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BUSINESS REVIEW
Medical Tourism
99
On the Ground Activities
Currently medical tourism contributions
account for 3% of KPJ’s revenue and
we have set our sights on growing this
to 25% by 2020. To capitalise on the
wealth of opportunities presented by the
medical tourism market, KPJ continues
to undertake a host of marketing and
promotional activities in existing and new
target markets throughout Asia and the
Middle East. Through participating in
local and international exhibitions, trade
expositions, road shows and health talks,
we are helping to drive awareness about
Malaysia as an excellent and cost-effective
destination for medical care as well as
entrenching the KPJ brand among target
audiences.
In 2012, KPJ took the opportunity to
participate in the host of international trade
fairs, trade expositions and road shows
organised by the MHTC, the Ministry
of Health, the Ministry of Tourism, the
Malaysia External Trade Development Corp
(MATRADE) and others. Through these
efforts, we were able to make good inroads
into many ASEAN nations as well as Hong
Kong, the People’s Republic of China and
the Middle East.
Currently
medical
tourism
contributions
account for
3% of KPJ’s
revenue and
we have set
our sights on
growing this to
25%
by 2020.
Indonesia
The medical tourism team’s first
international marketing activity for 2012
took them to Medan, Indonesia in February.
We have a keen interest in Indonesia as
our neighbour has contributed almost a
third of KPJ’s international patients and
this is expected to grow. Together with
the MHTC, the KPJ team participated in
the Medan Expo 2012 event which was
held in conjunction with the Perhimpunan
Rumah Sakit Seluruh Indonesia (PERSI)
event, an opportune networking platform
which opened up the entire Indonesian
healthcare industry to us.
Over the course of the year, we participated
in several other strategic initiatives that
had a tangible effect on medical tourist
numbers. These included our participation
in the Indonesia Wellness & Medical
Tourism Fair in Jakarta, the MHTC
Exhibition in Balik Papan, the 5th Indonesia
Mice & Corporate Travel Mart, Bali and a
seminar and exhibition in Semarang, one
of our new target markets for medical
tourism. We also participated in Nusantara
Pesta Wisata IX 2012 in Jogjakarta as well
as undertook hospital visits to the An Nur
Urology Hospital.
While the domestic market remains the
mainstay of KPJ’s business, the Group
recognises the potential of the burgeoning
medical tourism market and continues to
undertake measures to capture a bigger
slice of this market while building a
pathway to sustainable growth.
Growing Market Potential
The Malaysian healthcare sector is
expected to enjoy steady growth in line with
the catalyst activities being implemented
under the Malaysian Government’s
Economic Transformation Programme
(ETP). As one of the 12 National Key
Economic Areas (NKEAs) under the ETP, the
healthcare sector is expected to leverage
on private-sector growth to generate
between RM35 billion and RM50 billion in
incremental gross national income (GNI)
by 2020. Growth is expected to be driven
primarily by pharmaceuticals, medical
technology products and health travel.
With its cutting-edge facilities and highly
qualified specialists, Malaysia ranks
amongst the world’s top health tourism
destinations. Over the years, more than a
million people from around the world have
come to seek quality healthcare in Malaysia.
In 2012 alone, Malaysia received some
664,000 medical tourists that represented
a 16% increase in medical tourist arrivals
in comparison to 2011’s numbers. Going
forward, the Malaysian medical tourism
sector is forecast to grow even further on
the back of the influx of patients expected
from Indonesia, Myanmar, Bangladesh and
the Middle East.
The Government’s initiatives to boost
the healthcare travel industry too augur
well for the medical tourism sector.
Organisations like the Malaysia Healthcare
Tourism Council (MHTC) continue to work
seamlessly with the Association of Private
Hospitals of Malaysia, the Ministry of
Tourism Malaysia and various healthcare
facilitators and government agencies to
drive medical tourism.
Annual Report
2012
KPJ Healthcare Berhad