SINGAPORE, 1 March 2017: Malaysia’s medical tourism sector is booming, prompting fierce competition among its leading market players, according to the latest report by Transparency Market Research.
Describing Malaysia’s medical tourism market as mature, TMR says prominent enterprises are looking to offer dynamic changes in their services and products to keep reporting sustainable growth.
Despite the presence of a large number of companies, the medical tourism market in Malaysia still exhibits a high degree of consolidation, with the leading players holding the crux of the market, despite growing competition.
Some of the leading companies exhibiting a strong presence in the Malaysia medical tourism market are KPJ Healthcare Berhad, Prince Court Medical Centre, IJN Health Institute, Sunway Medical Centre, and Island Hospital.
These institutions are focusing on expanding their geographic footprint. Enhancing their foreign customer base has therefore become a key tactic for enterprises looking to establish a stronghold in Malaysia.
According to TMR, the medical tourism market in Malaysia is forecast to expand a whopping 30.05% between 2016 and 2024. At this incredible pace, the market will reach USD3.5 billion by the end of 2024, from a valuation of USD424.96 million in 2016.
Approximately 36.6% of medical tourists signed up for dental treatments in 2016, making it the leading segment. Besides this, the market also witnessed considerably high demand in aesthetics/cosmetic surgery procedures and health screening segments.
The relatively low cost of medical services, compared to the same offered in developed economies of North America and Europe is the chief factor luring foreign medical tourists to Malaysia.
Besides this, government activities to boost the sector will synergise the country’s medical tourism industry. “With the rising influx of medical tourists from the Middle East and North Africa as well as ASEAN neighbouring countries, the medical tourism market in Malaysia is poised to surge exponentially in the coming years,” said a lead TMR analyst.
The key growth drivers are excellent macro-economic factors such as the increasing government programmes promoting medical tourism, excellent transport facilities, and decent recuperation facilities.
For instance, to boost medical tourism, the Malaysian government offers tax incentives, especially on the revenue generated from foreign patients.
“In 2009, the government offered tax exemption of 50% on revenues earned from foreign patients, which was later increased to a whopping 100% by the end of 2010,” said a lead TMR analyst.
Moreover, medical tourism is considered as one of the 12 national key economic areas in Malaysia, which is a chief driver of the market.
On the downside, medical cost inflation was recorded in 2015 and a slight drop in the number of medical travellers could have an adverse influence on the market.
Besides this, the market is already witnessing challenges from low revenue generated per patient, soaring healthcare costs, and the mounting burden on Malaysia’s healthcare system. Nevertheless, Malaysia is positioned as a preferred destination for medical travellers, which has potentiated the country’s medical tourism market.
This review is based on a TMR PR, titled “Medical Tourism Market – Malaysia Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 to 2024.”
Browse Related Research Report:
Medical Tourism Market (India, Thailand, Singapore, Malaysia, Mexico, Brazil, Taiwan, Turkey, South Korea, Costa Rica, Poland, Dubai and Philippines) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 to 2019
(Source: PRNewswire TMR)