International partnerships, including a ‘Malaysia healthcare week’ held in Kuwait to attract patients from the Middle East, forms part of the country’s initiative
[SINGAPORE] Malaysia is bolstering its medical tourism initiatives to sustain robust growth and navigate rising competition from regional and global markets, according to a report by BMI.
The nation’s strategy, which follows record-high industry revenues in 2024, hinges on targeted campaigns and international partnerships to attract a more diverse patient base.
The Malaysia Healthcare Travel Council, a body operating under the Ministry of Health to promote and monitor medical tourism activity, announced the ‘Malaysia Year of Medical Tourism 2026’ in August this year.
This campaign, linked to the broader ‘Visit Malaysia 2026’ tourism initiative, is designed to showcase a holistic healthcare experience that combines advanced medical treatments with wellness and tourism activities, according to the report by BMI, a research house owned by Fitch Solutions.
To expand its global reach, Malaysia has already initiated international partnerships, including a ‘Malaysia healthcare week’ held in Kuwait in September 2025 to attract patients from the Middle East.
Despite these global efforts, the Asia-Pacific region remains the cornerstone of Malaysia’s medical tourism market, accounting for nearly 90 per cent of all medical visitors in 2024.
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Patients from markets like Indonesia, Mainland China, and India are drawn by the country’s proximity, affordable high-quality services, and cultural similarities, the report indicated.
BMI notes that diversifying this patient base is crucial for long-term, sustainable growth, especially as other Asia-Pacific nations enhance their own healthcare infrastructure, which could reduce the need for their citizens to travel for care.
The success of the medical tourism sector is also linked to the health of Malaysia’s broader tourism industry. Total tourist arrivals are projected to reach 26.4 million in 2025, returning to pre-pandemic levels, with an ambitious government target of over 30 million arrivals by 2029.
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Potential headwinds
However, the report identifies potential headwinds.
Persistent inflation could increase operational costs for healthcare providers, impacting pricing and margins. Inflation in Malaysia is forecast to average around 2.1 per cent between 2026 and 2030, which is slightly higher than the levels observed from 2023 to 2025.
Global instability could also deter international travel and disrupt airline connectivity, potentially causing patients to seek care closer to home.
The global medical tourism landscape is becoming increasingly crowded. Within the region, Malaysia faces competition from established destinations like Thailand and emerging players such as Vietnam and the Philippines, BMI indicated.
Other significant global competitors are ramping up their efforts.
India is promoting its internationally accredited hospitals and skilled doctors through its ‘Heal In India’ campaign, focusing on attracting patients seeking advanced and affordable care for cardiovascular, orthopaedic, and oncology services.
In Europe, Turkiye welcomed 1.5 million medical tourists in 2024 and is aiming for 2.3 million by 2028, supported by new regulations to enhance service quality and safety.
Other key medical tourism markets include Mexico, which benefits from its proximity to the United States, and the United Arab Emirates, which benefits from its strategic location and increasing integration of artificial intelligence (AI) tools and digital health technologies.
The expansion of medical tourism in these markets is expected to drive private sector growth and create opportunities for investment in healthcare infrastructure and advanced medical technologies like robotic surgery and AI-driven diagnostics, said BMI. It will provide medical device companies with chances to expand their product offerings as healthcare providers work to capture new revenue streams.
Cost pressures, competition and regulatory hurdles will remain key challenges which could limit the pace of investment and healthcare improvement, the report indicates.
