The Malaysian healthcare tourism is expected to generate revenue of RM330 Million on account of increasing number of foreign patients and government support.
According to the 2009/2010 Economic Report, the Malaysian medical tourism industry is expected to generate revenue of around RM330 Million on the back of substantial increase in the number of foreign patients to 430,000 in 2009, as reported by
Bernama.
The report also revealed that the flow of foreign patients had scaled up by almost 10 folds over the last ten years from a meager 39,114 in 1998 to 374,063 in 2008, taking revenue to RM299.1 Million from RM14.1 Million during the same period.
The industry has projected foreign exchange of nearly RM2 Billion for the period spanning from 2006 to 2010 and believes that the bulk of foreign patients would come from India, Japan, Indonesia and Europe.
The Malaysian medial tourism sector is well supported by the government, which sees it as a cash cow of foreign exchange. Under the second stimulus package, RM200 Million have been kept separately for the development of infrastructure at tourist spots and to diversify tourism products. Emphasis has also been given on promoting healthcare services.
In the present scenario, when the patients in Europe and the US are reeling under intense pressure of skyrocketing cost of treatment, Malaysia’s healthcare services have come as a big relief. The cost of treatment in Malaysia is 14 times cheaper in comparison to the US and a whopping 45% lower than the neighboring Singapore, says a leading market research firm
RNCOS in its report “
Malaysia Medical Tourism Outlook 2012”.
The government would enhance tax incentives to medical service providers so that they could attract more and more health tourists to the country. Income tax exemption of 50% on the value of exports will be hiked to 100%. This incentive is likely to empower healthcare service providers to give high quality treatment, continuously raise their standards and promote massively in overseas markets.
According to a Research Analyst at
RNCOS, “Although the medial tourism industry is growing at a rapid pace, there are a number of roadblocks that need to be overcome so that patients’ confidence remains high. One of the biggest risks for foreign patients undertaking treatment in a country like Malaysia is lack of follow-ups, post-operative care and inadequate laws to protect them from malpractice. The sector could prove even more profitable if it shows more commitment to improvement and excellence of healthcare standards, properly trained supporting staff and well-tested amenities.”
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