Healthcare Sector Of Malaysia

Published Date: 02 Nov 2017

ON

"HEATHCARE SECTOR OF MALAYSIA"

Submitted to

Parul Institute of Management and Research

INSTITUTE CODE 711

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

Under

Gujarat Technological University

UNDER THE GUIDANCE OF

Faculty Guide

Mrs. Kosha Nair

Professor - PIMR

Submitted by

Group No.: 2

Roll No.: 7, 8, 9, 10, 11, 12

M.B.A - I, SEMESTER – IV

Parul Institute of Management and Research

M.B.A PROGRAMME

Affiliated to Gujarat Technological University, Ahmedabad

December, 2012

Contents

1. HEALTHCARE SECTOR OF MALAYSIA 3

1.1. Healthcare 3

1.2. Growth of Healthcare Sector 3

2. SWOT ANAYLYSIS OF MALAYSIA 5

2.1. Strengths 5

2.2. Weakness 5

2.3. Opportunities 5

2.4. Threats 6

3. SWOT ANALYSIS OF INDIA 7

0.1 Strengths 7

0.2 Weakness 7

0.3 Opportunities 7

0.4 Threats 7

4. HEALTHCARE SECTOR IN GUJARAT 8

0.5 Introduction 8

0.6 Swot Analysis of Healthcare Sector in Gujarat 8

0.6.1 Strength 8

0.6.2 Weakness 9

0.6.3 Opportunities 9

0.6.4 Threats 9

5. TRADE RELATIONS 10

0.7 Malaysia and India 10

0.8 Malaysia and Gujarat 10

6. CONCLUSION 11

7. BIBLIOGRAPHY 12

HEALTHCARE SECTOR OF MALAYSIA

Healthcare

Healthcare in Malaysia is mainly under the responsibility of the government’s Ministry of Health. Malaysia generally has an efficient and widespread system of health care, operating a two – tier health care system consisting of both a government – run universal healthcare system and a co-existing private healthcare system.

Malaysia’s healthcare system is divided into the public and private sector. The government heavily funds the public healthcare sector, and patients pay a nominal sum for treatment, while fees for private healthcare services are paid fully by the patients themselves, their employers, or by insurance companies. The number of (specialist) hospitals, clinics, and dental surgeries has increased tremendously in Malaysia over the last decade, and both private and public healthcare sectors are still expanding.

The value of Malaysia’s healthcare industry is estimated at around $8.4 billion, with total expenditure on healthcare estimated at 4.75 per cent of gross domestic product (GDP). Government and private funding currently account for around 55 per cent and 45 per cent of total health expenditure in Malaysia, respectively. In public sector, the Ministry of Health (MoH) is the main government agency responsible for providing healthcare services in the country.

Focus on healthy growth in the medical sector. The Malaysian healthcare sector is well developed compared to some other countries in the region. Many facilities are available for Malaysian as well as for foreigners.

Growth of Healthcare Sector

The Malaysian healthcare sector is set to grow at an average rate of 8.4% over the next six years, according to consultant Frost and Sullivan. The researcher said the size of this sector, which was valued at RM6.96 billion in 2012, will grow to RM11.29 billion by 2018. Malaysia’s healthcare expenditure is expected to almost double in the next six years, reaching up to RM68.4 billion in 2018 with annual growth rate of 6.5% over the six year period.

The healthcare sector is rapid expanding due to the advancement of technology and the emergence of new challenges in the world of medicine. It is a continuous challenge for this sector to provide better services to the public. The Ministry of Health will continue to be the lead agency and the main provider of health care services for the nation.

With some of the highest levels of national healthcare spending in Asia (ranking third after Vietnam and South Korea). Malaysia is taking hold of its strategic strengths in the pharmaceuticals and medtech sectors, among others, to expand the country’s economic growth. The healthcare industry has shown high profitability margins over other Malaysian industries since 2000, according to the World Health Organization. With plans to expand these sectors into world – class profit hubs, the current small global player sees a tremendous opportunity for pharmaceuticals and medical devices. To meet its growth goals, Malaysia seeks international sponsors and manufacturers to boost these industries.

The medical device industry in Malaysia is incipient and is planned to have a baseline growth rate of only 8 percent, but it holds much opportunity. The Malaysian government is targeting the pharmaceutical industry for a 22 percent growth rate driver by higher exports of generic drugs and increased clinical research. Malaysia’s Minister of Health foresees 1,000 new clinical trials executed per year, 10 times more than the current number.

SWOT ANAYLYSIS OF MALAYSIA

Strengths

Increasingly progressive government policy, aimed at attracting international investment

Improving local manufacturing standards, with a commitment to biotech development

Robust market growth in recent years

Absence of price controls in the private sector

Sizeable generics market, given low patient purchasing power and lax patent laws

Prescribing and dispensing presently dealt with by general practitioners, boosting overall values of the prescription market

OTC and generics markets are set to grow strongly over the next nine years

Weakness

Lax patent law remains conspicuously below international standards

Recent reform aimed at increasing generic product development worsening operation conditions for multinationals

Strict government drug pricing policy heavily biased towards local drug producers

Local manufacturing output comprising predominantly inexpensive, basic medicines

Market reliant on imports, particularly at the hi-tech end of scale, pressuring government finances

Opportunities

Generics sector as an integral factor of market growth

Exports growing in the face of rising regional and global demand, as well as increasing trade links

Increasingly sophisticated pharmaceutical demand

Government desire to prevent and contain disease outbreaks

ASEAN harmonization encouraging the adoption of Western regulatory standards and the improvement of intra-regional trade

Investment in the biotech sector development supported by government initiatives

Malaysia becoming an attractive location for medical tourism

Planned investment in the expansion of medical facilities

Threats

Existence of a significant counterfeit drugs sector

Government failure to revise discriminatory pricing policy

Possible introduction of price ceilings on essential medicine

Government seeking compulsory licenses for patented drugs

SWOT ANALYSIS OF INDIA

Strengths

Low cost of production

Growing private hospital sector

Success in pharmacy and pharmaceutical industry

Huge market – growing

Large skilled doctors

Urban population

Low pricing in public hospitals

Weakness

Low per capita expenditure

Untapped rural market

Excessive dependency on imports

R&D support system not available

Opportunities

Overseas company investment

Increasing joint venture and agreements

Overseas assisted projects

Regulatory improvement

Largely untapped markets

Switching over from process patent to product patent

Growing income and growing attending patent to health

Growing outsourcing hub

Threats

Unorganized market for medical disposable

Lack of regulation specification of superior product

Threat from other low cost countries like China

HEALTHCARE SECTOR IN GUJARAT

Introduction

The Healthcare sector in Gujarat is changing rapidly. The available medical infrastructure and easily accessible healthcare facilities have improved the health of the population of the state remarkably over the years. Gujarat is involving in terms of number of hospitals, healthcare centers, beds and is expected to continue a positive trend in future. The State Government is taking several initiatives to make Gujarat a Global Healthcare Destination. A doctor to patient ratio is 1:10 and nurse to patient ratio is 1:5.

Through use of latest technical equipment, increased health insurance, major corporate investments and services of highly skilled medical personnel, the Gujarat healthcare Sector is poised well for a sustained boom.

Rs. 26,000 Cr will be invested in the field of healthcare in Gujarat by the national and international healthcare and pharma companies. The Health and Family Welfare Department signed various MOUs with reputed four International, 127 National Companies in the field of Healthcare and Pharmaceuticals as a part of 5th Vibrant Gujarat Global Summit. Out of this, investment of Rs. 15,000 Cr will be in health sector and Rs. 10,686 Cr in Pharmaceuticals.

Swot Analysis of Healthcare Sector in Gujarat

Strength

Gujarat is believed to be fast transforming into a healthcare hub

The healthcare landscape in Gujarat has been changing rapidly

The available medical infrastructure and easily accessible healthcare facilities

Gujarat healthcare market is standing on a verge of great take off

Medical tourism, enhancement of existing medical infrastructure in improving other facilities has significantly boosted healthcare market in Gujarat

Weakness

Higher treatment cost

Lesser competitive edges

Low utilization rates

Opportunities

Gujarat has come in the limelight by adopting global practices to deliver seamless patient care of quality

Planning to enter to deliver best in class healthcare

People are growing more aware of their health needs, demand quick response and less waiting times

Increased demand for good quality healthcare

Threats

High capital cost

The medical equipment though cutting edge at the time of purchase poses the threat of inevitable obsolescence

TRADE RELATIONS

Malaysia and India

As, Malaysia is becoming a location Medical Tourism, many medical conferences, seminars, workshops can be organized

There is increased in medical education industry in India, Malaysian medical students can pursue their medical education in India’s medical institution.

Generic products and medical products can be outsource from Malaysia

Employment to skilled doctors of India can be given in Malaysia’s hospitals and similarly skilled doctors of Malaysia can be given employment in India’s hospitals

Malaysia and Gujarat

State Government and private players can change mindsets of Malaysian investors and patients in order to attract global capital, talent and business flow

Medical tourisms is on rise

The way medical and paramedical colleges are proposed to come up in the state, student exchange programs can be organized

Gujarat will emerge as a leading healthcare tourism destination

CONCLUSION

India’s government is welcoming joint venture collaborations with Malaysian Pharmaceutical firms.

There is a huge growing market

India can also do R&D investment in Malaysia.

Pharmaceutical product or generic products can be outsourcing from Malaysia.

Malaysia and India both are dependent on imports of healthcare product, so unique product of both countries can does export to each other.

Healthcare is available at very competitive charges so Gujarat become a lucrative destination for Indian people and foreign people wanting to undergo the best treatment at cost-effective rates

There are excellent multi-specialty hospitals with ultramodern infrastructure which offers attractive options for foreigners and NRI