Related Sectors
Healthcare Sector
The Malaysian healthcare industry has progressed tremendously over the past decade. Strong economic growth and urbanization have contributed to the building of a comprehensive network of hospitals and clinics. Between 2004 and 2008, the total number of government and private hospitals, nursing and maternity homes increased at an average annual rate of 2.7% per annum. As such, 88.5 per cent of the population currently lives within three miles of a public or private health clinic.
The Malaysian government will also be intensifying public sector expenditure in the healthcare industry to further develop its infrastructure. This move incorporates initiatives to enhance collaboration between public and private healthcare providers. Incentives include tax exemptions equivalent to 100% of qualifying capital expenditure incurred for a period of five years for the construction of new hospitals or for expansion, modernization or refurbishment of existing hospitals from 2010 to 2014.
Private medical centres in Malaysia are approved and licensed by the Ministry of Health. Most private medical centres have achieved certification for internationally recognised quality standards such as MS ISO 9002 or accreditation by the Malaysian Society for Quality of Health (MSQH).
Healthcare Tourism
Malaysia is growing as a prime player and preferred destination for medical tourism. Several factors such as low cost of treatment, sophisticated medical equipment and facilities, specialised hospitals, highly qualified physicians and specialists contributes to this growth.
According to the Association of Private Hospitals of Malaysia, the number of foreign patients treated in Malaysia has seen 30% year-on-year growth from 2003 to 2009. This growth rate has been projected for the year 2010.
To promote Malaysia as a medical tourism hub, the Malaysian Government offers tax incentives that include:
- 100% income tax exemption on revenues from foreign patients.
- Allowing foreign patients entering Malaysia for medical treatment on emergency via 'Visa on Arrival' to convert their status to social visit pass upon recommendation from the respective hospitals.
Malaysia's healthcare industry is set to expand as a gateway for the Asia Pacific healthcare market as it positions itself to both foreign and local healthcare players. The industry's growth is projected to be driven by this region's large and flourishing middle-income population, supportive government policies, and the Malaysian government's proactive stance in promoting foreign direct investment within the industry.
Iskandar Malaysia, a Special Economic Zone located in the southern tip of Malaysia, provides an attractive model of attracting foreign direct investment into the private healthcare sector:
- Exemptions from income and withholding tax for 10 years from the commencement of operations (before end 2015);
- Unrestricted employment of foreign knowledge workers.
Cost Comparison of Selected Medical Procedures (US$)
| Procedure |
US |
India |
Thailand |
Singapore |
Malaysia |
| Heart bypass |
130,000+ |
10,000 |
11,000 |
18,500 |
9,000 |
| Heart valve replacement |
160,000 |
9,000 |
10,000 |
12,500 |
9,000 |
| Angioplasty |
57,000 |
11,000 |
13,000 |
13,000 |
11,000 |
| Hip replacement |
43,000 |
9,000 |
12,000 |
12,000 |
10,000 |
| Hysterectomy |
20,000 |
3,000 |
4,500 |
6,000 |
3,000 |
| Knee replacement |
40,000 |
8,500 |
10,000 |
13,000 |
8,000 |
| Spinal fusion |
62,000 |
5,5000 |
7,000 |
9,000 |
6,000 |
Source: Patients Beyond Borders © 2008 by Josef Woodman
Key Private Healthcare Groups in Malaysia
|
