Healthcare Expenditure as % of Government Spending
The Government has allocated RM32.4 billion for the healthcare industry in Budget 2022
The Health Ministry of Malaysia is looking to secure 5% of the country's gross domestic product to upgrade the country's public healthcare and ensure that it has a world-class standard
healthcare system in the future
Health Tourism Recovery
With the gradual resumption of international travel, Malaysia's medical tourism is expected to grow by the end of 2022 as demand recovers
In 2019, Malaysia attracted 1.3 million international healthcare tourists with a total of MYR 1.7 billion (approx.US$400 million) in hospital receipts.
The government targets a rebound of revenue up to MYR 800 million (US$190 million) in 2022 and
MYR 1.7 billion (US$400 million) in 2025
from the country's medical tourism sector through initiatives outlined under the recently unveiled Malaysian Healthcare Travel Industry Blueprint 2021-2025
Inflation Buffers Intact
According to Aon's 2022 Global Medical Trend Rates report, the current medical inflation rate in Malaysia is 12.0%, which is 6 times higher than the annual general inflation rate
High medical inflation is contributed by Non- Communal Disease (NCD) prevalence, an ageing population, advances in medical treatment, ringgit depreciation
Substantial pricing power is critical in helping healthcare players better weather through this high inflationary period
Inelastic demand for healthcare, which gives hospital operators substantial pricing power
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Source: Ministry of Health, Malaysia Investment Development Authority (MIDA), Malaysia Healthcare Travel Council (MHTC), 2022 Global
Medical Trend Rates Report, AON
Megatrends in Healthcare
Healthcare
Privacy &
Demographic
Digitalization &
Security Risks
Shift
Innovation
Empowered
Pricing
Patients
Transparency
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KPJ Healthcare Bhd published this content on 29 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2022 08:50:04 UTC.
KPJ Healthcare Berhad is a Malaysia-based investment holding company. The Company is engaged in the provision of management services to subsidiaries. The principal activities of its subsidiaries are mainly the operation of specialist hospitals. The Company's segments include Malaysia and Others. Malaysia segment is engaged in all healthcare activities, including private hospitals, pathology and laboratory services and distribution of pharmaceutical, medical and consumer healthcare products. Others segment is involved in provision of hospital and aged care services in Thailand, Bangladesh and Australia, private university college of nursing and allied health and sale of hospital merchandise and other similar activities. Its subsidiaries include Kumpulan Perubatan (Johor) Sdn Bhd, Point Zone (M) Sdn Bhd, Tawakal Holdings Sdn Bhd, Johor Specialist Hospital Sdn Bhd, Pusat Pakar Tawakal Sdn Bhd, Ipoh Specialist Hospital Sdn Bhd, Puteri Specialist Hospital (Johor) Sdn Bhd and other.
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