Innovation in disease diagnosis and disease management is rapid. You helped amend policies to export medical products like masks, PPE, shoe covers, etc, and are advocating to reduce medical device & equipment to be less import-driven.
- Can you describe your real-world experience as a woman working with the government in new policy development? Did the policy change make your investment opportunity easier?
Let me start by saying that Bangladesh has made significant socio-economic developments in recent years, with a decrease in mortality rates and an increase in average life expectancy. Although Bangladesh has been investing more and more in the Healthcare sector every year, it has yet to reach its full potential.
The sector has the potential to grow significantly through implementing reforms coupled with investment in technological innovation, public-private partnerships, and foreign direct investment through joint venture initiatives.
In briefing policymakers, for having a medical device industry in the country, I am proud to say that we have brought together major manufacturers under the banner of “Medical Equipment and Devices Manufacturers and Exporters of Bangladesh (MEDMEB)” to lead a change in the healthcare sector through advocacy and policy dialogue in areas of skilled workforce, price competitiveness, high cost of raw materials, research & development, attracting foreign direct investment, which is some of the key challenges for local manufacturers.
The national industrial policy did not include a medical equipment and devices manufacturing policy before. But now it does. As a result, the industry has taken a new turn as the government has established a milestone for it. This is the beginning of a new era and a good phase for the medical devices sector.
The journey was not comfortable. As a woman, the main challenge is to build networks, and it was no different for me. To grow your business, you need to work with the right people, and it is certainly tough to find the right person. Still, my passion for working in the industry helped me overcome these challenges, and I got help from many good friends while I worked in the healthcare industry.
Investors can invest in Bangladesh’s medical device, API, personalized, and biosimilar drugs manufacturing sector, as well as the elderly or old age-related healthcare service sector, which has huge prospects for investors.
- Are we ready for a new sector producing domestic medical devices? What kind of environment would attract investors to this sector?
As Bangladesh progresses towards LDC graduation by 2026, it may receive less Overseas Development Assistance (ODA). Additionally, low-cost loans that Bangladesh enjoys from bilateral and multilateral development partners may be substituted with more expensive capital as the shift from aid to trade occurs. Therefore, to bridge the gap, private sector investments must play a role.
Western countries spend 9-12% of their GDP on health, while the world average is 5.99%. But Bangladesh spends only 3.5% of its GDP on health, with government spending at 23%, followed by development partners at 7% and NGOs at 3%. Although the government’s financing of health care has increased, correlating to inflation, the relative share of allocation of funds as a percentage has steadily declined. Again, this would allow the private sector to fill in the gap.
There is a need for a better-structured policy regarding human resources in the health sector. Every year, 10,500 medical students enroll in 37 public and 72 private medical colleges. Every year, 3,500 students graduate from the government and 5,000 from private medical colleges, 209 medical assistant training schools, and 110 health technology institutes.
The number of government-sanctioned positions in the health sector is inadequate compared to the global standard. Twenty percent of posts remain vacant, mainly for remote placements. Currently, there are 5.26 doctors to 3.06 nurses for every 10,000 people. The World Health Organization recommends a ratio of 1:3:5 of doctors to nurses to technologists, but Bangladesh’s ratio is just the opposite: 5 doctors, three nurses, and one technologist.
Thus, the commitment of our government to achieve universal health coverage (UHC) by 2032 will need a coordinated effort, in terms of higher health spending, policy reform, optimum health human resource, and innovation in service delivery., and the private sector investment can play a crucial role in achieving the universal health coverage.
One problem with importing medical instruments is that their quality can rarely be checked, leaving importers dependent on assurances made on paper. For example, the instruments could not be used even once or malfunctioned soon. Getting imported machines back in operation could mean weeks of waiting, if not months. In addition, the imported medical equipment has been draining our foreign reserves. Supporting the expansion of local manufacturers can save vast amounts of foreign currency.
I am happy to say that our government has recently recognized the manufacturing of medical devices and equipment as an industry, particularly after the COVID pandemic exposed health sector shortcomings, such as the lack of lifesaving medical equipment. The evidence shows that the production of quality medical equipment is possible in Bangladesh. In addition, as the policy has already been developed, we hope that the government will immediately shed light on this sector for development.
So, we can summarize that, for the foreign investment, we need:
- Better policies. Better regulatory guidelines. Better technologists, testing facilities, and investment support for this particular sector are required.
If we can provide that, lots of foreign investment can be attracted without spending time.
- You have been in the health device/ supplies industry for a long time, and investment in health is considered to be the next big thing. Do you recommend more investment in health tech start-ups to make their services widely available?
The key challenge of Bangladesh’s healthcare sector remains the lack of investment. Public spending on healthcare has been increasing, but at a slower rate than the population’s growing demand for services. Meanwhile, there is a lack of private funding.
With the success achieved in the pharmaceutical sector, Bangladesh is now becoming an essential destination for global investors. It has now entered into the highly valued pharma products and local manufacturing of API, the pharmaceutical raw materials, with the estimated size of the pharmaceutical market being around US$3.0 billion. $1.0 billion have been invested in the pharma industry within the last five years for capacity expansion or upgradation as the sector is enjoying various policy support including favourable provisions in the National Drug policies, recognition as a thrust sector, and incentive on export, and Bangladeshi pharmaceutical companies are gradually drawing international attention for the cheapest but quality drugs.
Although Bangladesh has been prosperous in pharmaceuticals, it is significantly dependent on imported medical equipment and devices. Almost 90% of the required medical equipment and devices must be imported annually. For example, in fiscal year 21, Bangladesh imported medical equipment and devices worth Tk 7,000 crore.
There are more than 4,000 categories of medical devices, including 400 types of high-end devices and surgical items used by caregivers such as syringes, infusion sets, catheters, surgical masks, pulse oximeters, and glucometers. More than 2,600 medical devices are registered with the regulatory body.
Because of the lack of quality treatment, annually, thousands of Bangladeshis go abroad for medical treatment. India tops the list of medical tourism destinations, followed by other countries like Singapore, Thailand, Malaysia, and the UAE. According to the Bangladesh Bank, Bangladeshis spent $2.2 million in FY19. Around 700 thousand Bangladeshis travel overseas for medical care each year.
Surely, this is another drain on our foreign reserves, which can be mitigated. With appropriate investment in the quality of infrastructure of healthcare facilities, medical devices, and better-trained doctors and nurses, Bangladesh itself can surely become one of the hubs for health tourism in South Asia. It is good to know that several local companies, in collaboration with hospital chains, such as Apollo, Evercare, Green Hospital Supply of Japan, and Thonburi Healthcare Group of Thailand, have already begun the process to set up world-class healthcare facilities in Dhaka and Chattogram with Tk5,000 crore in investments. Such an initiative is very much needed and should be expanded through joint ventures.
In summary, it is high time that new healthcare startups were encouraged with funding, FDI, and even government policies. With that, we can undoubtedly turn the wheel of healthcare in the country.
Author
Mousumi Islam
Chairperson, PROMIXCO GROUP
Pioneering Healthcare Manufacturing in Bangladesh
✅ FAQs:
Q1: Why is the development of a domestic medical device industry important for Bangladesh?
A: Bangladesh currently imports nearly 90% of its medical devices and equipment, which strains foreign reserves and often leads to delays and quality issues. Developing a domestic industry ensures faster access, cost savings, quality assurance, and increased healthcare resilience — especially in times of crisis like the COVID-19 pandemic.
Q2: What role did policy reform play in creating opportunities for local medical device manufacturers?
A: Previously, Bangladesh’s National Industrial Policy did not include medical device and equipment manufacturing. After continuous advocacy from industry stakeholders like MEDMEB, it is now formally recognized. This reform has opened the door for local production, investment, and export opportunities, marking a major milestone for the sector.
Q3: What were some challenges faced while advocating for policy changes as a woman in the industry?
A: Building a network and finding the right collaborators in a male-dominated environment was initially challenging. However, determination, industry knowledge, and strong support from peers helped overcome these barriers and contributed to positive change in the healthcare landscape.
Q4: What environment is needed to attract foreign investment in medical devices and health tech in Bangladesh?
A: To attract FDI, Bangladesh must offer:
- Clear regulatory guidelines
- Better testing and certification facilities
- Skilled technologists and biomedical professionals
- Streamlined approval processes
- Incentives for joint ventures and export-oriented manufacturing
This will give confidence to investors and encourage long-term commitment.
Q5: How is Bangladesh’s health expenditure compared to other countries, and why is private sector investment critical?
A: Bangladesh spends only 3.5% of its GDP on healthcare, while developed nations spend 9–12%. As the country graduates from LDC status, overseas aid will decline, and private sector investment will be crucial to fill the funding gap for improving health infrastructure, equipment, and services.
Q6: Are we ready to produce high-end medical devices locally?
A: The success in producing items like PPE, masks, and syringes during COVID-19 has shown the country’s capability. With proper policy support, R&D investment, and skilled manpower development, Bangladesh can expand into high-end device manufacturing.
Q7: What types of healthcare sectors offer promising investment opportunities in Bangladesh?
A: Investors can explore opportunities in:
- Medical device manufacturing
- API and pharmaceutical raw materials
- Personalized and biosimilar drugs
- Elderly care and senior living services
- Health tech startups and telemedicine platforms
- Private hospitals and diagnostic centers
Q8: How can health tech startups help transform the healthcare sector in Bangladesh?
A: Health tech startups can expand service accessibility through telemedicine, digital diagnostics, e-pharmacy platforms, AI-driven health monitoring, and mobile healthcare services. With proper funding and policy support, they can bridge healthcare gaps in remote and underserved areas.
Q9: Why is there a need to reduce medical tourism from Bangladesh?
A: Every year, thousands of Bangladeshis travel abroad, spending billions on foreign medical treatment. With proper investment in infrastructure, medical device manufacturing, and trained professionals, Bangladesh can become a hub for medical tourism in South Asia, keeping healthcare spending within the country.
Q10: What’s next for the medical equipment industry in Bangladesh?
A: Now that policy recognition is in place, the next steps involve setting up testing labs, establishing export hubs, offering tax incentives, upskilling the workforce, and forming international joint ventures. The momentum has begun — and with continued support, Bangladesh can become a regional manufacturing powerhouse.