Malaysia:Costs of medical infrastructure, technology and training continue to drive up healthcare costs

As Malaysia aims to become a leading destination for medical tourism, the costs of infrastructure, technology and training continue to drive up healthcare costs, according to a report released by WTW, a leading global advisory, broking and solutions company.

WTW, in its Global Medical Trends Survey report, says that the country continues to attract patients from overseas due to the affordability and quality of the medical care; however, public hospitals are struggling with overwhelming patient volumes, pushing many to seek care in private hospitals.

Lifestyle shifts have also contributed to a surge in non-communicable diseases such as diabetes, hypertension and cancer, further affecting healthcare costs.

Medical cost escalation is exacerbated by rising wages for healthcare workers and limited pricing transparency.

Recently, there have been calls for the Health Ministry to consider regulating private hospital charges under health financing reform. Outpatient costs are expected to rise further if the current call for harmonising the private general practitioner fee schedule with that of private hospitals is implemented.

Effective 1 September 2024, all insurers are required to introduce cost-sharing schemes to contain medical costs. The objective is to provide a lower premium option and increase patient awareness of charges. Service providers are also introducing telehealth and virtual consultation services and encouraging patients to manage their health via specialised medical devices.

Malaysia - Medical cost trend (%)