Minister: M'sia competitive for medical tourism despite SST

Malaysia is a competitive medical tourism destination despite the Sales and Service Tax (SST), with treatments 30-40 percent cheaper than its neighbours, said Health Minister Dzulkefly Ahmad.

In a parliamentary written reply, he highlighted that Malaysia’s medical tourism industry continues to show robust growth, with revenue increasing significantly in 2024.

“Malaysia is expected to maintain competitive pricing in this region, even with the six percent SST rate imposed on medical tourists.

“This is because medical costs in Malaysia are at least 30-40 percent cheaper compared to medical costs in neighbouring countries such as Indonesia, Thailand, and Singapore for several major treatment categories such as gastroenterology, cardiology, orthopaedics, and oncology,” Dzulkefly said.

He was replying to Dr Ahmad Yunus Hairi (PAS-Kuala Langat), who asked the minister to state the implications of the SST tax expansion on the country’s reputation as the number one medical tourism destination, which generated over RM2 billion in revenue and attracted 1.3 million health tourists from around the world in 2023.

Dzulkefly said Malaysia’s health tourism industry continues to demonstrate very positive development.

“In 2023, Malaysia received 1.386 million health tourists, with total revenue generated reaching RM2.25 billion.

“In 2024, this sector’s performance continued to record more significant growth, where revenue from health tourists increased to RM2.72 billion, representing a 21 percent increase compared to the previous year.

“At the same time, the country’s health tourism sector offers not only competitive prices, but is also recognised as a health tourism destination that provides quality service and medical effectiveness, whilst emphasising Malaysian hospitality, which has also become a priority for health tourists,” Dzulkefly added.

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