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Malaysia Healthcare Chronicles 2009 - 2019: a 10 Year Journey of Malaysia's Healthcare Travel Industry

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Malaysia Healthcare Chronicles 2009 - 2019: a 10 Year Journey of Malaysia's Healthcare Travel Industry Malaysia Healthcare Chronicles: Chronicles: Malaysia Healthcare A 10 Year Journey of Malaysia’s Healthcare Travel Industry Travel Healthcare of Malaysia’s Journey A 10 Year MALAYSIA HEALTHCARE CHRONICLES 2009 - 2019: A 10 YEAR JOURNEY OF MALAYSIA'S HEALTHCARE TRAVEL INDUSTRY Call Centre: +603 2726 8688 [email protected] www.malaysiahealthcare.org facebook.com/mhtcmalaysia instagram.com/malaysiahealthcare twitter.com/mhtcmalaysia linkedin.com/company/malaysia-healthcare-travel-council Malaysia Healthcare /məˈleɪziə ˈhelθkeə(r)/ (pn.) Definition Malaysia Healthcare is the brand created for the nation’s healthcare travel industry. Malaysia Healthcare comprises government ministries and agencies, premier Malaysian private healthcare facilities, airline companies, travel agencies, hotels and many more. Together we craft a seamless end-to-end healthcare journey experience for all our visitors. The Malaysia Healthcare brand was introduced in 2009 with its own logo and tagline, “Quality Care for Your Peace of Mind”. CELEBRATING 10 YEARS OF MALAYSIA HEALTHCARE The Malaysia Healthcare Chronicles is a compendium of Malaysia’s healthcare travel industry growth and accomplishments over the past 10 years. MALAYSIA HEALTHCARE CHRONICLES IN THIS REPORT VOICES OF THE INDUSTRY CHAPTER 2: MALAYSIA CHAPTER 5: TOWARDS A BETTER HEALTHCARE: ASIA’S BEST KEPT TOMORROW Minister of Finance, Malaysia SECRET 5.1 Building the Future of Malaysia Minister of Health, Malaysia 2.1 History of the Industry Healthcare CEO of Malaysia Healthcare Travel 2.2 Malaysia Healthcare Travel Council 5.2 Outlook and Prospects Council 2.3 Malaysia: A Unique Healthcare President of Association of Private Destination for All Hospitals of Malaysia LIST OF PARTNERS CHAPTER 3: THE INTEGRATED GLOSSARY VALUE CHAIN OF THE List of Malaysia Healthcare Partners HEALTHCARE TRAVEL INDUSTRY Glossary of Terms and Abbreviations (2009 -2019) 3.1 Close Working Partnerships Amidst an Integrated Value Chain 3.2 Malaysia Healthcare: Key Players and Industry Structure 3.3 Addressing Industry Challenges and Gaps Across an Empowered Value Chain 3.4 Enabling Malaysia Healthcare’s Growth and Progress CHAPTER 1: AN OVERVIEW OF CHAPTER 4: MALAYSIA THE GLOBAL AND REGIONAL HEALTHCARE’S PERFORMANCE: HEALTHCARE TRAVEL LANDSCAPES KEY INSIGHTS 1.1 Key Drivers and Trends in 4.1 Key Market Trends and Industry Healthcare Travel Performance 1.2 Global Healthcare Travel: 4.2 The Healthcare Travel Economic Key Insights Multiplier Effect 1.3 Regional Healthcare Travel: 4.3 The Healthcare Traveller Profile Key Insights 4.4 Key Insights into Malaysia 1.4 Leveraging on Players Within the Healthcare’s Performance by APAC Region Market and State 1.5 Malaysia’s Continued Rise in 4.5 Malaysia Healthcare’s Positive Healthcare Travel Impact on Local Healthcare 4.6 Milestones, Awards and Accolades Malaysia Healthcare Chronicles 2009 - 2019: 2 A 10 Year Journey of Malaysia’s Healthcare Travel Industry VOICES OF THE INDUSTRY Message from the Minister of Finance, Malaysia DEVELOPING GROWTH DRIVERS FOR MALAYSIA The success of Malaysia’s healthcare travel industry has been most encouraging given that not too long ago, it was just a fledgling niche sector that was started in line with providing new, services-based engines of growth for Malaysia. Malaysia Healthcare, as the industry is known, has averaged a compounded annual growth rate (“CAGR”) of 9% and 15% for revenue receipts and traveller arrivals respectively over the past 10 years with the peak of 17% CAGR from 2015 to 2018. The success of Malaysia Healthcare is due to the effective public-private partnership developed, which has enabled the industry to flourish. The government’s commitment to the private healthcare industry through investment tax allowance and incentives have attracted almost MYR10 billion in private investments up until 2018, of which more than MYR1 billion was from foreign direct investments and more than MYR8 billion from local investments. This indicates the strength and continuous confidence of foreign and local investors in Malaysia’s healthcare travel industry. The results of these and other measures, including expanded investment by private sector players, have collectively delivered industry growth. Bed capacity of the private sector today stands at about 15,000 units YB TUAN LIM GUAN ENG nationwide. Progressively, we have seen an increase Honourable Minister of Finance, Malaysia in the number of hospitals in Malaysia tapping the healthcare travel market and over 15,000 jobs created. In Penang, a MYR2 billion development by foreign investors will lead to a 1,000-bed hospital, the largest private hospital in Malaysia. Malaysia Healthcare Chronicles 2009 - 2019: A 10 Year Journey of Malaysia’s Healthcare Travel Industry 3 In terms of revenue, the CAGR has been an encouraging vein, we call upon private sector stakeholders across 17% from 2015 to 2018. In 2018 alone, revenue receipts the value chain to take the lead and rise to embrace reached MYR1.5 billion from an excess of 1.2 million the challenge and immense opportunities within the healthcare traveller arrivals, contributing MYR6.4 sector. As the private sector increases its involvement, billion to the GDP. As a niche sector, healthcare travel government investments in healthcare travel can be comprises some 7.6% of total tourism revenues and is optimised towards delivering better growth rates and expected to grow strongly going forward. success. Clearly, Malaysia Healthcare is well on track towards The future is promising, and by working together, we becoming one of Malaysia’s high-potential sectors with can realise the goal of establishing Malaysia as the No.1 a significant yearly gross domestic product (“GDP”) healthcare travel destination in the region and ultimately contribution. as one of the preferred healthcare destinations in Asia. Given the healthcare travel industry’s significance to the nation, it has been given further impetus, notably under YB Tuan Lim Guan Eng the 10th and 11th Malaysia Plan and the Economic Transformation Programme. The target is to have Honourable Minister of Finance, Malaysia Malaysia Healthcare deliver 25% growth with over MYR1.8 billion in hospital revenues and an estimated total economic impact of MYR8 billion for 2019. Year 2020 will see Malaysia Year of Healthcare Travel 2020 (“MyHT2020”), in conjunction with Visit Malaysia 2020 (“VM2020”). In accordance to the upcoming 12th Malaysia Plan for the development dimension of Economic Empowerment, healthcare travel will bring spillover effects benefitting other industries as well. As we strive towards a new and better Malaysia, one that is globally competitive and economically resilient, I call upon all stakeholders across the value chain to work together in realising the industry’s fullest potential. The government will certainly continue to do its part in facilitating healthcare travel growth. In the same Malaysia Healthcare Chronicles 2009 - 2019: 4 A 10 Year Journey of Malaysia’s Healthcare Travel Industry VOICES OF THE INDUSTRY Message from the Minister of Health, Malaysia SERVING THE NATION, DELIVERING TRUST AND CONFIDENCE Malaysia has a unique dual healthcare system consisting of public and private healthcare streams that serves all segments of the community, nationwide. Healthcare is a basic right for all Malaysians and the Ministry of Health (“MoH”) has and continues to take all efforts towards ensuring that Malaysians can exercise this right. The public-private healthcare system shoulders healthcare expenditure of about MYR60 billion with 55% borne by the government and 45% through private consumption. Under strict regulations and standards, both public and private healthcare have developed over time to be highly regarded as one of the best globally. We are proud that our healthcare system has been recognised by the United Nations Development Programme (“UNDP”) as a model for other developing countries to emulate. Independent US-based International Living magazine has also acknowledged us as a country with one of the best healthcare systems in the world for 5 years running. The result of our efforts is that for decades, Malaysians have had access to state-of-the-art hospitals, breakthrough treatments and procedures, professionally qualified doctors and medical personnel, and a wide range of facilities and services on par with that of well- YB DATUK SERI DR. DZULKEFLY developed countries. The availability of these service AHMAD offerings are telling of the sustainability and resilience Honourable Minister of Health, Malaysia of our healthcare system. MoH has provided extensive support in ensuring our two-tiered health system continues to excel. The private Malaysia Healthcare Chronicles 2009 - 2019: A 10 Year Journey of Malaysia’s Healthcare Travel Industry 5 healthcare sector adheres to the Private Healthcare The Malaysia Healthcare Travel Council is a key Facilities and Services Act, in effect since 1998, ensuring component of our overall strategy to develop the that the quality of healthcare provided is at a high-level Malaysia Healthcare brand. We will continue to present with clear benchmarks set for infrastructure, equipment the best of Malaysia Healthcare to the world, to deliver and personnel. This includes access to healthcare and the best services for healthcare travellers, to allow we are proud to say that 90% of Malaysians live within 5 more focused and cohesive promotion and marketing kilometres of a primary healthcare provider or facility. of Malaysia Healthcare, and to encourage
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