PETALING JAYA: BMI, a Fitch Solutions company, has forecasted Malaysia’s health expenditure to increase at a compound annual growth rate (CAGR) of 8.3% from 2023 to 2028.
“Public expenditure is anticipated to grow by 8.5%, while private expenditure is forecasted to increase by 8.1%,” it said in a statement.
BMI said the positive outlook was supported by double-digit increases in the government’s healthcare budget in 2023 and 2024 alongside continued advancements in the private sector.
“This will position Malaysia’s medium-term health expenditure growth to be among the fastest in Asean,” it said.
BMI also said that the ageing population, the growing burden of chronic diseases, efforts to enhance public health infrastructure, and improving access for underserved communities are expected to drive the public sector growth.
“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.
It noted that Malaysia’s high single-digit expenditure growth will see it outpacing regional peers such as Singapore, Thailand, the Philippines, and Indonesia over the medium-term.
“Annual per capita health expenditure remains above global and emerging market averages, indicating a strong capacity for spending on advanced medical products,” it said.
Meanwhile, BMI said Malaysia will continue developing its healthcare offering to attract medical tourists but will face strong regional competition from Thailand and Singapore.
“It expects partnerships will remain a feature of Malaysia’s efforts to enhance its medical tourism industry as it seeks to remain competitive amid strong regional competition,” it added.
BMI stated that the country will continue to address accessibility challenges in rural areas, with the government’s 2024 budget highlighting investments in health facilities, including expanding hospitals, and building new health clinics to increase capacity and reduce overcrowding.
“The Malaysian government is also aiming for a nationwide rollout of electronic medical records by 2026, in a bid to improve the efficiency of the healthcare system,” it added.
