Healthcare Industry In Malaysia Essay.

Healthcare Industry In Malaysia Essay.


Healthcare industry in Malaysia is divided into private and open public sectors. Malaysian contemporary society places importance on the growth and development of health care industry. Using a rising and ageing human population in Malaysia, the Government wishes to boost many areas in medical care industry including the refurbishment of existing hospitals, building and equipping new nursing homes, enlargement in polyclinics, and improvements in training and extension of telehealth.Healthcare Industry In Malaysia Essay.


Telehealth is the delivery and communicate of health-related services and information via telecommunications. It could be as simple as two medical care professionals discussing patient’s condition over calling. It also may as complex as doing robotic surgery between facilities at different country. Over previous few years, we have increased our efforts to improve the telehealth systems. Besides that, telehealth will help in access to niche services for rural patients and allows the individual to stay in their own community alternatively than traveling. That is parallel with our mission and goal of deliver quality medical services to our customers effectively.Healthcare Industry In Malaysia Essay.

Political factors include government regulations and legal issues. It defines both formal and casual rules which a medical center must operate. Some examples of political issue are tax policy, employment laws and medical travel and leisure. Medical travel and leisure in Malaysia rates among the best on the globe and most hostipal wards in the country have internationally acknowledged quality and benchmarks in medical travel and leisure. Inside our country, the progress rate of medical tourism is growing quickly because of low-cost advantages and the improvement of new high-quality professional medical service providers compare for some foreign medical center.Healthcare Industry In Malaysia Essay.

The medical care sector in Malaysia is highly controlled by the Private Healthcare Facilities and Services Act and regulatory agreement must set up a private hospital. It regulates all private medical care facilities and services inside our country. Under this function, we must have the approval before a fresh private healthcare center can be founded. Government set the strict guidelines on the quality of care and security on patient to ensure that fairness and integrity in providing health care to patients. The targets of the rules are same with our aim of to provide quality health care service with fairness, integrity and sincerity for patients.

Political and administration rules may have an impact on any business either positively or adversely. So, the changing of federal government rule or regulation in medical industry may cause some threats on KPJ once we are part from it. Actually, it is recognized as a threat for KPJ as it may require us to improve our business strategy credited to changing of laws. It may impact negatively on the entire industry as well as KPJ healthcare.

In budget 2012, federal government has designated around RM15 billion for operating expenditure. Together, they allocated RM1. 8 billion for development expenditure. While using allocation financial support by federal government, the health industry in our country will be enjoying the benefits. Therefore, our healthcare industry will become energetic by enhancing the service or equipment within clinics. Eventually it will increase the degree of customer satisfaction as we can offer better quality healthcare services and our success will be improved upon.Healthcare Industry In Malaysia Essay.


Economic conditions for a country are mainly inspired by political and government regulations. This imply that any decision created by federal will indirectly influence the financial conditions of the whole country. The monetary expansion in Malaysia has fallen significantly and KPJ should be aware of this factor. It is because economic condition will have an impact on KPJ in conditions of operation and success.

Customer disposable income and purchasing vitality will reduce as financial is not accomplishing well. During financial crisis, inevitably the majority of the customer may make an effort to cut down some expenditures on healthcare such as medical checkup. Rather than choosing a best healthcare provider, customer now which is price very sensitive will more like on public clinic that able to provide services to customer with lower price. Therefore, it is important for KPJ in placing an appropriate and cheap to gain market show.Healthcare Industry In Malaysia Essay.

During the current economic climate turmoil, it is regular for the KPJ’s shareholder to divest their whole share because they could refuse to take any risk of losing their money. When there exists having significant shareholder divesting their talk about, KPJ may insufficient capital available to expand the business enterprise and it’ll problematic for KPJ to invest in new technologies which can help to treat patients. Because of insufficient of capital, KPJ may loss competitive advantages in comparison to competitors. In order to gain a competitive advantage that can gain a self confidence to all or any the shareholders, KPJ need to evaluate the price and benefit for all the expenses and also to decrease the unnecessary over head and bills such as staff cost at the same time, which could result in layoffs. However, layoff employee will lead healthcare professionals who are already lack of time and energy to do their work to be overworked given that they will be likely to do more work compared to before. Therefore, medical experts will spend less of your energy and look after more patients than ever before. Because of this, healthcare professionals could become negligent in some important part and medical problem, which can cause an increase in malpractice lawsuits.

Inflation in Malaysia is affecting the overall cost for KPJ. This is because inflation will drive up the material price and also price of buying the medical equipment. Other than that, employees for KPJ will try to make a deal for higher salary. All these factors will increase the cost of KPJ in working their business activities. Therefore, KPJ profit margin will be lower as KPJ needs to generate more income in paying additional expense.

Competitive Rivalry

Previously, private practice was just generally speaking practice and there are just have limited amount of specialists. But over time, there involve some changes in medical industry structure. Not like recently which hospitality business is principally from governmental hospital. Today, you can find more and more growing of income oriented hostipal wards. There are many private hospital which opens in major town and places in our country.

Growth in the industry and increasing volume of competitors will inevitably raise the competition for KPJ. However, due to the restriction of 20km distance necessity between private hospitals suggested by Ministry of Health, direct competition among private medical care groups is now not so significant. Thus, even though there are amounts of private healthcare communities competing one another in Malaysia, the rivalry among existing companies is considered medium.

Although 20 kilometres zoning is restricting the competition, rivalry is still remains important factors to be looked at by KPJ. It is because aggressive growth and competition from existing players such as Parkway and Columbia Asia may injured KPJ by affecting profitability as well as the market share for KPJ. Therefore, it is important for KPJ to build up a better strategy to gain more competitive advantages against rivals.Healthcare Industry In Malaysia Essay.

It is lack of differentiation of KPJ because KPJ and more hospital offers similar treatment or services to patient. This is a menace for KPJ as low differentiation cause patient to obtain low turning cost. Patient may easily switch to others clinic which they want or they feel confidence with it. Nevertheless, low differentiation does mean patient will be more priorities on the price of the procedure or services. There will be creating the purchase price competition among existing rivals to entice customers. Therefore, arranging lower price on the services provided might earn better competitive advantages against competitors. Moreover, customer service is also an important area which KPJ contending with competitors. Customers will be more would prefer to a hospital which able to provide better quality and customer services. Clinic which able to provide rapid and impressive methods in fulfilling customer needs will be the resources of competitive advantages.

Besides that, technology for healthcare industry is also the factor which KPJ need to consider. It is because of medical advancements and area of expertise services have been driving a vehicle a strong development towards hostipal wards specializations with more of the industry players are developing a significant competition for area of interest areas of competence such as coronary treatment, eyes surgery, mental health care and maternity admissions. It really is will be good if KPJ developing a market areas which recognize itself with other existing challengers. As KPJ can build up a good reputation specifically area, customer commitment can be maintained and hence KPJ may not need to lower down the price to draw in customer.Healthcare Industry In Malaysia Essay.

Last but not least, strength of competition between KPJ yet others hospital will affecting the success and market show of KPJ. Therefore, KPJ should develop and identify a good strategy in order to create sustainable competitive advantage to be able to compete with existing competitors.


Nowadays, awareness of social on medical is raised in comparison to past consequently of the growing in income and education level of citizens. This may lead to the raises in the demand of good quality medical care services provided. This may enhanced the introduction of healthcare industry and for that reason increase our industry profitability as well as our KPJ success. Hence, our KPJ mission of provide quality medical care services to customer may be achieved with the introduction of health care industry.

As there are increasing numbers of people having the high level of education, they will more concern on the issues of their body health as they have significantly more knowledge. In addition they will try to simply accept the treatment because of their healthcare problem as fast as possible due to the awareness on ailment. For example, they’ll constantly go to medical center either by themselves or bring their family for body check to ensure that they are under a health condition.Healthcare Industry In Malaysia Essay.

Besides that, the boosts in the income level of society can make them move toward good quality of medical care services provided. The secure of economic development in the country will improved the income degree of society. That may enable them feel less expensive to spend in private healthcare services which are able to provide more quality health care services compare to public healthcare services and this straight drive the society proceed to private medical care services.

Increases in the percentage to getting some disease in the world also have effect on the introduction of healthcare services. Substance abuse and drug addiction issues are posing a large problem in Malaysia, there are raises in abuse of any drug called “Ecstasy” by Chinese young adults and youths which will lead to the rises of HIV/Assists in the united states. The rises of the number of foreign workers that come from rural areas or poor countries will bring diseases like tuberculosis, bride flu or dengue fever to Malaysia. Then, stressful life like the stresses arise in the task place may cause high-blood pressure and the chance of getting hearth attack will rises. Besides, the bad habit in the intake of foods such as alcohol and cigarette will boost the risk of serious conditions like diabetes, hypertension and cardiovascular diseases. The recent records of National Health and Morbidity study show that 15% of Malaysians are obese which raises 1% from season 2006 to 2010. Almost 50 % of adult Malaysians are overweight. Besides that, breasts malignancy is one of the primary reasons of fatality in Malaysia as it is common type of diseases among women according to the National Cancer Registry Malaysia, 2002. These factors gives positive impact to the medical sector in Malaysia.

Furthermore, growing in ageing populace in Malaysia also will assist in drive the professional medical sector in Malaysia. Malaysia’s human population grow at 2% p. a. and the ratio of the population over 65 years of age is likely to rise from 5% to 8% from 2010-2020 regarding to Global Demographics. The growing of more mature proportion in the populace means that there will be increase in age-related disorders like Alzheimer’s, high blood circulation pressure and heart-related ailment which require long-term treatment and rehabilitation

Reasonably, each one of these factors can be considered as big opportunities of enlargement for healthcare establishments such as KPJ which has the quest of provide quality health care services to customer. In order to achieve the mission, KPJ with its goal of providing professional medical services with fairness, honesty and sincerity should be achieved so that they can grow their services more extensively as demand of quality health care services seen to be boosts in future.


Technologicalfactor is very important for all kind of business, including our healthcare industries. Greater consciousness about the technology can help KPJ improve theirefficiency of business procedure and quick response to the changing environment. Medical care industry needs technology to help them carry out their procedure activities more successfully and effectively.Healthcare Industry In Malaysia Essay.

Advancement in It really is allowing KPJ to enhance the quality of medical activities provided by them. Health care industry need to make a lot of medical files about their patients’ information. Ifit is done by paper record, there are not much storage spot to store everything and will increase the rate of lacking important information. To resolve this issue KPJ has adopted the Electronic Medical Record (EMR) to reduce the administrative work and error. This is a digital record which can help KPJ to hold all the depth information about their patients and patients’ health background in the system. Whenever a patient enters this technique, information can be easily researched by the official compared to newspaper work. KPJ will then be more successful in making the diagnostic and therapeutic decision to lessen the unnecessary work and wasted time. Properly controlling the patient’s medical history is very important. If a mistake occurs, it will lead KPJ to make wrong decision in treatment for the patient. It may also threaten the life of the patient.

Other than that, KPJ needs the IT system to help them to improve in the internal process by establishing an internal network system. It could become a mechanism of communication between nurse, doctor and other people who are qualified to access the info system to get the necessary information and information is always up to date by using internet. These also assist in improving activities of exchanged information between stakeholders. For instance, announcement make by inner hierarchy can be quickly received by staff member within KPJ by using the inner network system. In addition, doctors can easily place their requests to the nurse, the nurse may then reply quickly to the order and without mistake credited to written order being clearer than oral order.

KPJ required a whole lot of medical facilities to help them along the way of providing the medical services, the required facilities include MRI scanner, CT Scanning. Without the high technology medical facilities, KPJ might not exactly be able to provide a good care service to patient, because just lately medical service is becoming more reliant on the technology. A good medical facility can help to reduce the time of medical treatment.Healthcare Industry In Malaysia Essay.

Technology factor plays an important role in the professional medical industry. So, KPJ should make investments more in the R&D to enhance their medical skill and also help them easily change the administrative work to reduce the fault and error arise that will have an effect on the reputation of their company.

Porter five forces

Threat of new entrants

The threat of new entrants is the probability a new company will enter the industry. It is a menace for existing business as new entrants will influence the business and inevitably cause existing business to lose earnings or market show. Nowadays, there are extensive potential investors trying to purchase professional medical service, thus, leading to existing business intheindustrytoface the risk of the new entry. Inorder to exclude new competition, it needs to make a barrier to the accessibility. However, KPJ may well not have to handle the new competitor come in because it is hard for a new medical care business to go into the industry due to the high first cost. Prior to starting the health care business, it requires to do necessary research, intensive planning and need a huge amount of first capital to buy the facilities, research and development, specialist equipment to be able to operate the business. Besides that, to be a medical tourism hub Malaysia must set an objective requiring all the companies to work with medical devices and steps.Healthcare Industry In Malaysia Essay.

Comparing the other industry and healthcare industry, normally the barriers to type in healthcare industry are very high. Itis because of limitations by government coverage. From days gone by to the present, all the private medical facilities in Malaysia need to get agreement to be awarded under the Private Health Facilities and Services Function 1998 before they can be founded and must be compliant to a regulatory body working closely with the Ministry of Health who screens, regulates and coordinates these clinics. Moreover, it is greatly government regulated, which is zoning for medical care industry. The action requires having the very least distance of 20km between the existing healthcare companies. This means that when one decides to open a fresh health care business, it must make sure there are no other professional medical businesses within the 20 km area. Even more, to avoid the new competition to enter the market, government restrict a healthcare facility to acquire the medical technology, with no specialist equipment that is hard for the private medical care to survive in the foreseeable future.

Shortage of doctors is also one factor which is creating the high obstacles of entrance. When potential opponents come in, they need to make sure they have sufficient medical practitioner and doctor to transport the routine task. It is because if they don’t have all those certified staff, they might face problems in providing services to patients. Furthermore, potential customer will only choose to get a hospital which has specialist specifically areas. Therefore, lack of specialist doctors will also cause that medical center to reduce marketshare.Healthcare Industry In Malaysia Essay.

Difficulty in acquiring private specialists will be the barrier for accessibility to all or any the new rivals. As the way to obtain private specialist is bound, hospital groups with a solid reputation will have better advantages in attracting potential specialist resistant to the new medical center.

Record of patient is a valuable property for the medical care industry it can create a hurdle to access. KPJ have data of patients who’ve come before and looked after the medical files in one system. This technique enables the doctors to know about their patient’s health background. Because all the patients data are already is out there in a healthcare facility, therefore, it’ll cause inconvenient for patients to regurgitate their health background to a fresh doctor. Therefore, it’ll be hard for the new entrant to contend with the existing health care industry.Healthcare Industry In Malaysia Essay.

Threat of substitute

Threat of alternative means that consumer can be found to buy another product or service that can offer similar benefit to displace our industry’s product. Product demand will be afflicted by price change of alternative product and service. Therefore, threat of substitute for health care industry is considered to be low.

The risk of replacement for private doctor would be the non-profit doctor. Private healthcare is normally ask for higher medical fees compared to public hospital. Because of this, some people may not be able to purchase the expensive fees. KPJ is a private healthcare provider that provides a whole lot of medical service and use medical facilities to enhance their medical skill. Buys of the medical facilities are considered very expensive since it is high technology equipment designed by professional person also to develop it’ll use many resources to handle the required research and development activities. For non-profit healthcare provider, almost all of the money is come from sponsor, therefore it might be lack of capital to obtain the facilities and equipment. Private medical care as a profit-oriented company will be easier in boosting capital, so private health care service will have better competitive advantages against non-profit corporation as they is getting the bigger technology equipment and medical facilities.

Second hazard for KPJ is the general public healthcare provider which is recognized by federal government. People often choose the private health care providereven when the service provided will be more expensive is basically because the assistance providedis more efficient than public where patient needs to wait for a long time. Private industry is more centered on efficiency and efficiency todeliver the service to customer, so private doctor will make use of more doctors and nurses to carry out the service that are of quality.

Another replacement for private healthcare could be the acupuncture, rub and spa, many old people tend to be reliant on and assumed in this traditional service, but it is missing of proves by science and not so safe. Many traditional servicesare promoted as an entertainment service somewhat than serious medical service that is provided in legal medical company. Sometimes the services provided can be illegitimate and may be considered a menace to the patient’s health. For nowadaysmany people are educated, they will refuse the original medical and find the more methodical service which relates to high technology, therefore the threat because of this traditional services is considered low.Healthcare Industry In Malaysia Essay.

In medical care industry, technology works as a strong substitute with their service, such as e-health. E-health brings a lot of convenient to the individual that are occupied and folks that lack easy access to hospital; they will be helped by telemedicine. For instance, the success storyline of e-farmasi in Malaysia, computerizing Medical Promises in Korea, and more. Due to inadequate development, this menace to hospital will be low.

Therefore, threat of replacement on the private health care will be suprisingly low. But KPJ still need to map out the strategies to face the threat of substitute scheduled to monetary and environment change that will have an impact on the profit of KPJ.

Bargaining Vitality of Buyers

Customer is one of the resources of profit for a business. It is important for a company to understand what customer needs, and their position in bargaining with this business. Bargaining electric power of customers is known as to be high for medical care industry. This is because there may be having many medical centers in Malaysia. Customer will possess the independence to choose whatever healthcare company and doctors that they feel self-confidence with. High electric power of customer is a threat for the business enterprise as it will be increase competitive intensity on the market.Healthcare Industry In Malaysia Essay.

Most of the hospital in Malaysia is providing similar treatment or services to the patient. This means that it has a low differentiation between nursing homes. Therefore, switching cost for customer will be low and therefore customer can simply move between alternatives healthcare company to get a better deal.

Buyer’s income is also the factors which impacting on the bargaining vitality of buyers. If their income is low, probably they’ll be more preferred on general population hospital as public hospital will in a position to provide services to patient with lower prices. However, if a few of the customer who is having higher income, they have a tendency to be good deal sensitive. They will more favor on the best medical care providers which can deliver better services to them instead of looking at the purchase price. This group of customer will transition to other medical providers when they not satisfy with the assistance provided.

Since KPJ offers healthcare services to people who are struggling with life-threatening diseases, reputation for KPJ will be a key point to be looked at. In addition, customers is now alert to alternative dealer and information of healthcare is freely designed for the general public, therefore KPJ need be mindful their performance and also quality which deliver to patients. Once patients recognize that KPJ performance is bad or poor quality of services, it will cause patient to switch to other healthcare providers which is more reputable in conditions of quality and performance.

Availability of replacement for medical industry will influence customer power in bargaining with KPJ. As there are having substitutes which is general population healthcare, acupuncture, rub and spa. Customer may make an effort to switch for substitute as this will be their alternate methods if they don’t want to go for private clinic. Therefore, in order to safeguard against substitute, it’s important for KPJ creating and highlight the worthiness and let customers to know the variations between their services and others.

Bargaining ability of supplier

Suppliers is participating in an important assignments in an enterprise. They is the person who providing all the materials, services and things which required by a business. KPJ is relying on many different types of provider which support biotechnology development, drugs development, offering medical equipment, and also specialist doctor.

Suppliers who supply medical equipment are considered as important suppliers for KPJ. Medical equipment is vital as KPJ is using all the medical equipment in their daily job activities. However, technology progress has made a whole lot of changes for medical equipment. There are a great number of new and updated medical equipment which come with better features. All these latest equipment will helps KPJ to improve their efficiency and effectiveness in carry out their tedious job. However, there are having limited sources of supplier in providing each one of these medical equipment, which creating limited opportunities for KPJ to buy the equipment. There are several buyers for all those medical equipments but just a few dominant suppliers. Because of this, suppliers may have considerable amount of vitality in negotiating with KPJ in conditions of pricing and supply conditions. Dealer may placed higher price but there is absolutely no room for KPJ to work out with suppliers.

Medical practitioner is also one of the suppliers for KPJ. KPJ needs experienced nurses and specialist doctors to take care of their patients. Therefore, bargaining vitality of physician is known as high. Having several qualified employees would be the sources of competitive advantages for KPJ against competitor. However, there is certainly lack of specialist doctors in Malaysia. This will cause your competition among hospital in employing qualified specialist. Most of hospital will attempt their finest to honor the specialist by offering higher salary, add-ons. If KPJ choose not to be competitive contrary to the competitors, medical practitioner will search other medical industry to work. Hence, specialists doctors will maintain the best position in negotiate the working conditions as well as the pay structures.

In conditions of drugs development, KPJ is rely over a few company which provide them with particular tools, materials, and equipment that they need to develop their products. Special tools to build up the drugs will be quite technological and insufficient alternative products. This indicate it will be high switching cost for KPJ to make use of another suppliers. If suppliers stop offering, KPJ will face problems in their development progress. Therefore, supplier for all those special tools, materials will bring a higher electricity in negotiate a much better price or delivery conditions.

Overall, the supplier power is considered to be high as KPJ is relying on a few major suppliers to supply the items which KPJ needed in their daily job. Therefore, it is important for KPJ to keep up a good romance with all suppliers to guarantee the business process goes smoothly.

Factor conditions

Basic factor for KPJ is capital supply, KPJ has enough income to contribute for his or her capital for internationalize or globalize their business. KPJ acquired its rst twelve-monthly billion-ringgit turnover in 12 months 2007, with earnings totalling RM1. 11 billion for the reason that year. KPJ continued in achieve their new revenuerecords in subsequent years. Which can be growing to RM1. 27 billion, RM1. 46 billion and RM1. 65 billion in year 2008, 2009 and 2010respectively. KPJ achieved a new recordin 2011 with total revenue of RM1. 91 billion and pre-tax prot of RM204. 60 million.

In basic factors for medical tourism of KPJ, medical travel and leisure products are easier to situated in warm, pleasant conditions like Malaysia. Therefore, the essential factorswhich include ideal climatic conditions, natural resources and geographic location, are an advantage for medical travel and leisure in KPJ specifically for those tourists from colder climates.

In addition to these basic factors, there are advanced factors about skill labour Inside our country. KPJ health care acquired 750 medical consultants, which equals to a 7% talk about of private doctors in Malaysia and 47% of the country’s medical employees and professional. This is due to better paid of salary.

Another advanced factor is KPJ are motivated by innovation and technological growth. There is a strong regulatory and medical center and professional medical infrastructure in KPJ. KPJ persists to invest in the latest equipment with express of-the-art medical technology. This sort of technology can help in provide positive patient experience as well concerning enhance medical and surgical outcomes.

Last advanced factor is we could assisted in the introduction of medical tourism. Included in these are the world-wide web resources for the communication and marketing of the medical tourism product internationally. In conditions of quality, it can be said that there is merely little difference in the medical travel and leisure services offered in the advanced western countries and those in the eastern or producing countries like KPJ in Malaysia. But the attractive work conditions and higher salary has helped to staff ourKPJ hospitals with well-qualified people. Therefore, the grade of such healthcare services are equivalent and the services may better compare to the nursing homes in developed countries.

Demand conditions

Demand conditions are one of the critical indicators for KPJ in order to get competitive advantages within the industry. Needs in home country permit KPJ has a better understanding in the needs and desires of the customers thus can response faster to make the most before the overseas competition. Therefore, KPJ need to continue steadily to improve competitiveness through advancement and high quality services.

Malaysia is one of the fastest-growing countries in Asia although our country has a tiny people of only 29m. Malaysia’s populace has grew from 23. 5m to 29m from 2000-2010 with a CAGR of 2. 2%. KPJ need to escalates the quality of services provide like shorten the ready time for patients, provide comfortable place for patients to stay like hygiene condition to meet up with the increases popular. Besides that, KPJ need to keep to invest in the latest equipment with condition of-the-art medical technology in its effort to provide positive patient experience as well concerning boost medical and medical outcomes to be able to sustain as well as attract more customers and strong the positioning of KPJ in private professional medical industry.

Then, the development of health tourism is adding to curative services by private healthcare services providers. For example, 450, 000 international patients obtained treatment from private hospitals for various ailments as well as utilised diagnostic and healing services such as endoscopy, haemodialysis and magnetic resonance imaging Under the Eighth Malaysia Plan period (2001-2005). Since there are big potential of health tourism for progress, KPJ need to keep to investing in progress technology to improve the quality and facilities provide as well as making sure best value systems are succeed for the benefits of customers as the foreigner patients are fascinated by their state of-the-art medical technology and the latest operative techniques equipped by KPJ.Healthcare Industry In Malaysia Essay.

The solutions in medical care are enhanced the grade of human being life as the solutions are added to the reduction of disease risk, pain and disability. Thus, KPJ need to provide themselves with impressive facilities and cutting edge technology that are equivalent, if not superior, to the requirements of world-class private hospitals. Besides that, after utilized more advance technology, KPJ need to provide necessary training to the employees in the hospital to be able to help them adapt to the new utilized technology and newest surgical techniques.

Furthermore, KPJ require furthering extending the capability of college in order to create more certified health workers as the health personal currently are scarcity in the united states. By produce more trained health workers, KPJ won’t need to offer high salary in order to get more personnel work with KPJ and will have sufficient workers to response to the growing in the demand of medical services. Besides that, KPJ can produce more quality experienced health personnel by giving education by them like KPJ may provide latest program which could improve the level of quality of the certified health staff.

Related and promoting industries

Since medical tourism involves a form of happen to be a foreign location, there exists demand for some form of accommodation in the hospital or in a hotel and also for local travel at the vacation spot. Therefore, medical travel and leisure relies upon a developed infrastructure. The travel and leisure industry includes the provision of travel by the airlines and accommodation in hotels and motels and also taxis for local travel. Furthermore, there are activities that cater for the leisure and entertainment of visitors, which provides ideal facilities for a relaxing and pampered recovery from any medical procedures. With such sensible infrastructures in place in most developing countries, very little further infrastructure investment is required by local businesses and web host governments. Furthermore, foreign governments are aware that the value of the travel and leisure dollar can be increased by the intro and support of medical travel and leisure and so have reinforced businesses buying this new industry. Furthermore, it is accepted that a medical tourist rarely travels alone. It’s quite common for another in accordance with accompany the patient and, therefore, the accompanying person or entire family may travel to the selected destination and stay for the required duration of the medical treatment. Governments further encourage medical tourism by allowing visas to be easily obtained therefore do not impede the process.

In tandem with KPJ’s emphasis on being innovative, we’ve in place a medical information system, linking the group’s nursing homes to lessen administrative processes and risks of human errors. Consistent with this, significant purchases were designed to further improve the KPJ Clinical Information System (K-CIS), Picture Archiving Communication System (PACS) and other related software applications, enabling the entire integration of scientific and administrative functions within clinics. At present, three in our hospitals, specifically Puteri Specialist Clinic, KPJ Johor Specialist

Hospital and KPJ Penang Specialist Hospital are moving nearer to the purpose of a paperless environment, following successful rollout of the designed system. A further three private hospitals have commenced an identical rollout this year 2010 and another five have been recognized for 2011. It is targeted that, subsequently, an average of four nursing homes will be fully integrated per annum, finally making the group strategically and speedily linked. These efforts have been further complemented by the agreement with Austrian It organization, AHCS Advanced Health care Alternatives Ag. this starting, involving an additional investment of RM15 million in research and development (R&D) over the next two years, will enhance the group’s information system even further.

Strong romantic relationship with doctors – In 2010 2010, KPJ professional medical possessed 750 medical consultants, which means a 7% talk about of private doctors in Malaysia. KPJ comes with an established and reputable system set up for centralised repayment and billing, aiding it in recruitment of doctors even there may be scarcity of qualify doctor and nurse in Malaysia.

Changes in administration insurance policy helped further the enlargement of private professional medical providers. In 1983, then Primary Minister, Dr Mahathir Mohamed introduced the policy of privatization into Malaysia. The initial goals of privatization include promote efficiency, stimulate corporations to broaden through greater usage of growth opportunities, relieve the administrative and financial burden of the federal government, increase Bumiputera participation in the organization sector, encourage foreign investment and reduce the size and participation of the general public sector in the Malaysian economy.

There are numerous suppliers to the medical device for KPJ. Suppliers include component suppliers, equipment manufacturers’ integrators, software vendors, etc. With privatization, private sector “hospital support service” providers also have grown up and prospered. This make sure they are can provide better support service for KPJ.Healthcare Industry In Malaysia Essay.

Company strategy, framework, and rivalry

A set of strong related and encouraging market sectors is important to the competitiveness of firms. This consists of suppliers and related sectors. This usually occurs at a local level instead of a nationwide level. This factor shifts from the macro-related toward those at micro level in the Porter’s diamond.

KPJ may develop the hospitals in the place that will bring convenience to the patients, such as air-port, main highways and rural areas in order to improve the demands of health care services. Develop private hospitals in or close to airport can capture the ability of meet up with the demand from medical travel and leisure which become more and popular throughout the world as KPJ has a solid market position and good reputation with its customers. This can increase the chances of customers that can come from round the world to be able to get treatment from KPJ as KPJ are able to provide better quality services to the clients and the state-of-theart medical technology and latest medical techniques are pleasant by the international patients. Then, develop hospitals in main streets will draw in more customers as the clients are mainly utilized the road from one destination to another place. Since the road are used by many users which include lorry drivers, bus driver, electric motor driver and more which may boost the probability of accident happen as the population are growth faster in the united states and the quantity of men and women own their transportation are increasing, thus a healthcare facility which can be develop nearby the main highway will raise the range of patients as a results of accidents. Besides that, develop nursing homes in rural areas may meet up with the demand that are boosts in this areas as the facilities in this areas are not able to fulfill the dependence on the customers because of the boosts of income level and human population of the communal will lead to the changes of preferences of the population in this areas to more quality professional medical services provide by the hospital.

After that, KPJ review and examine its private hospitals constantly so that they can find out the hospital that are undeveloped and take action by restructure and renovate the management system in those undeveloped clinic such as health information management system, health financial system, health delivery system predicated on the hospitals which have been developed properly to be able to meet up with the demand of professional medical services that are increasing from day to day consequently of the federal government that programs to spurs the private health care clinic, faster growing of people and the benefits of medical tourism that are welcome by the foreigner.Healthcare Industry In Malaysia Essay.

KPJ by the desire to compete with its opponents may increase the cost of the clinics to make KPJ in a position to provide cheap that are affordable to entice more customers. Besides that, KPJ need to improve the services provide like raise the communication skills of employees as KPJ has medical university that is own independently as quality services in professional medical hospital are more demanding to reduce the risk from the rivals. Furthermore, KPJ also need to continue hire progress technology to increase the efficiency and success of services provide to the clients to as the opponents might struggle to hired gain technology due to the restrictive in capital like open public healthcare hospitals. Additionally, KPJ need to enhance the reputation of a healthcare facility by decrease the number of grievances and make sure there are carelessness case may happen in the hospital by train the staff to tell them their responsibility.Healthcare Industry In Malaysia Essay.