3. Total Foreign Patients Treated and Foreign Patients Revenue in Malaysia, Medical Tourism Treatment Cost Comparison, 2010
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2 TABLE OF CONTENTS 1. Medical Tourism in Malaysia An Overview 2. Medical Tourism Value Chain in Malaysia 3. Total Foreign Patients Treated and Foreign Patients Revenue in Malaysia, Medical Tourism Treatment Cost Comparison, Foreign Patients by Nationality, Competitive Landscape of 35 Private Hospitals Endorsed for International Medical Tourism by Ministry of Health, Major Drivers and Growth Barriers Major Drivers Growth Barriers 8. Malaysia Medical Tourism Future Outlook and Projections 8.1. Expected Foreign Patients and Foreign Patients Revenue, Medical Tourism Industry Factors: Historical and Projections 9.1. Total Foreign Tourist Arrivals and Tourism Receipts in Malaysia, Total Number of Hospitals and Hospital Beds in Malaysia, Number of Hospital Admissions in Malaysia, Number of Hospital Doctors in Malaysia, Healthcare Expenditure in Malaysia, Appendix Market Definition Abbreviations Research Methodology Disclaimer Data Collection Methods Approach 2
3 LIST OF FIGURES Figure 1: Number of Total Foreign Patients in Thousands and Foreign Patients Revenue in Malaysia in USD Million, Figure 2: Foreign Patients by Nationality in Percentage, 2010 Figure 3: Expected Foreign Patients in Thousands and Foreign Patients Revenue in Malaysia in USD Million, Figure 4: Total Foreign Tourist Arrivals in Million and Tourism Receipts in Malaysia in USD Billion, Figure 5: Number of Hospitals and Hospital Beds in Malaysia, Figure 6: Total Patient Admissions in Malaysia, in Million, Figure 7: Number of Hospital Doctors in Malaysia, Figure 8: Healthcare Expenditure in Malaysia, in USD Billion,
4 LIST OF TABLES Table 1: Medical Treatment Cost Comparison among the US, India, Thailand, Singapore, Malaysia, Mexico and the UK, in USD, 2010 Table 2: Foreign Patients by Nationality, 2010 Table 3: Major 35 Private Hospitals Endorsed for International Medical Tourism by the Ministry of Health (MOH), 2009 Table 4: Total Foreign Tourist Arrivals in Million and Tourism Receipts in Malaysia in USD Billion, Table 5: Total Hospitals and Hospital Beds by Public and Private Sector in Malaysia,
5 MEDICAL TOURISM IN MALAYSIA TOTAL FOREIGN PATIENTS TREATED AND FOREIGN PATIENTS REVENUE IN MALAYSIA, Malaysia s medical tourism industry has witnessed astounding growth in recent past. From 2001 to 2006, the number of foreign patients seeking healthcare services in Malaysia became ~ times from ~ patients to ~ patients. The large volume of patients in 2006 generated nearly USD 59 million in revenue. In 2008, the revenue per patient has grown to USD ~ in In 2010, the revenue per patient has risen and reached USD ~ USD ~. Most of the foreign patients are middle aged people who visit Malaysia to save money on the treatment. The country receives large volume of foreign patients from Asia region only especially from Indonesia, Singapore and Japan The medical patients visits Malaysia for the treatment of dental treatment, aesthetics, and optometry and for many other treatment but most of the patients visit Malaysia for cardiovascular and orthopedic treatment. Most of the patients are middle aged people who visit Malaysia in order to save money on the treatment. Country receives large volume of foreign patients from Asia region only especially from Indonesia, Singapore and Japan Figure: Number of Total Foreign Patients in Thousands and Foreign Patients Revenue in Malaysia in USD Million, (Thousands) (USD Million) Foreign Patients (Thousand) Foreign Patients Receipts (USD Million) 5
6 MEDICAL TOURISM TREATMENT COST COMPARISON, 2010 There is huge difference in the cost of the treatment being offered in the US and in Asian countries. For instance, Angioplasty treatment will cost USD ~ in the US while it will cost USD ~ in India and Malaysia, USD ~ in Thailand and USD ~ in Singapore. This huge difference in the cost is largely due to the lower labour cost in the countries in Asia region. Even in case of medical diagnostic tests such as MRI scan, there exists a huge gap between the cost charged in the US and in India. Table: Medical Treatment Cost Comparison among the US, India, Thailand, Singapore, Malaysia, Mexico and the UK, in USD, 2010 Procedure 1,2 The US India Thailand Singapore Malaysia Mexico South Korea Heart bypass (CABG) Heart Valve replacement Angioplasty Hip replacement Knee replacement Gastric bypass Hip resurfacing Spinal fusion Mastectomy Rhinoplasty Tummy Tuck Breast reduction Breast implants Crown Tooth whitening 6
7 Dental implants FOREIGN PATIENTS BY NATIONALITY, 2010 Malaysia attracts the maximum number of foreign patients from Indonesia. Approximately ~% of the total foreign patients who visited Malaysia for medical treatment were from Indonesia in It is followed by Singapore which is 2 nd largest contributor to the total foreign patients with ~% market share. Around ~ foreign patients treated in Malaysia were Singaporeans in The country treated around ~ foreign patients from Japan which accounted for around ~% of the total foreign patients in Other countries which include the US, the UK, Europe and other Asian countries accounted for the rest ~% of the total foreign patients treated in Malaysia. Figure: Foreign Patients by Nationality in Percentage, 2010 Indonesia Singapore Japan Others Table: Foreign Patients by Nationality, 2010 Nationality Foreign Patients, 2010 Indonesia Singapore Japan Others 7
8 MALAYSIA MEDICAL TOURISM FUTURE OUTLOOK AND PROJECTIONS EXPECTED FOREIGN PATIENTS AND FOREIGN PATIENTS REVENUE, Malaysia is estimated to record a growth of ~% in the total foreign patients treated in The number of foreign patients treated in the country will grow to ~ thousand in 2011 from ~ thousand in By 2015, number of foreign patients will grow to ~ thousand with an expected increase in the foreign patients for cardiac and cosmetic treatment. The total revenue from international patients will rise to USD ~ million in 2011 from USD ~ million in It will cross the benchmark of USD ~ million by 2014 when the market is estimated to generate USD ~ million of foreign exchange. Overall, the total revenue from international patients will grow at an expected CAGR of ~% to reach USD ~ million by Figure: Expected Foreign Patients in Thousands and Foreign Patients Revenue in Malaysia in USD Million, (Thousands) Foreign Patients (Thousand) Foreign Patients Receipts (USD Million) (USD Million)
9 MEDICAL TOURISM INDUSTRY FACTORS: HISTORICAL AND PROJECTIONS TOTAL NUMBER OF HOSPITALS AND HOSPITAL BEDS IN MALAYSIA, Malaysia had around ~ hospitals including ~ public and ~ private hospitals in 2005 with total ~ complement beds. This proportion has increased exceptionally to ~ public hospitals and ~ private hospitals in The total hospital beds have also grown steadily to ~ beds in This underscores the consistent development in the state of art facility and infrastructure for local and foreign patients. The government is heavily investing in the public healthcare sector in order to cater to emerging demand for quality medical and diagnostic services and regulating the private hospitals and medical centers operations. Every private medical center operating in Malaysia is required to be certified by the Ministry of Health, Malaysia. Moreover, hospitals which are serving the foreign patients should pass through the international certification standards Figure: Number of Hospitals and Hospital Beds in Malaysia, (Hospitals) ,000 60,000 50,000 40,000 30,000 20,000 10,000 0 (Hospital Beds) Hospitals Hospital Beds Table: Total Hospitals and Hospital Beds by Public and Private Sector in Malaysia, Hospitals Hospital Beds Year Public Sector Private Sector Public Sector Private Sector
10 HEALTHCARE EXPENDITURE IN MALAYSIA, The Malaysia healthcare sector is similar to South Africa which is divided into public and private health care. The public health care system is used by most of the population living in Malaysia whereas the private sector health care services are rather afforded by the affluent class only Around USD ~ billion was spent in 2010 on healthcare services. The government allocated a budget of total RMB ~ billion for the general improvement of the healthcare sector in the country in The amount is expected to be spent on purchasing new equipments, distribute large number of medicines, training of human resources and construction of more hospitals and medical centers. Increased efforts are being made to provide facilities in Sabah and Sarawak states in Malaysia. Figure: Healthcare Expenditure in Malaysia, in USD Billion, USD Billion
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