VOICES FROM THE HEALTH SECTOR II
How has OSA Technology evolved over the years, and what have been some recent highlights and milestones?
When we first started, the investment climate in Malaysia's healthcare sector was challenging. The country was much more interested in IT and other areas of the economy. When we tried to seek funding, we were not easily received. Banks were skeptical of whether we could enter the medical device space because it was so heavily regulated and there were already many large players in the market. However, we started because we recognized a need in Malaysia and the region and knew we could serve people better while also gaining understanding of the ecosystem and environment to a much greater degree. When we started, we received assistance from a Malaysian government program designed to improve the local industry in the country. This grant was complemented by financing from a local bank. It was difficult in the beginning because our capital was limited, and we had no experience in developing a medical device manufacturing plant. We have been supplying to 53 hospitals in the country for the last 10 years. We also have a small manufacturing plant south of Kuala Lumpur that is big enough to meet national demand. However, as we are now entering the Indonesian market and exploring the market in Africa, we plan to expand our manufacturing operations into a larger premise next year.
What are the advantages of having a local manufacturing plant?
Manufacturing in Malaysia can include constructing devices from pre-made parts or manufacturing from raw materials. We focus on the latter method, and our raw materials come from the UK and Spain. The major advantage of this method is that it allows us to learn. We are able to develop confidence and discipline in our techniques and processes.
What have been some of Bio-Pharmaceuticals' most important milestones and developments?
Bio-Pharmaceuticals sells various pharmaceutical products, focusing on its core areas of orthopedics, gastroenterology, and dermatology. We have also decided to place more emphasis on pain management and bone-related diseases. An Italian company that produces far-infrared radiation (FIR) patches has appointed us as its exclusive agent. We focus on selling evidence-based non-poison drugs. Our core market consists of public and private hospitals, private clinics, and pharmacies. We have also secured a wide range of trademark rights for the ASEAN market.
How can clinics and hospitals benefit from partnerships with Bio-Pharmaceuticals in the field of diamagnetic treatments?
Our diamagnetic physio centers complement our pharmaceuticals business. These centers focus on pain management, and our pharmaceuticals division sells a wide range of pain-related products. For example, Bio-Pharmaceuticals sells Arnica Gel, a product that reduces swelling, to its subsidiary, Diamagnetic. Bio-Pharmaceuticals also markets products from the Spinz line, knee guards and belts for pain management, to Diamagnetic. Our customer base is fairly diversified; we also sell these products to public and private hospitals, general practitioners, and pharmacies.
What is your outlook for Bio-Pharmaceuticals and Malaysia's pharmaceutical industry at large?
The outlook for Malaysia's pharmaceuticals industry as a whole looks bright. With the change of government, there is more transparency now. Malaysia offers the best business environment in the ASEAN region. It is relatively cheap and friendly, and the authorities are also accessible and supportive. Several pharmaceutical companies have moved to Malaysia recently. Malaysia's attractiveness is beneficial for us as well. We are committed to growing our business and aim to grow by around 20% per year, thus outpacing the average growth of the pharmaceutical industry. With our solid foundation and client base built over 27 years, we can reach this target.
VOICES FROM THE HEALTH SECTOR II
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Interview
Dato’ Khairussaleh Ramli, Group Managing Director & CEO, RHB Banking Group
RHB has exposure to all of the key sectors in Malaysia and a presence in nine ASEAN countries. The bank's latest five-year roadmap aims to build on that and propel it to become a leading financial services player.
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