KUALA LUMPUR: Malaysia's medium-term health expenditure growth will be among the fastest in Asean supported by double-digit increases in the government's healthcare budget in 2023 and 2024 alongside continued advancements in the private sector.
BMI Country Risk & Industry Research said in its note today, Malaysia's health expenditure will grow by a 2023-2028 compound annual growth rate (CAGR) of 8.3 per cent, with public expenditure growing by 8.5 per cent and private expenditure by 8.1 per cent.
The research firm said Malaysia's high single-digit expenditure growth will see it outpace regional peers such as Singapore, Thailand, the Philippines and Indonesia over the medium term.
It said the ageing population, growing burden of chronic diseases and efforts to enhance public health infrastructure and improve access for underserved communities will drive public sector growth.
While private healthcare providers will continue to attract patients with higher incomes, including medical tourists and domestic patients looking to avoid long waiting times amid Malaysia's shortage of physicians and nurses.
It said Malaysia's healthcare personnel shortages will continue to pose challenges to the healthcare system.
Malaysia is yet to meet its target of one doctor to 400 patients, and this will pose the greatest challenge in rural settings. Malaysia's physicians and nurses numbers are both below the global median.
"We project increases in the number of physicians and nurses, with the number of both per 100,000 people growing at a 2023-2028 compounded annual growth rate of 3.4 per cent," BMI said.
It added that Malaysia's personnel shortages are most acute in the public sector, and this will lead to increasing collaboration with the private sector to help address the issue.
Malaysia's annual per capita health expenditure remains above global and emerging market averages, showing a strong tendency for spending on advanced medical products.