Malaysia Healthcare
Malaysia’s sustained healthcare sector growth, coupled with government-led digitalization and payment reforms, presents opportunities for U.S. companies specializing in advanced medical devices, precision medicine, digital health platforms, and health IT infrastructure that improve healthcare efficiency and treatment outcomes.
Malaysia’s healthcare sector is projected to grow 6–8% annually through 2030, according to Malaysia Industrial Development Finance (MIDF) Research. Growth is driven by an aging population, the rising prevalence of non-communicable diseases (NCDs), the expansion of the medical travel industry, and increasing adoption of advanced medical and digital health technologies.
Government-led reforms are reinforcing these demand drivers. In 2023, Malaysia introduced the Health White Paper (HWP), a 15-year roadmap to transform the healthcare system from a “sick care” model toward preventive and promotional care, with a strong emphasis on public–private collaboration. A central pillar of the HWP is implementation of the Ministry of Health’s ICT Masterplan, which calls for the phased rollout of Electronic Medical Records (EMR), Electronic Lifetime Health Records (ELHR), and a national Health Information Exchange (HIE), alongside expanded disease prevention and health promotion, improved affordability and equitable access, and enhanced governance through institutional reform and evidence-based policymaking.
Public investment remains supportive. Malaysia’s Budget 2026 allocates approximately $11.4 billion to the MOH, a 2.8% increase from 2025. Funding will support upgrades to public hospitals and clinics, the construction of new healthcare facilities, the expansion of digital infrastructure, and the implementation of the Diagnosis-Related Group (DRG) system. The DRG initiative replaces fee-for-service with fixed payments based on case complexity, aiming to enhance cost transparency, improve efficiency, and control rising medical inflation Malaysia Health Information Technology.
Malaysia is also strengthening its position as a regional hub for medical travel. The country welcomed 1.6 million healthcare travelers in 2024, a 14% year-on-year increase. International patients are mostly drawn to private hospitals offering comprehensive health screenings, cardiology, fertility treatments, oncology, and other specialized services. To sustain growth and enhance competitiveness, private healthcare providers are accelerating investments in advanced medical technologies, digital health solutions, and capacity expansion to improve clinical outcomes and patient experience.
U.S. companies interested in exploring the Malaysian healthcare market should contact Commercial Specialist Bethany Tien at office.kualalumpur@trade.gov.