Malaysia comprises 11 states in Peninsular Malaysia and two other states, Sabah and Sarawak on the Northern coasts of the Borneo islands. The total area is about 330,113 square kilometres. The capital, Kuala Lumpur, lies on the Western coastal plain of the peninsula. Real GDP growth in 2004 was estimated at 7.6%.
The private market sector of dispensing doctors, private hospitals and retail pharmacies accounts for about 70% of the West and East Malaysian total pharmaceutical market and is the most important segment of the market.
Malaysia’s healthcare system comprises a network of public hospitals and clinics, as well as privately run hospitals and GP clinics. The government system is heavily subsidised, the cost of which has begun to place a heavy burden on government finances. As efforts get underway to reduce the fiscal deficit, it is quite likely that the healthcare budget will be squeezed somewhat, driving cost-containment policies and eventually reforms to the current funding mechanisms.
Reform plans likely to be introduced will include collaboration between the public and private sectors to ease the pressure on the public sector. Private doctors are already being permitted to practise in government clinics in rural areas. The forecast stable GDP growth of around 5% will continue to gradually raise living standards, which will drive private consumption and increase demand for quality healthcare and pharmaceuticals. Lifestyle products will continue to drive market growth. In addition, demographic factors, including the aging population, will also drive demand.
