Kuala Lumpur, Malaysia, February 20, 2025 –DKSH, a strategic healthcare solutions partner and leading provider of Market Expansion Services for pharmaceutical, over-the-counter (OTC), consumer health and medical device companies, and FrontierView, a leading business intelligence and advisory firm, have published a whitepaper with the title “Southeast Asia as a Growth Accelerator for Global Healthcare Firms.” It provides a comprehensive analysis of the healthcare landscape in Southeast Asia and offers valuable insights into the region’s healthcare market, with a particular focus on Malaysia’s burgeoning sector, its key challenges, and the abundant opportunities that lie ahead. The whitepaper concludes that Malaysia continues to be one of the most desirable markets for healthcare companies, driven by continued growth and industry development. However, it is also highlighted that challenges must be met collaboratively to ensure all citizens enjoy healthcare for all.
Malaysia’s healthcare sector has seen increasing growth, largely driven by the expansion of private healthcare services, and the exploration of public-private partnerships (PPPs). However, this growth is accompanied by several challenges, ranging from workforce shortages to financing gaps and regulatory pressures. As the industry continues to evolve, addressing these issues will be crucial in ensuring that Malaysia’s healthcare system can meet both domestic needs and regional competition.
Sandeep Tewari, Vice President, Healthcare, DKSH Malaysia, said: “The whitepaper findings reinforce our belief that Malaysia remains one of the most attractive markets in the region for pharmaceutical, consumer health and medical device companies. While significant opportunities lie ahead, there are challenges that must be addressed to fully realize their potential. Recognizing these shifts, DKSH has developed strategies, products and services that will help our partners navigate the evolving market trends in Malaysia, including the expansions of the middle class, the aging population, and the rising importance of the private sector.”
Booming Private Investment
As the Whitepaper shows, private healthcare in Malaysia used to largely rely on out-of-pocket spending. However, in recent years, private hospitals have experienced significantly faster growth compared to public hospitals. Many private hospital groups in Malaysia are now pursuing acquisition strategies or forming clusters to expand their reach. Another notable trend is the growth of private insurance, with total health premiums from general insurers rising over the past two years.
Addressing Challenges in Malaysia’s Healthcare System
Despite the substantial growth in the healthcare sector, Malaysia faces several challenges that must be addressed to ensure long-term sustainability.
- One of the issues is the shortage of healthcare professionals. Many doctors, nurses, and other healthcare workers are attracted to the private sector, leading to a disparity in the distribution of healthcare workers across the country. Public sector hospitals are struggling to meet the rising demand for care.
- Regulatory dynamics continue to shape the healthcare sector’s growth. While Malaysia has made strides in simplifying market entry through initiatives like the “ASEAN Joint Assessment pathway”, it still faces hurdles in local pharmaceutical and medical device production. Despite tax incentives and government efforts to encourage domestic manufacturing, Malaysia remains heavily reliant on imports for medical products. The influx of foreign companies could further exacerbate these localization pressures.
- Malaysia’s private healthcare sector is also facing the challenge of rising global interest rates, which have made it more difficult for private hospitals to secure financing for infrastructure and equipment. Many hospitals are opting to lease medical equipment instead of purchasing it outright, a reflection of the increasing cost of capital.
Balancing Opportunities and Challenges in the Future
Malaysia’s healthcare market offers immense opportunities, particularly with the ongoing growth of the private sector. To maintain this positive trajectory, the whitepaper outlines that Malaysia must tackle the challenges of workforce shortages, financing gaps, and regulatory complexities. Public-private partnerships present a promising solution, but sustained collaboration between the government, private sector, and healthcare professionals is essential to ensure the long-term sustainability of the healthcare system.
“At DKSH, we continue to support the growth of Malaysia’s healthcare sector through our expertise in commercial market expansion, regulatory compliance, and supply chain processes. As the trusted partner for navigating and thriving in Asia, we have developed invaluable knowledge for over a century. With our purpose and mission of enriching people’s lives by providing better healthcare for all, we are proud to have contributed our knowledge and expertise in supporting this whitepaper, which will provide our partners with the latest insights to succeed in the dynamic Southeast Asian healthcare landscape,” added Sandeep Tewari.
To learn more about the healthcare challenges and opportunities in Malaysia and other ASEAN markets, read the full whitepaper here: https://bit.ly/hecwhitepaper
