healthtourismmalaysia (1)

8/18/2019 HealthTourismMalaysia (1)

http://slidepdf.com/reader/full/healthtourismmalaysia-1 1/10



2

Growth of Health and Medical Tourism Malaysia

One of the early players in the marketing of medical tourism in Malaysia is the Mahkota MedicalCenter (MMC) in Malacca. Completed in October 1994, it has 288 beds. It offers a wide rangeof specialties, including thoracic and cardiovascular surgery, oncology and radiotherapy,neurosurgery, urological surgery and invitro fertilization that are only found in larger and better

equipped hospitals. With its seafront location, Malacca can be directly accessed in four hoursby fast ferry from Dumai, and by direct flight from Pekan Baru, Indonesia. So it is only naturalthat Indonesians are the prime target. MMC has come a long way since then. It was awardedthe ASEAN Healthcare Excellence Award (Health Tourism) 2008 and the Malaysia Society forQuality Health accreditation.

KPJ Healthcare Berhad, is Malaysia‟s leading medical specialist with 18 centres throughoutMalaysia. Medical expertise in Malaysia is said to be among the best in the world and mostprivate hospitals in the country have internationally recognized quality and standards. Theseincludes the MS ISO9002 or accreditation by the Malaysia Medical Society for Quality Health(MSQH). All private medical centres are approved and licensed by the Ministry of Health.(www.kpjhealth.com.my).

Malaysia has grown to be the preferred health and medical destination based on the increasingnumber of visitors from various parts of the world seeking remedies for a range of medicalneeds which includes critical health services as well as cosmetic and remedial care.

While locals are groaning about the high medical costs in private hospitals, medical charges andhospitalization costs by western standards, are indeed very competitive compared to someparts of the world.

The following are cost comparisons between Medical procedures in Malaysia and equivalentprocedures in the UK and the United States in US Dollars.

Cost comparison with the UK [source]General and Cosmetic Dentistry

Procedure UK Hospitals Selangor, Malaysia Average Savings

Face Lift (Rhytidectomy) $11,000 – $12,000$2,500 – $3,500 70% – 77%

Breast Augmentation (Mammoplasty)$7,000 – $8,000 $3,000 – $4,000 50% – 57%

Breast Reduction $8,000 – $9,000 $3,000 – $4,000 55% – 63%

Breast Lift $2,000 – $3,000 $900 – $1,000 55% – 67%

Tummy Tuck $6,000 – $7,000 $2,000 – $2,500 64% – 67%

Liposuction (Lipoplasty) $5,000 – $6,000 $2,000 – $3.000 50% – 60%

Nose Surgery (Rhinoplasty) $5,500 – $6,500 $2,000 – $2,500 61% – 64%

Plastic and Reconstructive SurgeryProcedure UK Hospitals Selangor, Malaysia Average Savings

Porcelain Bonded Crowns $950 – $1,000 $150 – $200 80% – 84%

Root Canal (per canal) $300 – $400 $200 – $250 33% – 38%

Cost comparison with the USA [source]Medical Procedures

Procedure US Hospitals Selangor, Malaysia Average Savings

http://www.kpjhealth.com.my/



http://www.treatmentabroad.net/cost/

http://knol.google.com/k/dr-mubbashir-iftikhar/malaysia-top-destination-of-medical/3so95bu0lqa34/5

http://knol.google.com/k/dr-mubbashir-iftikhar/malaysia-top-destination-of-medical/3so95bu0lqa34/5

http://www.treatmentabroad.net/cost/




3

Angioplasty $55,000 – $57,000 $7,500 – $8,500 80% – 86%

Heart Bypass $120,000 – $130,000$11,500 – $12,500 90% – 91%

Heart-valve Replacement $150,000 – $160,000$14,500 – $15,500 90% – 91%

Hip Replacement $41,000 – $43,000 $9,500 – $10,500 75% – 77%

Hysterectomy $18,000 – $20,000 $3,500 – $4,500 77% – 81%

Knee Replacement $38,000 – $40,000 $7,500 – $8,500 78% – 80%

Plastic and Reconstructive Surgery

Procedure US Hospitals Selangor, Malaysia Average Savings

Face Lift (Rhytidectomy) $7,000 – $9,000 $2,500 – $3,500 61% – 64%

Breast Augmentation (Mammoplasty)$5,000 – $8,000 $3,000 – $4,000 40% – 50%

Breast Reduction $4,000 – $6,000 $3,000 – $4,000 25% – 33%

Complete Liposuction (Lipoplasty) $4,000 – $6,500 $2,000 – $3.000 50% – 53%

Nose Surgery (Rhinoplasty) $5,500 – $6,500 $2,000 – $2,500 61% – 63%

General and Cosmetic Dentistry

Procedure US Hospitals Selangor, Malaysia Average SavingsRoot Canal $600 – $1,000 $200 – $250 67% – 75%

Porcelain Crown $600 – $1,000 $150 – $200 75% – 80%

Source: Medical Tourism Selangor, Selangor Wellness and Health, 2012

Health tourism on the other hand, as the name suggests, involves travel to improve ones‟shealth such as visiting health spas or joining a wealth loss camp.The state-of-the-art, wellequipped and well staffed private medical centres all have extensive diagnostic and therapeuticresources such as endoscopic suites, haemodialysis, cardiac catheterization and magneticresonance imaging facilities amongst others. Medical specialists are also highly qualified with

extensive international qualifications and are supported by well-trained para medical staff.

The Association of Private Hospitals Malaysia (APHM) has 111 member hospitals, out of which35 are involved in medical tourism and information from these hospitals are the source ofinformation of Malaysia‟s medical tourism figures. Being in a competitive situation, most privatehospitals offer accommodation ranging from comfortable to luxurious private rooms and suites.Meals are often included and rates vary depending on the level of service required as someestablishment offer personal butlers or full-time private nurses. Sleeping facilities can also beeasily provided for traveling members of the family.

The New Straits Times, June 10, 2009 headlined “Big Bucks in Medical Tourism – Malaysialisted as one of world’s top 5 destinations ..” with a followed up articled on June 14, 2009headlined “Boost for Medical Tourism” While these news items can be seen as a booster and

indeed very encouraging to the private hospitals‟ bottom-line, it can also mean that locals willsoon have to pay dearly for medical treatments.

Cashing in on the encouraging flow of foreign patients into the country, The Health Ministerlaunched a logo featuring the brand name “Malaysia Healthcare” with a tagline “Quality care forPeace of Mind” to further boost the health tourism industry. (NST, June 20, 2009). In 1998,39,114 foreign patients sought treatment in Malaysia. In 2008, the figure was 374,063. Therevenue from foreign patients hospitals grew from RM14.1 million in 1998 to RM299.1 million in2008. “These statistics illustrate that the industry has the potential of providing a new source



4

of income”, says Liow Tiong Lai, the Malaysian Health Minister. According to Deloitte report, in2007, 750,000 Americans travelled abroad to get treatment and the figure is estimated to reachsix million by 2008, with the amount spent estimated to be in the range of US7.9 billion toUS10.1 billion. According to Liow, the global health tourism market was experiencing a growthrate of 20 to 30 percent per annum. Encouraged by these statistics, the Health Ministry issubmitting a proposal to the cabinet on the establishment of a Malaysian Healthcare Travel

Council to oversee the industry and promote it overseas.

The National Heart Institute, or better known as Institut Jantung Negara (IJN) the country‟spremier heart instate, specializing in cardiology and cardiothoracic surgery recently opened it‟snew wing with a fresh new look with an interior decor that can match any five star hotel.Patients may now have to pay higher fees in the wake of a RM215million government payout tothe centre last year. The government may allow the centre to decide on the fee for foreignpatients and new fee hike for local citizens. IJN records a small foreign patients base of only2%. It practices a two-tier pricing system. “It is purely based on supply and demand and itsforeign patient customer service centre will be opened soon”, says Vincent Wan, its GeneralManager Marketing. Foreign patients statistics, however, do not include expatriates residing inMalaysia. The Deloitte Medical Tourism Report 2008 and Research and Consultancy Solution, a

research institute in India, reported that Malaysia, Singapore and Thailand were among themost preferred destinations in East Asia for medical treatment. A forecast by DeloitteConsulting published in August 2008 projected that medical tourism originating in the US could

jump by a factor of ten over the next decade. The online publication of Nuwire Investors lastyear even ranked Malaysia as on the world‟s top medical tourism destinations .

Medical tourism receipts have quadrupled to RM253.84mil in 2007 and for the first nine monthsof 2008, over 282,000 foreigners came to Malaysia for medical treatment generating a revenueof about RM222.25 mil – a 16% increase from the previous year. (The Star, February 14,2009)

Association of Private Hospitals of Malaysia (APHM) board member and chairman of thecommittee on database and medical tourism, Dr. K. Kulaveerasingam, is projecting only a 15%growth (compared with past average of 20% - 25%) in medical tourism receipts in 2009 as fewerforeigners are expected to visit the country for medical treatment due to the economicslowdown. According to the 2008 figures, Indonesians makes up the most number of patients at72% followed by Singaporean 10%, Japanese 5%, Indians 4% and Europeans 3%. The biggestnumber of Indonesia is explained by their country‟s close proximity, convenience of travel andease of Malaysian Medical Tourism patients in 2007.

Abacus International, reported that Asia‟s medical tourism industry is expected to hit US$4 bil by2012. Research also shows that medical tourist double the amount of normal tourist – US$362compared with US$144 per day. This figure is expected as cost of medical treatment cannot becompared to that of leisure spending of holiday makers.

Competition is Stiff

Malaysian hospitals not only have to compete with medical tourism providers in Thailand,Singapore, India and the Philippines but also within the country. Sunway Medical Centre, ChiefOperating Officer Ch‟ng Lin Ling points out that the Health Ministry and Tourism Malaysia willhave to team up to promote the image of Malaysia as a tourist hub for leisure, travel andhealthcare and tour agents will also have a role to play. Sime Darby Healthcare Chief ExecutiveOfficer, Elaine Cheong Pek Yin is of the opinion that Malaysia should have a centralgovernment agency headed by an expert on dynamic medical and healthcare marketing and



5

promotion. This can boost the effort to brand Malaysian healthcare in a coordinated andsystematic manner.

Year No. of Patients Receipts(RM mil)

USD

2003 102,946 58.9 8.22004 174,189 104.98 29.92005 232,161 150.92 43.142006 296,687 203.66 58.12007 341,288 253.84 72.5

As part of the plan to expand market reach, Malaysia is now targeting new markets such asVietnam, Cambodia, Middle East, United States, Europe and Canada. Enjoying a holiday andundergoing medical treatments at times got to be separated distinctively. Perhaps the bestthing about undergoing medical attention in Malaysia while enjoying sightseeing, the spas, food

and shopping would be for the less critical cases and during the recuperation period. But aperson who just have had a major by-pass operation or a liver transplant would almost certainlynot place tourism as a top priority. Some school of thoughts, however, feels that the tourismpart is for the accompanying members of the family.

Medi-Health Tourism – a Niche Product

When is it medical or when is it health tourism? A lot of articles, journals and books written usethe phrase „health tourism” to cover all forms of health -related services. Medical tourism also



8

MEDICAL TOURISM PLAYERS

Sources: Vincent Wan, IJN

Medical Tourism in Asian Countries - A threat to Malaysia?

In this global economic slowdown when every other industry future seems bleak. MedicalTourism Industry is the one sector whose presence is bright and future seems even brighter.

Asia is one of the first regions in the world to promote medical tourism and has created a brandname for itself for having affordable and high quality healthcare. Asia medical tourist number ofarrivals is expected to cross the figure of 10 Million numbers by 2015. Asia medical tourismmarket is expected to double by 2015 from its current market in 2011. In our research ofmedical tourism analysis we found that out of 7 countries 3 countries Thailand, India andSingapore is expected to control more than 80% market share in 2015.

Thailand is the leader in medical tourist arrivals holding more than 40% share in Asia medicaltourist arrivals in 2011. Its medical tourism market is also expected to be more than double by2015 from its current market in2011. India was one of the first countries to recognize thepotential of medical tourism. From the year 2009 to 2011 the number of medical tourists in Indiahas grown by 30%. It is estimated that by the year 2015, India will receive nearly half a Millionmedical tourists annually.

Singapore medical facilities are considered to be the best in Asia but its treatment cost are bit

MEDICAL

TOURISM

GOVERNMENT

AGENCIES/

ASSOCIATION

MEDICAL

PROVIDERSMEDICAL

FACILITATORS

VENDORS/

SUPPLIERS

INFRA-

STRUCTURE

LEISURE

PROVIDERS TRANSPORT

immigration

customs

Min. of Health

Tourism Board

Min. of Int.

TradePort Authority

MMA/ MMC

Nursing board

APHM

NGOs

Private

hospitals

Screening

centres

Dental centres

Aesthetic

centres

Insurance

Private

ambulance

Evacuation/

repatriation

providerMedical travel

facilitators

Hotels

Entertainment

Outlets

Restaurants

Resorts

SpasShopping

complex

Tourist

attraction

Travel agents

Petty traders

Internet

Providerstelcos

Pharmaceutical

Medical

suppliers

Local

transportationservices



9

costlier compared to its competitors. Singapore medical tourist arrivals are expected to be morethan 1 Million by 2015. Philippines started off bit late for the medical tourism but are catching upquickly. Its medical tourism market is expected to grow with a CAGR of 9% for the period of2012 – 2015.

South Korea is a fast-growing medical tourism destination. It is forecasted that by 2015, South

Korea will attractmorethan300thousand medical tourists. Malaysia has seen an impressivegrowth in medical tourism industry. Malaysia medical tourism market has grown more than 8times in 2011 compared to its market in 2003.Taiwan medical tourism has become one of thebiggest attractions for mid to high income Chinese tourists. The country‟s medical tourismmarket is expected to increase at 7% CAGR from 2012 to 2015. (Source: Report Linker, AsiaMedical Tourism Analysis and Forecast to 2015)

Interestingly, it is the quality of care at cost-effective prices that is one of the prominentmotivating factors for consumers to seek medical care in Malaysia, yet currently, medicaltourism enterprises don‟t compete against each based on pricing strategy. Instead the currentpricing strategies are comparisons of medical care prices in the medical tourism destinationswith those of the patients‟ country. Further Medical groups / hospitals entering medical tourism

must have accreditation that is acknowledged by their target market.

References (www.wilkpedia.org.org/wiki/medical tourism Wellnessvisit.com Connell J. Medical tourism: sea, sun, sand and … surgery.Tourism

Mgmt 2006; 27(6):1093-1100. De Arellano R. 2007. Patients without borders: the emergence of medical tourism. Int J

of Hlth Serv 2007; 37(1):193-198. Fawthrop T. Cuba sells its medical expertise. 2003; 21 November.

http://news.bbc.co.uk/2/hi/business/3284995.stm Ghods AJ, Nasrollahzadeh D. Transplant tourism and the Iranian model of renal

transplantation program: ethical considerations. Exp Clin Transplant 2005; 3(2):351 – 4.

Hutchinson B. Medical tourism growing worldwide 2005; July 25.http://www.udel.edu/PR/UDaily/2005/mar/tourism072505.html

Moore JD Jr. Medical Mecca. Foreign patients flock to Miami seeking care and service.Mod Healthc. 1997; 27(22):30 – 7.

Online NewsHour. Traveling for treatment. 2005; Feb 21.

http://www.pbs.org/newshour/bb/health/jan-june05/thailand_2-21.html

Phua KL. World Trade Organization (WTO) negotiations: possible effects on health and

health services in Malaysia. Jurnal Kesihatan Masyarakat 2004; 10:7 – 13.

Runckel CJ. Where to go for medical tourism? 2007. http://www.business-in-

asia.com/asia/medical_tourism2.html

Scheper-Hughes N. The global traffic in human organs. Current Anthro 2000; 41(2):191

– 224. Schweimler D. Cuba‟s medical success story. 2001; September 10.

http://news.bbc.co.uk/2/hi/americas/1535358.stm

Straits Times. Medical attraction. 2007; March 24.

Walker T. Consumers go abroad in pursuit of cost-effective healthcare. Managed

Healthcare Executive 2006.

http://www.managedhealthcareexecutive.com/mhe/article/articleDetail.jsp?id=357668

http://www.wilkpedia.org.org/wiki/medical



http://news.bbc.co.uk/2/hi/business/3284995.stm


http://www.udel.edu/PR/UDaily/2005/mar/tourism072505.html




http://www.business-in-asia.com/asia/medical_tourism2.html






















10

World Trade Organization and World Health Organization. WTO agreements and public

health. Geneva: WTO and WHO, 2002.

Olarte AM. And now, hospitals as tourist spots. 2006. http://www.pcij.org/i-

report/2006/medical-tourism.html

Your Task

In the wake of the tremendous growth of the medical tourism industry, your company is

one of the short listed consultants invited to present your strategies to the office of the

Prime Minister. Prepare a high-powered presentation on how Malaysia should do it.

Your presentation must be comprehensive, that covers among others, areas of control,

regulation, marketing, and promotions.

The Government is keen to make Malaysia a medical tourism hub, but not at the expense

of the locals.

http://www.pcij.org/i-report/2006/medical-tourism.html





healthtourismmalaysia (1)

Documents