KUALA LUMPUR, 4 July 2016: Medical tourism to Malaysia is expected to increase according to a report released, last week, by Malaysia’s M&E Research.
The report identified KPJ Healthcare Bhd (KPJ Healthcare) as a leader in the expansion claiming it has leveraged medical tourism to improve its healthcare revenue.
Local media reported, earlier, that KPJ was planning to build three new hospitals in Malaysia due to open over the next two to three years.
The government intends to promote three healthcare hubs in Penang, Melaka and Johor Bahru as part of the 11th Malaysia Development Plan.
The initiative, M&A Research believes, will attract more medical tourist to visit private hospitals in Malaysia.
The average bill spent by medical tourists was 20% higher than the average local healthcare spend. Medical tourists probably represent less than 5% of the country’s total private hospital revenue.
M&E noted that the higher spend by medical tourists could be attributed to them under taking more value added services such as complete body check-up and other health screening.
Medical tourism is likely to grow due to a weakening ringgit and the price ceiling on consultation fees in Malaysia.
The research firm noted that demand for healthcare services will expand in the future with an estimated population growth of 1.5% in Malaysia.