KUALA LUMPUR: The strength of the Singapore dollar has enhanced Malaysia's appeal to international travellers seeking premium healthcare services.
"As the strong Singapore dollar has made the country a less attractive medical tourism destination, we see Thailand and Malaysia are benefiting from the shifting of interest from medical tourists seeking value-for-money quality healthcare services," RHB Investment Bank Bhd (RHB Research) said.
According to the research firm, Malaysia is one of the ASEAN countries well-positioned to capitalise on the fast-growing global medical tourism industry.
The country's medical tourism sector generated about RM2 billion (US$444 million) in revenue last year with over one million medical tourist arrivals, ranking it just behind Thailand, which leads the region with US$859 million in revenue.
"This represents a 34 percent year-on-year (YoY) increase in average spending ticket size per medical tourist, which indicates that more medical tourists are coming to seek resolution for more complex cases," the firm said in a note.
RHB Research noted that Singapore's medical tourism revenue was at an estimated RM270 million in the same year.
Globally, the medical tourism market was valued at US$13.1 billion in 2023. Medical tourists visiting ASEAN countries accounted for a third of global medical tourists. It is estimated to be worth around USD 35.9 billion by 2032, implying a compounded annual growth rate of 11.9 per cent from 2023, according to Market.us.
RHB Research said that Malaysia has become a major medical tourism destination due to its affordable yet high-quality facilities, coupled with its abundant tourist attractions.
It said that the country offers a wide range of medical treatments, like routine check-ups to complex surgeries, at competitive prices.
"For Malaysia, its key competitive advantage lies in the delivery of medical services in speciality areas like in vitro fertilisation," it said.
RHB Research said that Malaysia's medical tourism allows visitors to stay for an extended period, thereby ensuring they have ample time to receive medical care and recover before going home.
"The visa is a single-entry visa that is valid for three months from the date of issue, of which the permit is valid for a period of three months from the date of issue.
"Visa applicants can bring along two adult companions, which will enable medical tourism visa holders to spend time with loved ones while recovering," it said.
The research firm said that to keep with the challenges in improving the quality of medical services, hospitals in Southeast Asia are expected to invest heavily in medical devices (estimated market size of US$10.9 billion in 2023).
It noted that IHH Malaysia was the first in Southeast Asia to offer fibroblast activation protein inhibitor PET/CT scans for precise tumour detection and treatment planning.