Business Development Asia LLC

South East Asian Health News

ISSUE 7, JUNE 1998

MALAYSIA

Astra Pharmaceuticals of Sweden has opened its new Malaysian headquarters in Kuala Lumpur. Despite the economic crisis, Astra predicts a RM40m (US$11m) profit in Malaysia this year, an increase from last year's RM32m (US$8.5m). The company also has offices in China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam. (May 15^th 1998)

Columbia Pacific Healthcare Sdn Bhd, a JV between Chemical Company of Malaysia Bhd (CCM) and Columbia Pacific Group of the US, will build twenty community hospitals in Malaysia for RM250m (US$68m) over five years. The company expects a 20% return on investment per year from each hospital. (April 24^th 1998)

Hong Leong Bank and Hong Leong Assurance will begin offering Hong Leong Bank customers a health insurance scheme called Prime Medicare. The scheme will reimburse medical expenses incurred for accidental bodily injury or disease requiring hospitalization or surgical treatment. (May 15^th 1998)

IJM Corp Bhd, a local Malaysian infrastructure firm, signed a JV agreement with Tongkah Holdings Bhd to form THB-IJM Joint Venture Sdn Bhd. THB-IJM will be responsible for the design, construction and completion of a hospital and health clinic at Putrajaya. The JV has a paid-up capital of RM750,000 (US$200,000). (May 11^th 1998)

The Pharmaceutical Association of Malaysia (PhAMA) has urged the Malaysian Industrial Development Authority (MIDA) and Ministry of International Trade and Industry (MITI) to encourage the establishment of contract manufacturing by Western pharmaceutical firms. PhAMA maintains that contract manufacturing would benefit Malaysia because domestic production would lower prices on previously imported drugs. PhAMA argues that Western companies could also use Malaysia as an export base. (March 2^nd 1998)

Perfectseal, the US manufacturer of packaging materials for the medical industry (and a subsidiary of Bemis Company Inc), is opening a production facility in Selangor, Malaysia. The Malaysian facility will provide packaging for manufacturers already established in Malaysia such as CR Bard, Kendall, Baxter Healthcare, Alligence, Nypro & Terumo and Johnson & Johnson. The Malaysian operation anticipates a 25% annual sales growth. (May 22^nd 1998)

Raza Pharmaceuticals Sdn Bhd, a subsidiary of Raza Manufacturing Bhd, will build a contact lens plant costing RM15m (US$4m). The plant, slated to be built by the end of 1998, will be the first of its kind in the country. (May 20^th 1998)

The Southern Hospital Bhd's shareholders have approved a proposed two for one rights issue to reduce the company's bank borrowings and high interest payments. The Malacca State Government holds a 60.12% stake in Southern. The balance is held by United Medicorp Corporation of Singapore (19.88%), Mediquest Sdn Bhd (15%) and Apex Pharmacy (5%). (May 26^th 1998)

The University Sains Malaysia (USM) has been designated a World Health Organization Collaborating Center for Drug Information. The terms of reference include establishing and facilitating an electronic drug information exchange system for the WHO. Additionally they plan to develop, update and implement training modules on drug information in developing countries and to arrange and conduct fellowship training in drug information. (May 16^th 1998)

Upha Corp Sdn Bhd, a subsidiary of Chemical Company of Malaysia (CCM), has expanded its softgel manufacturing facility in Bangi with an investment of RM20m (US$5m). Upha has been active in the pharmaceutical industry for 22 years and has a 5% share of the local market, worth RM1bn (US$270m). (May 5^th 1998)