Exploring the Rising Trend of Medical Tourism in ASEAN

ASEAN markets have become popular destinations for medical tourists from around the world, offering specialized treatments at competitive prices along with excellent services. While Singapore leads the region in medical tourism, other ASEAN markets have also recognized the potential and made significant advancements to enter the market, each carving out its unique offerings.

DKSH Healthcare, in partnership with FrontierView, a business intelligence and advisory firm, recently released the whitepaper titled "Southeast Asia as a Growth Accelerator for Global Healthcare Firms: Avenues to Accelerate Growth Through Expanded Patient Access." This whitepaper presents our partners with the latest insights and strategies for success in Southeast Asia. It explores the challenges and opportunities within the ASEAN healthcare market, including the growing trend of medical tourism in the region. (Read the whitepaper)

“Unlike many of the markets, Singapore has a world-class healthcare system, strong reputation for medical excellence, and strategic location, making it well-positioned to adapt to these industry shifts;” said Bijay Singh, Global Head Business Unit Healthcare at DKSH.

He added: “Unlike many of its contemporaries in ASEAN, Singapore is highly developed. This may be mistaken as a disadvantage in terms of affordability, but this also allows the nation to continue investing in high-end medical specialties such as oncology, cardiology, and fertility treatments. Additionally, these in-demand offerings could have their appeal further enhanced through integrated healthcare tourism packages.”

The other main players within the region include Thailand, Malaysia, Indonesia, and Vietnam. Each of these markets offer competitive advantages and has recently implemented specific policies to attract international patients.

Thailand has historically been renowned for its affordability and high-quality services, especially in cosmetic surgery and wellness treatments. Malaysia has simplified processes for medical tourists, while also specifically targeting the demographics of Tier-2 cities by lowering its prices to up to 80% of higher-cost markets.

Indonesia has also simplified processes to access medical tourism for foreigners. It is also developing a special economic zone in Batam, especially for medical tourists. Vietnam has attracted significant international investment in its private healthcare sector, a key driver for its medical tourism industry. The government is also actively playing its part by openly including medical tourism as a core pillar of Ho Chi Minh City’s tourism strategy.

“We are also seeing a shift in perception of medical tourism, particularly by focusing on the tourism angle. For example, clinics based in Thailand actively promote IVF procedures to tourists from China as an added activity to be done alongside established wellness and beauty services,” Singh pointed out.

Indonesia is following this trend as well, with Bali’s emerging medical tourism being mentioned as one that combines “medical care with breathtaking landscapes, vibrant culture and delicious cuisine.”

As the competition heats up, markets will need to differentiate themselves beyond cost advantages. We are likely to see greater specialization, with each market focusing on its unique strengths. Ultimately, this trend will benefit patients by providing more options, allowing them to choose the market that best meets their needs.