New 6 Service Tax Won T Hurt Medical Tourism Says Health Minister

---

 Dzulkefly Ahmad says the country’s medical tourism sector is expected to remain competitively priced in the region.
Malaysia recorded RM2.72 billion in revenue from medical tourism last year, marking a 21% increase from 2023. (Bernama pic)PETALING JAYA: Malaysia’s medical tourism is unlikely to be impacted by the expansion of the sales and service tax from July 1, according to the health ministry
Its minister Dzulkefly Ahmad said in a written parliamentary reply that the country’s medical tourism sector is expected to remain competitively priced in the region, despite the 6% service tax imposed on foreign patients.
“This is because medical costs in Malaysia are still 30% to 40% lower than in neighbouring countries such as Indonesia, Thailand, and Singapore for key treatments including gastroenterology, cardiology, orthopaedics, and oncology,” he said.
He was responding to Dr Ahmad Yunus Hairi (PN-Kuala Langat) who asked about the implications of the expanded SST on Malaysia’s reputation as the leading medical tourism destination.
Yunus pointed out that Malaysia had generated over RM2 billion in revenue and attracted 1.3 million medical tourists from around the world in 2023.
In June, the finance ministry announced a 6% service tax on private healthcare, traditional and complementary medicine, and allied health services provided to foreigners. The tax applies to service providers whose total taxable revenue from all services exceeds RM1.5 million over the past 12 months.
Dzulkefly said the medical tourism industry continues to show highly positive growth.
“In 2024, the sector’s performance has seen even stronger growth, with revenue from health tourism rising to RM2.72 billion, a 21% increase from the previous year. This was driven in part by a 14% increase in arrivals, with 1.59 million health tourists recorded,” he said.
He added that Malaysia’s health tourism sector offers not only competitive pricing, but is also recognised for its quality of care, clinical effectiveness, and signature Malaysian hospitality. - FMT

---