Despite the economic downturn, the Malaysian pharmaceutical market posted 3.4% growth in 2009, says new study

The Malaysian pharmaceutical market posted a 3.4% year-on-year growth in 2009, to reach the value of 4.29 billion ringgits ($1.24 billion) at consumer prices, despite the economic turndown, reports Business Monitor International. Through to 2014, and in line with economic recovery, increases in medical tourism and health care modernization, it forecasts that the market will develop at a compound annual growth rate (CAGR) of 7.30% in local currency terms, to reach 6.10 billion ringgits in 2014.

The strongest-growing prescription segment will be generics (posting a CAGR of 9.67%, in contrast to 4.09% expected for patented drugs), even though higher value development will be precluded by their lower prices. Over-the-counter (OTC) medicines will gain market share at the expense of prescription drugs, as the regulatory and economic environments become more conducive to their development.

In the meantime, although Malaysia remains a moderately attractive regional market, again placed eighth of the 15 Asian Pacific markets surveyed in BMI's Business Environment Rating (BER) matrix for the second quarter of 2010.