'Frost & Sullivan: Growing Healthcare Tourism in Malaysia

Malaysia, Kuala Lumpur – 25 August, 2009: Healthcare expenditure in Malaysia is increasingly driven by increased privatization within the
healthcare service provision and upgrading of existing healthcare infrastructure within the public sector. The market for healthcare services has also received positive impetus from growing promotion of health tourism and development activities. According to Frost & Sullivan Senior Consultant, Dr Pawel Suwinski, ‘Malaysia healthcare tourism trend grew at a rate of 25.3 percent CAGR since 1998, while revenues posted a growth of 37.9 percent during the same period. Revenue per patient has also grown 2.5 fold from USD92 in 1998 to USD241 in 2008. By year 2010, medical tourism revenue per patient is estimated to reach USD590 M. This signifies the growth of foreign confidence in more advanced medical care services in Malaysia. Most international patients come from neighboring countries with less developed medical infrastructure (i.e.: Indonesia), and other developed countries from the West. Malaysia is also a prefer destination for these international due to the higher foreign exchange in Singapore and unstable political scene in Thailand. In the year 2006, bulk of foreign patients came from Indonesia (65-70 percent), followed by Japan (5-6 percent), Europe (5 percent) and India (3 percent). Moreover, patients from Middle Eastern countries (i.e U.A. E, Qatar and Saudi Arabia) posted an upward trend in the past. ‘Malaysia government as well, has set up several referral gateways to further enhance the availability of this facility. One of it is the health tourism website (www.malaysiahealthcare.com) to assist medical tourist globally. Private hospital groups and major private hospital providers have set up their respective referral system,’ Suwinski further elaborates. Gleneagles Intan and Pantai Medical Groups have set up international customer departments specifically catered towards admission and support of International patients. KPJ Medical Group, Mahkota Hospital and Subang Jaya Medical Center established tie ups with several renowned travel agencies and hotels to provide comprehensive tourism packages in conjunction with healthcare services as well as set up representative or referral offices. Healthcare in Malaysia is mainly dominated by private hospitals. Since 2002 - 2006, 62 percent of the total hospitals in Malaysia are privately owned. The number of private hospitals increased dramatically from 50 in 1980 to an estimated of 223 private hospital last year. The government however, has constructed 10 public hospitals in the past 4 years which brings the total number of public hospitals to 140 last year from 130 in 2003. Healthcare tourism is certainly an emerging business that will bring in various opportunities. To further enhance the success of this sector it is essential to look into equal distribution of hospitals and clinics in all regions, supplying experience and quality doctors, enhance quality of care provider in the public sector and developed medical technology infrastructure in most hospitals. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

14 Laws of Malaysia ACT 586“private ambulatory care centre” means any premises, other

any disease. used or intended to be used for the reception. used or intended to be used for the practice of medicine on an outpatient basis including— (a) the screening. instrument or device.than a Government ambulatory care centre. treatment and care of persons who require medical treatment or suffer from any disease or who require dental treatment that requires hospitalization. other than a Government healthcare facility. . primarily used or intended to be used for the purpose of performing any procedure related to the practice of medicine in any of its disciplines or any dental procedure and with continuous relevant private healthcare services including nursing services whenever a patient is in the premises. other than a Government hospital or institution. and (c) the curing or alleviating of any abnormal condition of the human body by the application of any apparatus. private medical clinic or private dental clinic. Private Healthcare Facilities and Services 15“private hospital” means any premises. beds or other accommodation for the stay of any one patient for a period of not more than 23 hours is provided and from which patients are either discharged in an ambulatory condition without requiring constant or continuous care or supervision and without danger to the continued well-being of the patient or transferred to a hospital. injury or disability of mind or body. equipment. lodging. (b) preventive or promotive healthcare services. or believed to be suffering from. and in which healthcare.16 Laws of Malaysia ACT 586 16 Laws of Malaysia ACT 586“private medical clinic” means any premises. diagnosis or treatment of any person suffering from.

. Australians and people from the European Union are attracted to the lower cost of medical procedures in Malaysia. mainly catering for Asian health travelers. whilst Middle Eastern medical travelers visit Malaysia for both the price and the quality of healthcare provided. Currently. Healthcare System in Malaysia The majority of hospitals offering services to medical tourists are privately owned institutions following internationally recognized standards in healthcare. visit Malaysia due to the lower prices of medical procedures. The same reason draws health travelers from other Asian countries like Bangladesh and Pakistan. Most of these hospitals are accredited by international bodies including the International Organization for Standardization (ISO) and the Joint Commissions International (JCI) among others. Top Hospitals in Malaysia for Medical Tourism • Penang Adventist Hospital Jalan Burma. this non-profit hospital is fully owned and controlled by a Malaysian company and has grown since then as a tertiary healthcare institution using up-to-date medical equipment and procedures.Medical Tourism in Malaysia Search Malaysia for clinics þÿ or browse Malaysia hospitals and Malaysia is one the fastest emerging destinations for medical tourism in Asia. the majority of Malaysia's medical tourists come from Indonesia mainly due to the superior quality of healthcare that Malaysia offers. (which are the second and third highest origins of medical travelers respectively). Malaysia First accredited by the JCI on November 2007. Established in 1924. Doctors and staff practicing at Malaysian international hospitals are English-speaking and internationally trained. Patients from richer Asian countries like Singapore and Japan. According to the Association of Private Hospitals of Malaysia (APHM). there are at least 35 hospitals in Malaysia that are being geared towards medical tourism. making them on par with medical institutions in western countries. and in some cases are involved in international medical research. Over 90 percent of these doctors were trained in the UK. USA or Australia. All are accredited locally by the Malaysian Medical Society for Quality of Health (MSQH) and are licensed by the Malaysian Ministry of Health.

plastic surgery and wellness treatments. This medical center is the largest outpatient polyclinic in Malaysia's premiere commercial center. Common Treatments done by Medical Tourists in Malaysia Hospitals and healthcare facilities in Malaysia offer a wide array of procedures and services for medical travelers. Malaysia First accredited by the JCI on December 2008. it is the leading heart institution in Malaysia offering advanced cardiovascular and thoracic health services to both adult and pediatric patients. Privately owned by Petronas. Malaysia Located in the heart of Kuala Lumpur is the in-house medical facility situated in the Petronas Twin Tower complex. An ambulatory surgical center or ASC. Malaysia First accredited by the JCI on February 2009. ISEC is Malaysia's premiere center for ophthalmology and eye care. • Browse our list of hospitals in Malaysia >>. • Institute Jantung Negara National Heart Institute Also known as IJN. • Prince Court Medical Center Kuala Lumpur. the hospital boasts of a 300-bed state-of-the art medical center offering various healthcare services including cardiology. catering to both local and international patients. which include but are not limited to the following: • • • • • • • • • • • • Cosmetic and Reconstructive surgery Endocrinology Ear. working in conjunction with leading international medical organizations and using the latest techniques in heart care.• Twin Towers Medical Center Kuala Lumpur. Nose and Throat (ENT) General and Cosmetic Dentistry Gastroenterology General Surgery Dialysis and Nephrology Health Screening and Special Diagnostic Services Health Screening Packages Health rejuvenation packages Immunization and Vaccination Services Internal Medicine . • International Specialist Eye Center (ISEC) Kuala Lumpur.

particularly in certain areas of the country that are geared toward Western visitors and tourists Traveling to Malaysia There are six international airports in Malaysia catering for more than 35 international carriers from all around the world. healthcare and diagnostic facilities Prices-Competitive prices for medical procedures and treatments Language-English-speaking. wherein compensation is paid only for proven negligent cases. Average estimated travel time in hours From/To Malaysia . although the Ministry of Health in Malaysia have declared an increasing trend in the amount of compensation paid by the Malaysian government for liability cases since the year 2000. At present. suitable for post-surgery recovery Cons Safety concerns Terrorist activities and kidnapping of tourists are still primary concerns. Pros • • • • • Medical facilities-State-of-the art medical.• • • • • Obstetrics and Gynecology Ophthalmology Orthopedics Pediatrics Urology Cost of Medical Treatment in Malaysia The following are cost comparisons between Medical procedures in Malaysia and equivalent procedures in the UK and the United States: Malpractice and Liability Laws in Malaysia Statistics from 2004 have indicated that at least 50 percent of private medical practitioners in Malaysia had no medical indemnity cover. This makes Malaysia very accessible from neighboring Asian countries as well as from outside the continent. the Malaysian government follows the Tort system for the control and regulation of litigation cases due to medical malpractice of negligence. highly trained and qualified medical specialists and staff Quality standards-Strict adherence to internationally recognized quality medical standards Tourism infrastructure-Affordable accommodation and a favorable tourism destination.

followed by 10 percent from Singapore and another 5 percent from Japan. which is 16 percent higher than in 2007.687 2007 341.000 for the first nine months of 2008 alone.946 174.288 102.New York City 20 Los Angeles London Singapore Jakarta Dubai Riyadh Bangladesh Pakistan Tokyo Sydney 19 12 1 2 7 7 3 5 6. with figures already reaching more than 282.189 Malaysia Medical Tourism Patients by Country of Origin (Year: 2007) Indonesi a 72% Singapore 10% Japan 5% India 4% Europe 3% Others 6% Malaysia: Healthcare and Pharmaceuticals Report ff Malaysia: Healthcare and Pharmaceuticals Report December 20th 2010 Printer version . The 2007 figures indicate Indonesia at the top of the list and accounting for 72 percent of foreign patients to Malaysia.5 8 Statistics of Medical Tourism in Malaysia The amount of medical tourists to Malaysia in 2007 has tripled since 2003. HealthCare Patients Visiting Malaysia according to the Association of Private Hospitals of Malaysia (APHM): 2003 2004 2005 232.161 2006 296.

8 16.6 Malaysia 4.956 6.FROM THE ECONOMIST INTELLIGENCE UNIT Healthcare report: (Forecast closing date: December 20th 2010) Healthcare spending.0 16. of households with annual earnings above US$5.3 US 15.0 29.5 6.274 13.7 30. Source: Economist Intelligence Unit.145 18.2 7.2 7.5 16.6 2014c 4.6 186.462 4.2 270.099 No.4 10.000 ('000) 146 191 236 215 299 375 422 470 534 597 No.044 6.6 c Economist Intelligence Unit forecasts.4 4.6 16.538 3.133 6.071 4.2 7.135 3.6 10. according to data published by the Department of Statistics.064 5. Download the numbers in Excel Healthcare is one of 12 National Key Economic Areas that were identified by the government in its Tenth Malaysia Plan (a medium-term spending plan covering 2011-15). c Economist Intelligence Unit forecasts. of households with net wealth over US$1m ('000) 17 29 22 19 26 31 36 42 47 53 a Actual.5 10.6 2015c 4.000 ('000) 2.2 7.2 7.764 5.000 in 2010.870 5.9 4.7 16.253 5.3 7.000 ('000) 4.480 No.3bn.7b 4.446a 3.3 192.604 5.6 396.720 5.6 a Actual. In 2010 the percentage of the population above 65 years of age is estimated at 4.9a 28.564 15.897 No.408 6.223 6.2 16.694 6.5% by 2015.4 4.7 4.5 4. Download the numbers in Excel Healthcare report: Overview The value of Malaysia's healthcare industry in 2010 is estimated at around US$10.482 4. health indicators are fairly positive: average life expectancy is high for a developing country. It hopes that the investment of public funds in these areas .502 4.748 4.1 GDP per head (US$ at PPP) 12.452 2.8 222.5 4.5 27. of households ('000) 5.7 10.7 Germany 10.4 29.4% of GDP. a small proportion by international standards. b Economist Intelligence Unit estimates. international comparison (% of GDP) 2006a 2007a 2008a 2009a 2010b 2011c 2012c 2013c 4. the Economist Intelligence Unit expects this proportion to rise to 5.253 4.244 16. at over 73 years.842 3.8 16.118 17.000 live births at the start of the millennium to around 6 per 1.3 4.049 3.5 4.7 10.184 4.0 16.678 5.156 3. Income and demographics 2006a 2007a 2008a 2009b 2010b a 2011c 2012c 2013c 2014c 2015c Nominal GDP (US$ bn) 156.8 235.877 4.6 10. of households with annual earnings above US$50. while according to national-source figures the infant mortality rate has fallen from 9 per 1. b Economist Intelligence Unit estimates.6b 10.647 3.1 Japan 6.775 5.963 4.1 Population (m) 26.7 4.7 4.1 358.8 China 4.7 4.6 29.457 5.7%.2 27.8 27. Malaysia has a young population: around 50% of its people were aged 24 years or under in 2008.3 4. However.7 10.3b 16.4 322.731 14. Source: Economist Intelligence Unit.276 14. of households with annual earnings above US$10.641 No.0b 7.9 4.628 Private consumption per head (US$) 2.7 10.315 6.338 19. Total expenditure on healthcare in that year is estimated at the equivalent of 4.3 28.860 5. 4.7 6.624 3.303 5.024b 13.9 296.

female (years) 75.7 72.1 13.3 4.7 77. Within the healthcare sector there are six entry-point projects: private insurance for foreign workers. and expect the ratio of health expenditure to the size of the economy to rise only gradually in the forecast period.8 1.1 71.0 Life expectancy. Public medical services are heavily subsidised for those unable to pay the full fees and are provided free to the poor.2 77.701 27.8 0. according to preliminary reports.0 73.8 74.0 74. improvements to clinical research.000 live births) 17.734 8. c Economist Intelligence Unit forecasts.3 Healthcare spending (M$ m) 24. meaning that health insurance coverage under the plan would not be outsourced to insurance companies.0 14.4 4. Only a minority of the population is able to afford private medical care.8 0.8 0. Medisave.7 75.6 73.2 76.5 77. telemedicine.057 39.3 73.7 13.339 14.8 0.8 71.000 people) 1.8 1.8 Hospital beds (per 1. a long-delayed health insurance scheme is expected to be announced in 2012. Singaporeans can pay for day surgery and associated hospital costs abroad through their Medisave contributions.759 Doctors (per 1.859 30. the government is to manage the scheme under a proposed National Health Financing Authority.5 4. As a result.5 74.8 1.8 0. Healthcare: key indicators 2006a 2007a 2008a 2009b 2010b 2011c 2012c 2013c 2014c 2015c Life expectancy.617 2.856 19.5 76.462 3. health tourism.294 36.3 70.7 Infant mortality rate (per 1.031 9. A shift in emphasis towards the private sector in terms of healthcare provision is also expected during the forecast .6 14.0 15. exporting generic medicines.will lead to improvements that will help Malaysia to become a high-income nation status by 2020.608 31. on private treatment abroad.8 1.8% of GDP by 2015. male (years) 69.1 16. such as cardiovascular disease. and the creation of a healthcare and bioscience campus. b Economist Intelligence Unit estimates.8 1.6 4.8 Healthcare spending (US$ m) 6.8 Life expectancy.8 0.156 49.6 17.3 74.560 8.012 Healthcare spending (US$ per head) 251 295 347 311 366 417 460 505 567 631 Healthcare (consumer expenditure.3 71. people either take out insurance policies with private firms or pay out of their own pockets for expenses incurred when using private-sector healthcare. Demand for healthcare is likely to expand in the forecast period (2011-15) as the elderly increase in number.5 4. The National Health Financing Scheme is in the process of being drafted by the health ministry.5 15. US$ m) 1.4% of GDP in 2010. The government accounts for around 60% of total healthcare spending in Malaysia. Other than outpatient treatment.422 1.0 77. employers and the federal government. Continued urbanisation is likely to lead to a rise in the incidence of so-called developedcountry illnesses.4 75.8 0.4 4.5 71.8 1.725 56. and at present the country lacks a compulsory national health insurance plan.3bn) and will create over 23.8 1.000 people) 0.8 0.150 3.1 70.8 a Actual.087 Healthcare spending (% of GDP) 4.6 70.031 1.3 4.586 33.678 10.3 4. Source: Economist Intelligence Unit. The Ministry of Health estimates that spending on public and private healthcare combined needs to rise to around 7% of GDP by 2020 if Malaysia is to match developed-country standards. to reach 4.783 44.000 jobs.7 4.8 70.5 72.8 1.286 2.8 0. The scheme is expected to be mandatory for all Malaysians and to be funded through contributions from employees. consumer awareness of healthcare services grows and access to services improves (in part owing to increased privatisation of services). average (years) 72. The government estimates that these programmes will cost M20bn (US$6.860 3. We estimate spending on healthcare at 4.8 1. and this will also trigger a rise in demand for healthcare.817 16.920 13. It thus appears likely that the government will struggle to meet its healthcare spending target.708 2.954 2. Demand for Malaysia's health services by Singaporeans is set to rise after the government of the city state decided that residents could use its compulsory savings scheme.5 16. However.8 73. Download the numbers in Excel Funding.9 76.348 11.

Malaysia's public healthcare system is lauded as an Asian success story. the consumption of which is . and the quality of both private.1% share in a Singaporean hospital operator. which allows for the transmission of medical images. clinics and qualified doctors. while Indonesia comes 108th. Despite the low ratio of health spending to GDP. The government aims to attract more patients from Asia. the Malaysia Healthcare Travel Council. but they are much smaller. and will continue to feature in its long-term plans to move the country up the value-added chain. Healthcare report: Pharma and biotech The pharmaceutical industry is not one of Malaysia’s largest employers. It will also have the aim of promoting the Multimedia Supercorridor (a hightechnology industrial zone near to the capital. Further evidence of the government's keenness to expand Malaysia's reputation as an international healthcare provider came in July 2010. the Middle East and further afield for treatment. Parkway. Sime Darby Medical Centre in Selangor (393 beds). Malaysia has shot up the international health rankings recently. Among the largest private hospitals are Lam Wah Ee Hospital in the state of Pulau. by comparison. Malaysia's primary-care system is internationally recognised as a model provider of healthcare services at little or no direct cost to consumers. and the resulting delays in the provision of treatment in the public sector may encourage more people to switch to private healthcare. 808 health clinics. and Mahkota Medical Centre in Melaka (356 beds). increasingly. It provides work for less than 1% of the working population.000 beds in that year. both the pharmaceutical and biotechnology sectors have been identified as strategic industries by the government. nearly 2. which has 437 beds. medical education and the management of health services. Thailand. which includes four pilot "telemedicine" projects.591 beds.000 rural clinics and 130 hospitals in 2009.) The purchase. Provision. with around 65% of them working in the public sector. In 2009 the number of registered doctors in the country stood at 30. Malaysian medical care is to be promoted as inexpensive in relation to the level of skills offered. The organisation has a wide network of primary. This will be done partly to alleviate the impact of a shortage of doctors. compared with 13% in the agricultural sector. The government is keen to advance the development of telemedicine. Nevertheless. The industry's representative body is the Association of Private Hospitals of Malaysia. Thailand. Basic health screening services are also likely to be heavily promoted in the forecast period.619 in 2000.period. as widely available forms of this vaccine use pig products. Kedah Medical Centre and Gleneagles Medical Centre. supplying a range of healthcare goods that conform to sharia law. is ranked 92nd in 2010. Khazanah Holdings. The government is determined to make Malaysia the largest halal hub in the region. Assunta Hospital.and secondary-care facilities. The biotechnology sector is expected to play its part in this by supplying gelatine products that are derived either from vegetables or from meat deemed to be halal. together with a range of halal vaccines. rising from 66th in the UN Development Programme's Human Development Index in 2009 to 57th in 2010. India and China.and secondary-care facilities.6bn to buy a 76. 374. The total capacity of government hospitals was in excess of 33. which is Khazanah's biggest overseas acquisition to date. A disproportionately large number of Malaysian doctors are already working in the private sector because of the higher levels of remuneration there. (The fund already owned a 23. when it was revealed that the country's sovereign wealth fund. and preventive public healthcare programmes (including the provision of clean drinking water and sewerage services to most of the population) are credited with having raised fundamental health indicators close to developed-country levels. A vaccine for meningitis would be one such product. with a total of just 12. One comparative advantage that Malaysia has over other countries is its strong Islamic credentials. virtual consulting and virtual medical training over the Internet. according to the health ministry. the system is well developed and provides the population with easy access to primary. Johor Specialist Hospital. as Parkway owns and operates private hospitals in Singapore.000 medical tourists arrived in the country in 2008 and added around M$300m (US$90m) to total tourism revenue. According to a government unit charged with promoting medical tourism. The domestic Qualitas Medical Group is a physicians' organisation that was established with the objective of providing high-quality healthcare services in a cost-effective manner. when nursing and maternity homes are included). Kuala Lumpur). semi-urban and rural areas. was to pay US$2. Another area of focus will be health tourism.9% stake in Parkway. will enable the Malaysian healthcare sector to focus on several markets in the Asia region. at least in the public sector. also in Selangor (344 beds).536. The private sector has more hospitals (at 242 in 2009. Other large private hospitals include Hospital Fatimah. In the public sector there were 196 mobile teams. Government clinics are present in almost all urban.and public-sector healthcare services is high. up from 15. The government will continue with efforts to maximise the use of information technology in medical care. In this area Malaysia is in direct competition with Singapore and.

The ten largest corporations in the Malaysian pharmaceutical market include Pfizer and Merck of the US. compared with an average annual rise in GDP of 5%.2bn in 2010. Countries are ranked according to these percentages. The establishment of the Association of South- . one X-ray and one filling (av) Price % of monthly personal disposable (US$) income 13. cholesterol drugs and medicines for diabetes. 148 are permitted to produce traditional medicines and 61 are able to manufacture cosmetics. 100 tablets (supermarket) Routine check-up at family doctor (av) One X-ray at doctor's office or hospital (av) Visit to dentist. Malaysia has only a small pharmaceutical sector compared with its Asian neighbours.52 6. It relies exclusively on imports to meet the growing demand for such drugs. 87 are licensed to make pharmaceuticals. Demand for pharmaceutical products is expected to grow at a similar rate to GDP in the forecast period: the value of sales in local-currency terms will increase by an average of 5. b Economist Intelligence Unit estimates. sales of these non-drug items will account for a significant proportion of total pharmaceutical sales in the forecast period. the Malaysian Organisation of Pharmaceutical Industries. GlaxoSmithKline and AstraZeneca of the UK and sanofi-aventis of France. and are dwarfed by the total value of drug imports. This reflects increased health awareness.51 22.584 1. 1.292 1. Download the numbers in Excel Supply. This compares with more than 600 pharmaceutical companies in Thailand.684 Item Aspirins. rising affluence in the latter part of the forecast period and steady growth in the number of people aged over 65.186 1.4% a year in 2011-15.32 4. and the Economist Intelligence Unit expects this trend to persist in the forecast period. There are currently 296 manufacturers in Malaysia licensed by a government agency. Source: Economist Intelligence Unit.forbidden to Muslims. Total spending in Malaysia on pharmaceuticals (including over-the-counter drugs and prescription drugs) is estimated at around US$1. Pharmaceutical sales 2006a 2007a 2008a 2009b 2010b 2011c 2012c 2013c 2014c 2015c Pharmaceutical sales (US$ m) 805 886 974 1.41 18. c Economist Intelligence Unit forecasts. such as those used to treat heart disease and cancer. Imports of pharmaceuticals are not subject to import duties.072 1. Malaysia is only a modest exporter of pharmaceutical goods. Spending on medicines is evenly split between the public and private sectors. Around 30% of total spending on medicines goes on the top 40 drugs. the Drug Control Authority (DCA). Download the numbers in Excel Demand.78 12. Affordability rank: for each country the price of an item as a percentage of monthly personal disposable income is calculated. most of which distribute branded drugs through locally incorporated companies or joint ventures.04 Affordability rank 47 out of 55 30 out of 55 21 out of 56 32 out of 56 Note.53 35. Malaysia does not manufacture specialised drugs.41 62. According to a local industry group. Sales would be higher if traditional medicines and food and health supplements were included in total pharmaceutical spending.469 1. Patented medicines in these areas are the country’s best-selling drugs. The most affordable country will have the lowest percentage and be ranked first. Expenditure is focused on hypertension treatments. Of these. Malaysia's pharmaceutical sector is dominated by multinational corporations. Exports of pharmaceuticals form only a small portion of the country's total exports.362 a Actual.

Malaysia is also expected to benefit from the growing trend for multinational pharmaceutical firms to outsource their R&D activities in order to keep costs down. A new vaccine is being developed. the Malaysian Organisation of Pharmaceutical Industries (MOPI). The two countries have been negotiating a free-trade agreement (FTA) since 2006. Healthcare report: Diseases Owing to its tropical climate. the Chemical Company of Malaysia Pharmaceuticals. Tuberculosis (TB) is the disease with the second-highest incidence rate in Malaysia. According to data from the Ministry of Health. the most common form of the illness. at higher prices than their generic equivalents. and medical drugs are protected by patents. a febrile disease that is transmitted to humans by mosquitoes.000 population for dengue fever in 2009. for longer than at present. Similarly.000 population. sanofi-aventis. The level of research and development (R&D) will rise gradually in the forecast period as a result of measures contained in the Tenth Malaysia Plan (a medium-term spending plan for 2011-15).6 per 100. at 60. has expressed concern that domestic drug prices could increase as a result of such an agreement. The DCA registers all medicines. MOPI remains concerned that a longer patent duration. reflecting the emergence of TB strains that are resistant to antibiotics. In December 2010 the health ministry announced that it was testing a vaccine for the disease that is being developed in conjunction with a French pharmaceutical firm. The conclusion of ongoing free-trade talks between Malaysia and the US is also expected to increase competition in Malaysia's pharmaceutical sector. The industry body that represents local manufacturers of generic drugs. Demand for generic drugs is likely to increase in the early part of the forecast period as weak economic conditions at home and abroad force consumers to substitute expensive branded drugs for cheaper generics. no relaxation of the regulations governing the sector is likely in the forecast period. which has resulted in the elimination of all tariffs and non-tariff barriers applying to the pharmaceutical products of ASEAN countries. competition in the generic-drug market is set to intensify. Malaysia suffers from a high incidence of dengue fever. but it may take a number of years before TB incidence and mortality rates in Malaysia fall. This would likely mean that Malaysians would have to pay for patented medicines. while duty-free trade with China is also being phased in from the same year as a result of the implementation of the ASEAN-China Free-Trade Area.000 population in 2009. It also has a high mortality rate. such as gelatine derived from vegetables or from animals that meet Islamic slaughter standards. Because of the government's goals of moving Malaysia up the value-added chain and enabling it to become a developed nation by 2020. which seems likely to be introduced under an FTA with the US. compared with 78 in 2009. Malaysia is not a major exporter of generic pharmaceuticals. which are listed on the national essentialdrugs list. good infrastructure and educated workforce make it an attractive destination for such companies.000 population in 2009. In addition. to 128 so far. In the forecast period Malaysia will continue with its efforts to raise global demand for its halal medical products. Malaysia’s stringent structure of regulations is likely to support global demand for its pharmaceutical goods. The government will continue to promote the Penang Halal Industrial Park in the north-west of the country as an ideal location for the construction of new production facilities by pharmaceutical and biotechnology firms.7 per 100. following the implementation of the ASEAN Free-Trade Area. The country is a member of the World Trade Organisation. The largest domestic producer of generic drugs is a partly government-owned firm. which manufactures 280 products and claims a share of 21% of the local generic-drug market. the HIV incidence rate stood at 10. The plan aims to spur the development of the pharmaceutical sector by raising levels of R&D and foreign investment. Malaysia had an incidence rate of 136. The public-sector market for pharmaceuticals is focused entirely on generics. The country's relative political stability. According to the health ministry.East Asian Nations (ASEAN) Free-Trade Area at the start of 2010 is encouraging the relocation of some of Malaysia's production capacity abroad by allowing duty-free trade in pharmaceuticals between ASEAN member states. Around 75% of HIV-positive Malaysians have been intravenous . Despite reassurances from the American Malaysian Chamber of Commerce that Malaysian manufacturers will benefit from an FTA.9 cases per 100. all manufacturers require a licence issued by the DCA.9 per 100. The number of deaths from the disease has shot up in 2010. while the mortality rate was 0. Healthcare report: Generics Generic drugs account for around 30% of the Malaysian market by value but a far greater share by volume. the highly infectious nature of the disease and the fact that most vaccines do not offer protection from pulmonary TB. would benefit US drug producers (which own drug patents) at the expense of Malaysian generic-drug manufacturers.

At 0. has the power to coordinate all government and non-governmental agencies in the event of an epidemic striking the country. Healthcare spending could be driven up by further outbreaks of infectious diseases. commonly known as swine flu. improving public hygiene and medical screening to combat future outbreaks of influenza A (H1N1). which included needle exchanges.000 population in 2009.14 cases per 100. The government will focus on public education. In the forecast period a combination of preventative measures and the expanded availability of antiretroviral treatments will help to reduce the mortality rate from HIV/AIDS.drug users. Malaysia has in place a National Influenza Pandemic Preparedness Plan under which a government body. Marketing is fundamental to business growth. is low. One misconception is that marketing . In 2009 a global outbreak of this strain was classified by the World Health Organisation as a pandemic. had a certain amount of success in bringing down the HIV incidence rate in 2007. and in particular new strains of influenza. the incidence of the most common childhood disease. A programme of measures implemented in 2006. measles. the National Security Council.

patient’s friends and family. The first step of any marketing initiative is identifying the size of your potential target market. determine the group to whom you will market your services. MCOs or the government. While so many factors are beyond our control. and channels. . targets. Next. and psychographic sector. You cannot be everything to everyone. However. Today’s changing healthcare market represents the single largest source of opportunity – and threat – in diagnostic imaging. so categorize your facility’s strengths and weaknesses as they pertain to the target. two things are certain: marketing is probably the most important success factor that is in your control and it is one of the strongest factors to differentiate your practice from the competition. strategic marketing will also encompass most of the major issues that you face in managing an imaging practice. referral patterns. This includes segmenting the market by age. patients. disease type. or advocacy organizations? In today’s market. • Setting goals. Will it be referring physicians. These include those that you probably expected to see. such as: • Setting up promotions. all while competition is growing. gender. and • Advertising: budgets. contracting entities such as insurance companies. • Sales decisions. • Allocation of resources. including: • Planning for hiring and purchasing.equals advertising or selling and that leads directly to the most common mistake that many physician group practices make: advertise without first developing a strategic marketing plan. and • Managing the day-to-day operations. employment. • Team dynamics. Developing a marketing plan There are many elements to a successful marketing strategy. Practices face the twin challenges of falling reimbursement rates and rising costs of doing business.

This technique is often underutilized in healthcare. and least expensive. • direct mail. Within healthcare. Make sure you know who matters the most in the referring physician office. However. Positioning. report turn around time. Price and Promotion. price (reimbursement) is not usually controlled by us so that is generally less applicable than in other situations. high-level. Many of the most basic. Find out what is most important to your target. 68 BE YONDTHESCAN 372912_67-69_EP. Is it scheduling. yet it is a smart. Getting the message out is almost as important as the message itself. there are other components of value (what else is included in the service) that impact perception of the price paid and subsequently. There are numerous options for advertising the message beyond radio and television. such as: • Web sites. . or other amenities? Use peer-to-peer marketing by developing relationships – don’t be faceless or voiceless – and always measure results. Stay focused and on task.indd 68 2/17/09 10:24:57 AM69 be yond the scan A GE Healthcare CT publication • Spring 2009 Marke ting Elements of a successful marketing strategy lie in the details. are often overlooked.do not underestimate or overlook the power of healthcare consumer marketing. and ethical activity that has enormous impact on physician referrals. demand for the product. The four P’s of marketing All marketing plans center around four core concepts: Product. consider that while price may be fixed. • Phone (while on hold). It may not be the clinician.

physician quality is. Consider this analogy of airplane safety. an assumed characteristic not a differentiator. for example. • Health fairs. What experience do you provide that is different. and facilities. If done correctly. patient clientele. always remember that marketing is the single most effective tool that you have for thriving in an increasingly competitive environment. Would you board a plane if you thought the pilot or aircraft was unsafe? Also avoid generic claims such as “our physicians are better” or “our equipment is superior. by encompassing how you produce. Take core mission. Are you an academic center. n In medical imaging. private practice. the obvious products are images and reports. referring physicians. and promote your service. we must look beyond this to understand that we also produce patient and clinician experiences. than you competitors? What can you do to enhance that experience? Proper product positioning requires knowledge of these differentiating factors and how they relate back to your core mission.” Provide substance in your message that tells the target what specifically makes your product/service different than the competitor(s). or better. For example. position. Most important.• Preview slides at movie theaters. Yet. and your competition’s capabilities. and • Other sponsorship activities. Developing the message that differentiates you from your competition relies on a solid understanding of the pitfalls of common claims and core ethical issues. your abilities. This requires a profound understanding of your customer’s needs. you will see a far greater impact on your future success. or not-for-profit medical center? . for the most part. services.

When do you launch a campaign? 6. First. What are your key messages? 3. or simply building awareness of your name/ product/service? A word of caution: if you don’t know what to promote or what your message is. and experiences? What is the mix of imaging services within your facility versus your competition? Promotion is the visible action that you will take to market product and services to the target.What is the age. gender. then you should first rethink your marketing strategy before spending any money on promotion. Who works on your marketing and promotions? 2. 1. disease state. Why did you choose them and how does that affect other organizational decisions? 4. widespread or indiscriminate advertising is almost always the wrong answer. Therefore. and insurance acceptance of your patient mix? Are referring physicians specialists or generalists? What type of services do you provide beyond images. Promotion is more than advertising There are several elements to a successful promotion. Where and to whom do you promote? 5. reports. It is costly and difficult to impossible to measure results. How do you choose channels and vehicles to do your marketing? Remember again that you cannot be everything to everyone. Are you promoting a specific feature or benefit. determine the purpose and message. A focused promotion that generates a return on investment (ROI) is absolutely .

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