MHTC Blueprint 2021 (Digital Web)
Transcript of MHTC Blueprint 2021 (Digital Web)
Contents1.0 Executive Summary 04
1.1 Blueprint Structure 05
1.2 Strategy Map Overview 06
3.0 An Unprecedented Challenge 22
3.1 COVID-19’s Impact to the 23
Travel Industry
3.2 COVID-19’s Impact to 24
the Healthcare System
3.3 COVID-19’s Impact to the 25
Healthcare Travel Industry
3.4 Shift in Healthcare Investment 26
and Impact
3.5 An Industry Forced to Adapt 27
3.6 COVID-19’s Impact to the Economy 28
3.7 Vaccination as the Game Changer 30
3.8 Summary 33
4.0 An Analysis 34
4.1 Five-Year Strategy Plan 35
4.2 Analysis Methodology 36
4.3 The SWOT Analysis for the 38
Malaysia Healthcare Travel Industry
4.4 Porter’s Five Forces Analysis 40
4.5 Key Takeaways from SWOT and 41
Porter’s Five Forces Analyses
4.6 Gap Analysis Across the 42
Healthcare Traveller Journey
4.7 Summary 45
5.0 The Momentum Ahead 46
5.1 Strategy Map Overview 47
5.2 Strategy Framework Structure 48
5.3 Strategy Framework 49
5.4 Impact on Industry Growth 50
5.5 A Five-year Timeline Ahead 51
5.6 Strategy Framework Targets 52
5.7 Strategic Pillar No. 1 – Healthcare 54
Travel Ecosystem (HTE)
5.8 Strategic Pillar No. 2 – Malaysia 56
Healthcare Brand (MHB)
5.9 Strategic Pillar No. 3 – Markets 58
5.10 Success Monitoring Metrics 60
5.11 Summary 62
5.12 Prelude to Recovery Plan in 2022 63
2.0 The Landscape 12
2.1 Introduction and Background 13
2.2 Malaysia’s Healthcare Travel 14
Industry
2.3 Aspiration and Focus 16
2.4 Healthcare Travel Ecosystem: 18
Key Touchpoints
2.5 Summary 21
6.0 The Implementation 66
6.1 Healthcare Travel Agenda 67
in Key National Masterplans
6.2 Governance Structure 68
6.3 Role of Players in the Ecosystem 69
6.4 Blueprint Working Groups 73
6.5 Summary 75
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
Appendix 76
Glossary of Terms 77
Distribution of Private Healthcare Providers (2019) 78
Top 10 Source Countries (2019) 79
Top Five Source Countries According to Malaysia’s Regions (2019) 80
Malaysia’s Regions In Detail 81
Top Treatments Sought by Healthcare Travellers by Volume (2019) 82
Attributes of Porter’s Five Forces Analysis 83
List of Figures Figure 1: The Blueprint’s Approach 05
Figure 2: Strategy Map Overview 06
Figure 3: Malaysia’s Healthcare Travel Revenue, 2011 - 2019 14
Figure 4: Malaysia Healthcare’s Awards and Accreditations 15
Figure 5: Malaysia’s Aspiration 16
Figure 6: Primary Focus for Experience 17
Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Touchpoints \ Stakeholders 18
Figure 8: Impact of COVID-19 to the Travel Industry 23
Figure 9: Tourist Arrivals and Receipts to Malaysia, 2015 - 2020 23
Figure 10: Impact of COVID-19 to Malaysia’s Healthcare System 24
Figure 11: Malaysia’s Healthcare Travel Revenue, 2011 - 2020 25
Figure 12: Average Distribution of Healthcare Investment, 2019 and 2021 26
Figure 13: Shift in Focus in Healthcare Travel 27
Figure 14: Impact of COVID-19 to the Economy 28
Figure 15: Malaysia’ Real GDP Growth 29
Figure 16: Selected Countries’ COVID-19 Vaccination Timeline 30
Figure 17: Analysis Methodology 35
Figure 18: Three-Step Analysis Methodology 36
Figure 19: SWOT Analysis of Malaysia’s Healthcare Travel Industry 38
Figure 20: Porter’s Five Analysis of Malaysia’s Healthcare Travel Industry 40
Contents
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
Figure 21: Key Takeaways from SWOT and Porter’s Five Forces Analyses 41
Figure 22: Gap Assessment Across the Patient Journey 42
Figure 23: Strategy Map Overview 47
Figure 24: Strategy Framework Structure 48
Figure 25: Strategy Framework 49
Figure 26: Timeline of Phase A 50
Figure 27: Focus and Phases of the Blueprint 51
Figure 28: Strategy Framework Target 52
Figure 29: Malaysia’s Healthcare Travel Revenue, 2011 - 2025p 54
Figure 30: Healthcare Traveller Journey 60
Figure 31: Timeline for Assessment 61
Figure 32: COVID-19 Impact Chronology 63
Figure 33: Projected Healthcare Travel Revenue Growth in 2022 64
Figure 34: Healthcare Travel Agenda in Key National Masterplans 67
Figure 35: Governance Structure 68
Figure 36: Strategic Initiatives for Relevant Stakeholders 69
Figure 37: List of Strategic Initiatives 71
Figure 38: Eight (8) Working Groups (WGs) for each Strategic Objective 73
Figure 39: Sample of WG with Lead, Government Agencies and Private Sectors Involved 73
Figure 40: Sample of Template for the WG to be Completed During the Sessions 74
List of Tables Table 1: Healthcare Travel Ecosystem Strategic Objectives 54
Table 2: Healthcare Travel Ecosystem Initiatives 55
Table 3: Malaysia Healthcare Brand Strategic Objectives 56
Table 4: Malaysia Healthcare Brand Initiatives 57
Table 5: Markets’ Strategic Objectives 58
Table 6: Market Initiatives 59
Table 7: Approach to Achieve the Revenue Target 65
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4 Healthcare TravelIndustry Blueprint 2021 - 2025
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ExecutiveSummary1.0
Our great aim is to elevate the healthcare travel industry - through
exemplifying best experience from all aspects, by having an active
ecosystem, strong Malaysia Healthcare brand and market strategies.
Executive Summary
1.1 Blueprint Structure
Malaysia’s strength as a leading healthcare travel destination in the region has been strengthening over the last 10 years, with accolades, recognition and returning patients exemplifying our success. We seek to further fortify our position by empowering synergy and growth through a consolidated healthcare travel ecosystem.
The Malaysia Healthcare Travel Industry Blueprint 2021 - 2025 (“Blueprint”) aims to provide guidance to the healthcare travel value chain and industry, by creating value and win-win opportunities for mutual benefit and growth for the entire sector.
The approach taken is detailed through these five following areas:
The LandscapeReflection of the industry’s performance including the healthcare travel ecosystem and its players.
The Unprecedented Challenge
The impact of COVID-19 and the resulting challenges to the healthcare travel industry.
The AnalysisAnalysis of the current scenario using SWOT, Porter’s Five Forces and gaps assessment, that sets the focus for the Strategic Framework.
The Momentum Ahead
The Strategic Framework with objectives and key initiatives, targets and measures to achieve the healthcare travel industry’s aspiration.
The Implementation
The governance to spearhead the Blueprint implementation and alignment across the healthcare travel ecosystem.
Figure 1: The Blueprint's Approach
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1.2 Strategy Map Overview
The Blueprint’s Strategy Map sets out the industry’s aspiration towards 2025, anchored on three strategic pillars.
Note: Analyses encompass of gap analysis, SWOT analysis and Porter’s Five Forces analysis
The need to improve healthcare travel experience
3
Growing threats in the healthcare travel industry
2
Leveraging on the demands and competing with other
players1
Based on the three analyses conducted, the
3 key takeaways are:
We aspire to provide the best healthcare travel experience to healthcare travellers seeking treatment in Malaysia - with
‘experience’ being the primary industry focus within the next five
years.
“Best Malaysia Healthcare Travel Experience by 2025”
Aspiration
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Executive Summary
Figure 2: Strategy Map Overview
Improve quality of care
Enhance service
delivery quality and
experience of care
Ensure sustainability
through diversification
Protect and grow
the primary market
(Indonesia)
Develop focus markets
Enter and develop
niche markets
Increase brand
cohesiveness across
all touchpoints
Amplify brand equity
in core markets
1. Healthcare Travel Ecosystem
2. Malaysia Healthcare Brand
3. Markets
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1. Our Achievement Thus Far
2. Analysis Leading to Blueprint
MORE THAN
120 HOSPITALS ACCREDITED BY
ISQua-CERTIFIED BODIES
KEY TAKEAWAYS FROM ANALYSIS
MORE THAN
1.22 MILLIONHEALTHCARE TRAVELLERS
CLOSE TO
RM1.7 BILLION OF HEALTHCARE TRAVEL REVENUE,
WITH A 16.3% CAGR (2015 - 2019)
2019
MALAYSIA HEALTHCARE ACCREDITATIONS
3-STEP ANALYSIS
SWOTPORTER’S
FIVE FORCES
GAP ANALYSIS
Strengths
Affordable, high-quality healthcare
Increasing demand for treatments
The need to develop the wellness sector and improve the overall healthcare travel experience
Opportunities
Demand for Muslimfriendly healthcare travel
Threats
General fear of travel
High dependenceon Indonesia
Vietnam – new entrant,competition
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3. The Unprecedented Pandemic
4. Aspiration
ASPIRATION TO PROVIDE THE
“Best Malaysia Healthcare Travel Experience by 2025” FOCUSING ON:
High Quality Safety Affordability Hospitality Seamless Journey
IMPACT TO TRAVEL AND HEALTHCARE INDUSTRY
Several countries are looking into vaccination passport as a prerequisite for cross border travel
• Complete border closure, lockdowns and travel bans• Reduced travel volume due to the new norm
TRAVEL INDUSTRY
HEALTHCARE INVESTMENTS SHIFTED FROMHEALTHCARE TRAVEL INDUSTRY
Facilityexpansion
2019
Pandemicmanagement
2021
SHIFT IN FOCUS IN HEALTHCARE TRAVEL
VACCINATION PASSPORT
Provide highquality services Survival mode Recovery & Rebound Plans
Pre COVID Amid COVID Post COVID
Less than RM800 million in healthcare travel revenue
2020
Arrivals
26.1Mil2019
4.3Mil2020
86.1Bil 12.7BilRevenue 2019 2020
RM
5. Strategy to Rebuild the Industry
6. Governance Structure
FOCUS AND PHASES OF BLUEPRINT
Increase brand cohesiveness across all touchpoints
Amplify brand equity in core markets
Ensure sustainability through diversification
Improve quality of care
Enhance service delivery quality and experience of care
2025
RECOVERY PHASE REBUILD PHASE
2021 2023
“Best Malaysia
Healthcare Travel
Experience by 2025”
H I G H E M P H A S I S O N : H I G H E M P H A S I S O N :
Protect and grow the primary market
(Indonesia)
Develop focus
markets
Enter and develop niche markets
MARKETS
HEALTHCARE TRAVELECOSYSTEM
MALAYSIA HEALTHCARE BRAND
STEERING COMMITTEE
CHAIR: MINISTER OF HEALTH
CHAIR: MALAYSIA HEALTHCARE TRAVEL COUNCIL (CHIEF EXECUTIVE OFFICER)
CHAIR: MALAYSIA HEALTHCARE TRAVEL COUNCIL (CORPORATE STRATEGY)
PROJECT MANAGEMENT OFFICE
ADVISORY COMMITTEE
Executive Summary
7. Formation of 8 Working Groups (WG)
Healthcare Travel Ecosystem
1. Improve quality of care
2. Enhance service delivery quality and experience of care
3. Ensure sustainability through diversification
Markets
6. Protect and grow the primary market (Indonesia)
7. Develop focus markets
8. Enter and develop niche markets
Malaysia Healthcare Brand
4. Increase brand cohesiveness across all touchpoints
5. Amplify brand equity in core markets
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11Healthcare TravelIndustry Blueprint 2021 - 2025
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The Landscape 2.0
The Landscape
2.1 Introduction and Background
With over 1.22 million healthcare travellers choosing Malaysia in 2019, our value proposition of Quality, Accessibility and Affordability continues being relevant to health seekers regionally and globally.
• World standard healthcare facilities with state-of-the-art technology, combined with internationally qualified and trained medical personnel.• Exemplary quality and safety standards monitored closely by the Ministry of Health Malaysia.• Best practices in top hospitals that are internationally accredited and award- winning.
QUALITY
AFFORDABILITY
• Healthcare treatment prices are governed by the Ministry of Health Malaysia through the 13th Fee Schedule to ensure affordability for Malaysians and healthcare travellers alike. • A robust private healthcare system combined with general affordability in Malaysia makes treatments more affordable than most other destinations, with up to 80% savings compared to countries like the United States. (Source: Patients Beyond Borders)
ACCESSIBILITY
• Real time access to top specialists with almost zero waiting time for appointments, consultations, and treatments.• Malaysia boasts over 200 licensed private hospitals, as well as many dental clinics, day facilities and wellness centres, catering to various levels and needs of patients.• With strong connectivity by air, sea and land, patients can access healthcare treatments quickly and conveniently from anywhere in the world.
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2.2 Malaysia’s Healthcare Travel Industry
Malaysia’s healthcare travel industry enjoyed consistent double-digit growth between 2015 to 2019, with a Compounded Annual Growth Rate (CAGR) of 16.3% between 2015 to 2019.
59% 54% 55% 58% 63% 61% 66% 65% 67%+14%
+20% +7%+18%
+23%+13%
+13%
+16%
0200400600800
1,0001,2001,4001,6001,8002,000
2011 2012 2013 2014 2015 2016 2017 2018 2019
Rev
enue
(RM
Mil)
Year
HTo FP
CAGR 16.3%
Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2019
Note:
• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.
• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers,
Foreign Students, Malaysia My Second Home (MM2H) participants etc.
• Healthcare Traveller (HT): Combination of HTo and FP.
• Pre-COVID performance shown with 2020 outcomes discussed in the following chapter.
Source: MHTC
Figure 3: Malaysia’s Healthcare Travel Revenue, 2011 - 2019
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The Landscape
Malaysia Healthcare has been recognised by various international bodies through accreditations and awards, showcasing our high-quality, affordable and accessible healthcare.
More than 120 Malaysian hospitals are internationally accredited by certification bodies under International Society for Quality in Health Care (ISQua). Among which, includes Malaysian Society for Quality in Health (MSQH) accreditations and 17 hospitals accredited with Joint Commission International (JCI).
Recognised by the Global Retirement Index as the Top Country in the World for Healthcare for 2015 - 2021.
Awarded as the Destination of the Year (Malaysia) for 2017 - 2019, 2020 and Cluster of the Year (MHTC) for 2017 - 2020 at the Medical Travel Awards by the International Medical Travel Journal (UK).
Source: IMTJ Research, LaingBuisson’s Medical Travel and Tourism Global Market Report
Figure 4: Malaysia Healthcare’s Awards and Accreditations
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2.3 Aspiration and Focus
“Best Malaysia Healthcare Travel
Experience by 2025”
“Best” – Medical excellence, service excellence and
seamless journey
“Malaysia Healthcare” – Destination branding for Malaysia in the healthcare travel industry
“Experience” – high quality, safety, affordability, hospitality
and seamless journey
“by 2025” – five-year strategy timeline
In elevating Malaysia’s healthcare travel sector, our five-year aspiration is for the industry to holistically provide the best healthcare travel experience throughout the journey for anyone seeking treatment in Malaysia.
Figure 5: Malaysia’s Aspiration
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The Landscape
“Best Malaysia Healthcare Travel Experience by 2025”
High Quality Safety Affordability Hospitality Seamless Journey
A cohesive effort from stakeholders at every touchpoint across the patient journey and supporting ecosystem will enable the best travel experience. The Best Malaysia Healthcare Travel Experience can be achieved by 2025 by anchoring on high-quality, safety, affordability, hospitality and seamless journey.
Figure 6: Primary Focus for Experience
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2.4 Healthcare Travel Ecosystem: Key Touchpoints
All public and private sector stakeholders within the Healthcare Travel ecosystem play key roles in providing a cohesive end-to-end experience.
1
12
2
11
3
10
STEP-DOWN, REHAB &
WELLNESS
ACCESS TOINFORMATION
TRANSLATION AND MEDICAL
RELATIONS
TELECONSULTATION
TOURISM
TRANSIT
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The Landscape
Source: MHTC
Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Touchpoints
4
9
5
8
6
7
BOOKING INSURANCE
ACCOMMODATION
IMMIGRATION
MEDICAL SERVICES ENTRY POINT
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Stakeholders involved in these touchpoints include, but are not limited to:
• Overseas foreign regulators• Overseas partners• Hospitals• Outbound agents
Government / Public
LEGEND
Private Sector
• Overseas government regulators• Overseas partners • Local and overseas content portal• Outbound agents
• Immigration Department of Malaysia• Malaysia Airports• Airlines• Ferry operators• Travel agents• Medevac
• Tourism Malaysia• Hotels• Wellness providers (Traditional and Complementary Medicine, Spas, etc.)
• Ministry of Health• Private hospitals• Private healthcare Institutions
• Wellness providers (Traditional and Complementary Medicine, Spas, etc.)
2 - ACCESS TO INFORMATION
8 - ACCOMMODATION
11 - STEP-DOWN, REHAB & WELLNESS
• Tourism Malaysia• Hotels• Tourists attractions• Travel agents
12 - TOURISM10 - TRANSLATION AND MEDICAL RELATIONS
5 - IMMIGRATION
9 - MEDICAL SERVICES
Source: MHTC
Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Stakeholders
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The Landscape
2.5 Summary
Steady growth year-on-year till 2019Malaysia’s healthcare travel industry has charted double-digit growth from 2015 to 2019. The industry and its players have also earned international accolades and recognition from reputable bodies, and have showcased their excellence through accreditations under the ISQua umbrella.
Key highlights of this section include:
Experience as key focus For the industry to move next level, collaborative and cohesive efforts with stakeholders across all touchpoints in the healthcare travel ecosystem is key to drive the industry forward.
Seamless experience across all stakeholdersUltimately, the goal is for all players throughout the value chain and industry to showcase the Best Malaysia Healthcare Travel Experience by 2025.
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An Unprecedented Challenge in 20203.0
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An Unprecedented Challenge
3.1 COVID-19’s Impact to the Travel Industry
The COVID-19 phenomenon started in late 2019, and by 2020 was declared a global pandemic. With the travel industry heavily impacted by border closures and movement restrictions, healthcare travel was similarly affected, seeing a drastic decline in healthcare traveller numbers.
Complete border closure, lockdowns and travel bans
Movement control orders and challenges in marketing efforts
IMMEDIATE
Reduced travel volume due to the new norm
MEDIUM TERM
Source: MHTC
Figure 8: Impact of COVID-19 to the Travel Industry
Source: Tourism Malaysia
Figure 9: Tourist Arrivals and Receipts to Malaysia, 2015 - 2020
0
20
40
60
80
100
05
10152025303540
2015 2016 2017 2018 2019 2020
Rec
eipt
(RM
bil)
Arriv
al (m
il)
Arrivals (mil) Receipt (RM bil)
Tourist Arrivals and Receipts to Malaysia, 2015 - 2020
Leading To
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3.2 COVID-19’s Impact to the Healthcare System
Beyond the immediate impact of travel restrictions, the healthcare travel industry also saw sector specific challenges from COVID-19 which will have a compounded short and medium
term impact on positioning Malaysia as a destination for healthcare travel.
Declining perception / confidence levels in Malaysia’s healthcare system
as COVID-19 numbers grow and the healthcare system is overwhelmed.
Delays in border reopening means healthcare travellers will replace Malaysia with other healthcare destinations or get treatment in home
country.
Limited space available for healthcare travellers arriving under the highly
regulated healthcare travel SOP.
Shift in overall perception of Malaysia amongst regional and global healthcare travellers.
Source: MHTC
Figure 10: Impact of COVID-19 to Malaysia’s Healthcare System
Short Term Medium Term
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3.3 COVID-19’s Impact to the Healthcare Travel Industry
Due to the border closures and compounded impact of COVID-19 as discussed, Malaysia’s healthcare travel revenues have seen a sharp decline, with the biggest impact felt in the second half of 2020 and beyond. However, the full impact has been mitigated slightly by continued healthcare spending by foreign patients including expatriates and Malaysia, My Second Home (MM2H) holders residing in Malaysia.
59% 54% 55% 58% 63% 61% 66% 65% 67%
32%
+14%+20% +7%
+18%+23%
+13%+13%
+16%
-54%
0200400600800
1,0001,2001,4001,6001,8002,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Rev
enue
(RM
Mil)
HTo FPYear
Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2020
Source: MHTC
Figure 11: Malaysia’s Healthcare Travel Revenue, 2011 - 2020
Note:• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers, Foreign Students, MM2H participants etc.• Healthcare Traveller (HT): Combination of HTo and FP.
An Unprecedented Challenge25Healthcare Travel
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Source: Galen Centre, MHTC analysis
Figure 12: Average Distribution of Healthcare Investment, 2019 and 2021
3.4 Shift in Healthcare Investment and Impact
Beyond the short and medium term impacts to healthcare travel revenues, there is also growing concern of shifting healthcare spending – with more spending directed towards operations and combating COVID-19, spending on long term investment and equipment has been deprioritised and reduced. This will impact equipment availability and technological advantages of Malaysia’s private hospitals in the medium to long term, which will also impact our competitiveness in the international arena.
Change in the Average Distribution of Healthcare Investment, 2019 and 2021
20%
30%
18%
26%
7%
15% 15% 17%
46%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Building operations Medical Equipment Human Resource Medical Supplies Others
2019 2021
The shift in the healthcare investments priority focus to prioritise COVID-19 pandemic management is expected to slow down expansion and improvement to the healthcare system.
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• Pre-requisites to enter the Malaysian borders • The new norm (virtual presence/ personal hygiene and cleanliness/ social distancing/ telehealth)• RECOVERY AND REBOUND PLANS across various industries• New agile strategy to rebuild businesses
• Availability of Medical Travel SOP for healthcare travels • Business and operational survival plans• Border closure forced SURVIVAL MODE for stakeholders who are directly affected• Formation of travel bubbles• Agile strategy to respond to a fluid market
3.5 An Industry Forced to Adapt
Malaysia’s healthcare providers have always anchored on quality and value as their main focus in attracting patients. This includes providing a positive experience and adding value in various areas.
The pandemic, however, has forced hospitals to reprioritise, with border closures halting the arrivals of healthcare travellers. While the healthcare travel SOP has provided means to continue providing services to critical patients, their focus has had to shift to support the public healthcare system for Malaysian patients, as well as maximise returns on the foreign patient base. With the situation remaining fluid, businesses have had to be agile in remaining afloat while maintaining availability of services, especially those who saw a high proportion of healthcare travellers during pre-COVID times.
As we move forward, certain aspects will continue to persist and will form the new normal of healthcare service provision. Healthcare providers will continue to evolve with technology as the main factor in re-establishing trust and continuity of care for their patients.
• Providing high quality healthcare services with great product and experience at competitive pricing• Adding value through excellent ancillary services • Targeting of niche offerings and new markets
Pre COVID-19
Amid COVID-19
The New Norm
Source: Galen Centre, MHTC analysis
Figure 13: Shift in Focus in Healthcare Travel
An Unprecedented Challenge27Healthcare Travel
Industry Blueprint 2021 - 2025
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3.6 COVID-19’s Impact to the Economy
While the travel and healthcare travel industries has been directly impacted by COVID-19, this setback has also affected multiple industries across countries globally.
Malaysia, in particular, has seen significant economic contraction, impacting businesses and employability across the country. This is certain to have a compounding impact on how Malaysia can continue to position in the future. From end-to-end service provision, availability of skilled talent, to even investment and expansion capabilities across various industries, including healthcare travel.
Reduced activity in tourism industries
Increasing unemployment rate
Cessation of business operations
Source: MHTC
Figure 14: Impact of COVID-19 to the Economy
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An Unprecedented Challenge
Source: Department of Statistics, Malaysia
Figure 15: Malaysia’s Real GDP Growth
The overall reduction of economic activities and the increased unemployment rate have contributed to the drop in Real GDP growth in Malaysia.
As shown in Figure 15, in 2020, Malaysia experienced a sharp negative growth rate at -17.2% as a result of ceased business operations and closing of borders that slowed down the activity in the travel industry during the Movement Control Order (MCO).
4.7 5.0 4.5 3.70.7
-17.2
-2.7 -3.4
-0.5
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 4Q-2020 1Q-2021
Real GDP Growth (%)
3Q-2020
Real GDP Growth, (Quarterly 2019 - 2021), Annual change %
Annual Growth2020 : -5.6%2019 : 4.4%
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Source: Economist Intelligence Unit, Association of Asia Pacific Airlines
3.7 Vaccination as the Game Changer
With vaccinations becoming available at the end of 2020, the race for vaccine coverage has been critical in countries seeking to reopen borders and economies. From a healthcare travel perspective, the coverage of vaccines programmes are significant in three aspects:
1. Malaysia needs to attain herd immunity through the vaccine rollout and be able to allow relaxation of travel bans and movements, as well as ensuring healthcare systems can cope and accommodate healthcare travellers safety.
2021 2022
Late 2021
• Hong Kong• Singapore• UK
• USA• Malaysia
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Figure 16: Selected Countries’ COVID-19 Vaccination Timeline
An Unprecedented Challenge
Late 2022 2023
Mid 2022 Early 2023 Onward
• Australia• Japan• New
Zealand
• Russia• South Korea• Taiwan• Vietnam
• Bangladesh• Cambodia• Indonesia• Laos
• Myanmar• Pakistan• Philippines
• China• India
• Thailand
2. The recovery of Malaysia’s healthcare travel industry is highly dependant on how quickly the contributor countries are able to attain good vaccine coverage, thus allowing unrestricted travel in and out of the country. With barriers and strict quarantines in place, healthcare travellers remain challenged in seeking treatment abroad.
3. The vaccine race in itself has changed the landscape and perception of quality amongst both providers and consumers alike. For countries which have previously considered Malaysia having a superior healthcare system, comparative delay in vaccine coverage may change their perceptions, leading them to seek treatment in countries that are perceived to be better because of quicker vaccination coverage.
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The top 10 countries that contribute to Malaysia’s healthcare travel will mostly be vaccinated by 2023 according to projections by the Economist Intelligence Unit (EIU).
Malaysia sits in the middle of the timeline; developed nations are leading the way whilst developing nations are following behind Malaysia. Countries that have managed to achieve herd immunity will be the “leaders” in the healthcare travel industry. They will set the prerequisites and standard operating procedure for travel and entry. Healthcare travellers from countries that are slower in vaccination will seek to go to countries that have managed their vaccination programme better.
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An Unprecedented Challenge
3.8 Summary
In dealing with the pandemic, the key goal of the government is the safety, well-being and security of its population. However, the impact of this unprecedented event is significant, and has presented these challenges to the healthcare travel industry.
Direct Impact of COVID-19Movement restrictions and the general fear to travel due to COVID-19 has led to economic downfall and has adversely affected industries globally.
Impact on Healthcare InvestmentInvestment behaviour shifted during the pandemic, as priority is put on managing the COVID-19 pandemic.
The Need to Adapt and Change AccordinglyFor economic activities to resume in the new norm, there is a need for all stakeholders to be agile and adopt the necessary changes.
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An Analysis4.0
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An Analysis
4.1 Five-Year Strategy Plan
In formulating a cohesive and relevant strategy framework for the healthcare travel industry over the next five years, various factors have been taken into account, to ensure a sustained growth in the new norm landscape.
Factors taken into consideration include the challenges arising from the COVID-19 pandemic, including how this has caused structural challenges in consumer behaviour and decision making, as well as market operations and dynamics. Application of Porter’s Five Forces and SWOT analyses have crystalised the main impact factors and combining this with a thorough gap analysis gives an accurate presentation of the healthcare travel ecosystem.
Figure 17: Analysis Methodology
ImpactFactors
SWOT Analysis
Gap Assessment of the Ecosystem
Porter’s Five Forces Analysis
TravelBan
Shift of Focus
COVID’s Impact on Economy
Vaccination Passport
Vaccination Timeline
COVID Challenges
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4.2 Analysis Methodology
In formulating the strategy, a three-step approach was adopted to ensure that the necessary assessments were made prior to developing the Blueprint.
Step 1SWOT Analysis
Step 2Porter’s Five Forces Analysis
Step 3Gap Analysis
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An Analysis
Figure 18: Three-Step Analysis Methodology
The SWOT analysis highlighted the industry’s critical strengths, weaknesses, opportunities and threats, while the Porter’s Five Forces exercise showed the competitive analysis of the industry. The gap analysis took the analysis further to identify areas of improvements based on the key learnings identified.
To identify Malaysia Healthcare’s and
competitors’ strengths and weaknesses, as well as to highlight opportunities and
threats.
To assess the market forces that are shaping the future healthcare travel industry.
To identify and close gaps in the ecosystem to achieve the
aspiration.
Assessment of current performance for the purpose of identifying the differences between the current state of business and desired state.
Competitive analysis of the industry - to determine business attractiveness.
Identification of Strengths, Weaknesses, Opportunities and Threats of the Industry.
STEP 1 STEP 2 STEP 3
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Source: MHTC analysis
Figure 19: SWOT Analysis of Malaysia’s Healthcare Travel Industry
• Strong medical regulatory and governance framework• High readiness for emergencies• SOP for healthcare travel amid the new norm• Internationally recognised medical professionals• Strong government support at both central and state levels (e.g. Penang, Kuala Lumpur, Selangor, Johor, Sarawak, and Sabah)
• High quality and affordable medical care• Good air, land and sea connectivity in Peninsular Malaysia• Borders are expected to open as 90% of the population is expected to be vaccinated by end of 2021, almost similar to healthcare travel competitors such as Singapore, Thailand and South Korea
• Countries that are expected to complete vaccination and open borders after Malaysia• Countries around the region failing to strengthen own healthcare (e.g. Indonesia, Myanmar and Cambodia)• Demand for fertility treatment from APAC region
• Increased willingness to spend on wellness, aged-care and dental care amongst healthcare travellers• Growing global demand for Muslim-friendly destination• Adoption of digitalisation and tech-enablers
Strengths
Opportunities
S
O
4.3 SWOT Analysis
As the analysis was conducted, new strengths, opportunities and threats that emerged for Malaysia Healthcare in 2020 have been identified. These are expected to persist for the next five years and will form the strategic direction of the healthcare travel industry.
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An Analysis
Even though the growing demand for affordable, high quality, and Muslim-friendly healthcare travel, general fear of travel in the new norm can be a constraint. While Malaysia may have adequate talents and affordable medical care, competition from other players remains a threat. The Porter’s Five Forces analysis will be looked at to further explore the competitive environment in the industry.
Weaknesses
Threats
W
T
• Lack of access to information for healthcare travellers• Spikes in cases after multiple restrictions and MCOs, affecting confidence• Underdeveloped ancillary service – translators, personalised packages• Lack of investment in digital marketing
• Lack of comprehensive data collection • Wellness is not part of the healthcare travel scope• High dependence on Indonesian market• Lack of air connectivity in East Malaysia and limited direct international connectivity in Penang and Johor
• Countries that are quickly vaccinating their population and quickly opening their borders• Shifting trust towards countries that are managing COVID-19 cases and mass vaccination better
• General travel fear amongst healthcare travellers in the new norm• Fierce regional competitions from Singapore, Thailand and South Korea
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4.4 Porter’s Five Forces Analysis
Based on the initial findings, the application of the Porter’s Five Forces to the industry in both 2020 and 2025 can be observed in Figure 21.
Market dynamics related to the healthcare travel industry will change drastically in the next five years given the influence of the global pandemic. The industry is expected to become more turbulent and volatile, and the increasing competition from existing players and new entrants will pose a great threat for Malaysia.
Threat of New Entrants. Vietnam is one of the new entrants in the healthcare travel industry. It has been aggressively working its strategies and plans to develop its offerings during this pandemic.
Source: MHTC analysis
Figure 20: Porter’s Five Analysis of Malaysia’s Healthcare Travel Industry
Note: This chart is based on preliminary findings
Porter’s Five Forces Amidst the Pandemic and During the New Norm
0
2
4
6
8
10
Threat of New Entrants
Threat of Substitute
Bargaining Power ofBuyers
Bargaining Power ofSuppliers
Rivalry Among ExistingCompetitors
2020 2025
Rivalry Among Existing Competitors. Thailand, Singapore and South Korea have formed exclusive travel bubbles, and have shifted focus to countries with fewer COVID-19 cases, promoting new treatments and forming competitor partnerships and collaborations.
Threat of Substitutes. Target markets are investing in improving their own healthcare at home. For example: the Islamic Development Bank (ISDB) has approved US$262 million in financing for a health project in Indonesia to improve the availability, accessibility, quality and delivery of health services.
Bargaining Power of Suppliers. As more competitors enter the healthcare travel business, businesses will offer competitive pricing for high quality services, with more added value.
Bargaining Power of Buyers. With more choices, healthcare travellers will be more demanding in the future for higher quality healthcare products, better service, and lower prices.
40 Healthcare TravelIndustry Blueprint 2021 - 2025
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
These analyses suggest that the Malaysia healthcare travel industry is at risk of losing its market share to competitors by 2025. A clear strategy is essential for the industry to be able to survive, sustain and grow ahead of the future competition.
One of the key steps identified is to strengthen the healthcare travel ecosystem. Hence, a gap assessment was carried out across the various touchpoints of a healthcare traveller’s journey.
Figure 21: Key Takeaways from SWOT and Porter’s Five Forces Analyses
An Analysis
4.5 Key Takeaways from SWOT and Porter’s Five Forces Analyses
The SWOT Analysis and Porter’s Five Forces Analysis conducted have provided good insights into the state of the Malaysian healthcare travel industry.
SWOT Analysis Porter’s Five Forces
• Malaysia’s strong medical regulatory, high readiness for emergencies, internationally recognised medical professionals and high-quality affordable medical services are Malaysia’s core strength areas. • There are ample opportunities to attract healthcare travellers from countries with weaker healthcare systems. • Inadequate access to comprehensive information about Malaysia Healthcare to healthcare travellers is the major restrain. • Healthcare travellers might shift their trust towards those countries that are managing COVID-19 cases and vaccination programme better.• Rapid adoption of digitalisation and tech-enablers.
By 2025, all five market forces will be against Malaysia - competitiveness is increasing. • High threat of new entrants is evident (from Vietnam). • Rivalry among existing competitors is also getting higher (Thailand, Singapore, and South Korea). • There is an increased threat of substitute due to improvements in healthcare systems in the home countries of Malaysia’s target markets. • There seems to be reduced bargaining power of suppliers (healthcare travel providers) as healthcare travellers have more choice. • Inversely, bargaining power of buyers increases.
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4.6 Gap Analysis Across the Healthcare Traveller Journey
The healthcare traveller ecosystem gap analysis was conducted through the perspective of the healthcare traveller journey. Figure 23 illustrates healthcare travellers’ needs at each key touchpoint:
1
12
2
11
3
10
STEP-DOWN, REHAB &
WELLNESS
ACCESS TOINFORMATION
TRANSLATION AND MEDICAL
RELATIONS
TELECONSULTATION
TOURISM
TRANSIT
42 Healthcare TravelIndustry Blueprint 2021 - 2025
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
An Analysis
To ensure the best healthcare travel experience, key improvements have been suggested to each of these critical touchpoints. The Blueprint lays out strategies to optimise the patient journey for all stakeholders as well as key deliverables to achieve by 2025.
Source: MHTC analysis
Figure 22: Gap Assessment Across the Patient Journey
4
9
5
8
6
7
BOOKING INSURANCE
ACCOMMODATION
IMMIGRATION
MEDICAL SERVICES ENTRY POINT
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• Medical reports upon discharge• Support system in case of emergency
• Proximity to hospitals• Patient-friendly accommodations
• Hassle-free payment services• Seamless cross-border transactions
• Assistance on full-service, end-to-end
• Information before making the trip
• Info on treatment, logistics, hospitals etc.• One-stop centre• Recommendations (Word-of-mouth)• Affordability• Safety
• Fast-track immigration• Visa extension services
• Proximity to hospitals
1 - TRANSIT 2 - ACCESS TO INFORMATION
3 - TELECONSULTATION
5 - IMMIGRATION
7 - ENTRY POINT
9 - MEDICAL SERVICES
• Patient-friendly tourism spots• Guided tourism
12 - TOURISM
4 - BOOKING
6 - INSURANCE
8 - ACCOMMODATION
• Translation services provided• Multi-lingual signage
10 - TRANSLATION AND MEDICAL RELATIONS
• Special setup for healthcare travellers• Medical assistance
44 Healthcare TravelIndustry Blueprint 2021 - 2025
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An Analysis
4.7 Summary
With various analyses conducted to ascertain the immediate medium- and long-term factors influencing the Malaysian healthcare travel industry, key areas have been identified as follows.
Shifting trends creating opportunities and threats alikeChanges in consumer behaviour created new market opportunities, but also raises new concerns and barriers.
External factors including COVID-19 management has affected positioningCompetitors and market movements, alongside changes in industry players dynamics require proactive response to secure future competitiveness.
Best healthcare travel experience as an anchor for changeConcerted optimisation across the entire healthcare travel journey touchpoints to ensure Malaysia remains relevant and competitive in the international market.
45Healthcare TravelIndustry Blueprint 2021 - 2025
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The Momentum Ahead5.0
46 Healthcare TravelIndustry Blueprint 2021 - 2025
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
The Momentum Ahead
5.1 Strategy Map Overview
• Improve quality of care • Enhance service delivery quality • Ensure sustainability through diversification
• Increase brand cohesiveness across all touchpoints• Amplify brand equity in core markets
• Protect and grow the primary market (Indonesia) • Develop focus markets• Enter and develop niche markets
“Best Malaysia Healthcare Travel Experience by 2025”
We aspire to provide the Best healthcare travel experience to healthcare travellers seeking treatment in Malaysia - with ‘experience’
being the primary industry focus within the next five years.
• Leveraging on the demands and competing with other players• Growing threats in the healthcare travel industry• The need to improve healthcare travel experience
Aspiration
Analysis
StrategicObjectives
Healthcare Travel Ecosystem Seamless experience through medical and service excellence
MarketsGrowth in core markets and new market penetrationPillars
Malaysia Healthcare BrandStronger country brand amongst APAC competitors (Thailand, South Korea & Singapore)
Anchoring on the aspiration to provide the Best Malaysia Healthcare Travel Experience by 2025 and taking into account critical factors determined through comprehensive analysis, three key areas have been identified as strategic pillars to anchor the transformation of the industry.
As part of the Strategic Pillars, supporting strategic initiatives have been developed to cascade down the required action items for all industry stakeholders.
Source: MHTC analysis
Figure 23: Strategy Map Overview
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5.2 Strategy Framework Structure
While the Strategic Framework Structure will anchor on the intended aspiration, taking a top-down approach, the execution process will focus on stakeholders’ initiative and focus, leading to a bottom-up process towards achieving our overarching aspiration.
Tactical Initiatives
Strategic Initiatives
Strategic Objectives
Strategic Pillars
Aspiration
Covered within theStrategy Framework
Source: MHTC analysis
Figure 24: Strategy Framework Structure
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The Momentum Ahead
5.3 Strategy Framework
LEGEND
Aspiration
Strategic Pillar
Strategic Objectives
To support the Blueprint’s aspiration, the strategy framework is key in anchoring all efforts at all levels to reach a common goal. As such, three Strategic Pillars were identified as key focus areas in achieving the Best Malaysia Healthcare Travel Experience by 2025. These strategic pillars are:-
• The Healthcare Travel Ecosystem• The Malaysia Healthcare Brand• The Markets for Malaysia Healthcare
Malaysia Healthcare BrandHe
alth
care
Trav
el Eco
system
Brand Equity
Brand Cohesiveness
Sustainability
through
Diversification
Serv
ice
Deliv
ery
Qual
ityof
Car
eQu
ality
Focus Markets
Primary Markets Niche M
arke
ts
Markets
Best Malaysia Healthcare Travel
Experience by 2025
Source: MHTC analysis
Figure 25: Strategy Framework
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5.4 Impact on Industry Growth
The healthcare travel industry is a dynamic one, compounded and disrupted by the COVID-19 crisis. While our long term goal of becoming the trusted leading healthcare travel destination globally by 2035 remains, the current situation requires intervention to recover and rebuild in the next five years.
Malaysia Healthcare’s long term plans to 2035 will be executed across four phases (Phase A, B, C and D). For Phase A (2021 - 2025), the focus is to take the industry through the COVID-19 recovery process, with an eye to rebuild the industry to pre-COVID levels by 2025.
Source: MHTC analysis
Figure 26: Timeline of Phase A
Phase A Phase B Phase C Phase D
2021 2025 2030 2035 2040
Trusted Leading Healthcare Travel Destination in APAC
Best Malaysia Healthcare Travel
Experience by 2025
Trusted Leading Healthcare Travel Destination Globally
2021 2022 2023 2024 2025
RECOVERY PHASE REBUILD PHASE
RECOVERY PHASE REBUILD PHASE
50 Healthcare TravelIndustry Blueprint 2021 - 2025
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The Momentum Ahead
5.5 A Five-year Timeline Ahead
The focus on developing the key initiatives within the Strategic Pillars will shift dynamically as the Blueprint moves across the Recovery phase and the Rebuild phase.
While the strategic pillars remain as key focus areas throughout the two phases, the weightage of focus will change as we progress through the different phases.
During the Recovery phase, more emphasis will be placed on the Healthcare Travel Ecosystem as readiness measures for the industry to recover and move into the Rebuild phase. However, initiatives for the Malaysia Healthcare Brand and Markets will also continue in this phase to keep markets engaged. Once the timeline reaches the Rebuild phase, the focus will shift to the Malaysia Healthcare Brand and Markets to boost brand presence in the region and scale up Malaysia Healthcare’s services.
Source: MHTC analysis
Figure 27: Focus and Phases of the Blueprint
2021 2023 2025
RECOVERY PHASE REBUILD PHASE
To prepare the industry
To keep markets engagedTo amplify brand presence
To strengthen our products
Healthcare Travel Ecosystem
Malaysia Healthcare Brand
Markets
Note: Colours above denote distribution of time and effort across the strategic pillars
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5.6 Strategy Framework Targets
Markets
Healthcare Traveller Ecosystem
Optimistic Projected Pessimistic
Trust Index (TBD)*
Trust Index (TBD)*
Trust Index (TBD)*
Malaysia Healthcare Brand
BEI 7.0 BEI 6.0 BEI 5.0
RM2.0bil HT revenue
RM1.7bil HT revenue
RM1.5bil HT revenue
In ensuring the Strategic Framework achieves its intended goals, measurable targets have been set as proxies, based on the identified Strategic Pillars. While the overarching measure of success remains focused on Healthcare Traveller volume and revenue, other measures have also been introduced to capture output and outcome from our strategies and effort. This includes measuring improvements in the Malaysia Healthcare Brand through a Brand Equity Index (BEI) of identified focus markets, as well as a Trust Index which will measure the improvements of the customer experience at key touchpoints.
With strong implementation of the Strategy Framework and full collaboration from all stakeholders, Malaysia Healthcare aims to reach RM1.7 billion (projected) in healthcare travel revenues by 2025, with a significant spill over effect into the rest of the Malaysian economy.
Note:These are preliminary proposed figures based on the Strategic Pillars.The Trust Index will be developed to measure performance of HT experience across the various touchpoints in the Healthcare Travel Ecosystem.
Source: MHTC analysis
Figure 28: Strategy Framework Target
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Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2025p
Figure 29: Malaysia’s Healthcare Travel Revenue, 2011 - 2025p
59% 54% 55% 58% 63% 61%66% 65%
67%
33%3%
36% 43%
56%60%
-0.53
+14%0.60
+20%0.73
+7%0.78
+18%0.91
+23%1.12
+13%1.27
+13%1.44
+16%1.67
-53%0.78
-39%0.48
+67%0.8
+23%0.98
+40%1.37
+24%1.7
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Rev
enue
(RM
Bil)
HTo FP HT
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
p20
21p
2022
p20
23p
2024
p20
25p
Note:• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers, Foreign Students, MM2H participants etc.• Healthcare Traveller (HT): Combination of HTo and FP.
The Momentum Ahead53Healthcare Travel
Industry Blueprint 2021 - 2025
© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.
Healthcare Travel Ecosystem
Sustainability
throughDiversification
Service Delivery
Quality
of Care
Quality
Best Malaysia Healthcare Travel
Experience by 2025
5.7 Strategic Pillar No 1 – Healthcare Travel Ecosystem (HTE)
Source: MHTC analysis
Table 1: Healthcare Travel Ecosystem Strategic Objectives
Strategic Objectives
Improve quality of careEnhance service delivery quality
Sustainability through diversification
MeasuresTrust index on the quality of care
Trust index on the quality of service
New products or sectors
Strategic Initiatives
(Non exhaustive)
• Strengthen Centre of Excellence (CoE) across hospitals• Strengthen quality of care through: • Flagship medical tourism hospitals • Clinical data• Build niche talent • Foster conducive governance and regulations
• Strengthen healthcare travel touchpoints
• Build strong service culture (training and education programme)
• Aged-Care for healthcare travel
• Other new areas such as wellness, rehab (scope align with MOH)
Measures
• Compliance • Trust index• Indicators• Number of specialists• Policy
• Improvement plans (digital and non-digital)
• Training programme
• New products or sectors
StakeholdersMember hospitals, ambulatory care centres, dental centres, government
All healthcare travel service providers
Member hospitals, new industry players, government
To position Malaysia Healthcare as the preferred destination for healthcare travel, it is imperative to provide not only the best medical services but also quality ancillary services to healthcare travellers. The Healthcare Travel Ecosystem focuses on providing a seamless experience through medical and service excellence. Several strategic initiatives have been placed under this pillar to improve quality of care, enhance service delivery quality, and ensure sustainability through diversification.
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The Momentum Ahead
Talent development programmes for healthcare
travel touchpoints e.g. tourism, transportation
etc.
Public-Private Partnership (PPP) collaboration
Aged care development for healthcare travel
Digitalisation of customer services
Step down, rehab and wellness development for
healthcare travel
Tech-enabled translation and tourism service
Development of service culture benchmarking
Clinical data - outcome healthcare measurements
Improved connectivity to related destinations
Flagship Medical Tourism Hospital Programme
Cross-selling tourism and healthcare
Incentivisation of investment across the
value chain
Healthcare Travel Ecosystem Initiatives 2021 - 2025
Source: MHTC analysis
Table 2: Healthcare Travel Ecosystem Initiatives
As part of strengthening the Healthcare Travel Ecosystem, various initiatives have been identified to collaborate with stakeholders in delivery excellence.
From talent development and digitalisation, to training and data, the focus is to create resilience within the industry service delivery. This includes not only addressing immediate gaps and low hanging fruit, but also laying foundations for longer term initiatives such as product diversification into rehabilitation services as well as new niche areas like geriatric and aged care.
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5.8 Strategic Pillar No 2 – Malaysia Healthcare Brand (MHB)
Source: MHTC analysis
Table 3: Malaysia Healthcare Brand Strategic Objectives
Strategic Objectives
Increase brand cohesiveness across all touchpoints
Amplify brand equity in core markets
MeasuresTrust index on the brand experience/trust
Brand equity index
Strategic Initiatives
(Non exhaustive)
• Re-position brand unique value proposition (UVP)
• Unify country branding
• Launch large scale awareness campaigns
• Reinforce targeted branding• Practice proactive brand
advocacy
Measures• TBD on the
measure for Brand cohesiveness
• Awareness rate • Conversion rate between
awareness, action and advocacy
• Advocacy rate
StakeholdersAll stakeholders across the healthcare travel ecosystem
All stakeholders across the healthcare travel ecosystem
Malaysia Healthcare Brand
Brand Equity Brand Cohesiveness
Best Malaysia Healthcare Travel
Experience by 2025
There is also a need to amplify the Malaysia Healthcare brand, especially after the deteriorating impact of the pandemic towards the perception of the country’s healthcare system. The second pillar will focus on constructing a stronger country brand amongst current and emerging players in the APAC healthcare travel industry.
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The Momentum Ahead
Holistic end-to-end experience sharing
programmes content including media
engagement
Strategic Digital branding and marketing
G2G branding initiatives for niche markets
e.g. Middle Eastern countries
Collaborative branding activities with hospitals
Collaborative branding activities with tourism
players
Malaysia Healthcare brand strategy alignment with
Tourism Malaysia
Country level holistic awareness campaign with
tourism, airlines etc.
Targeted awareness programmes for niche
markets
Targeted branding for niche products on the markets
e.g. Fertility Hub, COE and Retirement Destination
Malaysia Healthcare Brand Initiatives 2021 - 2025
Source: MHTC analysis
Table 4: Malaysia Healthcare Brand Initiatives
Amplifying the Malaysia Healthcare Brand across every touchpoint to ensure brand consistency. A cohesive and coordinated approach collaborating alongside both government and private sector stakeholders will present a holistic and high impact brand for Malaysia Healthcare and Malaysia as a destination overall.
Brand investment is also critical in supporting market development, especially in new markets, to increase the brand awareness on Malaysia as a healthcare destination.
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5.9 Strategic Pillar No 3 – Markets
Strategic Objectives
Protect and grow the primary market (Indonesia)
Develop focus markets
Enter and develop niche markets
Measures
Healthcare traveller revenue and volume from primary market
Primary markets identified based on industry’s preference
Niche markets identified and explored
Strategic Initiatives
(Non exhaustive)
• Strengthen primary market• Expand into new cities• Develop new segments• Push new products
• Grow Malaysia Healthcare’s presence in focus markets
• Identify and develop markets based on niche offerings
Measures• Individual
market level strategies
• Individual market level strategies
• Individual market level strategies
StakeholdersMHTC, all healthcare travel service providers, stakeholders involved in the different markets, government agencies with presence in such markets
Focus MarketsPrimary MarketsNi
che M
arkets
Markets
Best Malaysia Healthcare Travel
Experience by 2025
As there is increasing competition between existing players and new entrants in the industry, it is crucial for Malaysia to proactively expand its market reach. The third strategic pillar consists of strategic initiatives that will put Malaysia in a better position in terms of market share, competitive edge, lead in markets, capturing new markets and new revenue.
Source: MHTC analysis
Table 5: Markets’ Strategic Objectives
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The Momentum Ahead
Joint collaboration with hospitals for new
segments/markets
Collaboration with agencies (Tourism
Malaysia, MATRADE, etc.) to open new segments/markets
Market support and activation with hospitals
Partnerships with on ground strategic partners
e.g. banks, hospitals
Malaysia Healthcare Representative Offices
(MHRO) / Malaysia International Referral Centre (MIRC) based
engagements
Collaboration with Tourism Malaysia for holistic market entry
Market Initiatives 2021 - 2025
Source: MHTC analysis
Table 6: Market Initiatives
Expanding on Malaysia’s healthcare travel market base will require concerted effort from all stakeholders – from hospitals’ investments into supporting new market requirements, as well as a combined effort between healthcare and travel players to sustainably develop new inbound markets.
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5.10 Success Monitoring Metrics
The success of the Strategic Pillars will be measured by the Trust Index and Brand Equity Index.
The end of the journey
Hospital treatment
Discharge from hospital, convalescence, holiday
Return to home country and after care
The start of the journey
Research and selection of service and destination
for treatment
Contact with hospital for treatment
Hospital admission
Arrival at destination country
Departure from home
country
Figure 30: Healthcare Traveller Journey
Touch Points for the Journey of a Healthcare Traveller
Trust Index is a composite index that measures and monitors healthcare traveller’s trust at each touchpoint along the healthcare traveller journey, through a Trust Programme.
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By having these success monitoring metrics, MHTC will be able to evaluate if the execution of the Blueprint was properly done and the relevant stakeholders have done their part according to the Strategic Initiatives in each Strategic Pillar. Each stakeholder in the healthcare travel ecosystem will be able to identify areas to be improved or that require additional effort to promote the Malaysia Healthcare brand and enhance the experience throughout the healthcare travel journey.
The programme measures if a healthcare traveller’s experience at each touchpoint is maintained at a satisfactory level to ensure the overall best experience for all healthcare travellers. MHTC will share the findings with healthcare travel ecosystem stakeholders. This helps each stakeholder in the ecosystem to see the return on investment gained to improve experience.
Brand Equity Index represents the perceived value of the Malaysia Healthcare brand compared to other competitor brands in the healthcare travel industry (Thailand, Singapore and South Korea), through a Brand Health Study.
The strength of the Malaysia Healthcare brand is measured through healthcare travellers’ retention or loyalty. As the healthcare travel products and services offered by Malaysia Healthcare are almost similar in terms of features to other brands, it is paramount to make the Malaysia Healthcare brand stand out and remain relevant to healthcare travellers. Thus, there is a need to ensure that market demands are met, and pricing of services are made affordable to retain customers.
For both metrics, a timeline will be set to assess the performance of Malaysia Healthcare during the Recovery phase and Rebuild phase.
2025
RECOVERY PHASE REBUILD PHASE
2021 20232022 2024
Figure 31: Timeline for Assessment
Source: MHTC analysis
BaselineMidway milestone
monitoringSuccess measure
The Momentum Ahead61Healthcare Travel
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5.11 Summary
Due to intense competition and the impact of the pandemic on the healthcare travel industry, it is important for all stakeholders to work together to revive Malaysia Healthcare by focusing on three main areas for the next five years.
Strengthen the healthcare traveller ecosystem • Improve the quality of care and service delivery quality, while ensuring sustainability through diversification.
Amplify Malaysia Healthcare brand • Increase brand cohesiveness across all touchpoints along the healthcare traveller journey and amplify brand equity in core markets.
Sustain and expand the healthcare travel market • Protect and grow the primary and developing focus markets, while entering and growing niche markets.
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The Momentum Ahead
5.12 Prelude to Recovery Plan in 2022
As a result of the Blueprint structure thus far, this section focuses on the prelude to COVID-19 recovery plan in 2022, although the pandemic is expected to persist as the new cases continue to be reported.
Figure 32: COVID-19 Impact Chronology
Complete border closure, lockdowns and travel
bans
Movement control orders (MCO) and challenges in
marketing efforts
Reduced travel volume due to the new norm
Limited space available for healthcare travellers
in private hospitals.
Decline in confidence of the Malaysian healthcare system as it struggles in managing the pandemic
Shift in the overall perception of Malaysia
amongst regional healthcare travellers.
Shift in healthcare investment from the
allocation on building operations and medical equipment to medicines and medical supplies.
Standard Operating Procedures (SOP) of the movement control order (MCO). In the new norm, stakeholders focus on
business recovery once travel into Malaysia are
allowed with several pre-requisites, which
includes venturing into virtual operating models.
Vaccination timeline
Uncertainty on globally standardised vaccination passports
1
4
5
8
7
9
10
6
3
2
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To achieve the revenue aspiration of RM800 million in 2022, as forecasted in Figure 34, through the eight (8) Strategic Objectives, a targeted approach is devised moving into the recovery plan.
Figure 33: Projected Healthcare Travel Revenue Growth in 2022
Note:• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers, Foreign Students, MM2H participants etc.• Healthcare Traveller (HT): Combination of HTo and FP.
59% 54% 55% 58% 63% 61%66% 65%
67%
33%3%
36% 43%
56%60%
-0.53
+14%0.60
+20%0.73
+7%0.78
+18%0.91
+23%1.12
+13%1.27
+13%1.44
+16%1.67
-53%0.78
-39%0.48
+67%0.8
+23%0.98
+40%1.37
+24%1.7
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Rev
enue
(RM
Bil)
HTo FP HT
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
p20
21p
2022
p20
23p
2024
p20
25p
Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2025p
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The Momentum Ahead
Borders are opened Borders are still closed
MarketingStrategy
a) Retention of the existing markets; Indonesia, China and Singaporeb) Seeding potential of new markets; example Middle East
Inclusive Ecosystem Strategy to close the gaps and develop the HT ecosystem
i. Digitalisation ii. One-stop portal for Healthcare Travellers iii. Website enhancement iv. Digital campaigns with focused brand message on safety and trustv. Strategic partnerships to move the revenue needle
Healthcare traveller SOPs development and enhancements
New travel pre-requisite such as vaccination passport
HTos SOP enhancement i. Quarantine period for PCR negative HTos
Treatment offers
As per HTos demand The priority is to bring in HTOs through chartered flights for high value therapeutic segmentsi. Cardiology ii. Fertilityiii. Oncologyiv. Orthopaedic
Capacity building for sustainability beyond 2022
i. Flagship Hospital initiative to raise the global profiling of Malaysia Healthcare through iconic hospitals ii. Fertility Hub initiative for embryologist iii. Aged Care Development initiative to develop Malaysia as a preferred retirement destination.
Table 7: Approach to Achieve the Revenue Target
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The Implementation6.0
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Private Healthcare
Private Healthcare
Medical and Wellness Tourism
Private HealthcareProductivity
Nexus
Promotion Workstream
Sub-Sector
The Implementation
6.1 Healthcare Travel Agenda in Key National Masterplans
As healthcare travel continues to be a significant agenda across multiple national and sectoral plans and policy documents, the Malaysia Healthcare Travel Blueprint 2021 - 2025 is aligned to these national development agenda.
In order to effectively execute the Blueprint to meet our aspirations, close collaboration with government and private sector stakeholders is critical to create value for the entire industry.
Source: MHTC analysis
Figure 34: Healthcare Travel Agenda in Key National Masterplans
RMK12(2021 - 2025)Owner: EPU
Industry Masterplan 4.0 (2021 - 2030)Owner: MITI
TCM Blueprint
(2018 - 2027)Owner : MOH
National Tourism Policy
2020 - 2030Owner: MOTAC
Malaysia Productivity
Blueprint Owner: MITI
(MPC)
SectorNational
Services Sector
Blueprint 2021 - 2025Owner : MITI
• Position Malaysia as a Hub for Niche Medical Services and Wellness• Enhanced governance of MCO
• Position Malaysia as a global brand to take advantage of the vast untapped potential of the country as a retirement destination• Integrating wellness and medical tourism
• Regulations• Technology and innovation• Workforce and performance
• Regulation• Integration• Economic development of Traditional and Complementary Medicine sector in Malaysia
• Healthcare Travel• Clinical Research• Traditional and Complementary Medicine• Aged Care• Public-Private Partnership
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6.2 Governance Structure
A governance structure will be set up to monitor the implementation plan, which involves collaboration with multiple stakeholders.
Advisory Committee (proposal: existing Advisory Committee)Chair: MHTC (CEO)EPU, MOH (Dasar), MOH (Amalan), MATRADE, MIDA, Tourism Malaysia, Immigration, MSQH, APHM
• Provide leadership and support• Accountable for the overall success of industry• Endorsement of Strategies and Plans• Make key decisions
• KPIs setting and key tasks planning • Coordinate effort across stakeholders to execute implementation plan• Ensure progress and track KPIs• Identify issues and risks• Communicate with leadership and stakeholders
• Validate priorities, implementation plans• Review and discuss progress update• Resolve Issues• Manage Risks
Qu
arte
rly
Qu
arte
rly
Mo
nth
ly
Source: MHTC analysis
Figure 35: Governance Structure
Steering CommitteeChair: Minister of HealthMinister EPU, MOH (SG), MOH (DG), MOTAC (SG), MITI (SG)
Project Management OfficeChair: MHTC (Corporate Strategy)8 Workstream Leaders (Strategic Pillars)(MHTC + Relevant Stakeholders – agencies and industry players)
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The Implementation
The success of the Blueprint critically hinges on stakeholders’ participation and collaboration towards creating the Best Malaysia Healthcare Travel Experience by 2025. All across the healthcare traveller touchpoints, important stakeholders and focus areas have been identified to deliver the best outcome, ensuring our aspirations for quality and experience excellence are met.
Source: MHTC analysis
Figure 36: Strategic Initiatives for Relevant Stakeholders
6.3 Role of Players in the Ecosystem
STEP-DOWN, REHAB &
WELLNESS
BOOKING
ACCESS TOINFORMATION
INSURANCE
TRANSLATION AND MEDICAL
RELATIONS
ACCOMMODATION
TELECONSULTATION
IMMIGRATIONMEDICAL
SERVICES
TOURISMTRANSIT
ENTRY POINT
3
4
5
67
8
9
10
11
12
12
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Every stakeholder in the ecosystem has a role to play in order to enhance the experience of healthcare travellers in Malaysia. The list of initiatives and the roles of each stakeholder are illustrated in Figure 37 and Figure 38 respectively.
1Talent development
programme for healthcare travel touchpoints
2Digitalisation of customer
services
3Development of service culture
benchmarking4
Flagship Medical Tourism Programme
5Public private partnership
(PPP) collaboration6
Step down, rehab and wellness development for healthcare travel
7Clinical data - outcome
healthcare measurements8
Cross-selling tourism and healthcare
9Aged care development for
healthcare travel10
Technology enabled translation and tourism service
11Improved connectivity to
related destinations12
Incentivisation of investment across the value chain
Healthcare Travel Ecosystem
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The Implementation
Source: MHTC analysis
Figure 37: List of Strategic Initiatives
1Joint collaboration
with hospitals for new segments/markets
2Partnerships
with on ground strategic partners
3
Collaboration with agencies to open new
segments/ markets
4
Malaysia Healthcare Representative Offices
(MHRO) / Malaysia International Referral Centre (MIRC) based
engagements
5Market support
and activation with hospitals
6Collaboration with tourism
for holistic market entry
Markets
Malaysia Healthcare Brand
1Holistic end-to-end experience sharing
programmes content2
Collaborative branding activities with
hospitals3
Country level holistic awareness campaign
4Strategic digital branding and
marketing5
Collaborative branding activities with tourism
players6
Targeted awareness programmes for niche
markets
7G2G branding
initiatives for niche markets
8
Malaysia Healthcare brand strategy alignment with
Tourism Malaysia
9Targeted branding for niche products on the
markets
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LEGEND
Healthcare Travel Ecosystem
Malaysia Healthcare Brand
Markets
1, 2, 3, 5, 8, 10, 11, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6
1, 2, 3, 5, 7, 8, 10, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6
1, 2, 3, 5, 8, 10, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6
1, 2, 3, 5, 8, 10, 11, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6
1-12 1-9 1-6
1, 2, 3, 5, 6, 8, 10, 12 1-9 1-6
1. TRANSIT
3. TELECONSULTATION
5. IMMIGRATION
7. ENTRY POINT
9. MEDICAL SERVICES
1, 2, 3, 5, 8, 10, 12 1-9 1-6
12. TOURISM
4. BOOKING
6. INSURANCE
8. ACCOMMODATION
11. STEP-DOWN, REHAB AND WELLNESS
1, 2, 3, 5, 8, 10, 12 1-9 1-6
10. TRANSLATION AND MEDICAL RELATIONS
2. ACCESS TO INFORMATION
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The Implementation
Working Groups (WGs) will be formed for each Strategic Objective; consisting of relevant industry players and stakeholders to drive implementation of the Blueprint. The WGs will determine the strategic initiatives in the first meeting and will meet collectively to review progress every six months.
Each WG will be led by an owner; determined by MHTC as the Project Management Office (PMO) for the Blueprint implementation.
6.4 Blueprint Working Groups
Figure 38: Eight (8) Working Groups (WGs) for each Strategic Objective
Figure 39: Sample of WG with Lead, Government Agencies and Private Sectors Involved
No. WGs WG Owner (Lead)Government
AgenciesPrivate Sector /
Experts
1.Improve quality of
careTBD TBD TBD
2.Enhance service
delivery quality and experience of care
TBD TBD TBD
1. Healthcare Travel Ecosystem
Improve quality of care
Enhance service delivery quality and experience of care
Ensure sustainability through diversification
3. Markets
Protect and grow the primary market (Indonesia)
Develop focus markets
Enter and develop niche markets
2. Malaysia Healthcare Brand
Increase brand cohesiveness across all touchpoints
Amplify brand equity in core markets
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The WG is responsible to determine strategic initiatives to achieve the Strategic Objectives, description, key success measures and KPI from 2021 to 2025.
Figure 40: Sample of Template for the WG to be Completed During the Sessions
Key Success Measure
Success Measures
CurrentYear 1(2021)
Year 2(2022)
Year 3(2023)
Year 4(2024)
Year 5(2025)
Accreditation
Trust Index
#3
#4
#5
OverviewRe-invigoration through a seamless patient experience, proactive standardisation and quality control
WG Owner TBD Key Involved Parties TBD
Description TBD
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The Implementation
6.5 Summary
Alignments across national and sectoral masterplansThe Malaysia Healthcare Travel Industry Blueprint is tied to the national and sectoral masterplans to ensure proper alignment with the existing initiatives.
Implementation plan spearhead by a governance structureImplementation is monitored through a governance structure consisting of a steering committee chaired by the MOH, an advisory committee chaired by MHTC (CEO), and a project management office led by MHTC (Corporate Strategy Department).
Inclusivity and involvement of all stakeholdersAchieving the outcomes of this Blueprint will require the commitment, cooperation and collaboration across the stakeholders.
Alignment and collaboration among various stakeholders are vital to the success of the Blueprint. Despite the challenges currently faced due to the pandemic, opportunities exist to revive the industry performance through clear strategic direction, well-coordinated execution plans and partnerships across the ecosystem.
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Appendix
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Appendix
Glossary of Terms
1. BlueprintA guiding document that defines the strategic direction and framework.
2.Brand Equity Index (BEI)
Indicator to gauge the brand strength in core markets.
3.
Cumulative Average
Response Rate (CARR)
Relates to the percentage of data submission from private healthcare facilities in Malaysia.
4. Growth LeversRepresents the enablers of a stated goal (i.e.: healthcare traveller experience), in support of the pillars and objectives.
5.Porter’s Five
Forces AnalysisMethod to analyse competitive environment of a business (Malaysia Healthcare industry).
6. SWOT Analysis
Strategic planning technique to identify strengths, weaknesses, opportunities and threats related to the organisation (in this context the Malaysia Healthcare industry).
7.Strategic
FrameworkCaptures the key strategic pillars and objectives to support the aspiration achievements.
8.Strategic
ObjectivesRepresents the big picture goals in support of the pillars.
9. Strategic PillarsRepresents the key dimensions for the industry over mid to long term success.
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Distribution of Private Healthcare Providers (2019)
Kuala Lumpur, Selangor and Penang collectively account for 23.7% of private healthcare facilities with the highest concentration of MHTC member facilities.
Other private healthcare facilities (Ambulatory care centres, fertility
centres, etc..)
Numbers denoted as:MHTC Members | Total Facilities
Private Hospitals
Source: MHTC analysis
LEGENDTotal MHTC members = 73*
Total Private Healthcare Facilities = 291
*Includes MHTC Dental members, as of September
2021
Concentration of MHTC Members indicates that private healthcare facilities on the West Coast of Peninsular Malaysia are more active in the promotion of Healthcare Travel.
Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, Perlis and Terengganu
Sabah and Sarawak
Penang
06 1802 06
Kuala Lumpur
11 4410 12
Johor
05 2701 14
Other States
06 5300 06
East Malaysia
06 19
01 04
Melaka
04 05
Selangor
14 5406 24
MHTC Members and Private Healthcare Facilities Across Malaysia
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Appendix
Top 10 Source Countries (2019)
On a national level, Indonesia and China contribute more than two thirds of the healthcare traveller revenue in 2019.
No. Country of Origin % of total HT Revenue
1. Indonesia 65.8%
2. China 5.1%
3. India 3.1%
4. United Kingdom 2.0%
5. Japan 2.0%
6. Australia 1.6%
7. Singapore 1.6%
8. Philippines 1.3%
9. United States 1.2%
10. Bangladesh 1.2%
Source: MHTC analysis
Note:• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers, Foreign Students, MM2H participants etc.• Healthcare Traveller (HT): Combination of HTo and FP.
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Top Five Source Countries According to Malaysia’s Regions (2019)
Indonesia and China are the top source countries across regions in Malaysia except for the Southern Region.
Note:Central – Kuala Lumpur, Selangor, Negeri SembilanNorthern – Perlis, Kedah, Pulau Pinang, PerakSouthern – Melaka, JohorEast Malaysia – Sabah, SarawakEast Coast (omitted due to low revenue and volume figures) – Pahang, Kelantan, Terengganu
Source: MHTC analysis
No. Country of Origin % of total HT Rev.
1. Indonesia 31.2%
2. China 10.0%
3. India 6.5%
4. Japan 4.2%
5. United Kingdom 3.8%
No. Country of Origin % of total HT Rev.
1. Indonesia 90.3%
2. China 1.1%
3. United Kingdom 0.9%
4. India 0.9%
5. Japan 0.6%
Central
East Malaysia
Northern
Southern
No. Country of Origin % of total HT Rev.
1. Indonesia 79.3%
2. Singapore 4.4%
3. China 3.9%
4. Vietnam 1.4%
5. India 1.4%
No. Country of Origin % of total HT Rev.
1. Indonesia 74.1%
2. China 7.3%
3. Philippines 2.9%
4. United Kingdom 1.8%
5. South Korea 1.4%
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Appendix
Malaysia’s Regions In Detail
The current outlook on the different regions is indicated through the strength of states within each region.
Region in Malaysia
Prominent States for Healthcare
Travel
HT Performance
(2019)
International Connectivity
(Pre-2019)
Prominent Stakeholders Notes
Northern PenangRM750mil, 500k patients
267 flights weekly, 15 destinations
Penang Centre of Medical Tourism (PMED), Penang Global Tourism (PGT), Northern Corridor Implementation Authority (NCIA)
Most established state in healthcare travel
Central
Kuala Lumpur
RM340mil,260k patients 2,635 flights
weekly, 119 destinations
State Tourism, InvestKL
Highest connectivity and latest technology offeredSelangor
RM280mil,230k patients
State Tourism,Invest Selangor
Southern
MelakaRM110mil,85k patients
8 flights weekly,1 destination
State TourismInvolvement of post-Exco bodies
JohorRM75mil,60k patients
44 flights weekly,6 destinations
State Ministry, IRDA
State interest in healthcare travel
East Malaysia
SarawakRM75mil, 55k patients
47 flights weekly, 3 destinations
State Tourism, State Ministry
State interest in healthcare travel
SabahRM15mil, 15k patients
42 flights weekly, 9 destinations
State Tourism, State Ministry
More of a tourism destination
Source: MHTC Informatics, MAHB for flight connectivity
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Top Treatments Sought by Healthcare Travellers by Volume (2019)
When it comes to analysis by the different treatments sought, the data is only represented by a sample of the entire portion (approximately 14% of total data) and is represented as follows:
Note:The information extracted is based on submission through PS101 and PS102 to JKN for year 2019. Private facilities which did not submit the report to JKN (i.e: ACC and Dental Clinics) are not captured in this table. Total data: 166,300 (~14% of total HT volume)
Source: MHTC analysis
45% 10% 7% 7% 4% 3% 3% 3% 2% 2% 2%
47% 11% 9% 4% 2% 4% 3% 1% 1% 2% 1%
38% 8% 3% 11% 11% 1% 1% 7% 2% 1% 3%
42% 4% 1% 33% 3% 0% 1% 4% 1% 1% 1%
27% 7% 3% 35% 7% 0% 1% 2% 1% 1% 3%
34% 9% 2% 8% 9% 2% 3% 6% 3% 1% 6%
GastroenterologyObstetrics and Gynaecology
CardiologyAccidents &
InjuriesOphthalmology
Respiratory Medicine
Health Screening
Cancer & Neoplasm
Infectious Diseases
Orthopaedic Surgery
Urology
Indonesia
World
Myanmar
China
Vietnam
India
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Appendix
The Porter’s Five Forces analysis is a framework that helps analyse the level of competition within a certain industry. According to this framework, competitiveness does not only come from competitors. Rather, the state of competition in an industry depends on five basic forces:
1. Threat of new entrants 2. Rivalry among existing competitors 3. Threat of substitutes 4. Bargaining power of suppliers and; 5. Bargaining power of buyers
The collective strength of these forces determines the profit potential of an industry and hence its level of attractiveness.
Attributes of Porter’s Five Forces Analysis
Market Forces Definition Determinants
Threat of New Entrants
Threat that newcomers pose to current players in the healthcare travel industry.
• Barrier to entry, economies of scale, brand loyalty, capital requirement, cumulative experience, government policies.
Rivalry Among Existing
Competitors
A measure of the extent of competition among existing competitors (Thailand, Singapore and South Korea).
• Number of competitors, diversity of competitors, industry concentration, industry growth, quality difference, brand loyalty.
Threat of Substitute
The availability of healthcare travel products that a healthcare traveller could purchase from outside an industry. In the healthcare travel industry, substitutes include medical, wellness and tourism experience within the home country. Also includes disruptors in the form of technology.
• Number of substitutes available, buyers’ propensity to substitute, relative price performance of substitute, perceived level of product differentiation.
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These Porter’s Five Forces attributes are applied to evaluate the attractiveness and competitiveness of Malaysia’s healthcare travel industry.
Market Forces Definition Determinants
Bargaining Power of Suppliers
The pressure that hospitals and tourism providers can put on a healthcare travel industry by raising their prices, lowering their quality, or reducing the availability of their products.
• Number and size of suppliers (hospital capacity), uniqueness of each supplier’s products, ability to substitute.
Bargaining Power of Buyers
The pressure that healthcare travellers can put on healthcare travel providers to get them to provide higher quality healthcare products, better service, and lower prices.
• Number of healthcare travellers (HT), size of each order
• Differences between competitors, price sensitivity, HT’s ability to substitute, HT’s availability of information.
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