Johor’s Healthcare & Life Sciences Investment Boom (2022–2025)

Over the past three years, the southern Malaysian state of Johor has emerged as a vibrant hub for pharmaceuticals, biopharmaceuticals, life sciences, healthcare infrastructure, and packaging industries. Strategic investments between 2022 and 2025 are transforming Johor into a regional centre for drug manufacturing, medical device production, hospital services, and specialised packaging. Backed by government support and Johor’s advantageous location next to Singapore, these projects are creating jobs, boosting economic growth, and positioning the state as a key player in Asia’s healthcare supply chain. This special report chronicles the most notable investments in Johor’s healthcare and life science sectors – highlighting the companies involved, investment values, project nature, job creation, incentives, and strategic importance of each venture.

Pharmaceutical Sector Investments in Johor

Johor has attracted significant investments in pharmaceutical manufacturing and support industries. Multinational firms are establishing production facilities for drug components and supplies, reflecting confidence in Johor’s infrastructure and talent pool:

Colorcon’s Film Coating Plant (2023) – US-based Colorcon Inc., a global leader in pharmaceutical film coatings, committed RM230 million (≈US$50 million) to build its first Southeast Asian manufacturing facility in Johor. Construction began in August 2023 at the i-TechValley industrial park in Iskandar Puteri, with completion expected by July 2025. The 90,000 sq ft plant (Colorcon’s eighth worldwide) will produce advanced film coating products used by pharmaceutical and nutraceutical manufacturers across the Asia-Pacific region. This investment brings 50 skilled jobs in 2025 and positions Johor as a regional supply hub for drug coatings, reducing reliance on imports and improving supply chain resilience. Johor’s state officials welcomed Colorcon’s move – the facility is expected to attract more pharma-related companies to Johor and reflects the state’s appeal as a base for high-value pharmaceutical technology. (No direct government subsidy was announced, but the choice of i-TechValley – a specialised industrial zone – indicates strong local facilitation and incentives for investors.)

Biocon Biologics Expansion (2023) – In biopharmaceuticals, Biocon Sdn. Bhd. (part of India’s Biocon Ltd) undertook a major expansion of its insulin manufacturing operations at the Bio-XCell biotech hub in Johor. Biocon’s Johor facility – already Asia’s largest integrated insulin production site – received an additional US$250 million (≈RM1.1 billion) investment in 2023 to construct a second phase and double its capacity. This builds on Biocon’s initial US$350 million investment to establish the plant (opened 2016), which remains Malaysia’s largest-ever biotech FDI. The expansion enables greater output of recombinant human insulin and insulin analogues to meet growing global and local demand. Johor’s government partnered closely with Biocon – the company works with Malaysia’s Health Ministry to supply affordable insulin domestically, helping cut dependence on imports. With the added RM1.1 billion boost, Johor is being hailed as “Asia’s insulin hub”, underscoring the state’s strategic importance in biopharma manufacturing. The facility (562,000 sq ft) is approved by stringent regulators (US FDA, EMA, etc.), and its growth cements Johor’s status in the global pharmaceutical supply chain. Government support came via regulatory facilitation and recognition (e.g. Malaysia’s BioNexus incentives earlier); in 2023 the project was highlighted by officials as a key pillar in Johor’s biotech ambitions.

Table 1: Major Pharmaceutical & Biopharmaceutical Investments in Johor (2022–2025)

Life Sciences & Medical Technology Investments

Johor’s appeal extends to life sciences and medical device companies, which have invested heavily in new manufacturing facilities to serve global markets:

Insulet Corporation’s Omnipod Factory (2024) – U.S.-based Insulet, maker of the Omnipod tubeless insulin pump, opened a state-of-the-art production facility in Johor Bahru in 2024 as the anchor of a US$200 million investment plan. The new plant spans 400,000 sq ft – twice the size of Insulet’s main U.S. factory – and sits on a 13-acre site in the Southern Industrial and Logistics Clusters (SILC) zone. At launch, it employed 350+ Malaysians, with Insulet planning to grow the workforce beyond 1,000 within a few years. The facility features green technology (5,700 solar panels, rainwater harvesting) and produces Omnipod insulin delivery devices for patients worldwide. Insulet’s CEO lauded Johor as a “thriving region with great talent,” saying the Malaysia plant strategically positions the company to meet booming demand for Omnipod globally. The Johor factory will supply the U.S. and at least 26 other countries initially, and Insulet is considering future distribution to Asian markets from Johor. Government facilitation was evident: the U.S. Ambassador officiated the opening and Johor’s Investment Committee Chairman attended, reflecting strong support. Johor’s skilled workforce and proximity to Singapore likely earned Insulet various incentives (e.g. tax breaks via MIDA) to establish this regional hub.

Building a Medtech Cluster – Insulet’s entry complements Johor’s growing medtech ecosystem. The state has seen other life science investments such as HQ Pack, a Netherlands-based high-tech packaging firm that expanded its Johor operations in 2022–2023 to serve medical technology clients. HQ Pack constructed a sixth Johor facility (100,000 sq ft with ISO class 6–5 cleanrooms) to produce specialised packaging for medical instruments and other high-value products, doubling its local workforce to over 400. Johor officials note that such investments have a positive multiplier effect on job creation and upskilling in the state. With multinational medtech and biotech companies clustering in industrial parks, Johor is reinforcing its reputation as an emerging life sciences hub in Southeast Asia.

Table 2: Notable Life Sciences & Medtech Manufacturing Investments

Healthcare Services & Infrastructure Expansions

Investment in healthcare services and infrastructure has also accelerated, with both government and private sector projects to expand hospital capacity and healthcare access in Johor:

• Pasir Gudang Hospital (Public, 2022–2025) – The Malaysian government funded a new general hospital in the industrial city of Pasir Gudang, Johor, to alleviate overcrowding at existing hospitals in Johor Bahru. Construction of this 304-bed hospital (with 14 specialist departments) began in the early 2020s and was completed by late 2024. Built at a cost of over RM380 million, Pasir Gudang Hospital was in the final stages of equipment installation and commissioning as of March 2025, with operations slated to begin by mid-2025. The facility has already created nearly 1,850 healthcare jobs (positions approved for doctors, nurses and staff), providing a major employment boost. Johor officials highlight that this investment will greatly expand healthcare capacity in the region, reducing patient congestion at Johor Bahru’s existing Sultanah Aminah (HSA) and Sultan Ismail hospitals. Pasir Gudang Hospital’s opening is strategically important for Eastern Johor, bringing advanced care (including operating theatres and ICUs) closer to fast-growing industrial communities.
• Hospital Sultanah Aminah 2 – HSA2 (Public-Private, announced 2023) – To further bolster tertiary care, the Federal Budget 2024 included Johor’s long-awaited “Hospital Sultanah Aminah 2” project. Initially proposed as a 350-bed facility, HSA 2 has since been scaled up into a massive 1,500-bed medical complex planned in Kempas, Johor Bahru. In late 2024, Johor’s state government announced that HSA2 will be delivered via a Public-Private Partnership (PPP) model to accelerate its development. The hospital will be built on a 28.3-hectare site (land contributed by the Defence Ministry) and is set to become the largest hospital in the state upon completion. Construction is expected to start in 2026 after design and stakeholder discussions in 2025. The PPP approach, under Malaysia’s PIKAS 2030 framework, should mobilise private investment alongside government funding to fast-track the project. HSA2’s strategic importance is clear: it will dramatically increase Johor’s public healthcare capacity and capabilities (serving a metro population of ~2 million), while its PPP structure may bring international hospital operators or financiers into Johor’s healthcare sector. State leaders have been lobbying for HSA2 as a top priority to meet rising healthcare demand, seeing it as crucial infrastructure for Johor’s future.
• Private Hospital Developments – Private healthcare groups are also investing in Johor. Notably, Sunway Healthcare Group has plans for a 300-bed Sunway Medical Centre in Iskandar Puteri (Johor) as part of its expansion nationwide. The Sunway Iskandar hospital project – in partnership with Khazanah Nasional within a new township – was initially slated to start by 2020, though it has been rescheduled. By 2023, it remained in planning, but Sunway reaffirmed Johor as a key location for one of its seven new hospitals by 2030. Once underway, this private investment (likely several hundred million ringgit) will add tertiary care capacity focusing on high-end medical services for both locals and medical tourists. Johor is already home to several KPJ Healthcare specialist hospitals (under Johor’s own Johor Corporation), which have seen expansions in recent years (for example, KPJ Puteri and KPJ Johor Specialist upgrading facilities). The growing medical tourism in Johor – buoyed by its proximity to Singapore and Indonesia – is spurring these private sector investments. Industry analysts note Johor’s private hospitals have rebounded strongly post-pandemic, and new entrants like Sunway will further establish Johor as a regional medical services hub in the coming years.

Table 3: Key Healthcare Infrastructure Projects in Johor (2022–2025)

Pharmaceutical, Medical & Healthcare Packaging Investments

A noteworthy trend is the investment in pharmaceutical and medical packaging facilities in Johor. These projects support the pharma and medtech supply chain by producing essential packaging materials locally:

Oliver Healthcare Packaging Plant (2023–2025) – Oliver Healthcare Packaging, a U.S.-headquartered specialist in sterile medical packaging, chose Johor for its largest Asia-Pacific manufacturing site. In February 2023, Oliver broke ground on a 4.2-acre plot in i-TechValley (Iskandar Puteri) to build its first Malaysian plant. Fast-tracked with support from developer AME and MIDA Johor, the facility officially opened in May 2025. The new 120,000 sq ft, ISO-7/8 cleanroom facility produces high-quality medical-grade sterile barrier packaging – such as pouches, die-cut lids, and rollstock – used for medical devices, diagnostics, and pharmaceutical products. It is Oliver’s ninth global plant, expanding the firm’s capacity to serve Asia’s booming healthcare market. CEO Michael Benevento noted that Johor’s site “enhances regional sourcing” and addresses supply gaps in Asia-Pacific. The plant’s design prioritises sustainability (energy-efficient LED, rainwater harvesting) and meets stringent ISO 13485 standards. While Oliver did not disclose the investment sum, the project was facilitated as a catalytic investment in the new Johor-Singapore Special Economic Zone. Johor’s state investment agency and MIDA provided a one-stop support, reflecting government involvement to attract Oliver. The result is a strategic regional packaging hub in Johor, boosting local expertise in medical packaging and shortening lead times for APAC customers.

Strategic Importance of Packaging Cluster – Oliver’s arrival has put Johor on the map in the niche of pharma/medical packaging. The Iskandar i-TechValley park is positioning itself as a “medical and healthcare hub”, having now drawn Oliver and Colorcon as key tenants. These investments are interrelated: for instance, a local supply of sterile packaging from Oliver complements the needs of companies like Insulet (for device packaging) and regional pharma manufacturers. The Johor government views the growing cluster as part of a high-value ecosystem. By hosting packaging producers, Johor captures more of the value chain (from drug production to packaging), making it an attractive one-stop location for healthcare manufacturing. Another example is HQ Pack’s expansion (detailed earlier), which also contributes to the packaging ecosystem, albeit serving a broader range of industries including medical. Collectively, investments in packaging create skilled jobs (Oliver’s plant employs technicians in cleanroom production, though exact headcount is undisclosed) and support knowledge transfer in areas like ISO-certified manufacturing. They also underscore Johor’s strategic aim to be a regional exporter of healthcare inputs: Oliver’s Johor output will supply not just Malaysia but customers across Asia, improving supply chain resilience for sterile packaging.

Table 4: Notable Pharma & Medical Packaging Investments in Johor

Driving Factors: Government Support and Strategic Location

Several common threads run through these investment stories. Johor’s government and federal agencies (MIDA, IRDA, Invest Johor) have played an active role in courting investors with facilitation centers, infrastructure upgrades, and incentives. The state’s inclusive, forward-thinking approach was credited for Johor’s record RM30.1 billion of approved investments in Q1 2025 across sectors. In particular, manufacturing projects in high-value industries – like pharmaceuticals and medical devices – benefit from Johor’s improving logistics (ports, highways) and initiatives such as the Johor Fast Lane for investor approvals. Several investments are situated in specialised zones (SILC, i-Park, i-TechValley) where investors receive ready-built infrastructure, tax incentives, and proximity to Singapore’s innovation ecosystem. The Johor-Singapore Special Economic Zone (JS-SEZ), announced in 2023, further underscores government support – Oliver’s packaging plant is one of the first major projects in this zone, highlighting its catalytic role.

Moreover, Johor offers a strategic geographic advantage. Its closeness to Singapore (a global biomedical hub) means companies can tap a binational talent pool and supply chain while enjoying Malaysia’s lower operating costs. For example, Insulet’s choice was likely influenced by Johor’s ability to supply skilled workers at competitive costs – indeed, all 350 of Insulet’s initial hires are local Johoreans, supported by training programs and talent partnerships with local institutions. Similarly, Colorcon and Oliver cited Johor’s regional connectivity as key to serving Asia-Pacific markets swiftly.

Johor’s rise in these sectors also aligns with national priorities. The Malaysian government’s 2022 Budget allocated RM32.4 billion to healthcare (including support for vaccines and medical supplies), creating a favourable climate for private investment. The Ministry of Health has concurrently invested in public hospitals (as seen with Pasir Gudang and HSA2) to ensure the healthcare infrastructure keeps pace with industrial growth. In tandem, Johor’s leaders have actively promoted the state as an upcoming “biotech valley” of Malaysia – a vision becoming reality through Biocon’s and others’ expansions.

Johor’s New Pillars of Growth in Healthcare

In just a few years, Johor has transitioned into a magnet for healthcare and life science investments, carving out a niche alongside its traditional manufacturing base. The period 2022–2025 saw Johor welcome global pharmaceutical firms, biopharma giants, medtech manufacturers, packaging specialists, and hospital projects – all contributing to a robust ecosystem. These investments brought in billions of ringgit, created thousands of jobs, and, critically, enhanced Malaysia’s self-sufficiency in healthcare products (from insulin to medical device supplies).

Johor’s success is underpinned by strategic location, proactive governance, and investor-friendly policies that together have bridged gaps in the regional healthcare supply chain. Companies like Biocon, Insulet, Colorcon, and Oliver now anchor key segments of that chain in Johor – making the state a one-stop hub where medicines can be developed, produced, packaged, and shipped globally, and where patients (local and international) can seek cutting-edge treatment in new hospitals. The economic impact is evident in Johor’s leading investment figures, but equally important is the knowledge transfer and ancillary growth spurred by these projects – local suppliers, contractors, and talent are benefiting from world-class practices and technologies.

As Johor continues its trajectory, the strategic importance of these investments cannot be overstated. For the companies, Johor serves as a gateway to the ASEAN market; for Malaysia, Johor’s rise in life sciences strengthens national resilience (e.g. domestic insulin production) and elevates the country’s profile in high-tech industries. The government’s role, whether through PPP hospital projects or industrial park incentives, has demonstrated a template for how public and private sectors can collaborate to achieve mutual goals.

Moving forward, Johor is poised to build on this momentum. Upcoming ventures – from the mega HSA2 hospital to prospective biotech and medtech investors reportedly in negotiations – promise to further enrich the landscape. Challenges such as talent retention (given competition from Singapore) are being addressed via local skill development councils. If current trends persist, Johor will likely evolve into one of Southeast Asia’s foremost healthcare manufacturing and services hubs, marrying economic growth with health advancements. In the words of Johor officials, the state “continues to advance as a new economic powerhouse in the region” – and the flourishing pharmaceutical, life science, and healthcare sectors are now among its proudest pillars.

(editor@biopharmaapac.com)