In recent years, the landscape of medical tourism in Southeast Asia has witnessed significant shifts. Singapore, once a leading destination for medical tourists, is witnessing a strategic change in its approach to this booming industry. While neighboring countries like Malaysia and Thailand are drawing increasing numbers of medical tourists, Singapore is taking a different path. The city-state is focusing on catering to a niche market by offering highly specialized advanced medical care. Meanwhile, it is also investing in wellness tourism to diversify its tourism portfolio.
Medical tourism involves patients traveling abroad to receive treatment, often for cost-effective and high-quality healthcare. Wellness tourism, on the other hand, is driven by individuals seeking to enhance their well-being through health-focused vacations. Although distinct, both sectors contribute significantly to a country's economy. The global wellness economy is projected to reach a staggering US$8.99 trillion by 2028, highlighting the immense potential for growth.
Several private hospitals in Singapore are facilitating travel for their patients across the Causeway to Malaysia, where medical costs are significantly lower. A comprehensive health screening in Johor Bahru costs about a third of what patients would pay in Singapore. This price disparity has prompted many well-heeled tourists to choose Malaysia or Thailand over Singapore for their medical needs.
Thailand, with its 60 Joint Commission International (JCI) accredited medical institutions, remains a popular choice for medical tourists. The country attracted approximately 2.86 million medical tourists in 2023, generating US$850 million in revenue. A new visa category introduced in June 2023 further enhances Thailand's appeal by allowing medical tourists multiple entries for up to 180 days. Additionally, Thailand's less stringent guidelines and regulations compared to Singapore make it an attractive option.
Malaysia is also experiencing growth in its medical tourism sector. In 2023, about 1.26 million medical tourists visited the country between January and November, reflecting a 26 percent increase. Vietnam is emerging as a growing destination due to investments in healthcare infrastructure and international accreditations.
In contrast, Singapore's Ministry of Health (MOH) reported that foreign patients seeking treatment in the city-state constitute less than one percent of all patients at public healthcare institutions over the past three years. This shift aligns with Singapore's priority to address the healthcare needs of its citizens amidst limited resources.
“The priority of our public healthcare institutions is to serve Singaporeans’ healthcare needs, especially given our limited healthcare manpower resources and capacity, and risks of escalating healthcare costs.” – MOH
Despite the decline in medical tourists, Singapore sees this as an opportunity to focus on highly specialized advanced care that regional operators cannot offer.
“Such a shift should not be viewed as a decline, but rather as an exciting opportunity for us to set ourselves apart by moving into even more highly specialised advanced care that other regional operators are unable to offer,” – Dr Peter Chow, CEO of IHH Healthcare Singapore
The Singapore Tourism Board (STB) is also exploring wellness tourism as a complementary offering. In July 2023, STB launched a tender for a wellness attraction at Marina South Coastal Site.
“Wellness tourism cannot replace medical tourism, but it provides a complementary offering that can diversify Singapore’s tourism portfolio and further enhance the city’s global reputation for health and well-being care,” – Mr Cassim, Temasek Polytechnic
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