![]() KUALA LUMPUR: KPJ Healthcare Bhd is preparing to attract more foreign patients to grow its medical tourism business. The company is the country’s largest private medical entity with a network of 20 hospitals nationwide
KPJ has ambitious plans for the medical tourism segment, aiming to grow its revenue contribution to 25% in 2020 from less than 10% today.
"Health tourism represented approximately RM45 million in revenue [last year] and as we continue to invest in this sector, we believe this figure will grow exponentially.
Our total market share in the sector now is about 10%. While there are many hospitals here that are increasing their efforts, there is plenty of demand that has yet to be tapped," managing director Datin Paduka Siti Sa’diah Sheikh Bakir told The Edge Financial Daily in an email response to questions.
She added that Indonesia remains KPI’s largest market for medical tourism, and the company has identified a number of locations to set up representative offices in order to capitalise on this.
Besides Indonesia, it has marked China as a key strategic market in the immediate term. The company has recently participated in marketing activities across Hong Kong, Nanning, Guangzhou and Shanghai. The Middle East is another attractive market due to the high tourist arrivals from the region.
"A major target for us is to attract patients from the Middle East. Malaysia stands as one of the top destinations for travellers from there.
It is a primarily a Muslim [region] and we are able to provide them the culturally sensitive services that they would expect and value," said Sa’diah.
A significant factor in Malaysia’s journey to becoming a hub for medical tourism is the collaboration between public and private organisations, she added.
Organisations such as the Malaysia Healthcare Travel Council (MHTC) and the Malaysia External Trade Development Corp (Matrade) have offered a platform for KPJ to promote its business in places such as Australia and Bangladesh.
The benefits for Malaysia are clear. The average foreign patient spends four times more than a typical tourist, said Sa’diah.
She added that more foreigners are choosing Malaysia for medical treatment due to the affordability factor and quality.
Many private hospitals here are among the region’s most advanced, with state-of-the-art diagnostic, therapeutic, and in-patient facilities. Malaysia’s doctors and medical professionals are renowned for their high level of care for patients, professionalism and expertise," said Sa’diah.
She added that the biggest challenge to unlocking the country’s full potential in medical tourism is to build the confidence of prospective patients.
"Healthcare is a sensitive, personal issue ... and they need to have the confidence, to know that the healthcare provider they are choosing is the right one for them," she said.
KPJ has said that part of its strategy to expand the company’s foothold overseas, is the development of foreign partnerships.
We actively seek partners in key target markets, they have the experience to become agents with us. This allows us to capitalise on their local know-how and network, to effectively communicate our offerings," Sa’diah said.
With growing demand for its services from the foreign market, KPJ is building more facilities to serve this segment.
It has two hospitals contributing the bulk of this segment’s revenue the KPJ Johor Specialist Hospital and KPJ Ampang Puteri Specialist Hospital.
These two facilities undergo routine upgrades in order to remain competitive, taking up annual capital expenditure of RM150 million to RM200 million.
The next component will be a 400-bed hospital in Bandar Dato’ Onn, Johor, that will target Singaporeans. Sa’diah said the project has received zoning approval from the Health Ministry, and KPJ will find a developer through a tender process scheduled sometime in the second half of this year.
As KPJ grooms its medical tourism segment into an integral part of the business, the company is also making efforts to diversify through other means.
The company made its first foray into the aged care business in 2010, with the acquisition of a controlling stake in Jeta Gardens a retirement village in Queensland, Australia.
Sa'adiah revealed that KPJ is currently in discussions with a strategic partner to evaluate the establishment of aged care facilities in Kuala Lumpur and Johor.
However, she stressed that the company will take some time to implement care for the aged as there are social and cultural issues to consider.
"It will incorporate Malaysian values and be sensitive to the Asian family structure and traditions," she said.
Care for the aged, she said, is expected to be a viable choice
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