Malaysia to focus spending on digitalising healthcare system
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Health expenditure in Malaysia is set to grow by a compound annual growth rate of 8.3 per cent.
ST PHOTO: LU WEI HOONG
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KUALA LUMPUR – Malaysia plans to focus on digitalising its healthcare system as it seeks to boost medical tourism and give remote villages access to services.
The nation’s central bank will provide RM2.6 billion (S$791 million) in development financing to technologically upgrade several industries including healthcare, said Communications Minister Fahmi Fadzil in an interview on Oct 24.
“A lot of the focus is towards ensuring that we can transform a lot of these healthcare centres into what could be proverbially known as smart hospitals,” Mr Fahmi said.
“We are trying to leverage a lot of the infrastructure, the digital and telecommunications infrastructure, to make full use of a lot of these technologies that are actually already available.”
Prime Minister Anwar Ibrahim’s two-year-old government is focused on improving the nation’s infrastructure – rather than mega projects – as it seeks to boost economic growth and attract foreign investments.
A long spell of political instability – Malaysia had seen four different prime ministers in four years – had hampered reforms.
“The government is trying to reset the growth track of the country, focus on fiscal responsibility and initiate these wide-ranging reforms that can only build confidence in better governance of the country,” Mr Fahmi said.
Malaysia is tapping its 5G network to roll out telemedicine and e-health services in rural areas, allowing people to do their check-ups “without having to go to the nearest hospital, which may be an hour away, just to get their blood pressure checked”, he added.
Health expenditure in Malaysia is set to grow by a compound annual growth rate of 8.3 per cent, outpacing regional peers including Singapore and Thailand over the medium term, according to BMI, a Fitch Solutions company.
Malaysia remains an attractive destination for foreign patients, with its high-quality healthcare facilities equipped with modern medical products, and its cost-effective service, BMI said.
The nation will work with companies from the US, UK and Australia to boost its digital health market, the minister said.
In 2025, Malaysia also plans to tap direct-to-device technology that takes advantage of low-Earth orbit satellites in “hyper remote areas where there’s zero to little connectivity”, Mr Fahmi said.
The digital healthcare market is forecast to grow to US$549.7 billion (S$725.7 billion) by 2028 worldwide, from US$180 billion in 2023, according to research firm MarketsandMarkets. BLOOMBERG
