ส.อ.ท. ชงภาครัฐ สนับสนุนอุตฯ เครื่องมือแพทย์ รองรับการเปลี่ยนผ่านอุตฯ ชิ้นส่วนยานยนต์ไทยFTI Proposes Government Support for Medical Device Industry to Facilitate Transition of Thai Automotive Parts Industry

On June 27, 2024, the Federation of Thai Industries (FTI), through the Cluster of FTI Future Mobility-ONE (CFM-ONE), organized a seminar titled “Driving the Medical Device Industry to Support the Transition of the Automotive Parts Industry (Part Transformation)” to facilitate the exchange of experiences and knowledge among industry groups regarding the possibilities of transforming the automotive parts business towards a new target industry (New S-Curve) at the Rattanakosin Room (1st Floor) of The Sukosol Hotel.

Mr. Isaret Rattandilok Na Phuket, Vice President of the Federation of Thai Industries (FTI) stated that FTI, under the ONE FTI policy, has a framework for driving the Thai industry from traditional industries (First Industries), which include 46 industry groups, 11 clusters, and 76 provincial industry councils, to new industries (Next-Gen Industries), with modern automotive manufacturing being one of the S-Curve industries. Therefore, FTI has established the Cluster of FTI Future Mobility-ONE (CFM-ONE) to foster collaboration among over 14 industry groups related to the modern automotive supply chain, combined with Thailand being in a transition period towards electric vehicles and other alternative energy sources, which is expected to require the automotive parts industry and its supply chain to adapt. Part of this transformation can be redirected towards the medical device industry. Importantly, beyond the need for businesses to find ways to shift, the government must play a significant role in supporting this transition, including driving the medical device industry in all dimensions, such as supporting manufacturing, developing standards, conducting research and innovation, promoting the use of medical device products domestically, and facilitating business operations, which will be a critical pathway for industrial development alongside supporting other industries and enhancing competitiveness in the Thai industry.

Ms. Yupin Boonsirichan, Chair of the Cluster of FTI Future Mobility-ONE and President of the Automotive Industry Group of the Federation of Thai Industries (FTI), stated that given the context of the Thai automotive industry facing challenges from climate change, technological disruption, and the implementation of clear measures stating that from 2030 there will be a reduction in sales of internal combustion engine vehicles, particularly in Europe and the United States, Thailand must prepare and adapt to the upcoming changes. Thus, the Cluster of FTI Future Mobility-ONE aims to drive the automotive and parts industry under the concept of “Strong global production hub with industry transformation,” with proposals such as maintaining and enhancing the competitiveness of the automotive and parts production base in the global market, creating a modern automotive and parts industry ready for carbon neutrality, and importantly pushing for the transformation of Thai automotive parts towards modern industries (Parts Transformation), such as rail systems or medical devices. The automotive parts manufacturers have sufficient potential to adapt or create new business opportunities, diversifying from solely producing parts for automotive manufacturers to expanding into producing medical parts or products, as Thai automotive parts manufacturers possess production capabilities that meet standards, quality, and competitive costs.

Mr. Supach Sukpisan, Secretary-General of the Cluster of FTI Future Mobility-ONE and President of the Automotive Parts and Components Industry Group of the Federation of Thai Industries (FTI) stated that the Thai automotive parts industry needs support during this transition regarding cost, skills, and technology to sustain business and employment while advancing production levels and developing products to meet the future automotive industry's needs. In certain sectors that cannot continue in the automotive industry, they can still evolve towards other target industries, such as rail systems or medical devices, which are closely related to automotive parts production. Currently, automotive parts manufacturers are increasingly diversifying their business, such as entering into the medical device industry by producing products with manageable medical risks. The government should play an important role in promoting this transformation by establishing local procurement ratios or implementing policies to encourage purchases or production to allow parts manufacturers to enter the supply chains of other industries in public or private procurement.

Mr. Jarudech Khunadilok, Vice President of the Cluster of FTI Future Mobility-ONE and President of the Medical Device Manufacturing Industry Group of the Federation of Thai Industries (FTI) expressed that, on behalf of the medical device industry, we are pleased to collaborate with automotive parts and components groups in developing feasible medical device products for production or modification from automotive parts. This involves seeking additional support for research and innovation from relevant government agencies to promote the supply chain for medical device production.

Currently, the medical device industry faces several limitations, such as knowledge regarding medical standards, production technology, and the complex processes of innovating medical devices for market introduction. The low import tariffs on ready-made medical devices hinder the competitiveness of domestically produced medical products that rely on imported raw materials. Moreover, there is a lack of supportive policies for hospitals to use medical products developed through domestic research and development, and the varied standards and regulations for medical devices from the government differ across the layers of medical products classified according to their risk levels in usage.
 

“The government must provide tangible support to the domestic medical device industry by expediting consideration of the action plan for the development of the medical device industry to promote the use of medical devices manufactured by Thais first, starting with the revision of public procurement regulations, supporting tax measures for private healthcare facilities to facilitate the use of domestically produced medical devices, building confidence in the usage of domestically produced medical devices through a certification process with the Food and Drug Administration (FDA), providing data on high-budget public healthcare devices for marketers and researchers, especially among medical schools and government research units, pushing medical device innovations into commercial avenues, and expanding production to mass production with the required laboratories ready for testing medical devices produced domestically according to international standards such as ISO 17025 or IEC 60601 at reasonable costs with prompt procedures, as well as exempting import tariffs on raw materials or parts necessary for medical device production to upgrade and enhance the capabilities of Thai medical device manufacturers,” Mr. Jarudech added.

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Released by the Corporate Communications Department, Federation of Thai Industries (Tel: 0-2345-1013)

Prepared by the Industry Promotion and Support Department, Federation of Thai Industries (Tel: 0-2345-1170)