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Transforming the Malaysian Economy
Full throttle growth as major projects kick off
Against the backdrop of a difficult global economy, Malaysias gross domestic product (GDP) grew 5.6% in 2012, aided by an impressive fourth-quarter spurt of 6.4%. For 2013, the economy is expected to grow 5-6% and in fact, the nation could record a higher GDP compared to 2012 again powered mostly by domestic demands and various high-profile projects.
Much of 2012s growth was propelled by domestic demand and the pump-priming Economic Transformation Programme (ETP) that was launched in October 2010 and started making an impact in 2012, and indeed is expected to continue to do so in the coming years.
Mainly because of the ETP, private investments grew by 22%, the most solid in eight years. This will help expand the share of private investment to GDP, which averaged 11% between 2000 and 2010.
In 2012, Malaysia approved US$52.3 billion (RM162.4 billion) worth of investments, 78% of which came from domestic direct investments (DDIs) and the rest from foreign direct investments (FDIs). Of the total, the realised investments hit a record US$44.9 billion (RM139.5 billion), compared with only US$30.2 billion (RM94 billion) in 2011. Going forward, liberalisation policies will continue to be put in place to further bolster investor confidence in a country with a focus on value-adding its industries and to building itself into a high-income nation by 2020.
R&D the key to market expansion
Growing demand for laboratory facilities
With so much going on, the market for laboratory facilities has never been better. A close look at the ETP will reveal rich pickings. It has 12 National Key Economic Areas (NKEAs) led by the Oil, Gas and Energy sector. As of Nov 16, 2012, 149 ETP projects with a combined committed investment of RM212 billion had been announced. Of this, 80% are being implemented.
Many of these projects will provide opportunities for research and development (R&D) especially in sectors like oil and gas and biotechnology. In oleochemicals, for instance, R&D has already made Malaysia a world leader. In fact, R&D presents investors, both big and small, to move up the value chain and to open up new markets, especially in Europe, where import standards are much higher.
The trend is for manufacturers to set up their own laboratories to put raw material supplies as well as finished products to rigorous quality tests to meet international standards. This saves time and costs that could arise from a contractual dispute.
The fact that there is growing demand for laboratory equipment in the oil and gas, chemical, health and manufacturing sectors, is manifested in their massive presence (both as exhibitors and visitors) at M.LAB 2014, Malaysias premier exhibition and conference on laboratory instrumentation, equipment, automation and services.
LABORATORIES
What They Meant To The Manufacturing & Services Sectors
State-of-the-art laboratories are now an integral part of the manufacturing and services outfits. For a start accurate and reliable reading often mean right actions to be taken resulting in cost saving and healthier profits in todays highly competitive world. From multinationals to Small & Medium Enterprises, more players are now setting up in-house laboratories to obtain ultimate accuracy in measurement, testing & analysis of their products and services to meet international standards such as ISO9000 series. Together with the mushrooming of R&D Centres in public and private sectors, demands for laboratories instruments is poised to grow rapidly.
Growth Areas
Where the opportunities are for lab equipment
Oil, Gas and Energy:
The energy scene is undergoing seismic shifts. Gas is slowly usurping Big Oils position. Among the big projects are Petroleum Nasional Bhds RM60 billion Refinery and Petrochemical Integrated Development project in Pengerang, Johor, and the countrys first regasification terminal (RGT) in Melaka that may be operational by January 2013. Two more RGT plants are being built in Pengerang and Lahad Datu in Sabah. Green energy from solar, biogas and geothermal sources is also being actively pursued, aided by the feed-in tariff mechanism implemented late 2011.
Palm oil:
This industry is a significant contributor to the GDP. While the upstream activities are traditionally the focus of development, the ETP now pushes projects that focus on high-value oleo derivatives, that commercialises second generation bio-fuels and that expedites growth in food and health-based downstream segments. For example, four companies are developing oleo derivatives projects worth a total of RM1.33 billion. These are hotbeds for chemists.
Electrical and Electronics (E&E):
This sector has pushed Malaysias export-led economy for 40 years but now faces stiff competition from emerging economies. There are 1,900 Malaysian E&E companies and they need to upgrade their innovativeness and participate in high value-added projects like product development and niche high-margin manufacturing services like testing and certification. Subsectors like integrated circuits, solar photovoltaics, light emitting diodes and solid state lighting and integrated electronics are the areas where the greatest opportunities reside, and are now being tapped.
Biotechnology:
Malaysia is one of the most competitive biotechnology hubs in the Asia Pacific. As of 2012, more than 200 companies have been awarded the BioNexus status which endows them fiscal incentives, grants and access to capacity-building programmes and research facilities. In late 2012, it was reported that the industry attracted some RM5.4 billion in investments. Watch this space for some of the biggest opportunities for R&D in the coming years.
Healthcare:
The healthcare industry has grown in the last 10 years in tandem with the mushrooming of private hospitals. With growing affluence and a growing belief in medical insurance, the people are willing to pay for better preventive care and treatment. Malaysias health care service is of world-class standard, and its cost is one of the most competitive, drawing patients from even developed countries. Today, health tourists are a growing force among the 25 million tourists to Malaysia in 2012.
Power Network
Business Opportunities
To meet prospects for new businesses in lab equipment, theres no exhibition quite like M.LAB 2014. It offers you the unique platform to reach the widest range of professionals in different industries. Heres why you should not miss out on M.LAB 2014:
- Its a highly focused exhibition on laboratory instrumentation and services bringing together key decision makers and users from the manufacturing and Services sectors.
- With professionals coming from so many different industries, it is the perfect promotional platform to market your hardware and software solutions.
- You need to be seen at a prime marketplace to reinforce your leading position or to make bigger inroads into this huge and growing market.
- Its a perfectly timed event that rides on the growth trajectory of the countrys GDP
- It only happens once in two years, to cater to new clients and those looking to upgrade their facilities.
Visitors Profile
Huge & Impressive
As shown in the accompanying chart, a total of 3,975 trade visitors throughed the M.LAB 2012, many of whom are key business personnel whose fields are relevant to the objectives of the biennial event.
Exhibits profile
This is non-exhaustive, and is meant to be a guide
Apparatus, Analyzers, Autocaves, Balances, Biotechnology Equipment, Calorimeters, Cell Counters, Chromatographs, Circulators, Clean Room, Computer Systems & Softwares, Conductivity Equipment, Distillers, Filtration Equipment, Furnaces, Heating Systems, Humidity Meters, Incubators, Laboratory Automation, Laboratory Wares, Microscopes, Monitors & Controllers, Oil Bath, Oscilloscopes, Particles Counters, Pipettes, Pumps, pH Instruments, Spectrometers, Ultrasonic Instruments, Water Purification Equipment & more
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