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Speaking at IHW 2025, MITI Minister Tengku Zafrul Aziz outlined Malaysia’s plans to strengthen its healthcare and industrial base – creating over 2,700 jobs in 2024 alone – as part of a broader economic and workforce development strategy.
Malaysia is doubling down on its ambition to become a key global player in healthcare and industrial innovation, aiming to push forth a clear message: disruption brings opportunity.
Speaking at the opening ceremony of International Healthcare Week (IHW) 2025 on Wednesday (16 July 2025), YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), spotlighted Malaysia’s growing stature in global trade and healthcare, while addressing ongoing US reciprocal tariffs and Malaysia’s strategic response.
Snippets of the speech are shared below.
Keeping calm and negotiating smart amid trade turbulence
Touching on recent US tariffs impacting Malaysian exports, Minister Zafrul reassured attendees that the government is engaging in good faith with the US to "seek clarity, minimise disruption, and reach a mutually beneficial outcome". To this effect, he highlighted three key points on the matter:
First, he shared, trade negotiations are a complex multi-stakeholder process – relevant ministries and agencies must be consulted to minimise conflict, and to ensure a smooth implementation post-negotiation.
"For context, the average duration for a regular trade negotiation is 18 months. For MITI, the fastest on record thus far is 11 months."
Second, he pointed out "several red lines that the MADANI Government will not cross in trade negotiations": "We will not sacrifice the country’s sovereignty, or sideline other trading partners in trying to close a trade deal.
"Our people’s rights, our country’s sovereignty and trust with our valued partners are not bargaining chips."
Third, he noted, the devil is always in the details. "Our negotiating stance is always to ensure that whatever deal we land on will support the country’s economic reforms and sustainable growth policies.
"Catchy, feel-good headlines last a few days, a week at the most. But poor deals will have long-term consequences on our people, industries and economy – I am certain negative long-term outcomes are not the public wants, nor what current and future taxpayers need."
Here, he emphasised what he called a simple objective: to ensure that any agreement supports an open, rules-based and fair, multilateral trade keeping the World Trade Organization (WTO) at the core. In 2024 alone, he noted, Malaysia–US trade rose by nearly 30% to RM324.9bn.
He also highlighted Malaysia’s significance as a long-time production base for US firms, with 169 American investment projects valued at RM77.5 bn from 1980 to 2024 – adding that annual incentives supporting these industries continue to range between RM800,000 and RM1.2bn.
Turning trade challenges into reform opportunities
Minister Zafrul described how the current tariff issues are fuelling Malaysia’s resolve to future-proof its economy. Three key moves are underway:
- The National Geoeconomic Command Centre (NGCC), led by the Prime Minister, is actively coordinating cross-agency/ministry responses.
- New trade pacts with the UAE and European Free Trade Association (EFTA) countries are expanding Malaysia’s global reach.
- Industrial reforms are accelerating, including improvements in manufacturing value-added GDP (up RM3.8bn), employment (+50,000 workers), and median wages (up 4.5% from RM2,600 to RM 2,745).
Healthcare as a cornerstone of Malaysia’s next growth chapter
Taking a closer look at the healthcare industry's potential in the country, Minister Zafrul asked: "So, how does the healthcare sector fit into our industrial reform
agenda?"
He started off by citing the macro data: With the global medical devices market projected to grow by 63% to RM4.13tn by 2032, Malaysia is gearing up to capture a bigger slice of the pie – backed by what the Minister affirmed was a strong industrial reform agenda, robust industrial ecosystem, progressive policies, investor-friendly environment, and a skilled, industry-ready workforce.
In 2024, the country attracted RM2.13bn in investments into the medical devices and pharmaceutical sectors, creating more than 2,700 high-value jobs across manufacturing, R&D and regulatory services. Today, eight of the world’s top 30 medical device companies operate in Malaysia.
"We are home to over 300 healthcare companies – comprising both MNCs and domestic players. Our MNC partners lead in producing advanced products, from anaesthesia disposables to digital health technologies.
"This is no accident – it is the result of a well-developed manufacturing ecosystem, supported by, for example, strong E&E suppliers; the region’s largest medtech talent pool; as well as our homegrown medical devices’ champions," the minister commented.
He added that pharmaceutical exports alone saw a 7.8% increase from January to May 2025, supported by these reforms.
Elevating ASEAN’s healthcare and economic future
All that was shared above, Minister Zafrul said, were reasons why Malaysia wanted to host the International Healthcare Week (IHW), citing it as a strategic platform that brings together global thought leaders, innovators, policymakers, and investors to shape the future of the region’s healthcare.
In closing, he urged stakeholders to use IHW 2025 as a springboard for innovation and collective action.
"I feel that IHW 2025 represents more than an exhibition – it is a call to action for us to strengthen collaboration, accelerate innovation and ensure that our healthcare systems remain inclusive, sustainable and future-ready."
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