MALAYSIA'S HEALTHCARE TRAVEL INDUSTRY RECEIVES MORE INCENTIVES

KUALA LUMPUR, Dec 21 (Bernama) -- The Malaysian government has outlined five
incentives to further boost the growth of the country's healthcare travel
industry and make private hospitals more export-driven, Prime Minister Najib Tun
Razak said Monday.

He said to encourage private hospitals to expand their capacity, the
government would provide tax exemption equivalent to 100 per cent of qualifying
capital expenditure incurred for a period of five years for the construction of
new hospitals or for expansion, modernisation or refurbishment of existing
hospitals.

"This tax incentive is for applications received from Jan 1, 2010 until Dec
31, 2014. Setting up of the International Patients Unit in these hospitals also
qualify for this incentive.

"To be eligible for this incentive, these hospitals must be registered with
the Ministry of Health (MOH) for the promotion of healthcare travel," he said in
his address at the launch of the Malaysia Healthcare Travel Council here.

Also present were Health Minister, Liow Tiong Lai and Minister in
Prime Minister's Department, Nor Mohamed Yakcop.


Besides that, Najib said the ministry, the Malaysian Media Council and the
Association of Private Hospitals Malaysia would review existing advertising
regulations and guidelines in meeting the changing role of private hospitals in
promoting healthcare travel or medical tourism.

In encouraging private hospitals to attain high quality of healthcare
services, Najib said expenses incurred by them to obtain domestic or
internationally recognised accreditation, such as those recognised by the
International Society for Quality in Health, were eligible for double deduction
incentive under the Income Tax Act 1967.

He said in order to also encourage more Malaysians or non-Malaysian medical
specialists to return or come from abroad to serve in local hospitals, their
non-Malaysian spouse, who qualify as a professional as per the Malaysian
Classification of Occupation (MASCO), would automatically be offered an
employment/professional pass, subject to registration with the relevant
professional bodies where appropriate.

Finally, in facilitating smooth arrival, stay and departure of medical
tourists, Najib said the Commercial Vehicle Licensing Board would issue relevant
permits to hospitals or medical facilities registered under the health ministry
for the promotion of healthcare travel.

The permits would allow hospital vehicles to ferry patients and accompanying
persons from and to the airport as well as hotel of stay.

Foreign patients entering Malaysia for medical treatment on emergency via
'Visa on Arrival' would be allowed to convert their status to social visit pass
upon recommendation of private hospitals registered under the health ministry
for promotion of healthcare travel.

He added that approval of extension of stay for medical tourists at the
state level would also be expedited.

The Prime Minister said the establishment of the Malaysia Healthcare
Travel Council (MHTC) was also vital to bring together the synergistic efforts
of significant players in the Malaysian healthcare travel industry, both in
government and private sector, to galvanise our collective efforts to drive
growth of this industry to a higher level.

Najib said MHTC was tasked with the responsibility to formulate strategic
plans for promotion of healthcare travel services and to spearhead the
promotional activities for the Malaysian healthcare travel industry.

"MHTC will also provide a focal point for industry players to collaborate
and resolve issues that may hamper the development of the industry as well as be
the focal point for enquiries on healthcare travel," he said.

Najib also announced that an Advisory Committee had been appointed to assist
the government to steer and set direction for the healthcare travel industry,
where Liow and Nor Mohamed would co-chair the committee.

He said the members of the Advisory Committee comprised representatives from
the government and private sector organisations and individuals were selected on
the basis of their capabilities in contributing to the growth of the industry.

"I believe that our ability to develop a world-class healthcare industry in
the country will also contribute to reversing the serious brain drain of
Malaysian medical professionals. I realise that, being professionals, the
opportunity for professional development can be stronger than monetary
incentives.

"I call on the industry to collaborate not only amongst yourselves but
actively seek collaboration with renowned healthcare institution abroad to
achieve this goal. This will not only help us to have access to greater skills
and knowledge but also help us gain a presence in the evolving global healthcare
networks," he said.

The Prime Minister said the participation of well known foreign healthcare
providers or companies could help Malaysia to develop and promote highly
specialised medical services as part of our ambition to become the gateway for
the Asia Pacific healthcare market for foreign healthcare players.

He said while healthcare might be deemed a sensitive sector in some
countries, partial opening and carefully crafted liberalisation policy would
benefit the healthcare industry in terms of quality and availability of wider
range of services and this would require extensive research by health policy
makers.

"We must also ensure that increased arrivals of foreign patients do not
compromise the services rendered to local patients. While the government is
investing more in expanding our public healthcare system, the private sector
should undertake corporate social responsibility initiatives to provide services
for the needy in the country," he added.

Meanwhile, Liow in his speech, said his ministry had identified a group of
35 reputable hospitals in promoting healthcare travel or health tourism.

Among the criteria for the selection of hospitals in this group, he said the
hospital must be a member of the Association of Private Hospitals of Malaysia
and have Malaysian Society for Quality in Health, ISO or other international
accreditation.

Besides that, the hospital offered specialities or some sub-specialities,
provided for a minimum of 50 beds and must have its own webpage, he said.

In 2008, Liow said about 375,000 healthcare travelers visited Malaysia's
promoted hospitals, bringing in a revenue of RM299 million (US$86.9 million)
from this activity.

"This year, the economic slowdown has somewhat affected our performance.
During the first half this year, the promoted hospitals recorded 165,095 foreign
patients, with revenue of RM142.3 million (US$41.3 million).

"Compared to the first half of 2008, there is a reduction of 13 percent in
foreign patients and a two percent reduction in revenue. But in terms of revenue
per patient, we see a growth of 12 percent from RM769 (US$223) to RM862 (US$250)
per patient.

"The challenge from here on is for us to return to positive growth as the
global economy improves and to further increase the revenue per patient figure.
This can be achieved by our private hospitals becoming reputable providers of
high quality healthcare," he said.

-- BERNAMA