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Malaysia’s private healthcare and medical tourism sector is projected to generate US$526 million (RM2.26 billion) in revenue in 2024, with an economic spillover of US$2.1 billion benefiting other industries, according to the Malaysia External Trade Development Corporation (Matrade). The nation’s reputation for high-quality medical treatments, trained healthcare professionals, and cost-effective services has solidified its position as a key player in the global medical tourism market.
Speaking at a press conference during International Healthcare Week 2025 (IHW 2025), Matrade’s deputy director Abdul Halim Mohamed Shariff highlighted the strength of Malaysia’s healthcare industry. “Healthcare tourism is one of the strongest segments within the healthcare industry,” Abdul Halim said, pointing to hospitals like IHH Healthcare, which alone has generated revenues up to US$3.9 million.
Expanding Healthcare Market and Medical Devices Industry
Malaysia’s medical device market is poised for substantial growth, with a projected compound annual growth rate (CAGR) of 9.5% from 2023 to 2028, reaching US$3.64 billion by 2028. The consumables segment is expected to grow even faster, with a CAGR of 10.2%, reaching US$986 million over the same period. This growth reflects the increasing demand for advanced medical devices and consumables as the country expands its healthcare infrastructure and capabilities.
Optimistic Outlook for Malaysia’s Healthcare Sector
Matrade chairman Datuk Seri Reezal Merican Naina Merican noted that Malaysia’s healthcare sector is primed for significant growth, driven by factors such as rising life expectancy, technological advancements, and the increasing prevalence of chronic diseases. “This optimistic outlook aligns with the projected global expansion of the healthcare industry, which is expected to soar by 63% from RM2.53 trillion in 2024 to RM4.13 trillion by 2032,” he said.
This projected growth presents exciting opportunities for Malaysian companies to strengthen their position in the global healthcare market. Reezal Merican emphasized that Malaysia’s strategic focus on medical devices and healthcare tourism positions the country to capitalize on this expanding sector.
ASEAN’s Healthcare Market on the Rise
Informa Markets regional portfolio director for ASEAN, Rungphech (Rose) Chitanuwat, noted that the ASEAN region’s healthcare market is being propelled by rising wealth, demographic shifts, and technological advancements. The region’s growing affluence has led to increasing demand for personalized healthcare services, particularly for the elderly and those requiring chronic disease management.
“With a collective population of nearly 700 million and being the world’s fifth-largest economy, the ASEAN region presents numerous opportunities for healthcare providers and investors,” said Rungphech.
Focus on Integrated Healthcare Ecosystems
Rungphech highlighted a growing trend toward the development of integrated healthcare ecosystems. These systems aim to connect various healthcare services such as hospitals, diagnostic centers, wellness clinics, and pharmacies, improving efficiency and patient experience. This shift towards integrated care models includes a focus on preventive care, wellness, and chronic disease management.
IHW 2025 will showcase these trends by featuring three co-located events—CPHI Southeast Asia, Medlab Asia, and Asia Health. Together, these events will bring over 700 exhibitors and are expected to attract 16,000 attendees from 50 countries, offering significant networking opportunities for collaborative projects and partnerships.
International Healthcare Week 2025
IHW 2025, scheduled for July 16 to 18, 2025, at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur, is set to establish Malaysia as an emerging hub in the healthcare sector. The event, organized by Matrade and Informa Markets, will elevate Malaysia’s profile not only within ASEAN but also on the global stage.
The event is expected to enhance Malaysia’s reputation as a prime destination for medical tourism, recognized for its quality healthcare services and affordability. This increased visibility is likely to drive demand for advanced medical devices and pharmaceuticals, further contributing to the growth of Malaysia’s healthcare sector.
With substantial investments in healthcare infrastructure and a clear strategy for growth, Malaysia is well-positioned to play a leading role in the evolving global healthcare landscape.
