Malaysia’s healthcare and medical manufacturing holds steady amid trade headwind
Malaysia’s healthcare sector continues to demonstrate resilience amid global trade pressures, including the impact of US tariffs. While challenges remain, the industry is adapting through strategic sourcing, supply chain diversification, and strengthened regional partnerships. These measures limit disruptions and reinforce Malaysia’s position as a stable and competitive player in the global healthcare market.
In an exclusive email interview with Ms. Laura Wong, Vice President for Healthcare, APAC at Amcor, we gain insight into how Malaysia’s healthcare and medical device manufacturing continues to perform well.
HCA: How has Malaysia’s growth trajectory in healthcare and medical device manufacturing been affected by the tariffs?
Laura: The tariffs have introduced significant uncertainty into the Malaysia’s healthcare and medical device manufacturing sector. Malaysia’s total global exports of medical devices in2024 amounted to RM37.03 billion (US$3.07 billion), with the US accounting for nearly 37% of the total export value. The imposition of the tariffs has also led to knee-jerk reactions to the announcement, in which some US-based importers have cancelled their orders.
While there are near-term challenges, there is a silver lining for Malaysia, given that some other manufacturing hubs have been impacted by even higher tariff rates, which may potentially make Malaysian products more competitively priced on some fronts.
The impact of the tariffs in the healthcare and medical device manufacturing industry can be mitigated to an extent and we’re already seeing medical device manufacturers looking for new markets to cater to and exploring the possibility of setting up satellite production plants in the US so they can produce and supply the American domestic market.
HCA: What has been the impact on supply chains, and how can industry players overcome these disruptions?
Laura: Established supply chains have been disrupted by the tariffs, increasing costs for both exporters and the Malaysian healthcare system. The uncertainty around the scope and timing of the tariffs is already affecting healthcare systems’ ability to plan, especially in developing countries which rely heavily on global medical supply chains, according to Galen Centre chief executive Azrul Mohd Khalib. The complexity and global nature of medical supply chains mean that they cannot be rapidly restructured.
To navigate these disruptions, industry players should consider diversifying their export markets, enhancing intra-ASEAN trade, and investing in supply chain resilience through strategic partnerships and localization of critical manufacturing processes.
In this context, Amcor’s new advanced healthcare packaging coating facility in Selangor, Malaysia, plays a pivotal role in strengthening supply chain resilience for us and our customers. By expanding our existing operations in Selangor, we have created an integrated campus that enables the production of both top and bottom substrates for high-quality, sterile medical device packaging for healthcare customers across the region. This development enhances supply chain resilience, reduces lead times, and offers greater flexibility and security to our customers.
HCA: What advanced technologies and solutions should industry players adopt to improve manufacturing efficiency, ensure product integrity, and remain competitive in the market?
Laura: To remain competitive in the market, industry players should leverage advanced manufacturing technologies, automation and smart production practices which will assist players in maintaining high standards and productivity whilst controlling costs.
For advanced technologies, one example would be air knife coating technology, which is an industry leading innovation designed specifically for medical packaging. A first in Asia, this technology enables precise control over coating thickness and uniformity, ensuring high-performance barrier properties critical for protecting sensitive medical products and extending shelf-life. This precision significantly enhances product consistency and reliability, supporting stringent regulatory compliance required by healthcare export markets globally.
Amcor also deploys smart manufacturing practices, including automated quality-control systems, real-time data monitoring, and predictive analytics, enabling rapid response to production variances and continuous improvement in product quality. These combined technologies not only boost operational efficiency but also ensure that our packaging meets or exceeds rigorous international healthcare standards, helping Malaysian manufacturers maintain a competitive edge in global markets.
HCA: What are the key trends in healthcare packaging, and what are their implications for Malaysia’s future as a global healthcare manufacturing leader?
Laura: At Amcor, we see several key trends in healthcare packaging that Malaysian manufacturers must embrace to stay globally competitive:
Sustainable materials: Sustainability is no longer optional. There’s growing global demand for packaging that reduces environmental impact without compromising barrier protection or regulatory compliance. We’re seeing increased use of recyclable, bio-based, and reduced-material packaging solutions. Manufacturers who invest in these innovations early will have a clear edge.
Enhanced product protection and compliance: As treatments become more complex—biologics, combination therapies, and temperature-sensitive products—packaging must evolve to offer superior protection and meet stringent regulatory standards. This includes high-barrier films, tamper-evident formats, and improved sterility assurance.
Smarter packaging through digital integration: Technologies like QR codes, RFID tags, and connected packaging allow for better traceability, patient engagement, and anti-counterfeit measures. Embracing these innovations supports both compliance and supply chain efficiency.
Cost-effective design and lightweighting: With rising material and logistics costs, manufacturers must optimise pack design to reduce weight and waste while maintaining functionality. This includes right-sizing packaging and designing for manufacturability.
Speed-to-market and customisation: Healthcare is becoming more personalised, and packaging must follow suit. Agile operations and modular packaging designs help manufacturers respond faster to customer needs and changing regulations.
By staying at the forefront of these trends, Malaysian manufacturers can not only manage cost pressures but also differentiate themselves in a competitive global market. At Amcor, we’re committed to supporting partners with advanced materials, design expertise, and a strong sustainability roadmap to help them lead.
HCA: How is Amcor specifically responding to these challenges—or even turning them into opportunities? For instance, how might the new advanced coating facility for healthcare packaging in Selangor help fill gaps or open new opportunities in Asia or globally amid the tariff impact?
Laura: Amcor’s new advanced coating facility for healthcare packaging in Selangor is helping to fill the gap in healthcare manufacturing through producing coated substrates locally in Malaysia, thus minimising dependence on international supply chains and reducing the risk of disruptions. This makes us more agile and responsive to changing customer needs.
It also means shorter shipping distances and faster turnaround times. Our customers benefit from greater predictability, smoother planning, and a more secure, reliable supply of high-quality packaging materials, all of which are essential in the healthcare sector. Having this coating capability in the market helps improve supply chain resilience for our healthcare customers with reduced lead times and enhanced inventory control which helps to reduce risk.
Beyond mitigating risks, the facility opens new growth opportunities. By being closer to our customers, we can collaborate more effectively on technical development, customisation, and innovation. Our local teams are deeply embedded in the region’s healthcare ecosystem, while also having direct access to Amcor’s global R&D and innovation network. This enables us to deliver advanced, differentiated packaging solutions that meet both regional and global healthcare trends, such as sustainability, regulatory compliance, and advanced material performance.
HCA: What is your advice to the industry in light of these tariffs? How can companies stay competitive while maintaining product quality in your segment (i.e., healthcare packaging, products)?
Laura: In the current landscape shaped by evolving tariff regimes, companies operating within the healthcare packaging sector must adopt a proactive and multifaceted approach to maintain competitiveness while ensuring product quality.
Firstly, investing in advanced manufacturing technologies is paramount. Automation and digitalisation can enhance operational efficiency, reduce reliance on vulnerable supply chains, and maintain high-quality standards essential in healthcare packaging. Implementing smart manufacturing practices, such as real-time monitoring and predictive analytics, enables rapid response to production variances, ensuring consistent product integrity.
Secondly, diversifying markets and building robust supply chain partnerships are crucial strategies to mitigate disruptions resulting from tariffs. By exploring alternative sourcing options and establishing relationships with multiple suppliers, companies can reduce dependency on any single market or supplier, thereby enhancing supply chain resilience.
It is ultimately all about providing value to our customers. In a highly regulated and sensitive sector like healthcare packaging, our customers expect more than just a product — they need a trusted partner who can deliver consistent quality, security of supply, and innovative solutions, even in a volatile environment. Companies that focus on deeply understanding customer needs and collaborating closely with them can co-develop packaging solutions that not only meet stringent regulatory standards but also support broader objectives such as sustainability, cost efficiency, and product differentiation.
Category: Top Story
