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Healthcare Sector
The Malaysian healthcare sector is currently defined by a rapid digital transformation and the urgent necessity of addressing the rising burden of Non-Communicable Diseases (NCDs) and the increasing demand for specialized care driven by an ageing population. Post-pandemic strategies, supported by government initiatives such as the Health White Paper, focus on integrating Electronic Medical Records (EMR) and leveraging telemedicine and AI to enhance efficiency and patient experience. Concurrent with these domestic pressures, the nation is successfully strengthening medical tourism by offering affordable, high-quality care, which drives investment and growth in specialized areas like pharmaceuticals, medical devices, and aged healthcare.
A cornerstone of Malaysia’s healthcare achievements is the public-private partnerships (PPPs) model, which has facilitated successes across the industry’s various segments. This collaborative approach has played a pivotal role in shaping the positive trajectory of the sector.
The Malaysian healthcare landscape comprises urban-focused private providers and a pivotal public sector catering to the majority of healthcare needs. PPPs have effectively addressed challenges in the recent years. Private hospitals are playing a crucial role in reinvigorating medical tourism in Malaysia, attracting international patients seeking affordable, high-quality healthcare. Anticipated by Straits Research, the global medical tourism market size was valued at USD100.92 billion in 2024 and is projected to reach from USD122.73 billion in 2024 to USD654.97 billion by 2033, growing at a CAGR of 23.10% during the forecast.
The nation’s appeal stems from reliable, safe, and affordable care. Encouraging investments in pharmaceuticals, traditional & complementary medicine (TCM), medical devices, aged healthcare and digital healthcare is a priority, aligning with efforts to enhance efficiency and patient experience.
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Foreign equity for private healthcare facilities is subject to the approval by the Ministry of Health’s Special Committee on Foreign Equity Participation.
MIDA will continue to encourage investment in private healthcare facilities and undertake policy advocacy with relevant stakeholders including Malaysia Healthcare Tourism Council (MHTC), Ministry of Health (MOH), Malaysia Productivity Corporation (MPC) and Ministry of Finance (MOF) while supporting various healthcare investment promotions.
The income tax exemption incentives for private healthcare facilities – private hospitals or private ambulatory care centres under the Income Tax Act, 1967 expired on 1 January 2023.
Nevertheless, the Government offers the following incentives:
(i) Double Deduction on Quality Accreditation
Private hospital, private ambulatory care centre and private dental which are registered as the member of Malaysia Healthcare Travel Council (MHTC) is entitled to enjoy the double deduction incentive on the expenditures incurred for the purpose of obtaining quality accreditation from the accreditation bodies such as Joint Commission International Accreditation (JCIA), Malaysian Society for Quality in Health (MSQH). CHKS Accreditation Unit (CHKS), The Australian Council on Health Care Standards (ACHS) and Accreditation Canada.
(ii) Automation Capital Allowance
The Automation Capital Allowance (Automation CA) incentive of 200% on the first RM10 million expenditures incurred for the year of assessment 2023 until the year of assessment 2027. The scope of automation includes adaptation of Industry 4.0 elements. The main objectives of the Automation CA incentive are:-
A. Medical professionals intending to work in private healthcare are subject to the following;
The license to operate will only be awarded to qualified Malaysian medical practitioner
Foreign practitioners who wish to practice in Malaysia are required to obtain the necessary approval from the Malaysian Medical Council (MMC) (for full registration certificate / annual practising certificate / temporary practising certificate) and National Specialist Register (NSR) (for specialist credentialing)
MMC recognised medical graduates with Bachelor Degree qualification from 384 medical institutions from the 35 countries as listed in schedule 2 of the Medical Act 1971
B. Healthcare facility which is approved a tax incentive will be required to;
Register with the Malaysia Healthcare Travel Council (MHTC) after obtaining accreditation of its medical centre
Obtain the necessary healthcare licenses from the Ministry of Health
Serve at least 10% of foreign patients from total patients yearly within the incentive period; and to generate at least 10% income from foreign patient treatment yearly within the incentive period
