Medical & Wellness TourismTrends & Opportunities

10th Penang International Halal Conference

2 March 2019

Medical focuses on clinical and is reactive,

Wellness is voluntary and proactive

Source: Global Spa & Wellness Economy Monitor 2014 by Global Wellness Institute

APAC medical tourism market is expected to exceed US$14

billion mark by 2022

Source : Allied Market Research

SEA has a thriving medical tourism industry and

Malaysia is one of the leaders

Source: World Bank Data 2016, KPMG Medical Tourism Industry Focus February 2018; IMTJ, Tourism Authority of Thailand; International Enterprise Singapore 2016

639 milPopulation in SEA countries,

World’s 3rd largest workforce

Average of 1Doctor per 1,000

population in

SEA countries

MalaysiaGenuine competition to

Singapore and Thailand

SingaporePositioning as the leader

in premium healthcare

ThailandRiding on the back of a

strong tourism sector

Leaders in ASEAN

Medical Tourism

1 2 3

68.9years

Average Life

Expectancy for

SEA populations

$2.6 trillion GDP of SEA countries (USD),

world’s 7th largest economy

$1.4 billionEstimated earnings

(2016)

$609 millionEstimated earnings

(2017)

$318 millionEstimated earnings

(2017)

120 milMiddle class

households in

SEA by 2025

Wellness is more than just spa, it includes a lot of

spectrum interrelated to healthcare services

Source: Global Spa & Wellness Economy Monitor 2014 by Global Wellness Institute

Global Market Report 2018 – Malaysia is ranked the 8th medical travel destination by value

Rank Country US Dollars (million)

1 United States 3,500

2 South Korea 655

3 Turkey 600

4 Thailand 600

5 Germany 575

6 India 450

7 UK 350

8 Malaysia 350

9 Mexico 350

10 Iran 315

Source: IMTJ research, LaingBuisson’s Medical Travel and Tourism Global Market Report

Malaysia is in the top 10 wellness tourism markets

in APAC

Source: Global Spa & Wellness Economy Monitor 2017 by Global Wellness Institute

Malaysia Healthcare Travel Industry

Malaysia’s Value Proposition as a Healthcare Destination

– “Quality Care For Your Peace of Mind”

• Quality Healthcare – equivalent if not more

advanced to other key players within the region

• Accessibility – ease of access to healthcare

• Affordability – competitive rates for quality care

• Ease of communication – English and

Mandarin widely spoken

• Stable geopolitical environment

• Strong regulation gives patients asssurance

• Muslim-friendly with halal options in abundance

• National & International Accreditation

provides quality healthcare for peace of mind

• World class healthcare facilities; Internationally recognised

• Well governed by strict regulations

• Stringent quality and safety

standards set by Ministry of Health

(MoH)

• National and International

accreditations, eg. MSQH, JCI, ACHS

• Expertly trained healthcare

professionals from reputable institutions in Malaysia, UK,

Australia and USA

Savings Percentage Comparison among Most Travelled

Destinations for Medical Tourism

Patients Without Borders, a medical travel site, using US costs across a variety of specialties and

procedures as a benchmark, ranked the average range of savings for the most-travelled destinations are as

follow:

Source: Patients Without Borders

India Malaysia Thailand Turkey Mexico

Costa Rica Taiwan South Korea Singapore Brazil

65-90% 65-80% 50-75% 50-65% 40-65%

45-65% 40-55% 30-45% 25-40% 20-30%

Savings

Percentage

State-of-the-Art Equipment

Latest Technology To Serve Patients Better• Da Vinci Robotic Surgical System• IBM Watson for Oncology

• Cognitive computing platform to solve challenging

oncologic cases

• Interprets data as fast as 10 minutes • 640-slice CT scanner

• 3.0 Tesla MRI

• increased image clarity

• high-quality vascular imaging

• brain, spine, and musculoskeletal system

• maximises patient comfort without compromising quality• 3D High Dose Rate brachytherapy system• Volumetric Modulated Arc Therapy (VMAT) for Cancer• Digital Mammography• Leksell Gamma Knife Perfexion system

…and much more!

Global Recognitions:

• International Medical Travel Journal (IMTJ) Medical

Travel Awards “Destination of the Year” 2015 – 2017

• IMTJ “Health and Medical Tourism Cluster of the

Year" 2017-2018

• International Living’s Top Asian Country to Retire

2018

• International Living’s Annual Global Retirement Index

“Best Country for Healthcare” 2015 – 2018

• 2017 Asia Pacific Healthcare & Medical Tourism

Awards

• 2015 - 2018 MasterCard-Crescentrating Global

Muslim Travel Index - Top Country for Muslim Travel

• Global Health Consumer Choice Awards 2016

• Frost & Sullivan Asia Pacific Healthcare and Tourism

Awards 2016

• World’s Best Hospitals for Medical Tourists by

Medical Travel Quality Alliance (MTQUA)

Global Recognitions as Testament

How do we do it? Ministries and Agencies coming together to facilitate and enable growth

Aids the promotion of

Malaysia’s healthcare export

services globally

Promotes investment into

healthcare sector

Markets and promotes

Malaysia tourism and

medical tourism subsector

globally.

Economic

Corridor

Authorities

State

Tourism

Boards

State / Region development

as a healthcare / medical

tourism hub

Continuously enhance

delivery system and

preserving national security

Regulates and improves the

public transportation

concerning health tourists

Aids in medical tourists

entering into Malaysia via

Malaysia Airports

Oversee and support the

development of medical

tourism in policy matters and

programmes

Leads the national agenda to

position Malaysia as a global

healthcare travel destination

Our PerformanceMalaysia Healthcare Performance

Source : Malaysia Healthcare Travel Council

Note : • 2018f data is as of 29th Jan 2019 data collection with 75% CARR

Moving Forward

Propel the nation towards

Malaysia Year of

Healthcare Travel

2020in tandem with

Visit Malaysia Year 2020

Promote Malaysia as the

Asian Hub for

Fertility Treatment,

including IVF and

Cardiology

Invested RM70 million to build its first factory

outside of Japan to produce medical devices for

cardiac rhythm management, electrophysiology

or ablation and cardiovascular surgery

Strengthening Penang’s position as a Medical Hub

new 8,700 sq ft heart centre

completed in 2018 and new

oncology building with radiation

therapy in 2015

Source: Malay Mail “Japan Lifeline invests RM70m in Penang Science Park” 26 February 2018; The Star “Boston Scientific bullish on Penang plant” 7 February

2018; Penang Monthly “Medical Tourism: A billion-ringgit industry for Penang” October 2015;

From a 3-storey building in 1973 to a

soaring 19-storey building completed

in 2013 with CT & MRI scanners as

well as digital operating theaters

Pledged RM2 billion in 2017 to

expand its current 300-bed

capacity to 1,000 beds

375,000-square-foot manufacturing facility at

the Batu Kawan Industrial Park in Penang

aiming to grow by >10% per annum from 2019

and increasing to 400 personnel

Medical Hospitals

- 3 JCI & 11 MSQH

accredited hospitals

Medical Devices

- Penang has 1/3 of

medical device makers

in Malaysia exporting

RM17.8 billion of

medical devises in 2016

Promotional

Institutions

1

2

3

Malaysia Healthcare Travel Council (MHTC)

Our PerformanceMalaysia Healthcare Travel Council (MHTC)

Medical tourism is promoted by

Malaysia Healthcare Travel Council

an agency under Ministry of Finance

MHTC’s Core Function

CORE

MARKETS

Indonesia

China

Myanmar

Vietnam

India*

Facilitate

PPPs for a

more

focused

strategy

Strengthen

the

industry

eco-

system

OCEANI

AAustralia

New

Zealand

MENAKSA

Oman

UAE

Sudan

SOUTH

ASIABangladesh

Nepal

S.E. ASIABrunei

Singapore

MHTC’s Overarching Objectives

To raise Malaysia Healthcare’s profile as a provider of world-class

healthcare services through:

• Enhancing service offerings in the Malaysia healthcare travel sphere

• Encouraging more cohesive industry development

• Creating value-add partnerships domestically and abroad

• Launch initiatives aimed at encouraging sustainability within the

industry

Public-Private Partnerships

Partnerships for greater success of the healthcare travel industry

Work together with stakeholders across industries

MHTC Membership

• Selection by committee consisting of reps from MOH and private sector

• Screened by stringent criteria in both, healthcare and supporting services

• Member facilities possess accreditation from healthcare accreditation bodies under ISQua

• Elite Members represent the best of Malaysia Healthcare

Note : Membership as of Jan 2019

Seamless End-to-End Patient Experience

• Malaysia Healthcare Representative Offices in Indonesia, Myanmar and Vietnam

• Partners in China & Bangladesh

• Health facilitators in Myanmar, India, Australia, N.Zealand

Malaysia Healthcare Lounge (KLIA & PIA)

▪ Patients for Prince Court Medical

Centre

▪ Neurology & Obstretric Treatment

▪ Meet and greet for

member hospital -

Sunfert Fertility Centre

▪ PIA - Gleneagles Penang

patient from Jakarta in

wheelchair

▪ Somalian

patient with

fluid in the

brain condition

to KPJ – at the

entrance to

aero bridge

MHTC Concierge and Lounge Service

▪ Departure (Send off

service for patient

wheelchair )

▪ Escorting patients from

China upon arrival

MHTC Concierge – Arrival Gate 3MHTC Lounge – Gate 8

Opportunities

Impact of Muslim Tourism and Future Growth

Global Muslim travel market is expected to be worth USD238 billion in 2020 and represents

13% of global expenditure.

Source : State of the Global Islamic Economy report produced by Thomson Reuters in collaboration with DinarStandardThe Asia Economic Impact of Muslim Tourism 2017 to 2020 by Salam Standard

1 Online Transaction

2 Rise of Muslim Female Travelers

3 Asia will continue to lead the way

4Talent development in Halal Travel Ecosystem

5Authenticate Halal or Muslim Friendly claims

6 Seamless Content

7 Visual Stories

8 Unbiased AI-enabled travel solutions

9 Stronger Brand Emphathy

10 Sustainable & Community Initiatives

Key Halal Travel Trends

Source : Crescent Rating Halal Travel Frontier 2018 Report

Important Factors to Consider

• Provide full range of muslim-friendly services

• The core Muslim-friendly services required at the

healthcare facilities

- Halal food

- Qiblat direction and Quran in rooms

- Broadcasting the call to prayer

- Prayer room for visitors

Addressing the Muslim-Friendly Demand

- Provide doctors and nurses that are same gender as the patient

- Provide halal medications when available

- Provide funeral services according to Islamic requirements

Important to accommodate accompanying family members

Addressing the Muslim-Friendly Demand

- Muslim medical patients usually travel

with family members

- Offer accommodation suitable for

families

- Prefer apartments rather than hotel,

for them to continue with daily rituals,

lifestyle and religious practices

• Thailand popular with GCC healthcare tourists

• Many hospitals strive to accommodate religious and cultural needs of Arab

patients

• Bangkok Hospital launched an Arabic Medical Services wing in 2006 – Arab

speaking staff, halal food and prayer facilities

• Thai Halal Tour – Muslim focused tour operator based in Bangkok offers

health check-up packaged tours

• India – halal certified hospitals

• Global Health City Chennai first hospital to receive halal certification – halal

food, dedicated prayer hall and qiblat direction, broadcast the call to

prayers, Arabic television channels, Arab speaking staff

Competitors - Addressing the Muslim-Friendly Demand

India

Thailand

❑ Focus on competitive edge

• Capitalize on Islamic traditional & complimentary medicine – unique to

Malaysia

❑ Branding & Promotion

• Utilize social media to raise awareness about Malaysia’s uniqueness

• Use visual and videos to promote products and services

❑ Identify opportunities in the medical/wellness tourism value chain for

Muslim-friendly products

• Anti-aging, nutrition and supplements that are halal

❑ Develop capabilities

• Knowledge transfer

o Hospitality : Training programmes on cultures

o Translators

Areas of Opportunities

Global Muslim Travel Index (GMTI) 2018

Remark : MasterCard-Crescentrating GMTI Index is based on the following criteria - Ease of Access, Communications, Environment and Enabling Services

Top 10 OIC Destinations Top 10 Non-OIC Destinations

• Malaysia has all the credentials in place to meet the needs of Muslim travelers

• The key is to market well to each target country or audience and harnessing digital solutions would be crucial.

What we need to do…

2019

DIFFERENTIATION FOR EXCELLENCE

24 & 25 September 2019Kuala Lumpur, Malaysia