The Malaysian healthcare industry has great potential. The healthcare industry is expected to grow 8 to 9% annually until 2025. Not only that, the Malaysian government has designated the industry as a National Key Economic Area with the medical device sector as the main focus.
Malaysia healthcare market research is necessary if you want to enter, grow, and succeed in the Malaysian healthcare market.
Malaysia Healthcare Market Research: Overview
The Malaysian healthcare sector operates on a two-tier system. The first tier is a government-based universal healthcare system covering nearly all of the population. The second tier is a highly effective private healthcare system.
By 2027, the Malaysian healthcare sector is projected to grow to USD 30 billion, driven by increasing demand for high-quality healthcare services from an aging population, increasing life expectancy, and rising affluence.
The medical fees in Malaysia are among the lowest in the world. The Malaysian government subsidizes up to 98% of healthcare costs. In 2019, the government allocated USD 6.9 billion toward the healthcare sector.
To reduce the financial burden, the Malaysian government has encouraged private investment in recent years. They recognize the economic multiplier effect of the healthcare industry.
The Malaysian healthcare industry has several areas of potential growth, which include medical device manufacturing, pharmaceuticals, medical tourism, and clinical research, among others. Malaysia has great potential to be a health service hub in Southeast Asia, competing against Singapore and Thailand.
Malaysia is one of the world’s leading exporters of medical devices and products. The country accounts for 80% of catheter and 60% of medical glove supplies in the world. However, Malaysia imports nearly 90% of its medical devices, mainly focusing on high-tech devices.
Malaysia is on its way to becoming the top destination for medical tourism in Southeast Asia. To this end, the Malaysian government aims to enhance the existing healthcare travel ecosystem and strengthen the country’s healthcare brand.
The pharmaceutical industry in Malaysia is valued at over USD 1 billion in 2019. The industry consists of more than 100 companies, which can be divided into three categories
- Over-the-counter manufacturers
- Generic drug manufacturers
- Research-based pharmaceutical companies
About 70% of Malaysia’s drug demand is covered by imports, with the remaining 30% covered by local manufacturers.
In terms of clinical research, Malaysia is one of the leading players in Southeast Asia. In 2021, the country conducted the most clinical research in various medical fields.
The potential of the Malaysian healthcare industry can’t be understated. The industry is growing rapidly and offers exciting opportunities to investors, both local and foreign. Our Malaysia healthcare market research can provide you with data-backed insights and effective local strategies.