Malaysia has an efficient two-tier system of healthcare where the government-run healthcare sector co-exists with a private healthcare system.
The well-established private healthcare facilities supported with experienced and internationally recognised doctors and well-trained medical staff have made Malaysia a top destination for medical tourism in the region. In 2019, the country attracted 1.3 million international healthcare tourists with a total of RM1.7 billion in hospital receipts. Most of our healthcare travellers come from Indonesia, China, India, Bangladesh, Japan, United Kingdom, Philippines, Australia, Singapore and the United States.
Malaysia has become a leading choice for foreign patients seeking healthcare treatment abroad supported by the numerous international awards including the latest edition of ‘Medical Travel Destination of the Year’ by the International Medical Travel Journal (IMTJ) Medical Travel Awards 2020.
The highly sought-after medical procedures in the country are cardiology, fertility treatment, oncology, orthopaedics, general health screening, aesthetics, dental and neurology.
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.
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.
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