How to Set Up a Healthcare Business in Malaysia

Penang is widely known for its heritage, food and island lifestyle. It has also developed a strong reputation as one of Malaysia’s leading healthcare-travel destinations.

InvestPenang highlights Penang’s recognition as “Medical Travel Destination of the Year” at the 2020 International Medical Travel Journal awards. The state’s established private hospitals, medical specialists, international connectivity, accommodation and multilingual environment support its appeal to both Malaysian and overseas patients.

Malaysia is also actively promoting healthcare travel as an important service industry. According to Malaysia’s Ministry of Finance, medical-tourism revenue reached RM2.25 billion in 2023, almost four times the amount recorded in 2021.

The Government subsequently allocated RM31 million for Malaysia Healthcare Travel Council programmes under Budget 2025 and a further RM20 million under Budget 2026 to support health-tourism promotion.

For entrepreneurs and investors, this creates opportunities not only in hospitals and clinics, but also in patient coordination, rehabilitation, diagnostics, medical devices, wellness services and healthcare-support businesses.

How to Set Up a Healthcare Company in Malaysia

The correct setup depends on whether the company will provide regulated medical treatment or only non-clinical support services.

1. Incorporate the Company with SSM

Most healthcare businesses operate through a Malaysian private limited company, commonly known as a Sdn. Bhd.

The company will generally require:

• At least one shareholder;
• At least one director ordinarily residing in Malaysia;
• A registered office in Malaysia; and
• A qualified company secretary.

The registered business activities should accurately describe whether the company will operate a clinic, healthcare facility, medical-tourism service, medical-device business or other healthcare-related activity.

Foreign investors should review ownership, licensing, professional-control and capital requirements before incorporating the company, as these requirements may differ according to the proposed service.

2. Obtain Ministry of Health Approval for Clinical Services

Registering a company with SSM does not authorise it to operate a medical clinic, dental clinic, hospital or other regulated healthcare facility.

Malaysia’s Ministry of Health administers the Private Healthcare Facilities and Services Act 1998. The Act requires private medical and dental clinics to be registered and regulates the licensing of private hospitals and other private healthcare facilities.

Depending on the proposed business, approval may involve:

• Approval to establish or maintain the facility;
• Registration or licensing of the premises;
• Appointment of a qualified person in charge;
• Approved floor plans and facility standards;
• Suitable medical equipment;
• Staffing and professional qualifications; and
• Compliance inspections.

The Ministry of Health publishes a dedicated handbook for establishing private hospitals in Malaysia.

Medical practitioners must also hold the appropriate registration and practising credentials with the Malaysian Medical Council before practising medicine in Malaysia.

3. Decide Whether the Business Is Clinical or Non-Clinical

A medical-tourism coordination company that only provides appointment assistance, translation, transport coordination or patient concierge services may not operate as a healthcare facility.

However, it must not:

• Diagnose patients;
• Provide medical treatment;
• Represent unlicensed persons as medical practitioners; or
• Operate a regulated healthcare facility without approval.

Where the company also arranges travel packages, accommodation or tours, separate tourism-related licensing requirements may need to be reviewed.

The Malaysia Healthcare Travel Council provides information on recognised healthcare providers and Malaysia’s healthcare-travel ecosystem.

4. Register Medical Devices Where Applicable

A company importing, distributing or placing medical devices in the Malaysian market may require an Establishment License from the Medical Device Authority.

The Medical Device Authority states that establishments placing medical devices in the market must possess the relevant establishment licence and that the devices must be registered under the Medical Device Act 2012.

Distributors may also need an appropriate quality-management system, including compliance with Good Distribution Practice for Medical Devices.

Medical Device Authority:
https://portal.mda.gov.my/

5. Complete Tax, Employer and Operational Compliance

A healthcare company must also review:

• LHDN corporate tax registration and annual tax compliance;
• Employer registration and payroll deductions;
• EPF, SOCSO and Employment Insurance;
• e-Invoice implementation;
• Withholding tax on overseas payments;
• Transfer pricing for transactions with related companies;
• SST treatment, where applicable;
• Local-authority premises and signboard licences;
• Planning and building approval;
• BOMBA fire-safety requirements;
• Personal-data and patient-record protection; and
• Immigration approval for foreign professionals.

The applicable requirements depend on whether the business operates a clinic, hospital, medical laboratory, rehabilitation centre, medical-device company or non-clinical support service.

Build Your Healthcare Business with Servecorp Group

Establishing a healthcare business involves more than company incorporation. The ownership structure, professional licensing, Ministry of Health approvals, premises, taxation and operating model must be planned from the beginning.

Servecorp Group provides one-stop business setup and compliance support, including:

• Malaysian and foreign-owned company incorporation;
• Company secretarial services;
• Shareholding and corporate-structure planning;
• Accounting and financial reporting;
• Corporate tax and employer compliance;
• SST advisory;
• Payroll support;
• Transfer pricing advisory and documentation; and
• Ongoing corporate-governance support.

Ready to Establish a Healthcare Business in Malaysia?

Whether you are planning a private healthcare facility, medical-tourism service, medical-device company or healthcare-support business, begin with the correct structure and regulatory pathway.

Contact Servecorp Group today to discuss your proposed healthcare business in Penang or elsewhere in Malaysia.

Servecorp Group
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Your Trusted Corporate Advisory Partner in Penang, Malaysia

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