Insulet Corporation (Nasdaq: PODD), a US-based medical devices company headquartered in Acton, Massachusetts, has selected Gelang Patah in Johor, Malaysia for one of its manufacturing locations to produce its Omnipod® Insulin Management System. The company held the groundbreaking of its new site that will expand upon Insulet’s existing manufacturing capacity in the USA and China.
The groundbreaking event was attended by YAB Datuk Onn Hafiz Dato’ Ghazi, Chief Minister of Johor; YB Tuan Lee Ting Han, Johor State Investment, Trade and Consumer Affairs; YBhg. Datuk Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA); Mr. Charles Alpuche, Executive Vice President and Chief Operating Officer of Insulet Corporation; and representatives from other stakeholders.
Insulet’s investment was discussed during the recent Trade and Investment Mission (TIM) to the USA led by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), which included a meeting with Insulet Corporation’s representatives in Washington DC.
In welcoming Insulet into Malaysia’s medical devices ecosystem, YB. Dato’ Seri Mohamed Azmin Ali remarked, “Insulet’s proposed investment project of approximately USD200 million in Malaysia is very much aligned with our Twelfth Malaysia Plan (12MP), which champions the medical devices industry as one of the key industries that will help propel Malaysia into the high technology trajectory, and the National Investment Aspirations (NIA) that focuses on attracting quality foreign investments into Malaysia with intensification on research and development (R&D) and new technologies. The Government recognises that companies place a high value on talent. Thus, we anticipate positive spillovers from Insulet’s endeavor, including the creation of high-income jobs for our Malaysian talents in high-tech fields, strategic local vendor development programmes particularly within our vibrant engineering support industry segment, university collaborations, as well as training and upskilling programmes for the local workforce.We will continue to strengthen the infrastructure required for Malaysia to be a “Home for Talent,” driving businesses and innovation in Asia and the world.”
Datuk Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) echoed the Senior Minister, saying, “Insulet’s entry into Malaysia is a testament of our attractiveness in bringing premium and high-tech medical devices product manufacturers into the country, consistent with our aspiration in making the country as the regional medical devices manufacturing hub to serve ASEAN as well as the rest of the world. We welcome Insulet’s global expansion and their addition to Malaysia’s evergrowing medical devices industry ecosystem. We look forward to having Insulet open up new business opportunities for technology transfer and integrating of our local vendors into its global supply chain network.”
Dato’ Dr. Badrul Hisham Kassim, Chief Executive of the Iskandar Regional Development Authority (IRDA) further highlighted, “Insulet Corporation’s new manufacturing facility not only reflects investors’ continuing confidence in Iskandar Malaysia, but their presence also emphasise our strength as a centre for manufacturing and healthcare services, which are two (2) of the nine (9) promoted sectors here. We will continue to develop and enhance local talents to support the need of our new and existing investors in Iskandar Malaysia.”
Charles Alpuche, Insulet’s Executive Vice President and Chief Operating Officer shared, “At Insulet, we are driven by our mission to improve the lives of people with diabetes globally. That is why our top priority is to ensure our customers have continued access to our Omnipod products. Johor Bahru, Malaysia offers a strategic location in the ASEAN region with excellent accessibility to ports and a qualified workforce to staff our next manufacturing facility.”
Malaysia is well-positioned to be the manufacturing hub for the medical devices industry in Asia. Presently, Malaysia is home to over 200 manufacturers, with more than 30 medical devices MNCs producing high value-added medical devices. The second and third tiers of medical device manufacturers for parts and components of medical devices have increased opportunities for local vendors to be integrated into the global supply chain of this industry.
For 2021 alone, MIDA has approved 38 manufacturing projects worth RM7.68 billion (USD1.84 billion), which are expected to create 12,498 employment opportunities for the country. The industry shows great promise in generating high-income jobs, increasing export value, and reinforcing the domestic supply chain ecosystem.
This announcement with Insulet Corporation is yet another example of how global companies in the USA base their decisions on fundamentals. This is an exciting opportunity for Malaysia, which has evolved itself as a manufacturing hub for medical devices in Southeast Asia. Supported by the nation’s strong and matured local engineering support industry, wellconnected infrastructure and talented and skilled workforce, Malaysia offers vast business and investment opportunities for global medical device companies to strategically position their presence in ASEAN.
