GEORGE TOWN: Foreigners are still flocking to Penang for medical treatment, and local patients are enjoying the benefits.
The foreign patients have led to improved use of facilities and equipment, thus lowering costs and allowing hospitals to offer services at lower rates to local patients.
Penang Adventist Hospital’s chief executive officer Albin Phua said higher patient volumes allowed hospitals to spread fixed costs across more cases, making services like scans, tests and procedures more affordable for locals.
However, he said China is rising as a competitor as hospitals there are also targeting the same foreign patients.
“China has started direct flights to Indonesia and Chinese hospitals are pursuing Indonesian patients.
“Teams from China have visited Penang multiple times to study how the private healthcare system operates. We even get feedback from Indonesia on how agents are attempting to divert patients to China,” Phua said.
However, he said, Penang is a place with trusted medical care.
“We also have the advantage of knowing and speaking multiple languages.
“At our hospital, 90% of our healthcare travellers are Indonesians. The rest are from China, Singapore, the United States and other countries,” he said.
Phua said demand for healthcare services is closely linked to flight connectivity, adding that countries with more direct flights to Penang tended to send more patients.
Penang has air services from four Indonesian cities – Aceh, Medan, Jakarta and Surabaya.
The most commonly sought treatments are in cardiology, orthopaedics and general surgery, including colorectal and thoracic procedures.
On concerns that foreign patients could reduce access for locals, Phua said locals were not being pushed aside and waiting times had not been significantly affected.
He said that returning local patients also benefited from digital registration introduced in 2018, which allowed them to bypass registration queues.
Foreign patients, he said, typically stayed in Penang for several days and were less sensitive to waiting times, unlike locals.
Phua said charity funds at the hospital are also reserved exclusively for Malaysian patients.
Cardiothoracic surgeon Dr Lam Hong Yoong said Indonesians had been seeking medical treatment in Penang since the 1980s, particularly for complex and high-risk procedures.
Dr Lam, who performs bypass surgery, valve replacement and cancer-related operations, said Penang’s appeal lay in the availability of expertise and faster access to treatment.
“Penang is also close by for Indonesians, with lower living costs. High-risk patients rarely travel alone and families have to consider accommodation, food and living expenses,” he said.
Dr Lam, who practises at Lam Wah Ee Hospital, said about 20% to 30% of his patients are Indonesians, with a small but growing number coming from China and the Middle East.
State tourism and creative economy committee chairman Wong Hon Wai said the number of healthcare travellers to Penang is expected to grow by between 5% and 10% this year, driven in part by Malaysia Year of Medical Tourism 2026 (MYMT2026).
He said Penang recorded 449,289 foreign patients in 2025, a 7.3% increase from 418,608 in 2024, with Indonesia remaining the largest source market.
Emerging markets include China, India and Myanmar, supported by improved air connectivity.
“The most commonly sought treatments include oncology, orthopaedics, obstetrics and gynaecology, cosmetic surgery, dental care and fertility services,” he said.
The state accounts for about 45% of Malaysia’s total healthcare travel revenue, with Indonesia contributing 65.8% of national medical tourism revenue.
