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Eileen Gu
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I have been working in market/Industry research for almost 5 years since I got my Master's Degree of Management. I used to be an analyst for 3 years and turned to customer oriented position in recent years. I hope we can build a knowledge sharing networks to exchange information and values.... More
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  • Summary Of Malaysia Healthcare Industry 2H11 0 comments
    Jun 6, 2012 1:00 AM

    cri-report.com - Under the 10th Malaysia Plan (2011-2015), the government has identified healthcare services as one of the 12 National Key Economic Areas (NKEA) to generate revenue for the country. Malaysia now has 8 Joint Commission International (NYSE:JCI) and 24 Malaysia Society for Quality in Health (MSQH) accredited hospitals, with another 31 hospitals and ambulatory care facilities in the process of becoming accredited.

    Market drivers such as rising middle and affluent income population, medical tourism, rise in chronic disease and aging and growing population will impact the healthcare services market, according to Frost & Sullivan. Conversely, market constrains such as medical personnel shortage, discrepancy between urban and rural regions and the inability to meet the demand of healthcare services in towns and rural areas will set the market back.

    According to the World Bank health statistics, Malaysia's spending on healthcare was estimated at 4.4% of its GDP in 2011. Currently, government expenditure accounts 54.4% of the total expenditure. Private sector services mainly dominate the healthcare industry in Malaysia. Frost & Sullivan estimated the private healthcare sector to generate revenue of MYR 13.8bn in 2015 as compared to MYR 7.5bn in 2011, growing at a CAGR of 16.5% during 2010-2020.

    Besides, Malaysia is fast becoming the destination of choice for medical tourists behind Thailand and Singapore, driven by affordable costs, specialised hospitals, high-quality medical care and short waiting times. According to the Malaysian Healthcare Travel Council (MHTC), the number of foreign patients seeking medical treatment in Malaysia surged by 47.2% y/y to 578,403 in 2011, generating revenue of MYR 509.8mn, up 34.5% y/y.

    KPJ Healthcare Berhad is the largest private healthcare operator in the country with more than 2,700 beds across its hospitals or about 21% of the total private sector capacity. The group also has the highest share of patient admissions and the largest number of medical personnel.

    Salient points

    • With rapid population growth and rising per capita incomes, the healthcare market in the Asia-Pacific (NASDAQ:APAC) region has performed remarkably. Frost & Sullivan estimated the region's healthcare market to reach new heights of USD 300bn or 28.5% of the global healthcare market in 2011.
    • Frost & Sullivan predicted Malaysia's private healthcare sector to generate revenue of MYR 13.8bn in 2015, a three-fold increase from 2010. It is expected that the private hospital market would grow at a CAGR of 16.5% during 2010-2020.
    • Malaysia's spending on healthcare was estimated at 4.4% of its GDP in 2011. Despite low spending on healthcare, Malaysia had the second-highest health expenditure per capita in the ASEAN region in 2010 at USD 368.
    • Malaysia is fast becoming the destination of choice for medical tourists behind Thailand and Singapore, driven by affordable costs, specialised hospitals, high-quality medical care and short waiting times. According to the Malaysian Healthcare Travel Council (MHTC), the number of foreign patients seeking medical treatment in Malaysia surged by 47.2% y/y to 578,403 in 2011, generating revenue of MYR 509.8mn, up 34.5% y/y. Indonesian patients remain as one of its major source, representing about 50% of the revenue and almost 70% of the arrivals.
    • KPJ Healthcare is the largest private healthcare operator in the country with more than 2,700 beds across its hospitals or about 21% of the total private sector capacity.

    Source: World Bank

    Sources: Malaysian Healthcare Travel Council (MHTC); Association of Private Hospitals of Malaysia (APHM)

    http://www.cri-report.com/healthcare/2067-malaysia-healthcare-industry-2h11.html

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