Total Malaysian Health Care Expenditure could exceed $20 billion by 2025 according to research firm Frost & Sullivan. It is also well positioned to grow in medical tourism, medical devices and private healthcare services.
As government spending will focus on development of public healthcare infrastructure and chronic and infectious diseases control and treatment, the research firm said private healthcare spending will drive much of the growth.
Thus, it forecasts private healthcare (out of pocket, private health insurance) will grow from 46 percent of total healthcare expenditure to close to 50 percent by 2020.
Healthcare services and medical devices also provide the largest near term opportunities in Malaysia, while new sectors of growth are in home healthcare, aged care and medical technology.
“Malaysia provides affordable, high quality healthcare. Enhancement of our capabilities in medical devices manufacturing with stronger emphasis on use of Made in Malaysia medical products could help to control this unavoidable increase in healthcare costs. With our growing middle aged and elderly population, as well as increased awareness on the importance of healthcare management, we see a trend also in earlier diagnosis, leading to the ability to manage diseases better,” said Rhenu Bhuller, Senior Vice President, Healthcare, Frost & Sullivan Asia Pacific.
Other areas of growth are medical tourism and primary healthcare services. Technology and home healthcare are also seen as new areas of growth.
Frost & Sullivan said that compared to other countries in ASEAN, Malaysia has a higher-than-average availability of medical personnel and high quality facilities providing treatments across different ranges of the cost spectrum, making it an attractive destination for medical tourists.
Another factor that is changing the medical tourism landscape is the emergence of new medical tourism hubs like Indonesia and the Philippines.
It is estimated that Malaysia has successfully attracted 19,488 retirees from 120 countries to settle in the country since 2002. About 10 percent of the total population will be over the age of 60 in 2020, making Malaysia an aging nation. It is estimated that the market worth of the Aged Care industry in Malaysia by 2020 will be $1.4 billion.
Home monitoring technologies and wearable devices are likewise well positioned to drive changes in healthcare. Some of the initiatives that could have an impact include: telehealth (home monitoring devices or home consultations for less served geographies), chronic disease management platforms that integrate various mobile devices, patient monitoring technologies and apps, and consumers investing in home monitoring devices, apps and emergency response systems.
Source: Healthcare Innovation Editors.
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