Although the operating environment for foreign companies remains challenging - with medical devices specialist B Braun Medical Industries mulling the relocation of its manufacturing facilities from Malaysia to Indonesia - clinical trials and biotechnology continue to be considered areas of growth. Indian Veeda Clinical Research recently created its South East Asia office in Malaysia, while also signing a collaborative agreement with the Malaysian Ministry of Health, with a view to opening an early clinical trials centre. Similarly, a subsidiary of US biotechnology firm Actis Biologics was in the process of securing funds for the creation of a biotech park (to be named Biocity) in Melaka, Malaysia.

In terms of recent epidemiological developments, the burden of digestive system disorders - including peptic ulcers, irritable bowel syndrome (IBS) and colon cancer - in the country is growing. In fact, in 2007, they were the seventh-most common causes of both morbidity and mortality, indicating a significant unmet medical need. Recently, the country has also been affected by the globally-spreading swine flu epidemic. By early August 2009, the human death toll rose to 44, with the Ministry of Health commencing a public education campaign on the spread of the A (H1N1) virus. The current stock of antivirals is expected to be supplemented by an additional MYR20m (US$6mn) worth of medicines, while all healthcare institutions have also been ordered to utilise rapid influenza screening tests.

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