mhtc blueprint 2021 (digital web)

Contents1.0 Executive Summary 04

1.1 Blueprint Structure 05

1.2 Strategy Map Overview 06

3.0 An Unprecedented Challenge 22

3.1 COVID-19’s Impact to the 23

Travel Industry

3.2 COVID-19’s Impact to 24

the Healthcare System

3.3 COVID-19’s Impact to the 25

Healthcare Travel Industry

3.4 Shift in Healthcare Investment 26

and Impact

3.5 An Industry Forced to Adapt 27

3.6 COVID-19’s Impact to the Economy 28

3.7 Vaccination as the Game Changer 30

3.8 Summary 33

4.0 An Analysis 34

4.1 Five-Year Strategy Plan 35

4.2 Analysis Methodology 36

4.3 The SWOT Analysis for the 38

Malaysia Healthcare Travel Industry

4.4 Porter’s Five Forces Analysis 40

4.5 Key Takeaways from SWOT and 41

Porter’s Five Forces Analyses

4.6 Gap Analysis Across the 42

Healthcare Traveller Journey

4.7 Summary 45

5.0 The Momentum Ahead 46

5.1 Strategy Map Overview 47

5.2 Strategy Framework Structure 48

5.3 Strategy Framework 49

5.4 Impact on Industry Growth 50

5.5 A Five-year Timeline Ahead 51

5.6 Strategy Framework Targets 52

5.7 Strategic Pillar No. 1 – Healthcare 54

Travel Ecosystem (HTE)

5.8 Strategic Pillar No. 2 – Malaysia 56

Healthcare Brand (MHB)

5.9 Strategic Pillar No. 3 – Markets 58

5.10 Success Monitoring Metrics 60

5.11 Summary 62

5.12 Prelude to Recovery Plan in 2022 63

2.0 The Landscape 12

2.1 Introduction and Background 13

2.2 Malaysia’s Healthcare Travel 14

Industry

2.3 Aspiration and Focus 16

2.4 Healthcare Travel Ecosystem: 18

Key Touchpoints

2.5 Summary 21

6.0 The Implementation 66

6.1 Healthcare Travel Agenda 67

in Key National Masterplans

6.2 Governance Structure 68

6.3 Role of Players in the Ecosystem 69

6.4 Blueprint Working Groups 73

6.5 Summary 75

© 2021 Malaysia Healthcare Travel Council. All Rights Reserved.

Appendix 76

Glossary of Terms 77

Distribution of Private Healthcare Providers (2019) 78

Top 10 Source Countries (2019) 79

Top Five Source Countries According to Malaysia’s Regions (2019) 80

Malaysia’s Regions In Detail 81

Top Treatments Sought by Healthcare Travellers by Volume (2019) 82

Attributes of Porter’s Five Forces Analysis 83

List of Figures Figure 1: The Blueprint’s Approach 05

Figure 2: Strategy Map Overview 06

Figure 3: Malaysia’s Healthcare Travel Revenue, 2011 - 2019 14

Figure 4: Malaysia Healthcare’s Awards and Accreditations 15

Figure 5: Malaysia’s Aspiration 16

Figure 6: Primary Focus for Experience 17

Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Touchpoints \ Stakeholders 18

Figure 8: Impact of COVID-19 to the Travel Industry 23

Figure 9: Tourist Arrivals and Receipts to Malaysia, 2015 - 2020 23

Figure 10: Impact of COVID-19 to Malaysia’s Healthcare System 24

Figure 11: Malaysia’s Healthcare Travel Revenue, 2011 - 2020 25

Figure 12: Average Distribution of Healthcare Investment, 2019 and 2021 26

Figure 13: Shift in Focus in Healthcare Travel 27

Figure 14: Impact of COVID-19 to the Economy 28

Figure 15: Malaysia’ Real GDP Growth 29

Figure 16: Selected Countries’ COVID-19 Vaccination Timeline 30

Figure 17: Analysis Methodology 35

Figure 18: Three-Step Analysis Methodology 36

Figure 19: SWOT Analysis of Malaysia’s Healthcare Travel Industry 38

Figure 20: Porter’s Five Analysis of Malaysia’s Healthcare Travel Industry 40

Contents


Figure 21: Key Takeaways from SWOT and Porter’s Five Forces Analyses 41

Figure 22: Gap Assessment Across the Patient Journey 42

Figure 23: Strategy Map Overview 47

Figure 24: Strategy Framework Structure 48

Figure 25: Strategy Framework 49

Figure 26: Timeline of Phase A 50

Figure 27: Focus and Phases of the Blueprint 51

Figure 28: Strategy Framework Target 52

Figure 29: Malaysia’s Healthcare Travel Revenue, 2011 - 2025p 54

Figure 30: Healthcare Traveller Journey 60

Figure 31: Timeline for Assessment 61

Figure 32: COVID-19 Impact Chronology 63

Figure 33: Projected Healthcare Travel Revenue Growth in 2022 64

Figure 34: Healthcare Travel Agenda in Key National Masterplans 67

Figure 35: Governance Structure 68

Figure 36: Strategic Initiatives for Relevant Stakeholders 69

Figure 37: List of Strategic Initiatives 71

Figure 38: Eight (8) Working Groups (WGs) for each Strategic Objective 73

Figure 39: Sample of WG with Lead, Government Agencies and Private Sectors Involved 73

Figure 40: Sample of Template for the WG to be Completed During the Sessions 74

List of Tables Table 1: Healthcare Travel Ecosystem Strategic Objectives 54

Table 2: Healthcare Travel Ecosystem Initiatives 55

Table 3: Malaysia Healthcare Brand Strategic Objectives 56

Table 4: Malaysia Healthcare Brand Initiatives 57

Table 5: Markets’ Strategic Objectives 58

Table 6: Market Initiatives 59

Table 7: Approach to Achieve the Revenue Target 65


4 Healthcare TravelIndustry Blueprint 2021 - 2025


ExecutiveSummary1.0

Our great aim is to elevate the healthcare travel industry - through

exemplifying best experience from all aspects, by having an active

ecosystem, strong Malaysia Healthcare brand and market strategies.

Executive Summary

1.1 Blueprint Structure

Malaysia’s strength as a leading healthcare travel destination in the region has been strengthening over the last 10 years, with accolades, recognition and returning patients exemplifying our success. We seek to further fortify our position by empowering synergy and growth through a consolidated healthcare travel ecosystem.

The Malaysia Healthcare Travel Industry Blueprint 2021 - 2025 (“Blueprint”) aims to provide guidance to the healthcare travel value chain and industry, by creating value and win-win opportunities for mutual benefit and growth for the entire sector.

The approach taken is detailed through these five following areas:

The LandscapeReflection of the industry’s performance including the healthcare travel ecosystem and its players.

The Unprecedented Challenge

The impact of COVID-19 and the resulting challenges to the healthcare travel industry.

The AnalysisAnalysis of the current scenario using SWOT, Porter’s Five Forces and gaps assessment, that sets the focus for the Strategic Framework.

The Momentum Ahead

The Strategic Framework with objectives and key initiatives, targets and measures to achieve the healthcare travel industry’s aspiration.

The Implementation

The governance to spearhead the Blueprint implementation and alignment across the healthcare travel ecosystem.

Figure 1: The Blueprint's Approach

5Healthcare TravelIndustry Blueprint 2021 - 2025


1.2 Strategy Map Overview

The Blueprint’s Strategy Map sets out the industry’s aspiration towards 2025, anchored on three strategic pillars.

Note: Analyses encompass of gap analysis, SWOT analysis and Porter’s Five Forces analysis

The need to improve healthcare travel experience

3

Growing threats in the healthcare travel industry

2

Leveraging on the demands and competing with other

players1

Based on the three analyses conducted, the

3 key takeaways are:

We aspire to provide the best healthcare travel experience to healthcare travellers seeking treatment in Malaysia - with

‘experience’ being the primary industry focus within the next five

years.

“Best Malaysia Healthcare Travel Experience by 2025”

Aspiration



Executive Summary

Figure 2: Strategy Map Overview

Improve quality of care

Enhance service

delivery quality and

experience of care

Ensure sustainability

through diversification

Protect and grow

the primary market

(Indonesia)

Develop focus markets

Enter and develop

niche markets

Increase brand

cohesiveness across

all touchpoints

Amplify brand equity

in core markets

1. Healthcare Travel Ecosystem

2. Malaysia Healthcare Brand

3. Markets



1. Our Achievement Thus Far

2. Analysis Leading to Blueprint

MORE THAN

120 HOSPITALS ACCREDITED BY

ISQua-CERTIFIED BODIES

KEY TAKEAWAYS FROM ANALYSIS

MORE THAN

1.22 MILLIONHEALTHCARE TRAVELLERS

CLOSE TO

RM1.7 BILLION OF HEALTHCARE TRAVEL REVENUE,

WITH A 16.3% CAGR (2015 - 2019)

2019

MALAYSIA HEALTHCARE ACCREDITATIONS

3-STEP ANALYSIS

SWOTPORTER’S

FIVE FORCES

GAP ANALYSIS

Strengths

Affordable, high-quality healthcare

Increasing demand for treatments

The need to develop the wellness sector and improve the overall healthcare travel experience

Opportunities

Demand for Muslimfriendly healthcare travel

Threats

General fear of travel

High dependenceon Indonesia

Vietnam – new entrant,competition



3. The Unprecedented Pandemic

4. Aspiration

ASPIRATION TO PROVIDE THE

“Best Malaysia Healthcare Travel Experience by 2025” FOCUSING ON:

High Quality Safety Affordability Hospitality Seamless Journey

IMPACT TO TRAVEL AND HEALTHCARE INDUSTRY

Several countries are looking into vaccination passport as a prerequisite for cross border travel

• Complete border closure, lockdowns and travel bans• Reduced travel volume due to the new norm

TRAVEL INDUSTRY

HEALTHCARE INVESTMENTS SHIFTED FROMHEALTHCARE TRAVEL INDUSTRY

Facilityexpansion

2019

Pandemicmanagement

2021

SHIFT IN FOCUS IN HEALTHCARE TRAVEL

VACCINATION PASSPORT

Provide highquality services Survival mode Recovery & Rebound Plans

Pre COVID Amid COVID Post COVID

Less than RM800 million in healthcare travel revenue

2020

Arrivals

26.1Mil2019

4.3Mil2020

86.1Bil 12.7BilRevenue 2019 2020

RM

5. Strategy to Rebuild the Industry

6. Governance Structure

FOCUS AND PHASES OF BLUEPRINT

Increase brand cohesiveness across all touchpoints

Amplify brand equity in core markets

Ensure sustainability through diversification


Enhance service delivery quality and experience of care

2025

RECOVERY PHASE REBUILD PHASE

2021 2023

“Best Malaysia

Healthcare Travel

Experience by 2025”

H I G H E M P H A S I S O N : H I G H E M P H A S I S O N :

Protect and grow the primary market

(Indonesia)

Develop focus

markets

Enter and develop niche markets

MARKETS

HEALTHCARE TRAVELECOSYSTEM

MALAYSIA HEALTHCARE BRAND

STEERING COMMITTEE

CHAIR: MINISTER OF HEALTH

CHAIR: MALAYSIA HEALTHCARE TRAVEL COUNCIL (CHIEF EXECUTIVE OFFICER)

CHAIR: MALAYSIA HEALTHCARE TRAVEL COUNCIL (CORPORATE STRATEGY)

PROJECT MANAGEMENT OFFICE

ADVISORY COMMITTEE

Executive Summary

7. Formation of 8 Working Groups (WG)

Healthcare Travel Ecosystem

1. Improve quality of care

2. Enhance service delivery quality and experience of care

3. Ensure sustainability through diversification

Markets

6. Protect and grow the primary market (Indonesia)

7. Develop focus markets

8. Enter and develop niche markets

Malaysia Healthcare Brand

4. Increase brand cohesiveness across all touchpoints

5. Amplify brand equity in core markets






The Landscape 2.0

The Landscape

2.1 Introduction and Background

With over 1.22 million healthcare travellers choosing Malaysia in 2019, our value proposition of Quality, Accessibility and Affordability continues being relevant to health seekers regionally and globally.

• World standard healthcare facilities with state-of-the-art technology, combined with internationally qualified and trained medical personnel.• Exemplary quality and safety standards monitored closely by the Ministry of Health Malaysia.• Best practices in top hospitals that are internationally accredited and award- winning.

QUALITY

AFFORDABILITY

• Healthcare treatment prices are governed by the Ministry of Health Malaysia through the 13th Fee Schedule to ensure affordability for Malaysians and healthcare travellers alike. • A robust private healthcare system combined with general affordability in Malaysia makes treatments more affordable than most other destinations, with up to 80% savings compared to countries like the United States. (Source: Patients Beyond Borders)

ACCESSIBILITY

• Real time access to top specialists with almost zero waiting time for appointments, consultations, and treatments.• Malaysia boasts over 200 licensed private hospitals, as well as many dental clinics, day facilities and wellness centres, catering to various levels and needs of patients.• With strong connectivity by air, sea and land, patients can access healthcare treatments quickly and conveniently from anywhere in the world.



2.2 Malaysia’s Healthcare Travel Industry

Malaysia’s healthcare travel industry enjoyed consistent double-digit growth between 2015 to 2019, with a Compounded Annual Growth Rate (CAGR) of 16.3% between 2015 to 2019.

59% 54% 55% 58% 63% 61% 66% 65% 67%+14%

+20% +7%+18%

+23%+13%

+13%

+16%

0200400600800

1,0001,2001,4001,6001,8002,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

Rev

enue

(RM

Mil)

Year

HTo FP

CAGR 16.3%

Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2019

Note:

• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.

• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers,

Foreign Students, Malaysia My Second Home (MM2H) participants etc.

• Healthcare Traveller (HT): Combination of HTo and FP.

• Pre-COVID performance shown with 2020 outcomes discussed in the following chapter.

Source: MHTC

Figure 3: Malaysia’s Healthcare Travel Revenue, 2011 - 2019



The Landscape

Malaysia Healthcare has been recognised by various international bodies through accreditations and awards, showcasing our high-quality, affordable and accessible healthcare.

More than 120 Malaysian hospitals are internationally accredited by certification bodies under International Society for Quality in Health Care (ISQua). Among which, includes Malaysian Society for Quality in Health (MSQH) accreditations and 17 hospitals accredited with Joint Commission International (JCI).

Recognised by the Global Retirement Index as the Top Country in the World for Healthcare for 2015 - 2021.

Awarded as the Destination of the Year (Malaysia) for 2017 - 2019, 2020 and Cluster of the Year (MHTC) for 2017 - 2020 at the Medical Travel Awards by the International Medical Travel Journal (UK).

Source: IMTJ Research, LaingBuisson’s Medical Travel and Tourism Global Market Report

Figure 4: Malaysia Healthcare’s Awards and Accreditations



2.3 Aspiration and Focus

“Best Malaysia Healthcare Travel

Experience by 2025”

“Best” – Medical excellence, service excellence and

seamless journey

“Malaysia Healthcare” – Destination branding for Malaysia in the healthcare travel industry

“Experience” – high quality, safety, affordability, hospitality

and seamless journey

“by 2025” – five-year strategy timeline

In elevating Malaysia’s healthcare travel sector, our five-year aspiration is for the industry to holistically provide the best healthcare travel experience throughout the journey for anyone seeking treatment in Malaysia.

Figure 5: Malaysia’s Aspiration



The Landscape


High Quality Safety Affordability Hospitality Seamless Journey

A cohesive effort from stakeholders at every touchpoint across the patient journey and supporting ecosystem will enable the best travel experience. The Best Malaysia Healthcare Travel Experience can be achieved by 2025 by anchoring on high-quality, safety, affordability, hospitality and seamless journey.

Figure 6: Primary Focus for Experience



2.4 Healthcare Travel Ecosystem: Key Touchpoints

All public and private sector stakeholders within the Healthcare Travel ecosystem play key roles in providing a cohesive end-to-end experience.

1

12

2

11

3

10

STEP-DOWN, REHAB &

WELLNESS

ACCESS TOINFORMATION

TRANSLATION AND MEDICAL

RELATIONS

TELECONSULTATION

TOURISM

TRANSIT



The Landscape

Source: MHTC

Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Touchpoints

4

9

5

8

6

7

BOOKING INSURANCE

ACCOMMODATION

IMMIGRATION

MEDICAL SERVICES ENTRY POINT



Stakeholders involved in these touchpoints include, but are not limited to:

• Overseas foreign regulators• Overseas partners• Hospitals• Outbound agents

Government / Public

LEGEND

Private Sector

• Overseas government regulators• Overseas partners • Local and overseas content portal• Outbound agents

• Immigration Department of Malaysia• Malaysia Airports• Airlines• Ferry operators• Travel agents• Medevac

• Tourism Malaysia• Hotels• Wellness providers (Traditional and Complementary Medicine, Spas, etc.)

• Ministry of Health• Private hospitals• Private healthcare Institutions

• Wellness providers (Traditional and Complementary Medicine, Spas, etc.)

2 - ACCESS TO INFORMATION

8 - ACCOMMODATION

11 - STEP-DOWN, REHAB & WELLNESS

• Tourism Malaysia• Hotels• Tourists attractions• Travel agents

12 - TOURISM10 - TRANSLATION AND MEDICAL RELATIONS

5 - IMMIGRATION

9 - MEDICAL SERVICES

Source: MHTC

Figure 7: Malaysia’s Healthcare Travel Ecosystem – Key Stakeholders



The Landscape

2.5 Summary

Steady growth year-on-year till 2019Malaysia’s healthcare travel industry has charted double-digit growth from 2015 to 2019. The industry and its players have also earned international accolades and recognition from reputable bodies, and have showcased their excellence through accreditations under the ISQua umbrella.

Key highlights of this section include:

Experience as key focus For the industry to move next level, collaborative and cohesive efforts with stakeholders across all touchpoints in the healthcare travel ecosystem is key to drive the industry forward.

Seamless experience across all stakeholdersUltimately, the goal is for all players throughout the value chain and industry to showcase the Best Malaysia Healthcare Travel Experience by 2025.



An Unprecedented Challenge in 20203.0



An Unprecedented Challenge

3.1 COVID-19’s Impact to the Travel Industry

The COVID-19 phenomenon started in late 2019, and by 2020 was declared a global pandemic. With the travel industry heavily impacted by border closures and movement restrictions, healthcare travel was similarly affected, seeing a drastic decline in healthcare traveller numbers.

Complete border closure, lockdowns and travel bans

Movement control orders and challenges in marketing efforts

IMMEDIATE

Reduced travel volume due to the new norm

MEDIUM TERM

Source: MHTC

Figure 8: Impact of COVID-19 to the Travel Industry

Source: Tourism Malaysia

Figure 9: Tourist Arrivals and Receipts to Malaysia, 2015 - 2020

0

20

40

60

80

100

05

10152025303540

2015 2016 2017 2018 2019 2020

Rec

eipt

(RM

bil)

Arriv

al (m

il)

Arrivals (mil) Receipt (RM bil)

Tourist Arrivals and Receipts to Malaysia, 2015 - 2020

Leading To



3.2 COVID-19’s Impact to the Healthcare System

Beyond the immediate impact of travel restrictions, the healthcare travel industry also saw sector specific challenges from COVID-19 which will have a compounded short and medium

term impact on positioning Malaysia as a destination for healthcare travel.

Declining perception / confidence levels in Malaysia’s healthcare system

as COVID-19 numbers grow and the healthcare system is overwhelmed.

Delays in border reopening means healthcare travellers will replace Malaysia with other healthcare destinations or get treatment in home

country.

Limited space available for healthcare travellers arriving under the highly

regulated healthcare travel SOP.

Shift in overall perception of Malaysia amongst regional and global healthcare travellers.

Source: MHTC

Figure 10: Impact of COVID-19 to Malaysia’s Healthcare System

Short Term Medium Term



3.3 COVID-19’s Impact to the Healthcare Travel Industry

Due to the border closures and compounded impact of COVID-19 as discussed, Malaysia’s healthcare travel revenues have seen a sharp decline, with the biggest impact felt in the second half of 2020 and beyond. However, the full impact has been mitigated slightly by continued healthcare spending by foreign patients including expatriates and Malaysia, My Second Home (MM2H) holders residing in Malaysia.

59% 54% 55% 58% 63% 61% 66% 65% 67%

32%

+14%+20% +7%

+18%+23%

+13%+13%

+16%

-54%

0200400600800

1,0001,2001,4001,6001,8002,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Rev

enue

(RM

Mil)

HTo FPYear

Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2020

Source: MHTC

Figure 11: Malaysia’s Healthcare Travel Revenue, 2011 - 2020

Note:• Health Tourist (HTo): Tourists seeking healthcare treatment in Malaysia.• Foreign Patient (FP): Resident Non-Malaysian including Expatriates, Foreign Workers, Foreign Students, MM2H participants etc.• Healthcare Traveller (HT): Combination of HTo and FP.

An Unprecedented Challenge25Healthcare Travel

Industry Blueprint 2021 - 2025


Source: Galen Centre, MHTC analysis

Figure 12: Average Distribution of Healthcare Investment, 2019 and 2021

3.4 Shift in Healthcare Investment and Impact

Beyond the short and medium term impacts to healthcare travel revenues, there is also growing concern of shifting healthcare spending – with more spending directed towards operations and combating COVID-19, spending on long term investment and equipment has been deprioritised and reduced. This will impact equipment availability and technological advantages of Malaysia’s private hospitals in the medium to long term, which will also impact our competitiveness in the international arena.

Change in the Average Distribution of Healthcare Investment, 2019 and 2021

20%

30%

18%

26%

7%

15% 15% 17%

46%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Building operations Medical Equipment Human Resource Medical Supplies Others

2019 2021

The shift in the healthcare investments priority focus to prioritise COVID-19 pandemic management is expected to slow down expansion and improvement to the healthcare system.



• Pre-requisites to enter the Malaysian borders • The new norm (virtual presence/ personal hygiene and cleanliness/ social distancing/ telehealth)• RECOVERY AND REBOUND PLANS across various industries• New agile strategy to rebuild businesses

• Availability of Medical Travel SOP for healthcare travels • Business and operational survival plans• Border closure forced SURVIVAL MODE for stakeholders who are directly affected• Formation of travel bubbles• Agile strategy to respond to a fluid market

3.5 An Industry Forced to Adapt

Malaysia’s healthcare providers have always anchored on quality and value as their main focus in attracting patients. This includes providing a positive experience and adding value in various areas.

The pandemic, however, has forced hospitals to reprioritise, with border closures halting the arrivals of healthcare travellers. While the healthcare travel SOP has provided means to continue providing services to critical patients, their focus has had to shift to support the public healthcare system for Malaysian patients, as well as maximise returns on the foreign patient base. With the situation remaining fluid, businesses have had to be agile in remaining afloat while maintaining availability of services, especially those who saw a high proportion of healthcare travellers during pre-COVID times.

As we move forward, certain aspects will continue to persist and will form the new normal of healthcare service provision. Healthcare providers will continue to evolve with technology as the main factor in re-establishing trust and continuity of care for their patients.

• Providing high quality healthcare services with great product and experience at competitive pricing• Adding value through excellent ancillary services • Targeting of niche offerings and new markets

Pre COVID-19

Amid COVID-19

The New Norm

Source: Galen Centre, MHTC analysis

Figure 13: Shift in Focus in Healthcare Travel

An Unprecedented Challenge27Healthcare Travel



3.6 COVID-19’s Impact to the Economy

While the travel and healthcare travel industries has been directly impacted by COVID-19, this setback has also affected multiple industries across countries globally.

Malaysia, in particular, has seen significant economic contraction, impacting businesses and employability across the country. This is certain to have a compounding impact on how Malaysia can continue to position in the future. From end-to-end service provision, availability of skilled talent, to even investment and expansion capabilities across various industries, including healthcare travel.

Reduced activity in tourism industries

Increasing unemployment rate

Cessation of business operations

Source: MHTC

Figure 14: Impact of COVID-19 to the Economy




Source: Department of Statistics, Malaysia

Figure 15: Malaysia’s Real GDP Growth

The overall reduction of economic activities and the increased unemployment rate have contributed to the drop in Real GDP growth in Malaysia.

As shown in Figure 15, in 2020, Malaysia experienced a sharp negative growth rate at -17.2% as a result of ceased business operations and closing of borders that slowed down the activity in the travel industry during the Movement Control Order (MCO).

4.7 5.0 4.5 3.70.7

-17.2

-2.7 -3.4

-0.5

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 4Q-2020 1Q-2021

Real GDP Growth (%)

3Q-2020

Real GDP Growth, (Quarterly 2019 - 2021), Annual change %

Annual Growth2020 : -5.6%2019 : 4.4%



Source: Economist Intelligence Unit, Association of Asia Pacific Airlines

3.7 Vaccination as the Game Changer

With vaccinations becoming available at the end of 2020, the race for vaccine coverage has been critical in countries seeking to reopen borders and economies. From a healthcare travel perspective, the coverage of vaccines programmes are significant in three aspects:

1. Malaysia needs to attain herd immunity through the vaccine rollout and be able to allow relaxation of travel bans and movements, as well as ensuring healthcare systems can cope and accommodate healthcare travellers safety.

2021 2022

Late 2021

• Hong Kong• Singapore• UK

• USA• Malaysia



Figure 16: Selected Countries’ COVID-19 Vaccination Timeline


Late 2022 2023

Mid 2022 Early 2023 Onward

• Australia• Japan• New

Zealand

• Russia• South Korea• Taiwan• Vietnam

• Bangladesh• Cambodia• Indonesia• Laos

• Myanmar• Pakistan• Philippines

• China• India

• Thailand

2. The recovery of Malaysia’s healthcare travel industry is highly dependant on how quickly the contributor countries are able to attain good vaccine coverage, thus allowing unrestricted travel in and out of the country. With barriers and strict quarantines in place, healthcare travellers remain challenged in seeking treatment abroad.

3. The vaccine race in itself has changed the landscape and perception of quality amongst both providers and consumers alike. For countries which have previously considered Malaysia having a superior healthcare system, comparative delay in vaccine coverage may change their perceptions, leading them to seek treatment in countries that are perceived to be better because of quicker vaccination coverage.



The top 10 countries that contribute to Malaysia’s healthcare travel will mostly be vaccinated by 2023 according to projections by the Economist Intelligence Unit (EIU).

Malaysia sits in the middle of the timeline; developed nations are leading the way whilst developing nations are following behind Malaysia. Countries that have managed to achieve herd immunity will be the “leaders” in the healthcare travel industry. They will set the prerequisites and standard operating procedure for travel and entry. Healthcare travellers from countries that are slower in vaccination will seek to go to countries that have managed their vaccination programme better.




3.8 Summary

In dealing with the pandemic, the key goal of the government is the safety, well-being and security of its population. However, the impact of this unprecedented event is significant, and has presented these challenges to the healthcare travel industry.

Direct Impact of COVID-19Movement restrictions and the general fear to travel due to COVID-19 has led to economic downfall and has adversely affected industries globally.

Impact on Healthcare InvestmentInvestment behaviour shifted during the pandemic, as priority is put on managing the COVID-19 pandemic.

The Need to Adapt and Change AccordinglyFor economic activities to resume in the new norm, there is a need for all stakeholders to be agile and adopt the necessary changes.



An Analysis4.0



An Analysis

4.1 Five-Year Strategy Plan

In formulating a cohesive and relevant strategy framework for the healthcare travel industry over the next five years, various factors have been taken into account, to ensure a sustained growth in the new norm landscape.

Factors taken into consideration include the challenges arising from the COVID-19 pandemic, including how this has caused structural challenges in consumer behaviour and decision making, as well as market operations and dynamics. Application of Porter’s Five Forces and SWOT analyses have crystalised the main impact factors and combining this with a thorough gap analysis gives an accurate presentation of the healthcare travel ecosystem.

Figure 17: Analysis Methodology

ImpactFactors

SWOT Analysis

Gap Assessment of the Ecosystem

Porter’s Five Forces Analysis

TravelBan

Shift of Focus

COVID’s Impact on Economy

Vaccination Passport

Vaccination Timeline

COVID Challenges



4.2 Analysis Methodology

In formulating the strategy, a three-step approach was adopted to ensure that the necessary assessments were made prior to developing the Blueprint.

Step 1SWOT Analysis

Step 2Porter’s Five Forces Analysis

Step 3Gap Analysis



An Analysis

Figure 18: Three-Step Analysis Methodology

The SWOT analysis highlighted the industry’s critical strengths, weaknesses, opportunities and threats, while the Porter’s Five Forces exercise showed the competitive analysis of the industry. The gap analysis took the analysis further to identify areas of improvements based on the key learnings identified.

To identify Malaysia Healthcare’s and

competitors’ strengths and weaknesses, as well as to highlight opportunities and

threats.

To assess the market forces that are shaping the future healthcare travel industry.

To identify and close gaps in the ecosystem to achieve the

aspiration.

Assessment of current performance for the purpose of identifying the differences between the current state of business and desired state.

Competitive analysis of the industry - to determine business attractiveness.

Identification of Strengths, Weaknesses, Opportunities and Threats of the Industry.

STEP 1 STEP 2 STEP 3



Source: MHTC analysis

Figure 19: SWOT Analysis of Malaysia’s Healthcare Travel Industry

• Strong medical regulatory and governance framework• High readiness for emergencies• SOP for healthcare travel amid the new norm• Internationally recognised medical professionals• Strong government support at both central and state levels (e.g. Penang, Kuala Lumpur, Selangor, Johor, Sarawak, and Sabah)

• High quality and affordable medical care• Good air, land and sea connectivity in Peninsular Malaysia• Borders are expected to open as 90% of the population is expected to be vaccinated by end of 2021, almost similar to healthcare travel competitors such as Singapore, Thailand and South Korea

• Countries that are expected to complete vaccination and open borders after Malaysia• Countries around the region failing to strengthen own healthcare (e.g. Indonesia, Myanmar and Cambodia)• Demand for fertility treatment from APAC region

• Increased willingness to spend on wellness, aged-care and dental care amongst healthcare travellers• Growing global demand for Muslim-friendly destination• Adoption of digitalisation and tech-enablers

Strengths

Opportunities

S

O

4.3 SWOT Analysis

As the analysis was conducted, new strengths, opportunities and threats that emerged for Malaysia Healthcare in 2020 have been identified. These are expected to persist for the next five years and will form the strategic direction of the healthcare travel industry.



An Analysis

Even though the growing demand for affordable, high quality, and Muslim-friendly healthcare travel, general fear of travel in the new norm can be a constraint. While Malaysia may have adequate talents and affordable medical care, competition from other players remains a threat. The Porter’s Five Forces analysis will be looked at to further explore the competitive environment in the industry.

Weaknesses

Threats

W

T

• Lack of access to information for healthcare travellers• Spikes in cases after multiple restrictions and MCOs, affecting confidence• Underdeveloped ancillary service – translators, personalised packages• Lack of investment in digital marketing

• Lack of comprehensive data collection • Wellness is not part of the healthcare travel scope• High dependence on Indonesian market• Lack of air connectivity in East Malaysia and limited direct international connectivity in Penang and Johor

• Countries that are quickly vaccinating their population and quickly opening their borders• Shifting trust towards countries that are managing COVID-19 cases and mass vaccination better

• General travel fear amongst healthcare travellers in the new norm• Fierce regional competitions from Singapore, Thailand and South Korea



4.4 Porter’s Five Forces Analysis

Based on the initial findings, the application of the Porter’s Five Forces to the industry in both 2020 and 2025 can be observed in Figure 21.

Market dynamics related to the healthcare travel industry will change drastically in the next five years given the influence of the global pandemic. The industry is expected to become more turbulent and volatile, and the increasing competition from existing players and new entrants will pose a great threat for Malaysia.

Threat of New Entrants. Vietnam is one of the new entrants in the healthcare travel industry. It has been aggressively working its strategies and plans to develop its offerings during this pandemic.


Figure 20: Porter’s Five Analysis of Malaysia’s Healthcare Travel Industry

Note: This chart is based on preliminary findings

Porter’s Five Forces Amidst the Pandemic and During the New Norm

0

2

4

6

8

10

Threat of New Entrants

Threat of Substitute

Bargaining Power ofBuyers

Bargaining Power ofSuppliers

Rivalry Among ExistingCompetitors

2020 2025

Rivalry Among Existing Competitors. Thailand, Singapore and South Korea have formed exclusive travel bubbles, and have shifted focus to countries with fewer COVID-19 cases, promoting new treatments and forming competitor partnerships and collaborations.

Threat of Substitutes. Target markets are investing in improving their own healthcare at home. For example: the Islamic Development Bank (ISDB) has approved US$262 million in financing for a health project in Indonesia to improve the availability, accessibility, quality and delivery of health services.

Bargaining Power of Suppliers. As more competitors enter the healthcare travel business, businesses will offer competitive pricing for high quality services, with more added value.

Bargaining Power of Buyers. With more choices, healthcare travellers will be more demanding in the future for higher quality healthcare products, better service, and lower prices.



These analyses suggest that the Malaysia healthcare travel industry is at risk of losing its market share to competitors by 2025. A clear strategy is essential for the industry to be able to survive, sustain and grow ahead of the future competition.

One of the key steps identified is to strengthen the healthcare travel ecosystem. Hence, a gap assessment was carried out across the various touchpoints of a healthcare traveller’s journey.

Figure 21: Key Takeaways from SWOT and Porter’s Five Forces Analyses

An Analysis

4.5 Key Takeaways from SWOT and Porter’s Five Forces Analyses

The SWOT Analysis and Porter’s Five Forces Analysis conducted have provided good insights into the state of the Malaysian healthcare travel industry.

SWOT Analysis Porter’s Five Forces

• Malaysia’s strong medical regulatory, high readiness for emergencies, internationally recognised medical professionals and high-quality affordable medical services are Malaysia’s core strength areas. • There are ample opportunities to attract healthcare travellers from countries with weaker healthcare systems. • Inadequate access to comprehensive information about Malaysia Healthcare to healthcare travellers is the major restrain. • Healthcare travellers might shift their trust towards those countries that are managing COVID-19 cases and vaccination programme better.• Rapid adoption of digitalisation and tech-enablers.

By 2025, all five market forces will be against Malaysia - competitiveness is increasing. • High threat of new entrants is evident (from Vietnam). • Rivalry among existing competitors is also getting higher (Thailand, Singapore, and South Korea). • There is an increased threat of substitute due to improvements in healthcare systems in the home countries of Malaysia’s target markets. • There seems to be reduced bargaining power of suppliers (healthcare travel providers) as healthcare travellers have more choice. • Inversely, bargaining power of buyers increases.



4.6 Gap Analysis Across the Healthcare Traveller Journey

The healthcare traveller ecosystem gap analysis was conducted through the perspective of the healthcare traveller journey. Figure 23 illustrates healthcare travellers’ needs at each key touchpoint:

1

12

2

11

3

10

STEP-DOWN, REHAB &

WELLNESS



RELATIONS

TELECONSULTATION

TOURISM

TRANSIT



An Analysis

To ensure the best healthcare travel experience, key improvements have been suggested to each of these critical touchpoints. The Blueprint lays out strategies to optimise the patient journey for all stakeholders as well as key deliverables to achieve by 2025.


Figure 22: Gap Assessment Across the Patient Journey

4

9

5

8

6

7

BOOKING INSURANCE

ACCOMMODATION

IMMIGRATION

MEDICAL SERVICES ENTRY POINT



• Medical reports upon discharge• Support system in case of emergency

• Proximity to hospitals• Patient-friendly accommodations

• Hassle-free payment services• Seamless cross-border transactions

• Assistance on full-service, end-to-end

• Information before making the trip

• Info on treatment, logistics, hospitals etc.• One-stop centre• Recommendations (Word-of-mouth)• Affordability• Safety

• Fast-track immigration• Visa extension services

• Proximity to hospitals

1 - TRANSIT 2 - ACCESS TO INFORMATION

3 - TELECONSULTATION

5 - IMMIGRATION

7 - ENTRY POINT

9 - MEDICAL SERVICES

• Patient-friendly tourism spots• Guided tourism

12 - TOURISM

4 - BOOKING

6 - INSURANCE

8 - ACCOMMODATION

• Translation services provided• Multi-lingual signage

10 - TRANSLATION AND MEDICAL RELATIONS

• Special setup for healthcare travellers• Medical assistance



An Analysis

4.7 Summary

With various analyses conducted to ascertain the immediate medium- and long-term factors influencing the Malaysian healthcare travel industry, key areas have been identified as follows.

Shifting trends creating opportunities and threats alikeChanges in consumer behaviour created new market opportunities, but also raises new concerns and barriers.

External factors including COVID-19 management has affected positioningCompetitors and market movements, alongside changes in industry players dynamics require proactive response to secure future competitiveness.

Best healthcare travel experience as an anchor for changeConcerted optimisation across the entire healthcare travel journey touchpoints to ensure Malaysia remains relevant and competitive in the international market.



The Momentum Ahead5.0



The Momentum Ahead

5.1 Strategy Map Overview

• Improve quality of care • Enhance service delivery quality • Ensure sustainability through diversification

• Increase brand cohesiveness across all touchpoints• Amplify brand equity in core markets

• Protect and grow the primary market (Indonesia) • Develop focus markets• Enter and develop niche markets


We aspire to provide the Best healthcare travel experience to healthcare travellers seeking treatment in Malaysia - with ‘experience’

being the primary industry focus within the next five years.

• Leveraging on the demands and competing with other players• Growing threats in the healthcare travel industry• The need to improve healthcare travel experience

Aspiration

Analysis

StrategicObjectives

Healthcare Travel Ecosystem Seamless experience through medical and service excellence

MarketsGrowth in core markets and new market penetrationPillars

Malaysia Healthcare BrandStronger country brand amongst APAC competitors (Thailand, South Korea & Singapore)

Anchoring on the aspiration to provide the Best Malaysia Healthcare Travel Experience by 2025 and taking into account critical factors determined through comprehensive analysis, three key areas have been identified as strategic pillars to anchor the transformation of the industry.

As part of the Strategic Pillars, supporting strategic initiatives have been developed to cascade down the required action items for all industry stakeholders.


Figure 23: Strategy Map Overview



5.2 Strategy Framework Structure

While the Strategic Framework Structure will anchor on the intended aspiration, taking a top-down approach, the execution process will focus on stakeholders’ initiative and focus, leading to a bottom-up process towards achieving our overarching aspiration.

Tactical Initiatives

Strategic Initiatives

Strategic Objectives

Strategic Pillars

Aspiration

Covered within theStrategy Framework


Figure 24: Strategy Framework Structure



The Momentum Ahead

5.3 Strategy Framework

LEGEND

Aspiration

Strategic Pillar


To support the Blueprint’s aspiration, the strategy framework is key in anchoring all efforts at all levels to reach a common goal. As such, three Strategic Pillars were identified as key focus areas in achieving the Best Malaysia Healthcare Travel Experience by 2025. These strategic pillars are:-

• The Healthcare Travel Ecosystem• The Malaysia Healthcare Brand• The Markets for Malaysia Healthcare

Malaysia Healthcare BrandHe

alth

care

Trav

el Eco

system

Brand Equity

Brand Cohesiveness

Sustainability

through

Diversification

Serv

ice

Deliv

ery

Qual

ityof

Car

eQu

ality

Focus Markets

Primary Markets Niche M

arke

ts

Markets

Best Malaysia Healthcare Travel

Experience by 2025


Figure 25: Strategy Framework



5.4 Impact on Industry Growth

The healthcare travel industry is a dynamic one, compounded and disrupted by the COVID-19 crisis. While our long term goal of becoming the trusted leading healthcare travel destination globally by 2035 remains, the current situation requires intervention to recover and rebuild in the next five years.

Malaysia Healthcare’s long term plans to 2035 will be executed across four phases (Phase A, B, C and D). For Phase A (2021 - 2025), the focus is to take the industry through the COVID-19 recovery process, with an eye to rebuild the industry to pre-COVID levels by 2025.


Figure 26: Timeline of Phase A

Phase A Phase B Phase C Phase D

2021 2025 2030 2035 2040

Trusted Leading Healthcare Travel Destination in APAC


Experience by 2025

Trusted Leading Healthcare Travel Destination Globally

2021 2022 2023 2024 2025





The Momentum Ahead

5.5 A Five-year Timeline Ahead

The focus on developing the key initiatives within the Strategic Pillars will shift dynamically as the Blueprint moves across the Recovery phase and the Rebuild phase.

While the strategic pillars remain as key focus areas throughout the two phases, the weightage of focus will change as we progress through the different phases.

During the Recovery phase, more emphasis will be placed on the Healthcare Travel Ecosystem as readiness measures for the industry to recover and move into the Rebuild phase. However, initiatives for the Malaysia Healthcare Brand and Markets will also continue in this phase to keep markets engaged. Once the timeline reaches the Rebuild phase, the focus will shift to the Malaysia Healthcare Brand and Markets to boost brand presence in the region and scale up Malaysia Healthcare’s services.


Figure 27: Focus and Phases of the Blueprint

2021 2023 2025


To prepare the industry

To keep markets engagedTo amplify brand presence

To strengthen our products



Markets

Note: Colours above denote distribution of time and effort across the strategic pillars



5.6 Strategy Framework Targets

Markets

Healthcare Traveller Ecosystem

Optimistic Projected Pessimistic

Trust Index (TBD)*

Trust Index (TBD)*

Trust Index (TBD)*


BEI 7.0 BEI 6.0 BEI 5.0

RM2.0bil HT revenue

RM1.7bil HT revenue

RM1.5bil HT revenue

In ensuring the Strategic Framework achieves its intended goals, measurable targets have been set as proxies, based on the identified Strategic Pillars. While the overarching measure of success remains focused on Healthcare Traveller volume and revenue, other measures have also been introduced to capture output and outcome from our strategies and effort. This includes measuring improvements in the Malaysia Healthcare Brand through a Brand Equity Index (BEI) of identified focus markets, as well as a Trust Index which will measure the improvements of the customer experience at key touchpoints.

With strong implementation of the Strategy Framework and full collaboration from all stakeholders, Malaysia Healthcare aims to reach RM1.7 billion (projected) in healthcare travel revenues by 2025, with a significant spill over effect into the rest of the Malaysian economy.

Note:These are preliminary proposed figures based on the Strategic Pillars.The Trust Index will be developed to measure performance of HT experience across the various touchpoints in the Healthcare Travel Ecosystem.


Figure 28: Strategy Framework Target



Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2025p

Figure 29: Malaysia’s Healthcare Travel Revenue, 2011 - 2025p

59% 54% 55% 58% 63% 61%66% 65%

67%

33%3%

36% 43%

56%60%

-0.53

+14%0.60

+20%0.73

+7%0.78

+18%0.91

+23%1.12

+13%1.27

+13%1.44

+16%1.67

-53%0.78

-39%0.48

+67%0.8

+23%0.98

+40%1.37

+24%1.7

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Rev

enue

(RM

Bil)

HTo FP HT

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

p20

21p

2022

p20

23p

2024

p20

25p


The Momentum Ahead53Healthcare Travel




Sustainability

throughDiversification

Service Delivery

Quality

of Care

Quality


Experience by 2025

5.7 Strategic Pillar No 1 – Healthcare Travel Ecosystem (HTE)


Table 1: Healthcare Travel Ecosystem Strategic Objectives


Improve quality of careEnhance service delivery quality

Sustainability through diversification

MeasuresTrust index on the quality of care

Trust index on the quality of service

New products or sectors


(Non exhaustive)

• Strengthen Centre of Excellence (CoE) across hospitals• Strengthen quality of care through: • Flagship medical tourism hospitals • Clinical data• Build niche talent • Foster conducive governance and regulations

• Strengthen healthcare travel touchpoints

• Build strong service culture (training and education programme)

• Aged-Care for healthcare travel

• Other new areas such as wellness, rehab (scope align with MOH)

Measures

• Compliance • Trust index• Indicators• Number of specialists• Policy

• Improvement plans (digital and non-digital)

• Training programme

• New products or sectors

StakeholdersMember hospitals, ambulatory care centres, dental centres, government

All healthcare travel service providers

Member hospitals, new industry players, government

To position Malaysia Healthcare as the preferred destination for healthcare travel, it is imperative to provide not only the best medical services but also quality ancillary services to healthcare travellers. The Healthcare Travel Ecosystem focuses on providing a seamless experience through medical and service excellence. Several strategic initiatives have been placed under this pillar to improve quality of care, enhance service delivery quality, and ensure sustainability through diversification.



The Momentum Ahead

Talent development programmes for healthcare

travel touchpoints e.g. tourism, transportation

etc.

Public-Private Partnership (PPP) collaboration

Aged care development for healthcare travel

Digitalisation of customer services

Step down, rehab and wellness development for

healthcare travel

Tech-enabled translation and tourism service

Development of service culture benchmarking

Clinical data - outcome healthcare measurements

Improved connectivity to related destinations

Flagship Medical Tourism Hospital Programme

Cross-selling tourism and healthcare

Incentivisation of investment across the

value chain

Healthcare Travel Ecosystem Initiatives 2021 - 2025


Table 2: Healthcare Travel Ecosystem Initiatives

As part of strengthening the Healthcare Travel Ecosystem, various initiatives have been identified to collaborate with stakeholders in delivery excellence.

From talent development and digitalisation, to training and data, the focus is to create resilience within the industry service delivery. This includes not only addressing immediate gaps and low hanging fruit, but also laying foundations for longer term initiatives such as product diversification into rehabilitation services as well as new niche areas like geriatric and aged care.



5.8 Strategic Pillar No 2 – Malaysia Healthcare Brand (MHB)


Table 3: Malaysia Healthcare Brand Strategic Objectives




MeasuresTrust index on the brand experience/trust

Brand equity index


(Non exhaustive)

• Re-position brand unique value proposition (UVP)

• Unify country branding

• Launch large scale awareness campaigns

• Reinforce targeted branding• Practice proactive brand

advocacy

Measures• TBD on the

measure for Brand cohesiveness

• Awareness rate • Conversion rate between

awareness, action and advocacy

• Advocacy rate

StakeholdersAll stakeholders across the healthcare travel ecosystem

All stakeholders across the healthcare travel ecosystem


Brand Equity Brand Cohesiveness


Experience by 2025

There is also a need to amplify the Malaysia Healthcare brand, especially after the deteriorating impact of the pandemic towards the perception of the country’s healthcare system. The second pillar will focus on constructing a stronger country brand amongst current and emerging players in the APAC healthcare travel industry.



The Momentum Ahead

Holistic end-to-end experience sharing

programmes content including media

engagement

Strategic Digital branding and marketing

G2G branding initiatives for niche markets

e.g. Middle Eastern countries

Collaborative branding activities with hospitals

Collaborative branding activities with tourism

players

Malaysia Healthcare brand strategy alignment with

Tourism Malaysia

Country level holistic awareness campaign with

tourism, airlines etc.

Targeted awareness programmes for niche

markets

Targeted branding for niche products on the markets

e.g. Fertility Hub, COE and Retirement Destination

Malaysia Healthcare Brand Initiatives 2021 - 2025


Table 4: Malaysia Healthcare Brand Initiatives

Amplifying the Malaysia Healthcare Brand across every touchpoint to ensure brand consistency. A cohesive and coordinated approach collaborating alongside both government and private sector stakeholders will present a holistic and high impact brand for Malaysia Healthcare and Malaysia as a destination overall.

Brand investment is also critical in supporting market development, especially in new markets, to increase the brand awareness on Malaysia as a healthcare destination.



5.9 Strategic Pillar No 3 – Markets


Protect and grow the primary market (Indonesia)



Measures

Healthcare traveller revenue and volume from primary market

Primary markets identified based on industry’s preference

Niche markets identified and explored


(Non exhaustive)

• Strengthen primary market• Expand into new cities• Develop new segments• Push new products

• Grow Malaysia Healthcare’s presence in focus markets

• Identify and develop markets based on niche offerings

Measures• Individual

market level strategies

• Individual market level strategies

• Individual market level strategies

StakeholdersMHTC, all healthcare travel service providers, stakeholders involved in the different markets, government agencies with presence in such markets

Focus MarketsPrimary MarketsNi

che M

arkets

Markets


Experience by 2025

As there is increasing competition between existing players and new entrants in the industry, it is crucial for Malaysia to proactively expand its market reach. The third strategic pillar consists of strategic initiatives that will put Malaysia in a better position in terms of market share, competitive edge, lead in markets, capturing new markets and new revenue.


Table 5: Markets’ Strategic Objectives



The Momentum Ahead

Joint collaboration with hospitals for new

segments/markets

Collaboration with agencies (Tourism

Malaysia, MATRADE, etc.) to open new segments/markets

Market support and activation with hospitals

Partnerships with on ground strategic partners

e.g. banks, hospitals

Malaysia Healthcare Representative Offices

(MHRO) / Malaysia International Referral Centre (MIRC) based

engagements

Collaboration with Tourism Malaysia for holistic market entry

Market Initiatives 2021 - 2025


Table 6: Market Initiatives

Expanding on Malaysia’s healthcare travel market base will require concerted effort from all stakeholders – from hospitals’ investments into supporting new market requirements, as well as a combined effort between healthcare and travel players to sustainably develop new inbound markets.



5.10 Success Monitoring Metrics

The success of the Strategic Pillars will be measured by the Trust Index and Brand Equity Index.

The end of the journey

Hospital treatment

Discharge from hospital, convalescence, holiday

Return to home country and after care

The start of the journey

Research and selection of service and destination

for treatment

Contact with hospital for treatment

Hospital admission

Arrival at destination country

Departure from home

country

Figure 30: Healthcare Traveller Journey

Touch Points for the Journey of a Healthcare Traveller

Trust Index is a composite index that measures and monitors healthcare traveller’s trust at each touchpoint along the healthcare traveller journey, through a Trust Programme.



By having these success monitoring metrics, MHTC will be able to evaluate if the execution of the Blueprint was properly done and the relevant stakeholders have done their part according to the Strategic Initiatives in each Strategic Pillar. Each stakeholder in the healthcare travel ecosystem will be able to identify areas to be improved or that require additional effort to promote the Malaysia Healthcare brand and enhance the experience throughout the healthcare travel journey.

The programme measures if a healthcare traveller’s experience at each touchpoint is maintained at a satisfactory level to ensure the overall best experience for all healthcare travellers. MHTC will share the findings with healthcare travel ecosystem stakeholders. This helps each stakeholder in the ecosystem to see the return on investment gained to improve experience.

Brand Equity Index represents the perceived value of the Malaysia Healthcare brand compared to other competitor brands in the healthcare travel industry (Thailand, Singapore and South Korea), through a Brand Health Study.

The strength of the Malaysia Healthcare brand is measured through healthcare travellers’ retention or loyalty. As the healthcare travel products and services offered by Malaysia Healthcare are almost similar in terms of features to other brands, it is paramount to make the Malaysia Healthcare brand stand out and remain relevant to healthcare travellers. Thus, there is a need to ensure that market demands are met, and pricing of services are made affordable to retain customers.

For both metrics, a timeline will be set to assess the performance of Malaysia Healthcare during the Recovery phase and Rebuild phase.

2025


2021 20232022 2024

Figure 31: Timeline for Assessment


BaselineMidway milestone

monitoringSuccess measure

The Momentum Ahead61Healthcare Travel



5.11 Summary

Due to intense competition and the impact of the pandemic on the healthcare travel industry, it is important for all stakeholders to work together to revive Malaysia Healthcare by focusing on three main areas for the next five years.

Strengthen the healthcare traveller ecosystem • Improve the quality of care and service delivery quality, while ensuring sustainability through diversification.

Amplify Malaysia Healthcare brand • Increase brand cohesiveness across all touchpoints along the healthcare traveller journey and amplify brand equity in core markets.

Sustain and expand the healthcare travel market • Protect and grow the primary and developing focus markets, while entering and growing niche markets.



The Momentum Ahead

5.12 Prelude to Recovery Plan in 2022

As a result of the Blueprint structure thus far, this section focuses on the prelude to COVID-19 recovery plan in 2022, although the pandemic is expected to persist as the new cases continue to be reported.

Figure 32: COVID-19 Impact Chronology

Complete border closure, lockdowns and travel

bans

Movement control orders (MCO) and challenges in

marketing efforts

Reduced travel volume due to the new norm

Limited space available for healthcare travellers

in private hospitals.

Decline in confidence of the Malaysian healthcare system as it struggles in managing the pandemic

Shift in the overall perception of Malaysia

amongst regional healthcare travellers.

Shift in healthcare investment from the

allocation on building operations and medical equipment to medicines and medical supplies.

Standard Operating Procedures (SOP) of the movement control order (MCO). In the new norm, stakeholders focus on

business recovery once travel into Malaysia are

allowed with several pre-requisites, which

includes venturing into virtual operating models.

Vaccination timeline

Uncertainty on globally standardised vaccination passports

1

4

5

8

7

9

10

6

3

2



To achieve the revenue aspiration of RM800 million in 2022, as forecasted in Figure 34, through the eight (8) Strategic Objectives, a targeted approach is devised moving into the recovery plan.

Figure 33: Projected Healthcare Travel Revenue Growth in 2022


59% 54% 55% 58% 63% 61%66% 65%

67%

33%3%

36% 43%

56%60%

-0.53

+14%0.60

+20%0.73

+7%0.78

+18%0.91

+23%1.12

+13%1.27

+13%1.44

+16%1.67

-53%0.78

-39%0.48

+67%0.8

+23%0.98

+40%1.37

+24%1.7

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Rev

enue

(RM

Bil)

HTo FP HT

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

p20

21p

2022

p20

23p

2024

p20

25p

Year-on-Year % Growth of Healthcare Traveller Revenue, 2011 - 2025p



The Momentum Ahead

Borders are opened Borders are still closed

MarketingStrategy

a) Retention of the existing markets; Indonesia, China and Singaporeb) Seeding potential of new markets; example Middle East

Inclusive Ecosystem Strategy to close the gaps and develop the HT ecosystem

i. Digitalisation ii. One-stop portal for Healthcare Travellers iii. Website enhancement iv. Digital campaigns with focused brand message on safety and trustv. Strategic partnerships to move the revenue needle

Healthcare traveller SOPs development and enhancements

New travel pre-requisite such as vaccination passport

HTos SOP enhancement i. Quarantine period for PCR negative HTos

Treatment offers

As per HTos demand The priority is to bring in HTOs through chartered flights for high value therapeutic segmentsi. Cardiology ii. Fertilityiii. Oncologyiv. Orthopaedic

Capacity building for sustainability beyond 2022

i. Flagship Hospital initiative to raise the global profiling of Malaysia Healthcare through iconic hospitals ii. Fertility Hub initiative for embryologist iii. Aged Care Development initiative to develop Malaysia as a preferred retirement destination.

Table 7: Approach to Achieve the Revenue Target



The Implementation6.0



Private Healthcare

Private Healthcare

Medical and Wellness Tourism

Private HealthcareProductivity

Nexus

Promotion Workstream

Sub-Sector

The Implementation

6.1 Healthcare Travel Agenda in Key National Masterplans

As healthcare travel continues to be a significant agenda across multiple national and sectoral plans and policy documents, the Malaysia Healthcare Travel Blueprint 2021 - 2025 is aligned to these national development agenda.

In order to effectively execute the Blueprint to meet our aspirations, close collaboration with government and private sector stakeholders is critical to create value for the entire industry.


Figure 34: Healthcare Travel Agenda in Key National Masterplans

RMK12(2021 - 2025)Owner: EPU

Industry Masterplan 4.0 (2021 - 2030)Owner: MITI

TCM Blueprint

(2018 - 2027)Owner : MOH

National Tourism Policy

2020 - 2030Owner: MOTAC

Malaysia Productivity

Blueprint Owner: MITI

(MPC)

SectorNational

Services Sector

Blueprint 2021 - 2025Owner : MITI

• Position Malaysia as a Hub for Niche Medical Services and Wellness• Enhanced governance of MCO

• Position Malaysia as a global brand to take advantage of the vast untapped potential of the country as a retirement destination• Integrating wellness and medical tourism

• Regulations• Technology and innovation• Workforce and performance

• Regulation• Integration• Economic development of Traditional and Complementary Medicine sector in Malaysia

• Healthcare Travel• Clinical Research• Traditional and Complementary Medicine• Aged Care• Public-Private Partnership



6.2 Governance Structure

A governance structure will be set up to monitor the implementation plan, which involves collaboration with multiple stakeholders.

Advisory Committee (proposal: existing Advisory Committee)Chair: MHTC (CEO)EPU, MOH (Dasar), MOH (Amalan), MATRADE, MIDA, Tourism Malaysia, Immigration, MSQH, APHM

• Provide leadership and support• Accountable for the overall success of industry• Endorsement of Strategies and Plans• Make key decisions

• KPIs setting and key tasks planning • Coordinate effort across stakeholders to execute implementation plan• Ensure progress and track KPIs• Identify issues and risks• Communicate with leadership and stakeholders

• Validate priorities, implementation plans• Review and discuss progress update• Resolve Issues• Manage Risks

Qu

arte

rly

Qu

arte

rly

Mo

nth

ly


Figure 35: Governance Structure

Steering CommitteeChair: Minister of HealthMinister EPU, MOH (SG), MOH (DG), MOTAC (SG), MITI (SG)

Project Management OfficeChair: MHTC (Corporate Strategy)8 Workstream Leaders (Strategic Pillars)(MHTC + Relevant Stakeholders – agencies and industry players)



The Implementation

The success of the Blueprint critically hinges on stakeholders’ participation and collaboration towards creating the Best Malaysia Healthcare Travel Experience by 2025. All across the healthcare traveller touchpoints, important stakeholders and focus areas have been identified to deliver the best outcome, ensuring our aspirations for quality and experience excellence are met.


Figure 36: Strategic Initiatives for Relevant Stakeholders

6.3 Role of Players in the Ecosystem

STEP-DOWN, REHAB &

WELLNESS

BOOKING


INSURANCE


RELATIONS

ACCOMMODATION

TELECONSULTATION

IMMIGRATIONMEDICAL

SERVICES

TOURISMTRANSIT

ENTRY POINT

3

4

5

67

8

9

10

11

12

12



Every stakeholder in the ecosystem has a role to play in order to enhance the experience of healthcare travellers in Malaysia. The list of initiatives and the roles of each stakeholder are illustrated in Figure 37 and Figure 38 respectively.

1Talent development

programme for healthcare travel touchpoints

2Digitalisation of customer

services

3Development of service culture

benchmarking4

Flagship Medical Tourism Programme

5Public private partnership

(PPP) collaboration6

Step down, rehab and wellness development for healthcare travel

7Clinical data - outcome

healthcare measurements8

Cross-selling tourism and healthcare

9Aged care development for

healthcare travel10

Technology enabled translation and tourism service

11Improved connectivity to

related destinations12

Incentivisation of investment across the value chain




The Implementation


Figure 37: List of Strategic Initiatives

1Joint collaboration

with hospitals for new segments/markets

2Partnerships

with on ground strategic partners

3

Collaboration with agencies to open new

segments/ markets

4

Malaysia Healthcare Representative Offices

(MHRO) / Malaysia International Referral Centre (MIRC) based

engagements

5Market support

and activation with hospitals

6Collaboration with tourism

for holistic market entry

Markets


1Holistic end-to-end experience sharing

programmes content2

Collaborative branding activities with

hospitals3

Country level holistic awareness campaign

4Strategic digital branding and

marketing5

Collaborative branding activities with tourism

players6

Targeted awareness programmes for niche

markets

7G2G branding

initiatives for niche markets

8

Malaysia Healthcare brand strategy alignment with

Tourism Malaysia

9Targeted branding for niche products on the

markets



LEGEND



Markets

1, 2, 3, 5, 8, 10, 11, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6

1, 2, 3, 5, 7, 8, 10, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6

1, 2, 3, 5, 8, 10, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6

1, 2, 3, 5, 8, 10, 11, 12 1-9 1-6 1, 2, 3, 5, 8, 10, 12 1-9 1-6

1-12 1-9 1-6

1, 2, 3, 5, 6, 8, 10, 12 1-9 1-6

1. TRANSIT

3. TELECONSULTATION

5. IMMIGRATION

7. ENTRY POINT

9. MEDICAL SERVICES

1, 2, 3, 5, 8, 10, 12 1-9 1-6

12. TOURISM

4. BOOKING

6. INSURANCE

8. ACCOMMODATION

11. STEP-DOWN, REHAB AND WELLNESS

1, 2, 3, 5, 8, 10, 12 1-9 1-6

10. TRANSLATION AND MEDICAL RELATIONS

2. ACCESS TO INFORMATION



The Implementation

Working Groups (WGs) will be formed for each Strategic Objective; consisting of relevant industry players and stakeholders to drive implementation of the Blueprint. The WGs will determine the strategic initiatives in the first meeting and will meet collectively to review progress every six months.

Each WG will be led by an owner; determined by MHTC as the Project Management Office (PMO) for the Blueprint implementation.

6.4 Blueprint Working Groups

Figure 38: Eight (8) Working Groups (WGs) for each Strategic Objective

Figure 39: Sample of WG with Lead, Government Agencies and Private Sectors Involved

No. WGs WG Owner (Lead)Government

AgenciesPrivate Sector /

Experts

1.Improve quality of

careTBD TBD TBD

2.Enhance service

delivery quality and experience of care

TBD TBD TBD

1. Healthcare Travel Ecosystem


Enhance service delivery quality and experience of care

Ensure sustainability through diversification

3. Markets

Protect and grow the primary market (Indonesia)



2. Malaysia Healthcare Brand





The WG is responsible to determine strategic initiatives to achieve the Strategic Objectives, description, key success measures and KPI from 2021 to 2025.

Figure 40: Sample of Template for the WG to be Completed During the Sessions

Key Success Measure

Success Measures

CurrentYear 1(2021)

Year 2(2022)

Year 3(2023)

Year 4(2024)

Year 5(2025)

Accreditation

Trust Index

#3

#4

#5

OverviewRe-invigoration through a seamless patient experience, proactive standardisation and quality control

WG Owner TBD Key Involved Parties TBD

Description TBD



The Implementation

6.5 Summary

Alignments across national and sectoral masterplansThe Malaysia Healthcare Travel Industry Blueprint is tied to the national and sectoral masterplans to ensure proper alignment with the existing initiatives.

Implementation plan spearhead by a governance structureImplementation is monitored through a governance structure consisting of a steering committee chaired by the MOH, an advisory committee chaired by MHTC (CEO), and a project management office led by MHTC (Corporate Strategy Department).

Inclusivity and involvement of all stakeholdersAchieving the outcomes of this Blueprint will require the commitment, cooperation and collaboration across the stakeholders.

Alignment and collaboration among various stakeholders are vital to the success of the Blueprint. Despite the challenges currently faced due to the pandemic, opportunities exist to revive the industry performance through clear strategic direction, well-coordinated execution plans and partnerships across the ecosystem.



Appendix



Appendix

Glossary of Terms

1. BlueprintA guiding document that defines the strategic direction and framework.

2.Brand Equity Index (BEI)

Indicator to gauge the brand strength in core markets.

3.

Cumulative Average

Response Rate (CARR)

Relates to the percentage of data submission from private healthcare facilities in Malaysia.

4. Growth LeversRepresents the enablers of a stated goal (i.e.: healthcare traveller experience), in support of the pillars and objectives.

5.Porter’s Five

Forces AnalysisMethod to analyse competitive environment of a business (Malaysia Healthcare industry).

6. SWOT Analysis

Strategic planning technique to identify strengths, weaknesses, opportunities and threats related to the organisation (in this context the Malaysia Healthcare industry).

7.Strategic

FrameworkCaptures the key strategic pillars and objectives to support the aspiration achievements.

8.Strategic

ObjectivesRepresents the big picture goals in support of the pillars.

9. Strategic PillarsRepresents the key dimensions for the industry over mid to long term success.



Distribution of Private Healthcare Providers (2019)

Kuala Lumpur, Selangor and Penang collectively account for 23.7% of private healthcare facilities with the highest concentration of MHTC member facilities.

Other private healthcare facilities (Ambulatory care centres, fertility

centres, etc..)

Numbers denoted as:MHTC Members | Total Facilities

Private Hospitals


LEGENDTotal MHTC members = 73*

Total Private Healthcare Facilities = 291

*Includes MHTC Dental members, as of September

2021

Concentration of MHTC Members indicates that private healthcare facilities on the West Coast of Peninsular Malaysia are more active in the promotion of Healthcare Travel.

Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, Perlis and Terengganu

Sabah and Sarawak

Penang

06 1802 06

Kuala Lumpur

11 4410 12

Johor

05 2701 14

Other States

06 5300 06

East Malaysia

06 19

01 04

Melaka

04 05

Selangor

14 5406 24

MHTC Members and Private Healthcare Facilities Across Malaysia



Appendix

Top 10 Source Countries (2019)

On a national level, Indonesia and China contribute more than two thirds of the healthcare traveller revenue in 2019.

No. Country of Origin % of total HT Revenue

1. Indonesia 65.8%

2. China 5.1%

3. India 3.1%

4. United Kingdom 2.0%

5. Japan 2.0%

6. Australia 1.6%

7. Singapore 1.6%

8. Philippines 1.3%

9. United States 1.2%

10. Bangladesh 1.2%





Top Five Source Countries According to Malaysia’s Regions (2019)

Indonesia and China are the top source countries across regions in Malaysia except for the Southern Region.

Note:Central – Kuala Lumpur, Selangor, Negeri SembilanNorthern – Perlis, Kedah, Pulau Pinang, PerakSouthern – Melaka, JohorEast Malaysia – Sabah, SarawakEast Coast (omitted due to low revenue and volume figures) – Pahang, Kelantan, Terengganu


No. Country of Origin % of total HT Rev.

1. Indonesia 31.2%

2. China 10.0%

3. India 6.5%

4. Japan 4.2%



1. Indonesia 90.3%

2. China 1.1%


4. India 0.9%

5. Japan 0.6%

Central

East Malaysia

Northern

Southern


1. Indonesia 79.3%

2. Singapore 4.4%

3. China 3.9%

4. Vietnam 1.4%

5. India 1.4%


1. Indonesia 74.1%

2. China 7.3%

3. Philippines 2.9%


5. South Korea 1.4%



Appendix

Malaysia’s Regions In Detail

The current outlook on the different regions is indicated through the strength of states within each region.

Region in Malaysia

Prominent States for Healthcare

Travel

HT Performance

(2019)

International Connectivity

(Pre-2019)

Prominent Stakeholders Notes

Northern PenangRM750mil, 500k patients

267 flights weekly, 15 destinations

Penang Centre of Medical Tourism (PMED), Penang Global Tourism (PGT), Northern Corridor Implementation Authority (NCIA)

Most established state in healthcare travel

Central

Kuala Lumpur

RM340mil,260k patients 2,635 flights

weekly, 119 destinations

State Tourism, InvestKL

Highest connectivity and latest technology offeredSelangor

RM280mil,230k patients

State Tourism,Invest Selangor

Southern

MelakaRM110mil,85k patients

8 flights weekly,1 destination

State TourismInvolvement of post-Exco bodies

JohorRM75mil,60k patients

44 flights weekly,6 destinations

State Ministry, IRDA

State interest in healthcare travel

East Malaysia

SarawakRM75mil, 55k patients


State Tourism, State Ministry

State interest in healthcare travel

SabahRM15mil, 15k patients


State Tourism, State Ministry

More of a tourism destination

Source: MHTC Informatics, MAHB for flight connectivity



Top Treatments Sought by Healthcare Travellers by Volume (2019)

When it comes to analysis by the different treatments sought, the data is only represented by a sample of the entire portion (approximately 14% of total data) and is represented as follows:

Note:The information extracted is based on submission through PS101 and PS102 to JKN for year 2019. Private facilities which did not submit the report to JKN (i.e: ACC and Dental Clinics) are not captured in this table. Total data: 166,300 (~14% of total HT volume)


45% 10% 7% 7% 4% 3% 3% 3% 2% 2% 2%

47% 11% 9% 4% 2% 4% 3% 1% 1% 2% 1%

38% 8% 3% 11% 11% 1% 1% 7% 2% 1% 3%

42% 4% 1% 33% 3% 0% 1% 4% 1% 1% 1%

27% 7% 3% 35% 7% 0% 1% 2% 1% 1% 3%

34% 9% 2% 8% 9% 2% 3% 6% 3% 1% 6%

GastroenterologyObstetrics and Gynaecology

CardiologyAccidents &

InjuriesOphthalmology

Respiratory Medicine

Health Screening

Cancer & Neoplasm

Infectious Diseases

Orthopaedic Surgery

Urology

Indonesia

World

Myanmar

China

Vietnam

India


Appendix

The Porter’s Five Forces analysis is a framework that helps analyse the level of competition within a certain industry. According to this framework, competitiveness does not only come from competitors. Rather, the state of competition in an industry depends on five basic forces:

1. Threat of new entrants 2. Rivalry among existing competitors 3. Threat of substitutes 4. Bargaining power of suppliers and; 5. Bargaining power of buyers

The collective strength of these forces determines the profit potential of an industry and hence its level of attractiveness.

Attributes of Porter’s Five Forces Analysis

Market Forces Definition Determinants

Threat of New Entrants

Threat that newcomers pose to current players in the healthcare travel industry.

• Barrier to entry, economies of scale, brand loyalty, capital requirement, cumulative experience, government policies.

Rivalry Among Existing

Competitors

A measure of the extent of competition among existing competitors (Thailand, Singapore and South Korea).

• Number of competitors, diversity of competitors, industry concentration, industry growth, quality difference, brand loyalty.

Threat of Substitute

The availability of healthcare travel products that a healthcare traveller could purchase from outside an industry. In the healthcare travel industry, substitutes include medical, wellness and tourism experience within the home country. Also includes disruptors in the form of technology.

• Number of substitutes available, buyers’ propensity to substitute, relative price performance of substitute, perceived level of product differentiation.



These Porter’s Five Forces attributes are applied to evaluate the attractiveness and competitiveness of Malaysia’s healthcare travel industry.

Market Forces Definition Determinants

Bargaining Power of Suppliers

The pressure that hospitals and tourism providers can put on a healthcare travel industry by raising their prices, lowering their quality, or reducing the availability of their products.

• Number and size of suppliers (hospital capacity), uniqueness of each supplier’s products, ability to substitute.

Bargaining Power of Buyers

The pressure that healthcare travellers can put on healthcare travel providers to get them to provide higher quality healthcare products, better service, and lower prices.

• Number of healthcare travellers (HT), size of each order

• Differences between competitors, price sensitivity, HT’s ability to substitute, HT’s availability of information.



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