Malaysian private healthcare, medical tourism sector to take in RM2.2 billion revenue this year
14 Oct 2024
Malaysia’s private healthcare and health tourism sector is expected to generate US$526 million (RM2.26 billion) in revenue this year, contributing an economic spillover of US$2.1 billion to other industries, according to Malaysia External Trade Development Corporation (Matrade).
Matrade deputy director Abdul Halim Mohamed Shariff said that Malaysia’s prominence in medical tourism is underscored by medical treatments, trained healthcare professionals and economic costs.
“Healthcare tourism is one of the strongest segments within the healthcare industry. As you can see, we have hospitals like IHH, where revenue has reached up to US$3.9 million,” he said in his presentation on “The Business Opportunities of the Healthcare Sector in Southeast Asia” at a press conference on International Healthcare Week 2025 (IHW 2025) today.
Meanwhile, Abdul Halim said Malaysia’s medical device market is expected to grow at a compound annual growth rate (CAGR) of 9.5% from 2023 to 2028, reaching a value of US$3.64 billion by 2028. Additionally, the consumables segment in the market is projected to expand at a higher CAGR of 10.2% over the same period, reaching US$986 million by 2028.
Matrade chairman Datuk Seri Reezal Merican Naina Merican stated that Malaysia’s healthcare sector is poised for significant growth, driven by increasing life expectancy, technological advancements, and the rising need for treatment of chronic diseases.
“This optimistic outlook aligns with the projected expansion of this global industry which is expected to soar by 63% from RM2.53 trillion in 2024 to RM4.13 trillion by 2032. This significant growth presents exciting opportunities for Malaysian companies to strengthen their position in the global healthcare landscape,” he said.
He said Malaysia is well-positioned to capitalise on this growth with strategic focus on medical devices and healthcare tourism. Substantial investments in this sector’s infrastructure has solidified Malaysia’s reputation as a leading healthcare destination.
Informa Markets regional portolio director for Asean Rungphech (Rose) Chitanuwat said that as the Asean region evolves, significant growth in the healthcare market is being propelled by rising wealth, demographic shifts, technological advancements, and changing consumer expectations. “These trends will shape the future of healthcare across Asean.”
She said that with populations becoming more affluent, there is an increasing demand for personalised care options that cater to specific health needs. The region is also witnessing a demographic shift towards an older population, leading to heightened demand for healthcare services focused on chronic disease management and elderly care.
“With a collective population of nearly 700 million and being the world’s fifth-largest economy, the Asean region is poised for significant growth and presents numerous opportunities for healthcare providers and investors alike,“ Rungphech said.
There is a growing trend toward creating integrated ecosystems that connect various healthcare services – hospitals, diagnostic centres, wellness clinics, and pharmacies-aiming to improve efficiency and patient experience. This includes an emphasis on integrated care models that encompass wellness, preventive care, and chronic disease management.
“Recognising the importance of a comprehensive healthcare ecosystem, IHW 2025 will feature three co-located events: CPHI Southeast Asia, Medlab Asia, and Asia Health. These events will showcase cutting-edge technologies, products, and services from leading companies in the pharmaceutical, medical laboratory, and medical device sectors. The exhibitions will bring together over 700 exhibitors, with an expected 16,000 attendees from 50 countries, and will feature 60 industry insight conferences.” noted Rungphech.
“This convergence integrates competition and cooperation, facilitating networking opportunities that can lead to collaborative projects and partnerships. Ultimately, this strengthens the healthcare ecosystem and fosters a more patient-centric approach,” she added.
IHW 2025 is set to take place from July 16 to 18, 2025, at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur. The organisers – Matrade and Informa Markets – said the event will establish Malaysia as an emerging hub in the healthcare sector, not only within Asean but also on a global scale.
They said that it will also enhance Malaysia’s reputation as a prime destination for medical tourism, recognised for its quality and affordability, thereby increasing demand for advanced medical devices and pharmaceuticals.
Source: The Sun
