Malaysia Digital Health Market Analysis

Malaysia Digital Health Market Executive Summary

The Malaysia Digital Health market is projected to grow from $xxBn in 2022 to $xxBn by 2030, registering a CAGR of xx% during the forecast period of 2022 - 2030. The overall healthcare expenditure of Malaysia (%GDP) raised from 3,75% in 2018 to 3.83% in 2019 according to the World Health Organization Global Health Expenditure database. In 2020 there was an increased health spending on early disease detection programs up 39.7% to 2019.

In recent years, digital health has gained popularity in Malaysia. The government has been encouraging the use of digital technology in healthcare in order to enhance access and level of care while also lowering costs. Among the digital health alternatives used in the nation include electronic medical records, telemedicine, and mobile health applications. The Ministry of Health has also drafted the National Digital Health Blueprint, which describes Malaysia's vision and plans for digital health growth.

Market Dynamics

Market Growth Drivers

After Singapore, Malaysia has the highest standard of health care in Southeast Asia. Diabetes, hypertension, and cardiovascular disease are on the rise as a result of rising earnings and sedentary lifestyles. In terms of the internet of things (IoT), it is projected that the significantly quicker data transmission speed would enable more IoT devices to be connected and communicate data with one another much faster than previously which will lead to enhanced patient care using digital means. Moreover, COVID -19 accelerated the adoption and utilization of digital health in Malaysia to reduce in-person consultations. Positive initiatives and support by the government regulations will furthermore add to the growth of the digital health market in Malaysia.

Market Restraints

The lack of a defined regulatory framework for digital healthcare in Malaysia has created doubts about what is and is not permissible. Potential security risks associated with the internet of medical things in situations where a wearable/implantable (Device) gets hacked, resulting in the loss, misuse, alteration, unauthorized or unintended access or disclosure, modification, or destruction of patient data residing in a Device. Moreover, the lack of digital infrastructure and limited digital literacy amongst certain population segments can be potential restraints to the growth of the digital health market in Malaysia.

Competitive Landscape

Key Players

• BookDoc (MYS): It is a service provider that enables patients to book appointments with practitioners digitally offering health coaching and telehealth services. BookDoc along with the Malaysian Ministry of Health joined forces to create a digital platform for COVID-19 resources, including webinars, appointment settings, news, and health advisories.
• Naluri Hidup (MYS): The platform provides individualized coaching and employs evidence-based Cognitive Behavioural Therapy and Motivational Interviewing techniques to increase users' mental resilience and resolve to achieve and maintain better health outcomes such as weight loss, improved stress management, or lower blood pressure or blood sugar levels.
• Hypoband (MYS): They have developed a wearable “Cold sweat device” to enable patients with diabetes to manage their condition by tracking symptoms using a smartphone.
• HealthMetrics (MYS): In September 2020, they secured $5Mn (RM20.7 million) in Series A funding. They plan to utilize these funds to expand their product offering as well as their geographical footprint. One of the first new aspects of the company to launch is the online pharmacy.
• MedKad (MYS): Provider of mobile app for electronic patient records and solutions to companies in managing their staff medical benefits.

Healthcare Policies and Regulatory Landscape

National Health Accounts (NHAs) are organizations that monitor and evaluate the distribution of healthcare spending throughout the healthcare system. The Malaysian Medical Device Act, of 2012 governs digital health products and medical devices in Malaysia.

In February 2021, The Economic Planning Unit of the Prime Minister’s Department in Malaysia published Malaysia Digital Economy Blueprint. The MyDIGITAL initiative by the Government in terms of healthcare strives to develop a framework for the rapid expansion of healthcare-related products and higher usage of the Malaysia Health Data Warehouse (MyHDW) with the inclusion of blockchain.

The Ministry of Health, the Medical Device Authority, the Medicine Advertisements Board of Malaysia, and the National Pharmaceutical Regulatory Authority of Malaysia are among the primary regulatory authorities involved in digital health.

Reimbursement Scenario

In Malaysia, digital health reimbursement is primarily handled through the Ministry Of Health (MOH). The MOH is in charge of formulating and enforcing regulations concerning the reimbursement of digital health goods and services. To establish which digital health goods and services will be covered and to what degree, the MOH collaborates with private health insurance companies and other relevant organizations.