‘Malaysia’s medical travel will recover to optimal level’
03 Apr 2022
With the reopening of international borders early this month, analysts expect Malaysia’s medical travel will recover to an optimal level.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) gathered that in the previous year, the Malaysia Healthcare Travel Council (MHTC) assisted in the generation of RM551 million (approximately US$131 million) in revenue based on hospital receipts – an increase of six per cent above the targeted revenue goal – based on a closely monitored medical travel bubble and tight partnerships in contributing to returning patient volume.
“For current year 2022 (CY22), the target is set at RM800 million (US$190 million). In tandem with the higher revenue, MHTC launched its Healthcare Travel Industry Blueprint which consisted of the recovery and rebuild phases; of which CY22 is currently in the recovery phase that emphasized in creating a firm foundation for the next phase,” MIDF Research noted.
The research arm believed the new blueprint will help raise the visibility of Malaysia’s first Flagship Medical Tourism Hospitals and expand strategic partnerships among hospitals and medical institutes via foreign investments, joint research and development, and shared innovations and technologies.
According to MIDF Research, during the recent fourth quarter of CY21 (4QCY21) earnings season, operational data for hospitals, both private and public, had been improving than a year prior, as patients continue to flock hospitals for treatments and surgeries for Covid-19 and non-Covid illnesses.
“As of February, the occupancy rate of ICU beds for Covid-19 in 11 states was below 50 per cent; signaling a gradual improvement in Covid-19 infection severity and quick preparedness in handling a surge of Covid-19 cases.
“Meanwhile, non-ICU beds displayed over 50 per cent occupancy rate in 12 states.”
Looking ahead, MIDF Research opined that that both IHH Healthcare Bhd and KPJ Healthcare Bhd will see an improvement financially in the coming quarters.
The research arm noted that this was based on the return of foreign patients to undertake specialised treatments and surgeries, the increased health awareness, as well as improved access to healthcare information and assistance, and the focus on ancillary services including diagnostics and laboratory testing facilities.
“Additionally, we believe that the partnership between public and private healthcare providers will continue past Covid-19-related admission and treatments in the near term.”
Source: Borneo Post Online