Healthcare Services - MIDA | Malaysian Investment Development Authority
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Healthcare Sector

The healthcare sector in Malaysia is projected to continue recovering in the medium term, benefiting from easing restrictions and drawing lessons from challenges faced over the last two years due to Covid-19 pandemic. UNICEF’s recommendations for enhancing primary healthcare and preparing for future pandemics involve creating a robust virus outbreak surveillance system, fostering public confidence in national health services, and strengthening vaccine logistics and supply. These strategies could lead to significant improvements.

A cornerstone of Malaysia’s healthcare achievements is the public-private partnership (PPP) model, which has facilitated successes across the industry’s various sectors. 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 many healthcare needs. PPPs have effectively addressed challenges, such as pandemic-related overcrowding issues and vaccine distribution. With reopening of borders, private hospitals are reinvigorating medical tourism. Anticipated by Straits Research, the global medical tourism market is set to grow by a substantial CAGR of 30% from 2022 to 2030, driven by higher patient demand for affordable healthcare choices with improved quality of services.

The nation’s appeal stems from reliable, safe, and affordable care. Encouraging investments in healthcare services for seniors, traditional and complementary medicine, and digital healthcare is a priority, aligning with efforts to enhance efficiency and improve patient experiences. Strengthening private healthcare institutions complements public healthcare, exemplified during the pandemic, and collaboration was key to a successful COVID-19 vaccination campaign.


Projects Approved

RM2.1 bil

Total Approved Investments in 2022


Job Opportunities

For more statistics, please click here.

Equity Requirement

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.

Promoted Activities

New or expansion projects of private hospital and ambulatory care centres are eligible for tax incentives.

Investment Tax Allowance (ITA)

Companies may benefit from an income tax exemption package of 100% allowance on the qualifying capital expenditure incurred within a period of 5 years where the allowance can be used to offset against 100% of the statutory income for each year of assessment of the medical service operations.

Regulation and Licensing

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

Our Investors' Highlights

“The hospital is equipped with the latest medical, surgical and diagnostics facilities to serve local and international patients. With an investment of RM70 million, the project involves job opportunities for more than 150 Malaysians.”

- Borneo Medical Center Miri

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Find out more about the policies, incentives and facilities in the healthcare sub-sector.