December 21, 2009
KUALA LUMPUR, Dec 21 (Bernama) — The services sector is expected to expand by 3.6 per cent to become the country’s main driver of growth next year, Prime Minister Datuk Seri Najib Tun Razak said Monday.

He said for Malaysia to achieve the developed economy status by 2020, it must be a more services sector-driven economy.

“While a strong and vibrant manufacturing sector will remain important for the country, we expect more contribution for growth to come from the services sector,” Najib said at the launch of Malaysia Healthcare Travel Council here.

He said although the country has enjoyed growth driven by exports from the manufacturing sector, competition in traditional areas of strength was getting more intense and it was inevitable to meet the challenge and change.

Therefore, the government has identified healthcare travel as one of the new sources of growth in its effort to push for sustained economic growth, with emphasis on the services sector.

Najib noted that the Third Industrial Masterplan has identified healthcare travel as one of the potential services sub-sectors to generate national economic growth, and compared to many countries, developed and developing, Malaysia’s healthcare costs are very competitive.

“Malaysia’s private healthcare industry is a hidden jewel that has a strong potential to compete successfully and to be an earner of foreign exchange,” he said.

Najib said the top 35 private hospitals of the country’s healthcare industry had been able to collectively see their revenue grow to RM299.1 million in 2008 with around 375,000 medical tourists, from RM58.9 million with 103,000 medical tourists in 2003.

He said in terms of growth, medical tourists grew at an average 35 per cent annually during that period, and that although the performance for the first half this year had been affected by the H1N1 pandemic, revenue per patient grew.

(Source: Bernama)