Malaysia's healthcare industry is at a critical juncture, grappling with challenges such as a shortage of skilled workers, inadequate investment in research and development, and technological disparities, particularly in rural areas. Despite these hurdles, the pharmaceutical sector is making notable strides, buoyed by supportive government policies that encourage local manufacturing and foster international collaborations.
This year, the 7th Annual Industry Outlook by the Malaysian-German Chamber of Commerce and Industry focused on the healthcare sector, a vital area brimming with growth potential.
Just how much you may ask?
Malaysia’s total trade in the healthcare sector was valued at US$11.1 billion last year with exports amounting to US$6.81 billion and total imports totalling US$4.29 billion, according to Malaysia External Trade Development Corporation (MATRADE).
As the industry navigates its complexities, the insights gained from this event could pave the way for transformative advancements and sustainable solutions.
Strengthening Malaysia’s healthcare system post-pandemic
The Covid-19 pandemic served as a stark reminder of the vulnerabilities in global healthcare systems, prompting a reevaluation of regional security and health policy.
“Covid was a wakeup call for all countries and even advanced economies were not spared,” Dr Rabindra Abeyasinghe, Representative to Malaysia, Brunei Darussalam and Singapore, World Health Organisation (WHO) said during the panel discussion.
“Could we have done better? How do we plan better for the next pandemic? The crucial question to consider is how can countries minimise economic consequences while saving lives.”
As countries, including Malaysia, seek to bolster their healthcare services and processes, several critical areas must be addressed.
With an ageing population and a concerning prevalence of non-communicable diseases — where one in five Malaysians is diabetic and one in three suffers from hypertension — the need for comprehensive preventative and palliative care is evident.
Additionally, the issue of child malnutrition, resulting in stunted growth for many children, underscores the urgency of targeted health initiatives. Financial sustainability in health services is paramount, and implementing measures such as a sugar tax could not only generate revenue but also promote better health outcomes.
Enhancing public-private partnerships
Known for its pioneering advancements in healthcare, Merck has always been at the forefront of adopting innovations and technologies. True to its reputation, the pharma firm said it is investing in AI-supported technology to drive growth in the sector.
Pixie Yee, Managing Director of Merck Malaysia and General Manager of Merck Healthcare Malaysia and Singapore said as a representative of the private sector, she would love to see the enhancement of public-private partnerships to foster an improved regulatory framework.
For example, Yee said pharmaceutical drugs are only available in Malaysia two to three years after they are launched which can have several significant consequences from impact on patient health to disrupting market competition.
“We would like to see this time frame reduced to make the Malaysian market more competitive in terms of product availability,” she explained, adding that this would also enable quicker patient access to medication.
The role of private healthcare providers in advancing Malaysia’s healthcare industry
As one of the leading private hospital groups in Malaysia, Sunway Medical Centre perfectly demonstrates how private healthcare providers contribute to the overall development of the healthcare industry in Malaysia.
With only 4% of Malaysia’s total GDP spent on the healthcare sector, which is relatively low compared to other countries, Sunway Medical Centre Chief Executive Officer Dr Seow Vei Ken would like to see a bigger allocation.
The recent tabling of Budget 2025 is a much-welcome development that saw an allocation of RM45.3 billion to the Health Ministry, the second highest after the Education Ministry, marking a 9.8% increment from the RM41.2 billion allocated this year.
Highlighting best practices, Dr Seow discussed the hospital's experience in establishing a mega vaccination centre at the Sunway Pyramid shopping mall, which was set up in just 48 hours and managed to vaccinate 8,000 people daily. He also shared the hospital’s strategy for clinical excellence, operational excellence, and financial excellence—three pillars that organisations should consider for success.
Boosting healthcare investments in Malaysia
The Malaysian Investment Development Authority (MIDA) has been proactive in supporting investments in healthcare in Malaysia by offering generous tax incentives. These include the Investment Tax Allowance (ITA) and relocation incentives designed to attract companies to establish their operations in the country. Such initiatives aim to ramp up investment in the healthcare sector, fostering growth and development in this vital area.
Zuaida Abdullah, Executive Director, Services Development at MIDA says the investment agency hopes to strengthen Malaysia’s ecosystem for the healthcare sector.
“We need to ramp up investments in the areas of R&D and talent and development – this is crucial as Malaysia is still importing a lot of medical equipment,” she said.
Outlook for the next five years
The WHO estimates a shortage of 10 million health workers by 2030 mostly in low and lower-middle income countries.
“This is an important statistic to bear in mind to ensure Malaysia has adequate talent for the Malaysian healthcare system and to meet its ambitions of being a preferred healthcare destination for ASEAN and beyond,” Dr Rabindra said.
Malaysia can benefit from its strategic geographic position. Furthermore, its chairmanship of ASEAN later this year will allow the country to lead conversations not only on its healthcare security but also to build ASEAN healthcare security.
“Malaysia will be able to provide leadership to enhance regional healthcare security,” said Dr Rabindra.
Echoing this view, Dr Seow said: “Talent retention is essential for achieving clinical excellence, and we must continue to invest in innovations to support this goal.”
Sources:
https://codeblue.galencentre.org/2024/10/codeblues-summary-of-health-items-in-budget-2025/
https://www.who.int/health-topics/health-workforce#tab=tab_1
