PENANG is looking to diversify its medical tourism markets beyond Indonesia by exploring opportunities in Cambodia, Myanmar and the Middle East, as the state seeks to strengthen the sector’s resilience and sustain its growth.
State Tourism and Creative Economy Committee chairman Wong Hon Wai said the state was assessing new markets based on its competitive advantages, while continuing to strengthen its presence in established markets such as Indonesia.
He said Indonesia remained Penang’s largest international tourism source market and a major contributor to its medical tourism industry, making market diversification increasingly important.
“About 90% of our medical tourism market is dependent on Indonesia. We recognise this situation and are working on strategies to expand our reach beyond Indonesia,” he said during the Penang State Legislative Assembly.
Wong (PH – Paya Terubong) was responding to supplementary questions raised by Wong Yuee Harng (PH – Pengkalan Kota) on the state’s mitigation strategies should diplomatic policy changes, geopolitical tensions or travel disruptions involving Indonesia affect the arrival of medical tourists.
He said the state was looking at Cambodia and Myanmar as potential markets, noting that both offered opportunities for Penang to expand its medical tourism reach.
“We are also exploring the Indochina market, particularly Cambodia and Myanmar. We have direct flights from Yangon to Penang, making Myanmar another market with potential that has yet to be fully explored,” he said.
The state was also looking towards the Middle East, where Wong noted that many patients travelled to Bangkok for medical treatment.
He said further promotional efforts would depend partly on greater regional stability in West Asia.
“We hope to diversify our markets so that we are not overly dependent on Indonesia. We are also expanding our reach within Indonesia itself, beyond Medan to cities such as Jakarta, Surabaya, Aceh and Padang, supported by direct flight connections,” he added.
On Penang’s medical tourism performance, Wong said the state recorded 527,176 foreign patients in 2025, generating approximately RM1.14 billion in revenue.
For the first half of 2026, Penang welcomed about 285,400 medical tourists, generating RM601.8 million in revenue, according to data from the Malaysia Healthcare Travel Council (MHTC).
He said Penang Global Tourism (PGT) had played an important role in promoting the state’s medical tourism industry through collaborations with MHTC, Penang Centre of Medical Tourism (PMED), Tourism Malaysia, private hospitals and airlines.
These efforts included overseas roadshows, business matching sessions, media and digital promotions, as well as familiarisation trips for local and international media.
Wong said promotional activities had covered markets including China, Indonesia, Singapore, Taiwan and Myanmar, helping to showcase Penang’s medical facilities alongside its tourism attractions.
In conjunction with Malaysia Year of Medical Tourism 2026 (MYMT2026), he said additional initiatives had been introduced, including the Boarding Pass Privileges programme with AirAsia to connect air travel with offerings from medical industry partners.
The expansion of air connectivity was also expected to support the sector, with the Batam-Penang direct flight route commencing on October 18, 2026, providing greater accessibility for patients from Indonesia’s Riau Islands.
Responding to Kumaran Krishnan (PH – Bagan Dalam) on PGT’s plans for 2027, Wong said the Federal Government had designated 2026 as Malaysia Year of Medical Tourism, but had not announced an extension into the following year.
He said Penang would therefore focus on markets where it had stronger competitive advantages.
“For 2027, we will concentrate more on Sumatra and Java, while exploring new markets such as the Riau Islands, Cambodia and Myanmar.
“We are also looking at the Middle East, where there is potential for medical tourism. However, we will have to monitor the stability of the region before stepping up our promotional activities,” he said.
Wong also highlighted the importance of positioning Penang as more than just a destination for medical treatment, with its food, culture, heritage and accommodation options complementing the overall experience for patients and their companions.
He said collaboration between hospitals, hotels, travel agencies and transport providers could make medical trips more convenient while encouraging longer stays, depending on patients’ medical conditions.
On the wider economic benefits, Wong said medical tourism generated spillover benefits for local businesses, including hotels, restaurants, retail outlets and other hospitality-related services.
“Although the state government does not impose a direct tax on medical tourism, the industry generates significant economic benefits when patients and their companions stay in hotels, shop and dine at our local restaurants and businesses,” he said.
Meanwhile, Ong Ah Teong (PH – Batu Lanchang) said Penang should capitalise on the opportunities arising from medical tourism while remaining mindful of developments in other sectors and the potential implications for the wider community.
In response, Wong said the growth of medical tourism could also benefit local patients by encouraging hospitals to invest in more advanced medical equipment and technology.
“When hospitals have a larger pool of patients, including both local and international patients, they can share the investment costs of acquiring the latest medical equipment.
“This gives local patients the opportunity to access more advanced facilities that hospitals might otherwise find difficult to invest in without a sufficient patient base,” he said.
He added that the industry also encouraged doctors to pursue higher qualifications and specialist training, ultimately raising the overall standard of healthcare services in Penang.
Wong said the continued development of hospitals and medical facilities across the state would further strengthen Penang’s position as a leading healthcare destination, while ensuring local communities also benefited from the industry’s growth.
Story by Kevin Vimal
Pix by Law Suun Ting