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Malaysia Healthcare Industry Report - 2015

Malaysia Healthcare Industry Report - 2015

This report profiles Malaysia’s healthcare industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including KPJ Healthcare, IHH Healthcare and Ramsay Sime Darby Health Care.

In 2014, the demand for Malaysian healthcare services increased in line with the population growth, better life expectancy, medical tourism, rapid aging and rising middle income group. It is anticipated that this rising trend will continue in 2015. Malaysia now has 13 Joint Commission International (JCI) and 78 Malaysia Society for Quality in Health (MSQH) accredited hospitals, aiming to play a part in the growing health tourism business.

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 would expand from 770,000 in 2013 to 2 million by 2020. Most medical tourists to Malaysia are from Indonesia, followed by India, Japan and China. Future growth is expected from the wealthy Middle East.

According to the World Bank health statistics, Malaysia’s spending on healthcare was estimated at 4% of its GDP, with government expenditure accounting for 55% of total health 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, almost double from 2010.

In line with the continuous demand, expansion of existing hospitals and building of new hospitals will remain the players’ core strategies, as this will enhance the capacity and improve the service delivery of patients. Hence, it is expected that the new start up hospitals will contribute towards their revenue growth in 2015, along with higher operating expenses.

Key Points:

With rapid population growth and rising per capita incomes, Frost & Sullivan predicted Malaysia’s private healthcare revenue to grow at a CAGR of 17% from 2012-2018.

Despite low spending on healthcare at 4.4% of its GDP, Malaysia had the second-highest health expenditure per capita in the ASEAN region in 2013 at USD 423.

According to the MHTC, around 800,000 foreign patients seek medical treatment in Malaysia, generating revenue of MYR 680mn in 2013 and MYR 820 in 2014. Indonesian patients remain as one of its major source, representing almost 50% of the revenue and 60% of the arrivals.

1. Industry Profile
1.1 Asia-Pacific overview
1.1.1 Healthcare market
1.1.2 Pharmaceutical market
1.2 Malaysia overview
1.2.1 Healthcare services
1.2.2 Health status indicators
1.2.3 Health human resources
1.2.4 Healthcare expenditure
1.2.5 Private sector market size
1.3 Health tourism
1.3.1 Size and value
1.3.2 Treatment costs
1.3.3 Accreditation
1.4 Health insurance

2. Market trends and outlook
2.1 Growth opportunities and market trends
2.2 Industry SWOT
2.3 Healthcare incentives
2.4 Healthcare reforms

3. Leading players and comparative matrix
3.1 Leading players
3.1.1 KPJ Healthcare Berhad
3.1.2 IHH Healthcare Berhad
3.1.3 Ramsay Sime Darby Health Care
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and charts
Chart 1: APAC healthcare market revenue (2012-2018)
Chart 2: Global pharmaceutical market by region in 2012
Chart 3: Top 10 causes of hospitalisation in MoH and private hospitals, 2013
Chart 4: Top 10 causes of death in MoH and private hospitals, 2013
Chart 5: Healthcare industry expenditure
Chart 6: Total health expenditure as % of GDP (2003-2013)
Chart 7: Healthcare expenditure per capita in APAC (2013 vs. 2018)
Chart 8: Private hospitals domestic market share by beds
Chart 9: Medical tourism revenues in selected APAC countries 2014
Chart 10: ASEAN medical tourism market share
Chart 11: Growth of health tourists and receipts (2003-2015)
Chart 12: Malaysian health tourists by nationality in 2013 (%)
Chart 13: KPJ revenue breakdown
Chart 14: IHH revenue by segment

Table 1: Major trends impacting healthcare market opportunities
Table 2: Admissions and outpatient attendances in 2013
Table 3: Public sector healthcare facilities as of Dec 2013
Table 4: Private sector healthcare facilities as of Dec 2013
Table 5: Population and vital statistics (2013 vs. 2001)
Table 6: Ten principal communicable diseases in 2013 (per 100,000 population)
Table 7: Medical personnel ratio to population as of Dec 2013
Table 8: Health budget allocation in relation to national budget in 2014
Table 9: Cost comparison of selected medical procedures (in USD)
Table 10: Cost of public hospital treatment for foreign patients (in MYR)
Table 11: JCI accredited medical providers in Malaysia
Table 12: KPJ hospital expansion plans
Table 13: KPJ five-year financial highlights
Table 14: KPJ financials for first quarter ended Mar 31, 2015
Table 15: IHH home markets operational highlights
Table 16: IHH expansion project in Malaysia division in 2014
Table 17: IHH five-year financial highlights
Table 18: IHH financials for three-month ended Mar 31, 2015
Table 19: Sime Darby Healthcare Bhd key division highlights (as of Mar 2013)
Table 20: Sime Darby Holdings five-year financial highlights
Table 21: Sime Darby Holdings financials for nine-month ended Mar 31, 2015
Table 22: Selected peer comparison of key financial ratios

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