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(Last updated: 8 Sept 2008)
Trends and opportunities
The market
Healthcare in Malaysia is catered both by public and private providers. The government is still the main provider as healthcare in the country is still heavily subsidised. Private healthcare cost is fully borne by patients themselves or through their insurers.
The 9th Malaysian Plan (9MP) outlines the government strategies and focus for the healthcare industry for the next five years (2006-2010). Under 9MP, the thrust towards achieving greater health will be through various goals, including preventing and reducing disease and enhancing healthcare delivery.
Does this mean that within this period the Malaysian National Healthcare Financing Scheme (similar to Australia’s Medicare system) will finally be implemented? Per the industry feedback, government will have to do so very soon as the escalating healthcare costs is creating a burden too great for them to bear.
Basic healthcare information for Malaysia:
|
Population (2006) |
26.3 million |
| No. of doctors |
21,937 |
| No. of pharmacists |
4,292 |
| No. of nurses |
47,642 |
| No. of hospitals (public & private) |
373 |
| No. of hospital beds |
50,262 | (Source: Ministry of Health)
There has been rapid growth in number of private hospitals in the last two decades. In 1980, there were only about 50 private hospitals with 2000 beds. Currently there are more than 233 private hospitals with more than 11,000 beds.
The larger private health groups in Malaysia are Johor Healthcare Group and Pantai Group of Hospitals.
Private hospitals are no longer concentrated in the cities only, as the increase in population number has driven the growth of private centres into many of the bigger towns in the country, with populations of 200,000 or more.
The growth of private hospitals also contributed to the shortage faced by the public sector. Almost 40 per cent of practising doctors serve in the private sector.
The current ratio of doctors per population is 1:1200, which is still far from the national target of 1:600 by 2020 and similarly ambitious targets for nurses (current ratio 1:560) and other medical personnel. To achieve this, a number of expansion strategies are being pursued. This includes:
- The recruitment of foreign doctors and specialists.
- Acknowledging foreign medical degrees formerly not recognised (with conditions attached).
- An increase in the number of scholarships for local and foreign training of Malaysian doctors.
- The establishment of new medical colleges and twinning programs.
Construction activities in the public sector for the next five years are expected to slow down even more with the escalating costs and ‘runaway’ inflation rates. Required infrastructures are mostly in place, thus construction of new hospitals are only limited to those which were ‘postponed’ from the 7th and 8th Malaysian Plan. These include the Women & Children’s Hospital, rehabilitation hospital and psychiatric hospitals and refurbishments of state/district hospitals.
Private hospitals construction is also limited in numbers, with only a couple of on-going projects for new hospitals. Most major hospitals have already completed their expansion programs or have put on hold new construction.
Pharmaceuticals
With pharmaceutical, generic and OTC manufacturing, there are approximately 72 manufacturers in Malaysia licensed by the Drug Control Authority. Around 30 are licensed to manufacture prescription medicines, while the rest produce iver-the-counter medicines. Another 130 manufacturers produces traditional and herbal medicines.
The Malaysian drug market was valued at approximately US$1.1 billion last year, with an 11 per cent annual growth rate for the next five years. The majority of patented drugs are still imported as pharmaceutical multi-nationals control approximately 70 per cent of the market. The rest are in demand for generic and OTC products, which is catered for mostly by local manufacturers.
Due to a lack of pharmacists, Malaysia is still a doctors prescribing market.
Opportunities
Ninety per cent of medical equipment used in Malaysia is imported. Although Australia is not the main supplier of medical equipment, Australian companies have been successful in penetrating this market with their offerings of innovative/niche medical products and services.
In a few years, we have seen the trend of Australian health/medical offerings changing and leaning towards provision of services. The tie-up of Australian universities offering health-related courses in Malaysia is one of the best examples. Others include allied health skilled training, ambulance service operations and retirement village planners.
Opportunities exist in the following areas:
- Training and specialised medical education for healthcare personnel (nursing, paramedical and management programs)
- Innovative/specialised/niche medical equipment
- Health IT systems and services
- Health consulting services
- Contract manufacturing of generics and OTC products
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