The Global Wellness Economy in Malaysia: How Healthcare is Evolving Worldwide, 10 June 2025

Empowering Value-Based Healthcare: A New Era for Medical Tourism

Today’s healthcare landscape is undergoing a significant shift towards value-based models, with Malaysia leading the way through innovative financing and pricing systems. This move promises fairer access to healthcare and more efficient resource utilization. We also explore wellness trends and insights to keep your services competitive and attractive to international patients.

Get ready to leverage these insights to enhance your services, attract more patients, and stay ahead in the ever-evolving medical tourism industry.

Major Healthcare & Medical Advancements

Private hospitals to supply clinical data for diagnosis pricing system

The Association of Private Hospitals Malaysia (APHM) has offered to share clinical data with the health and finance ministries to support the implementation of the diagnosis-related group (DRG) pricing system. This system aims to standardize costs for patient groups based on their ailments, promoting cost containment initiatives.

APHM emphasizes that accurate clinical data and a national electronic health record system are crucial for the DRG to function effectively. The association anticipates the rollout will take more than six months due to the complexity of gathering and analyzing data.

Impact on Medical Tourism: The DRG pricing system could lead to more transparent and predictable healthcare costs for international patients, making Malaysia a more attractive destination for medical tourism. Standardized pricing can help build trust and ensure fair treatment for those with pre-existing conditions. This creates opportunities for partner hospitals to showcase efficiency and cost-effectiveness, enhancing their competitive edge.

Medical insurance first product under diagnosis pricing system, says Dzulkefly

Health Minister Dzulkefly Ahmad announced the introduction of a basic medical and health insurance and takaful (MHIT) product, marking the first step in implementing a diagnosis-related group (DRG) pricing system. This initiative aims to broaden private sector financing options and steer private healthcare towards a value-based healthcare model.

The DRG pricing system is expected to incentivize efficiency, drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate cost-effectiveness.

Impact on Medical Tourism: The introduction of MHIT and the DRG pricing system can significantly impact medical tourism by creating a more transparent and value-driven healthcare environment. It ensures fairer rules for those with pre-existing conditions, aligning with the needs of an aging nation and the prevalence of non-communicable diseases. The focus on cost-effectiveness and innovation can lead to better healthcare outcomes and reduced costs for international patients.

Wellness & Preventive Healthcare Trends

Kejayaan di sebalik tirai besi

Education is a basis for recovery for teenagers who go astray. At the Integrity School and Henry Gurney School, these students are given a second chance in education and support to rise again and achieve success in life.

Wellness Takeaway: This news is not directly for medical tourism. However, the lesson learned is that individuals can recover from their past and start new in their lives. So the focus on mental wellness is as important as taking care of physical wellness.

Hospital Spotlight

Private hospitals to supply clinical data for diagnosis pricing system

Members of the Association of Private Hospitals Malaysia (APHM) including partner hospitals are set to share clinical data with the health and finance ministries for the implementation of the diagnosis-related group (DRG) pricing system. This initiative aims to standardize costs for patient groups based on their specific ailments and incentivize cost containment.

The collaboration highlights the commitment of private hospitals to support national healthcare initiatives and improve transparency and efficiency in healthcare pricing. Hospitals will allocate resources and expertise to ensure the data is accurately gathered and analyzed.

Impact for Healthtrip Partners: Partner hospitals involved in this initiative can leverage the DRG system to demonstrate their commitment to value-based healthcare. This data-driven approach can enhance trust with international patients by providing clear and standardized pricing. Participating hospitals can highlight their efficiency and cost-effectiveness compared to other destinations, attracting more medical tourists.

Medical Tourism & Industry Insights

More services to be taxed under revised SST from July 1, but essentials remain exempt

The Sales and Service Tax (SST) in Malaysia will be expanded to cover more services starting July 1, 2025. While essential goods and key services used by everyday Malaysians will remain exempt, the scope of the Service Tax will be extended to new categories, including private healthcare services provided to foreigners, which will be taxed at 6%.

Private healthcare services provided to foreigners will be taxed at 6 per cent, but all such services—including traditional and allied health services—will remain tax-free for Malaysian citizens. The government also clarified that physiotherapy, audiology, and speech therapy for Malaysians will not be taxed, in response to public concern.

Impact on Medical Tourism: It is recommended that Healthtrip partners should take note of this change. This tax could potentially affect the overall cost of medical tourism packages, especially for international patients seeking private healthcare services in Malaysia. Healthtrip partners may need to adjust pricing strategies and communicate these changes clearly to prospective patients. Highlighting the value and quality of services despite the tax can help maintain competitiveness.

Industry Takeaways & Actionable Insights

• Embrace Value-Based Healthcare: Actively support and align with the shift towards value-based healthcare models, such as the DRG pricing system, to improve transparency and cost-effectiveness.
• Leverage Hospital Collaborations: Highlight collaborations with initiatives like APHM’s data-sharing for DRG to build trust with international patients by showcasing commitments to transparency and standardized pricing.
• Communicate SST Changes: Clearly communicate any changes in service taxes, such as the 6% tax on private healthcare services for foreigners in Malaysia, and adjust pricing strategies accordingly to maintain competitiveness.