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Healthcare Sector

Malaysia has an efficient two-tier system of healthcare where the government-run healthcare sector co-exists with a private healthcare system.

The Government has revised policies to spur economic activities and quality of the healthcare industry. An autonomous liberalisation policy allows private hospitals, private specialist medical and dental clinics to hold up to 100% foreign equity ownership.

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.

The International Living’s Annual Global Retirement Index voted Malaysia as the “Best Country in the World for Healthcare” in 2019, ahead of France, Thailand, Ecuador, Mexico and Costa Rica.

The highly sought-after medical procedures in the country are cardiology, fertility treatment, oncology, orthopaedics, general health screening, aesthetics, dental and neurology.

Equity Requirement

Private Hospitals, Specialist
Medical & Dental Clinics

 

 

100% Foreign Equity Allowed

Private Ambulatory
Care Centre

 

 

70% Foreign Equity Allowed

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

Apply for verification of medical equipment used in the facility with the Ministry of Health

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Find out more about the policies, incentives and facilities in the healthcare sub-sector.

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