08-05-2025
Upping Malaysia's medical tourism game
Medical tourism is big business in this region.
The industry has experienced significant growth in the past few decades, and thanks to advancements in transportation, communication and medical technology, medical tourism is now more accessible to a broader range of people.
To remain competitive, countries have to invest in the development of their healthcare infrastructure, marketing strategies and workforce.
DKSH Healthcare recently published a White Paper titled South-East Asia as a Growth Accelerator for Global Healthcare Firms that delves into the current state of healthcare in South-East Asia.
Among the findings: Vietnam is making a push to become a medical tourism hub and is collaborating with more than 50 establishments, including hospitals, spas and accommodation providers, to promote and market the sector.
Indonesia is making the island of Batam a special economic zone to ease medical tourism processes and attract more international patients.
Thailand heads the list for cosmetic procedures and preventive wellness programmes, especially sought after by the wealthy. Additionally, Thailand has started specialising in in vitro fertilisation (IVF) treatments, which has attracted many patients from mainland China, due to the latter country's restrictions on IVF.
Singapore is an emerging market when it comes to innovative longevity clinics. Despite its higher costs compared to neighbouring countries, this island nation lures patients with its reputation for safety, cleanliness and cutting-edge medical facilities.
Medical tourists are returning to this region post-Covid-19, but with many more chronic illnesses and much sicker.
A Muslim-friendly destination
Each country in South-East Asia is focusing on its own niche areas, like how Thailand leads the region when it comes to cosmetic surgery and wellness programmes. — 123rf
In most, if not all, South-East Asian countries, the paper also found numerous challenges facing patient access to life-saving technologies.
This includes a shortage of healthcare professionals, inadequate health insurance, a shortage of hospital beds (including key medical equipment), underdeveloped health information technology systems, and of course, gaps in areas such as regulatory regimes.
Locally, our public sector has been proactive in promoting medical tourism with agencies such as the Malaysia Healthcare Travel Council (MHTC) established for the sole purpose of managing medical tourism.
But where does Malaysia stand in this industry, aside from providing affordable and quality treatment?
'Malaysia has positioned itself as a Muslim-friendly medical tourism hub and this has made it the default choice for medical tourists from Islamic regions such as the Middle East, neighbouring Indonesia and countries beyond this reach, as seen in their recent outreach efforts in West African countries.
'These tourists come for a variety of treatments, including oncology, cardiology, neurology and more.
'These treatments are aligned with Malaysia's establishing of the first halal pharmaceutical standard guidelines, which makes the nation even more attractive to Muslim medical tourists,' says DKSH Healthcare's business unit global head Bijay Singh.
We've made significant inroads, especially in areas like cardiology – in 2020, the National Heart Institute (better known by its Bahasa Melayu acronym IJN) was recognised as the first hospital outside the United States to perform an implant of the world's smallest pacemaker.
IJN has also won the Cardiology Service Provider of the Year in Asia-Pacific – an award given by the Global Health and Travel Awards – for the past nine years.
Tough competition
Malaysia's main competitors are our three closest neighbours: Singapore, Indonesia and Thailand.
'While there is rising competition from other players in South-East Asia, the other nations target distinctly different demographics.
'Singapore skews towards affluent individuals, or those requiring complex surgeries that need specialised staff or equipment.
'Markets such as Thailand and Vietnam actively target East Asian demographics, while also promoting beauty and wellness.
'However, there are still some overlaps, such as in the areas of cosmetic surgery, dental, cardiology and orthopaedics, as well as women's health.
'So, it is vital for Malaysia to stay competitive both in terms of healthcare affordability and offerings,' Bijay says.
Certain procedures in Malaysia (e.g. coronary bypass) are around 40-70% cheaper compared to our competitors.
When it comes to profiling medical tourists, Bijay says there is no typical standardised type, due to the variety of factors in play.
'This would be built on their sought-after healthcare treatment and socioeconomic background.
'Medical tourists with differing backgrounds will have equally differing preferences when it comes to their country of choice.
'Malaysia is attractive to the Muslim majority countries due to common-ground understanding of religious sensitivities.
'Successful medical tourism players in the region have reached great heights due to a combination of factors from government action to specialising in unique or niche medical treatments,' he notes.
For example, Thailand built its foundation on cosmetic surgeries and wellness initiatives like weight-loss and fitness retreats.
Furthermore, there has been an integration of healthcare and hospitality, bringing more overall value to patients from an end-to-end perspective.
This has extended to how some areas in medical tourism are marketed, with the holiday aspect of the experience emphasised as much as the medical treatment.
Increasing revenue
IJN is the first hospital outside the US to perform an implant of the world's smallest pacemaker, marking Malaysia's accomplishments in the field of cardiology. — Filepic
In 2024, Malaysia's healthcare travel industry recorded 584,468 medical tourist arrivals in the first half of the year, with Indonesia as the highest contributor.
According to investment research company BIMB Research, there is a growing demand in Malaysia for elective surgeries.
They note that improved adoption of healthcare digitalisation will help spur this sector's growth.
Malaysia's medical tourism revenue is expected to double this year.
However, BIMB Research believes that the sector faces risks of higher-than-expected raw material costs, which could impact earnings for pharmaceutical and nutraceutical players, as well as unfavourable regulations related to the implementation of the diagnosis-related group (DRG) payment system.
The DRG payment system is a method whereby hospitals receive a fixed payment for each patient case, based on the patient's diagnosis and the care provided, rather than being reimbursed for the actual cost of treatment.
To stay competitive and secure its place among its peers, Bijay says Malaysia has to focus on striking a balance while maintaining market leadership in the Muslim patient ecosystem.
'Malaysia should continue to focus on the Muslim tourist demographic, especially considering the specialised needs that must be met for these tourists.
'This covers halal requirements for both food and for medications.
'A notable example of this would be some types of insulin, which are not permitted amongst Muslims due to them being porcine-based,' he says, adding that Malaysia's advantage is that we acquire and provide essential medications that are halal.
