Bernama.com (Malaysian National News Agency), 3 February, 2007

M'sian Co.s Told To Take Advantage Of Booming Healthcare In Middle East

DUBAI, Feb 3 (Bernama) -- Malaysian companies should take advantage of the booming healthcare sector in the Middle East, which is estimated at US$74 billion (US$1=RM3.50), Malaysia External Trade Development Corporation (MATRADE), Dubai says.

To tap this market, Malaysian companies should be more aggressive in marketing their products in this region, MATRADE said in a statement issued after the conclusion of the Arab Health 2007 show, the largest in the Middle East, held here from Jan 29 to Feb 1.

MATRADE said that the Middle East and United Arab Emirates (UAE) in particular, is experiencing tremendous growth in the healthcare sector, which could be attributed to factors like a relatively virgin market, fast growing population, liberal trade policies as well as the fact that the government now recognizes the need to provide high quality healthcare through privatisation.

During 2006, Malaysia's exports of medical and pharmaceutical products to UAE amounted to US$5.2 million which is expected to increase through MATRADE's effort to bring in Malaysian companies via various trade fairs and specialised trade missions.

At the Arab Health show, the 16 Malaysian companies which took part, somewhat succeeded in penetrating the market, receiving order totalling US$3.1 million while potential sales stood at US$18.4 million which required further follow-up.

According to these companies, there was a lot of interest for hospital furniture, medicines, disposable products, and health tourism products from Malaysia, MATRADE said.

It also said that the market for healthcare products and services in the Arab region is comparable to that of any developed part of the world and that drugs and pharmaceuticals, which constituted almost 90 percent of the US$74 billion market, are being imported by these countries.

"So far only a few Malaysian companies in the field of disposable pharmaceuticals, hospital furniture, syringes and herbal medicines have been able to make an entry into this vast market," MATRADE said.

It said that Malaysian exports in this category currently account for less than 0.06 percent of UAE's annual imports and as such there is still a vast market potential yet to be explored by Malaysian companies.

MATRADE said that UAE, which wants to become the hub for healthcare services in the region, has successfully launched the US$1.8 billion Dubai Healthcare City which is intended to tap into the medical and healthcare needs of around two billion people who live between Europe and East Asia.

-- BERNAMA