KUALA LUMPUR: Malaysia’s private healthcare sector is fast cementing its position as a global medical tourism hub, drawing 1.84 million international patients and generating RM3.34 billion in revenue in 2025.
What was once considered a niche segment has now become a key pillar of the country’s economic growth and global reputation, underpinned by high clinical standards and competitive pricing.
Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh said about 80 out of the country’s 212 private hospitals are actively involved in medical tourism, offering specialised services tailored to foreign patients.
He noted that many of these hospitals have secured accreditations from the Malaysian Society for Quality in Health (MSQH) and Joint Commission International (JCI), ensuring their services meet stringent international benchmarks.
While quality remains essential, Dr Kuljit said affordability continues to be Malaysia’s biggest advantage.
“Treatments here are significantly more affordable compared to the United States, Europe and even some regional competitors,” he said, adding that this cost advantage has helped position Malaysia as a preferred destination for healthcare travellers.
Data from the Malaysia Healthcare Travel Council (MHTC) showed that the average healthcare traveller spent around RM1,800 in 2025. Inpatient treatments averaged RM12,321, while daycare services and outpatient visits cost RM3,475 and RM1,381, respectively.
Health screening packages, costing an average of RM1,075, have emerged as a key entry point for first-time patients.
MHTC vice-president of data analytics and strategy Aida Zurina said such screenings often serve as a gateway, allowing patients to experience Malaysia’s healthcare system before committing to more complex treatments.
Currently, about 80% of medical tourists come from Indonesia, China, India, Singapore and the United Kingdom.
The sector’s economic impact extends well beyond healthcare services.
In 2022, it generated RM6 billion in direct revenue and contributed an additional RM12 billion indirectly to the national economy. By 2025, private hospitals accounted for 95% of total healthcare travel revenue.
Over the longer term, the industry has recorded strong growth, with revenue rising from RM530mil in 2011, when Malaysia welcomed 643,000 medical tourists, to RM3.34bil last year.
Medical tourists also contribute to other sectors such as retail and hospitality, often travelling with companions. In 2024, average non-medical spending per visitor stood at RM2,680, creating a multiplier effect across the economy.
Dr Kuljit said every ringgit spent on healthcare tourism could generate up to four times more in related economic activities.
The sector’s strength is also reflected in the valuations of major healthcare groups. IHH Healthcare leads with an estimated market capitalisation of RM79.4bil, followed by Sunway Healthcare at RM21bil and KPJ Healthcare at RM15.6bil.
With revenue expected to reach RM7 billion by 2030, the industry is also helping to retain skilled medical professionals.
Dr Kuljit said the sector creates high-value jobs for specialists, nurses and allied health professionals, helping to reduce brain drain while encouraging innovation within the healthcare system.
He added that revenue from international patients enables private hospitals to reinvest in advanced technologies, ultimately benefiting Malaysians through shorter waiting times and improved access to specialised care.
As Malaysia marks the “Malaysia Year of Medical Tourism 2026”, efforts are being intensified to strengthen the country’s position in an increasingly competitive regional landscape.
Demand remains strong in key areas such as cardiology, oncology and orthopaedics, driven largely by the rise of non-communicable diseases.
Aida noted that patient preferences differ by market, with Indonesian travellers seeking a wide range of treatments, while those from higher-income countries often come for elective procedures or treatments with long waiting times at home.
