Malaysia Should Invest 7 -8 Pct of GDP In Healthcare

KUALA LUMPUR, Nov 15 (Bernama) -- Malaysia should invest at least seven to eight per cent of its gross domestic product (GDP) in the next 10 years in the healthcare sector, to create a more inclusive and healthier economic environment. Global Vice President (Pharmaceuticals & Biotech) of Frost & Sullivan, Rhenu Bhuller said currently Malaysia spend around 4.0-4.5 per cent of the GDP in the segment. "The contribution should be in line with the government's effort to move the economy into the high-income orbit. "Once the people are healthy, it will automatically create an inclusive and vibrant economy to grow and be tapped into," she told a press conference here Monday after delivering a talk at the Asia Healthcare 2011. She said the seven to eight per cent contribution is on par with the standard set by the World Health Organisation (WHO), for a good healthcare system. "The government should invest in the right area, namely in technology, patient awareness, education, diagnosis and monitoring. "When we invest in prevention, we can reduce the cost of treatment from 75 per cent of the total healthcare bill today, to maybe about 50 per cent in 2020," she added. Rhenu said one of the best ways for the government to utilise future investment, is to include an idea to establish an insurance scheme, citing the National Health Insurance that Japan, Taiwan and Singapore have. "It would be a combination of people and government insurance, which I think in the future, is the way it has to be. "Either way, there is a contribution from the people, when they want to take ownership of the insurance. When you pay, the responsibility is being shared," she added. Citing Singapore as example, where there is a healthcare insurance system, where citizens have to contribute the major percentage of the medical cost with the government bearing the rest. "As a result, the tax imposed upon Singaporeans is very low. "Currently, Malaysia practices the subsidy system for healthcare, in a 50:50 ratio," she said. Rhenu also urged local private hospitals to invest in technologies that they need to invest in and not in what they want to invest. "Malaysia is well known for investing in technologies but not all meet the purpose and the kind of expertise needed here. "There is no use of investment when you are not maximising it. It's not just buying the technology but to also have the right people to use it," she said. -- BERNAMA