Malaysia Eyes Halal Medical Tourism Crown

For years, Muslim tourists have been drawn to Malaysia’s stunning beaches and vibrant malls, attracted by cultural affinity and warm hospitality. With Muslims making up approximately 60% of its population, Malaysia is now leveraging its strong appeal to tourists to position itself as a global leader in halal medical tourism. By offering high-quality, Shariah-compliant healthcare services at competitive prices, Malaysia aims to attract Muslim patients worldwide, providing them with a seamless blend of medical care and religious observance. This strategic move not only enhances Malaysia’s tourism industry but also solidifies its reputation as a premier destination for halal medical treatments.

A Strategic Focus on Affordable Healthcare

Malaysia aims to attract less-affluent patients with reasonably priced, high-quality treatments. Although it has some ground to cover to catch up with Thailand and Singapore, which dominate an industry generating $38 billion-$55 billion annually, Malaysia is quickly making strides. It recently earned third place for “best and most affordable healthcare for Halal Medical Tourism” by International Living, a lifestyle magazine.

Rising Demand and Strategic Advantages

Jacob Thomas, president of the Association of Private Hospitals of Malaysia, highlights Malaysia’s advantages:

“Thailand’s pricing is no longer attractive, and Singapore can’t cope with the flood of patients. Malaysia is one of the easiest countries to enter for Halal Medical Tourism, with most foreigners not needing to fill in a landing form.”

The number of foreigners seeking medical care in Malaysia more than doubled over five years, reaching 770,134 in 2013. Most patients come from Indonesia, followed by the Middle East and North Africa, regions where healthcare systems often face challenges.

Competitive Landscape

In comparison, Singapore had 850,000 medical tourists in 2012, while Thailand saw nearly 2.5 million last year, including spa stays and resident expatriates. Despite Malaysia’s spending by foreign patients totaling $216 million in 2013, which pales in comparison to Thailand’s $4.3 billion, the country remains committed to growing its share of this lucrative market.

Areas of Expertise

Medical institutions in Malaysia have focused on cardiology, orthopedics, and health screenings, areas in high demand in Indonesia and the Gulf states. According to Patients Beyond Borders, health screenings account for more than two-thirds of Malaysia’s medical tourism business.

Halal Medical Tourism: A Unique Selling Point

Malaysia is also carving out a niche in the halal medical tourism market by offering treatments compliant with Islamic law. KPJ Healthcare’s managing director, Amiruddin Satar, explains:

“For example, insulin, a widely used product in hospitals, is ensured to be halal. We offer patients halal options wherever possible.”

Hospitals provide alternatives to products derived from pork and offer sutures made from lambs slaughtered under Islamic law. Efforts are underway to produce the world’s first halal vaccines for meningitis and hepatitis by 2017, targeting Muslim pilgrims traveling for Hajj in Saudi Arabia.

Future Prospects and Challenges

Despite the lower-cost strategy, some industry players, like Suresh Ponnudurai, CEO of Malaysia Healthcare, caution that volume does not always translate into higher revenue. Nevertheless, Malaysia continues to attract patients due to its affordability and quality of care. KPJ Healthcare, IHH Healthcare, and Ramsay Sime Darby Health Care are expanding their bed capacities for foreign patients, aiming to increase revenue from medical tourism significantly by 2020.

Global Competition and Strategic Marketing

While Thailand remains a strong competitor, recent political instability has posed challenges. Meanwhile, South Korea and cities like Dubai and Istanbul are also vying for a share of the lucrative medical tourism market. South Korea’s use of celebrities like actor Song Joong Ki to promote medical tourism in the Middle East exemplifies the competitive landscape.

Malaysia’s focus on halal treatments, affordable care, and strategic marketing positions it well in the growing halal medical tourism industry. With continuous improvements and a commitment to high standards, Malaysia is on a promising path to becoming a global leader in this sector.