Kuala Lumpur: Malaysia is poised to become a leading destination for medical tourism, driven by its skilled medical professionals, state-of-the-art facilities, and advantageous currency exchange rates, as stated by IHH Healthcare Bhd.

According to BERNAMA News Agency, Dr. Prem Kumar Nair, the CEO of IHH Healthcare, highlighted that Malaysian hospitals have been attracting patients from countries such as the United Kingdom, Turkiye, and Australia. These patients are opting for surgeries in Malaysia due to the cost-effectiveness and the lack of available medical specialists in their respective countries. The recent acquisition of Island Hospital in Penang is expected to serve as a pivotal learning platform to bolster growth in the medical tourism sector. Dr. Nair noted that the proportion of medical tourism in their operations has already increased from five to seven percent, with further growth anticipated once Island Hospital is fully integrated, potentially elevating medical tourism’s contribution to 14 percent of their revenue in Malaysia.

Additionally, Dr. Nair discussed the potential challenges of implementing the diagnosis-related group (DRG) system in private hospitals. The DRG system, widely used in public healthcare systems across the UK, Europe, Japan, South Korea, and Taiwan, involves hospitals being paid by a single payer at fixed rates for specific procedures. Despite discussions with the Ministry of Health, insurance companies, and consumer groups, the implementation of this system in private hospitals remains complex. However, a pilot program is currently underway in public hospitals to assess its viability in the public sector.

IHH Healthcare has reported a strong financial performance for the fiscal year 2024, achieving double-digit growth in key areas and maintaining robust operational performance across major markets. The group’s focus on its five strategic growth priorities has resulted in consistent growth and returns for shareholders, with a final cash dividend of 5.5 sen per share declared for FY2024, increasing the total ordinary dividend to 10 sen per share, compared to nine sen per share in FY2023.