MORE CHOICES
Despite jumping on the medical tourism bandwagon relatively late, Malaysia is becoming a global hub for healthcare travel.
With around 770,000 health tourists coming to Malaysia in 2013, Malaysia is ranked in the top five destinations in the world for health tourism and is poised to overtake its neighboring competitors Singapore and Thailand to become the destination of choice for medical tourism in the region.
Since the mid-2000s, the government of Malaysia has had a clear strategy to brand Malaysian medical tourism as part of its diversification strategy and National Transformation Agenda (NTA) to propel the country into a developed nation by 2020. Realizing the potential of the medical tourism phenomenon, efforts to promote the industry and position Malaysia as the healthcare destination of choice have been on the rise.
The attractiveness of Malaysia is not new; it has a natural landscape of beaches, tropical jungles, and mountains; aspects that have always made it a top destination for wellness travel. However, the development of a medical healthcare framework, namely quality, Western-accredited hospitals, qualified, multi-lingual health specialists, and affordable treatments have enabled the healthcare travel sector to flourish in recent years. In addition, the government of Malaysia has set up a number of agencies, notably the Malaysia Healthcare Travel Council (MHTC), in order to disseminate information and promote global awareness of Malaysian healthcare facilities and services.
The primary incentive for traveling to Malaysia for health tourism remains the low cost for private treatment. The cost of a heart bypass operation in Malaysia averages between $10,000 and $15,000, while the equivalent surgery in the US easily reaches $130,000. Even though Singapore was renowned as a top medical tourism destination for many years, today it captures a different segment of the market. This is due not only to the relatively higher cost of treatment and post-treatment care, but also due to the cost of accommodation and food. Since patients traveling for medical treatment will normally bring one or more family members, these are factors that also play a role in the decision-making process.
Malaysia benefits from an attractive location at the heart of ASEAN and good supporting transportation links. Both Penang and Kuala Lumpur, the country's two most popular destinations for medical tourism, are serviced by a number of international airlines. According to Ahmad Shahizam bin Mohd Shariff, CEO of Pantai Operations, Parkway Pantai, “More than 80% of medical travels will take up to a four-hour flight. For Malaysia, there is a huge catchment area, because it covers up to China and larges parts of Asia, India, Indonesia, the Philippines, and so on.” Furthermore, eligibility for a visa upon arrival applies to most foreigners visiting Malaysia, facilitating easy entry into the country.
With a network of 21 hospitals, Parkway Pantai belongs to healthcare giant IHH, the world's second largest healthcare group by market capitalization and owner of, amongst others, Acibadem Holding in Turkey. Malaysia is able to benefit from the international reputation of its major healthcare players, which also include KPJ Healthcare and Ramsay Sime Darby.
Currently the largest market for Malaysia is Indonesia. According to Ivan Loh, CEO of Gleneagles Penang, “[This is] because of the distance and also because of the healthcare system there. In Malaysia, we have a population of 30 million. In Indonesia, they have 250 million, also its healthcare system is a bit closed whereas ours is more open.”
Another factor is the close cultural affinity in terms of language, food and religion. A growing niche market is that of Islamic medical tourism. Patients from Saudi Arabia, Iran, Libya, and Indonesia are particularly attracted to the Malaysia due to the Muslim-friendly environment that is very suitable for their accompanying family. Female patients can also request treatment by female doctors and the medicine used is certified Halal, as are hospital kitchens.
A well-established medical tourism industry is at the heart of the government's Tourism Transformation Plan (TPP), which has among its goals raising the average receipt per visitor. In the long term, Malaysia's world market share of the global tourism industry is expected to rise and annual revenue growth from medical tourism is forecast to exceed 10%. Rising healthcare costs in developed countries, an ageing population, and longer waiting lists are responsible for the growth of the global healthcare travel market and Malaysia is well-placed to take advantage of this in the years ahead.

TABLE OF CONTENTS
Inside Perspective
Y.A.B. Dato’ Sri Mohd Najib bin Tun Abdul Razak, Prime Minister, Malaysia
Y.A.B. Dato' Sri Mohd Najib bin Tun Abdul Razak, Prime Minister of Malaysia, on the broad picture for Malaysia's future, its regional obligations and role, and the importance of constant improvement and development.
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Didier Reynders, Deputy Prime Minister and Minister of Foreign Affairs and European Affairs , Belgium
TBY talks to Didier Reynders, Deputy Prime Minister and Minister of Foreign Affairs and European Affairs of Belgium, on the potential for trade growth, the impending FTA with the EU, and Malaysia's role as gateway to the South-East Asian market.
read articleFocus: Chairmanship of ASEAN
In The Driver’s Seat
Malaysia's chairmanship of the world's seventh largest economy, ASEAN, marks a high-water mark for the organization. With a population of 600 million people and GDP of $2.4 trillion, the 10-nation trading bloc is implementing the final action lines of the blueprint to create a fully-integrated ASEAN community.
read articleFocus: Middle Income Trap
Danger Up Ahead
Under the leadership of Tun Mahathir in the 1990s, Malaysia set out its vision to become a developed nation by 2020—defined by achieving a per-capita income of $15,000—however, the country's rate of growth in recent years has slowed leading to fears that it may be heading into a middle-income trap.
read articleInterview
Dato’ Khairussaleh Ramli, Group Managing Director & CEO, RHB Banking Group
TBY talks to Dato' Khairussaleh Ramli, Group Managing Director & CEO of RHB Banking Group, on Malaysia's prominent role in promoting Islamic finance worldwide, and the challenges the country faces in the sukuk market.
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Dato’ Dr. Adnan Alias, CEO, Islamic Banking and Finance Institute Malaysia (IBFIM)
TBY talks to Dato' Dr. Adnan Alias, CEO of the Islamic Banking and Finance Institute Malaysia (IBFIM), on supporting the bonds segment, training Malaysian workers, and the country's prominent role in global Islamic finance.
read articleFocus: Islamic Finance
It’s All About the Sukuk
Malaysia continues to assert its position as a world leader in Islamic finance. Accounting for around 67% of global sukuk issuances, Malaysia is the largest sukuk issuer in the world. It is a pioneer in the Islamic finance industry, as the first country to issue sovereign sukuk in 2002 and to list an Islamic real estate trust (REIT) on its Stock Exchange in 2006.
read articleInterview
David Fike, President, General Insurance for Zurich Insurance Malaysia Berhad
TBY talks to David Fike, President of General Insurance for Zurich Insurance Malaysia Berhad, on the evolution of the company, Malaysia's strategic importance, and upcoming opportunities for the insurance industry.
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Maen Razouqi, Vice President and General Manager , Brunei, Malaysia & Philippines for Schlumberger
TBY talks to Maen Razouqi, Vice President and General Manager of Brunei, Malaysia & Philippines for Schlumberger, on investing in the future, leveraging foreign partnerships, and the factors of success for operating in Malaysia.
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Datuk Dr. Mohd Yusoff, President & CEO, Malaysian Industry – Government Group for High Technology (MIGHT)
TBY talks to Datuk Dr. Mohd Yusoff, President & CEO of the Malaysian Industry – Government Group for High Technology (MIGHT), on pursuing growth in the high technology sector, increasing the economic role of high technology exports, and establishing Malaysia as a regional leader in the aerospace industry.
read articleFocus: E&E
Plug & Play
At the forefront of Malaysia's manufacturing sector is the electrical and electronics (E&E) industry. E&E has been highlighted as one of the 12 National Key Economic Areas (NKEAs) under the government's Economic Transformation Programme (ETP) to propel Malaysia into a developed nation.
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Y.B. Datuk Raymond Tan Shu Kiah, Minister , Industrial Development for Sabah,
TBY talks to Y.B. Datuk Raymond Tan Shu Kiah, Minister of Industrial Development for Sabah, on moving towards sustainability in Sabah's industrial sector, attracting outside investors, and increasing connectivity within the wider region.
read articleInterview
Y.B. Datuk Teo Chee Kang, Minister , Special Tasks for Sabah’s Chief Minister’s Department
TBY talks to Y.B. Datuk Teo Chee Kang, Minister of Special Tasks for Sabah's Chief Minister's Department, on future government policy, investing in infrastructure, and spreading economic prosperity.
read articleInterview
Datuk Mohd. Basri Abd. Gafa, President, Federation of Sabah Industries
TBY talks to Datuk Mohd. Basri Abd. Gafar, President of the Federation of Sabah Industries, on the state of industry in Sabah, supporting new business development, and the future of the region within the ASEAN economic network.
read articleInterview
Y.B. Datuk Seri Panglima Masidi Manjun, Minister , Tourism, Culture and Environment, Sabah
TBY talks to Y.B. Datuk Seri Panglima Masidi Manjun, Minister of Tourism, Culture and Environment, Sabah, on developing tourism in the face of environmental concerns, tax restrictions, and challenging macroeconomic trends.
read articleFocus: E-Government
Stream That Line
In a drive to improve the efficiency and effectiveness of public sector delivery, which is one of the supporting policies under the Economic Transformation Programme (ETP), the government of Malaysia is increasing the number of services available to the public online.
read articleInterview
Y.B. Datuk Joseph Entulu Anak Belaun, Minister , Prime Minister’s Department of the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU)
TBY talks to Y.B. Datuk Joseph Entulu Anak Belaun, Minister in the Prime Minister's Department of the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU), on upgrades in the public services sector, overcoming challenges to modernization, and big data.
read articleFocus: The Role of PPPs
All The Best
Since the introduction of the 1981 Malaysian Incorporated concept, which set out a new approach to national development based on the notion of joint ownership of the country by the public and private sectors, the country has seen a steady rise in the number of public-private partnership (PPP) projects.
read articleInterview
Ahmad Shahizam bin Mohd Shariff, CEO, Pantai Operations Division of Parkway Pantai
TBY talks to Ahmad Shahizam bin Mohd Shariff, CEO of Pantai Operations Division of Parkway Pantai, on Malaysia's strategic position in their global operations, how to boost medical tourism, and collaborating with higher learning institutions.
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Tan Sri Dato’ Dr. Michael O.K. Yeoh, CEO, Asian Strategy and Leadership Institute (ASLI)
TBY talks to Tan Sri Dato' Dr. Michael O.K. Yeoh, CEO and Director of the Asian Strategy and Leadership Institute (ASLI), on recent initiatives, the Center for Public Policy Studies, and the organization's goals.
read articleFocus: Halal Tourism
A Welcome Host
With 5.6 million Muslim tourist arrivals in 2014, roughly 20% of all visitors to Malaysia in 2014, and the number one position on the Global Muslim Travel Index 2015, halal tourism is a fast-growing niche market that is poised to drive the country's already well-established tourism industry.
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