Malaysia Lures Sick and Wealthy Foreigners

With hospital costs 14 times less than in the US and 65% less than in neighboring Singapore, Malaysia is promoting a new type of tourism – one where a hospital stay is included. Health tourism, as it is known, is becoming increasingly popular among the wealthy, who may travel to foreign countries to have surgeries performed at a fraction of the cost of their home country. Malaysian hospitals have drafted a five-year plan to take advantage of health tourism. As one doctor commented, “the potential is enormous as it is largely untapped and promotion efforts have been hampered by uncoordinated and fragmented efforts by various agencies.” Some deluxe hotels already include a treatment center. And many in the health industry want the government to do more to promote foreign patient visits. All this might bode well for wealth and health, but a more ghoulish side lurks on the borders of Malaysia. If the demand for transplants rises, where will the organs come from? Donors may not give freely. – YaleGlobal

Malaysia Lures Sick and Wealthy Foreigners

KL renews push for health tourism as part of a wider effort to reduce the nation's over-reliance on manufacturing
Reme Ahmad
Thursday, September 19, 2002

FOR the 30,000 well-heeled Indonesians and other foreigners who checked themselves into a Malaysian medical centre last year, the decision was a no-brainer.

After all, the average cardiac bypass surgery at a top-notch private hospital in Malaysia costs US$6,315 (S$11,178).

A similar operation in the United States could cost up to 14 times more at US$90,000, said Dr Ridzwan Bakar, president of the Association of Private Hospitals of Malaysia (APHM).

In Singapore, the average cost would be 65 per cent higher than in Malaysia at US$10,417, he said.

The huge price gap is Malaysia's main advantage and the government is milking it as it renews its push for health tourism as part of a wider effort to reduce the country's over-reliance on manufacturing.

In the Eighth Malaysia Plan (2001-2005), 44 of the 224 private hospitals in the country have been identified to take part in the health tourism programme. Together, they will provide a total of 7,065 beds.

The prices will be half of those in Singapore, according to a quick estimate given by many in the medical profession here.

Said a spokesman for Malacca's Mahkota Medical Centre said: 'Depending on the treatment required, generally it would be about half the cost.'

Mr Ivan Loh, the finance and administration manager at Gleneagles Medical Centre in Penang, echoed this view.

While Singapore is still top choice for treatment centres, Malaysia is catching up.

In the perception index, some see Malaysia's facilities and surgeons as comparable and more inquiries have been coming in from the region's sick and wealthy, an official at another Penang facility said.

Hotels are also cashing in on the health tourism potential. Some are offering health-check packages to their guests.

The Palace of the Golden Horses hotel in Kuala Lumpur has gone a step further. It has a RM6-million (S$2.8-million) medical centre on its premises which makes check-ups convenient.

Guests are offered a battery of tests and results are delivered within five hours - ample time for their clients to fit in lunch and some shopping.

Those who need further treatment or surgery are refered to a specialist hospital.

Industry players see the money-making potential and want the government to do more to boost the foreign patient inflow.

Mahkota Medical Centre said a double deduction for overseas marketing expenses would help, together with investment tax allowances for equipment.

The APHM, which groups more than 90 hospitals, said that greater coordination among government agencies involved in health tourism would be a boon.

'The potential is enormous as it is largely untapped and promotion efforts have been hampered by uncoordinated and fragmented efforts by various agencies,' said Dr Ridzwan.

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