycle .

The Executive Chairman also provided insights into the group ’ s utilisation rate , highlighting that it currently stands at 30 per cent over the past six months , relative to a total capacity of 95 billion gloves . He said with the current utilisation rate , the group has already witnessed improvements in earnings before interest , tax , depreciation , and amortisation ( EBITDA ).

He expects the company to achieve profitability with an additional 10-20 per cent utilisation rate increase , reaching 50 per cent . He estimated this might take another six to 12 months , culminating in profitability by FY25 .

Managing Director Lim Cheong Guan said they will align with the ASP trend regarding raw material prices . He explained that raw material prices and ASPs are closely interlinked . He noted a high likelihood of ASP increases in the upcoming quarters , citing rising costs of raw materials , particularly nitrile latex .

Top Glove recently reported a net loss of RM463.15 million for Q4 ’ 23 , a significant change from the net loss of RM63 million during the same period the previous year . Revenue also decreased to RM475.87 million from RM989.94 million in the corresponding quarter of the previous year .

For its full financial year 2023 , the company registered a net loss of RM926.64 million , compared to a net profit of RM225.56 million in the preceding year . Revenue for the year declined to RM2.26 billion from RM5.57 billion .

Top Glove explained that the loss after tax of RM454 million incorporated a one-off impairment on goodwill , property , plant , and equipment amounting to RM389 million , which did not impact the company ’ s cash flow . The company ’ s outlook and commitment to recovery remain strong , driven by anticipated improvements in glove prices and robust demand .

From left : Dato ’ Liaw Choon Liang , Nor Azizah Ismail and Paul Ho .

IN CONJUNCTION with World Sight Day 2023 , Malaysia ’ s leading optical chain , Focus Point Vision Care Group Sdn Bhd , held a week-long roadshow at the Centre Court , Ground Floor of Mid Valley Megamall from Oct 9 to 15 , 2023 , with the theme “ Love Your Eyes , Embrace Your Future .”

The roadshow aimed to raise awareness about eye health and make access to vision care accessible to people from all walks of life . Secretary of the Malaysian Optical Council ( MOC ) Nor Azizah Ismail officiated the event on Oct 13 . She commended Focus Point for its sustained efforts in promoting eye health and addressing preventable blindness and visual impairment .

President and CEO of Focus Point Dato ’ Liaw Choon Liang expanded on this year ’ s theme , emphasising “ Love Your Eyes at Work ,” “ Love Your Eyes from Young ,” and “ Love Your Eyes A Lifetime .” The campaign focused on several key objectives :

Protecting Vision at Work : Encouraging individuals to understand the importance of safeguarding their vision in the workplace and urging employers to prioritise the eye health of their employees .

Caring for Children ’ s Vision : Advocating for parents and caregivers to take early steps to protect children ’ s vision , preventing potential vision problems and ensuring a lifetime of healthy sight .

Promoting Eye Health for the Elderly : Emphasising the significance of eye health among the elderly and offering free comprehensive eye screenings during the event .

Focus Point collaborated with the ZEISS Group to provide free comprehensive eye screenings using advanced equipment . These screenings aimed to detect eye conditions such as cataracts , glaucoma , dry eyes , pterygium , retinal issues , refractive errors , and contact lens-related problems . The roadshow also offered oneon-one professional consultations with Focus Point ’ s registered optometrists .

The “ Love Your Eyes , Embrace Your Future ” campaign sought to create awareness and provided practical solutions for Malaysians to care for their eyes . By addressing eye health at work , in childhood , and throughout life , Focus Point aims to contribute to the overall well-being of individuals and reduce preventable vision problems . The event exemplified the organisation ’ s commitment to promoting a healthy vision for all .