Strategy For Moving Forward
Growth of the Northern Corridor services sector will be promoted via 4 strategic thrusts:
Focused development of major tourist destinations
In contrast to the previous approach of developing many small and dispersed attractions on the NCER mainland, future development efforts will be more focused.
Initial efforts will concentrate on re-energising and re-branding Langkawi and Pulau Pinang, while subsequent efforts will involve selecting 2–3 locations on the mainland which shall become the hub around which a critical mass of attractions will be developed.
The aim is to have enough attractions within a 15–30 minute drive that would compel tourists to stay for 4-7 days. Anchor resorts and attractions shall be pro-actively courted, while surrounding developments will be regulated, to ensure that the tourism offerings will appeal to a global target group. Where required, environmental assets will be rehabilitated and connectivity to airports and major highways improved.
With the aimed increased length of stay and spending, the target is to achieve increased tourism receipts per visitor from RM1,890 in 2005 to RM3,034 by 2012. Annual tourist expenditure is targeted to increase from RM9.0 billion in 2005 to RM21.8 billion in 2012 and RM64.5 billion in 2020.
Enhancing the Northern Corridor islands to become a premier destination for medical tourism
The market for medical tourism has huge potential for growth and is expected to bring in RM2.2 billion a year in national earnings by 20101.
Pulau Pinang is already at the forefront of Malaysia’s medical tourism industry, and can be enhanced to become the regional medical tourism hub in Asia. The strategy is to position Pulau Pinang as the destination of choice for foreign nationals seeking affordable cosmetic and elective surgery, and to expand medical tourism in the Northern Corridor to Langkawi, given the scarcity of land in Pulau Pinang to build new facilities. Medical tourists would be able to get their surgery performed by highly-qualified surgeons in state-of-the-art medical facilities, and enjoy peaceful recuperation in complete anonymity at world-class resorts and health spas.
Although the Pulau Pinang State Government is already actively promoting its private healthcare facilities for cosmetic surgery and other medical treatments, it needs to stand out from regional competitors, like Singapore and Thailand. Pulau Pinang needs to build a reputation as the centre of excellence for selected specialist areas, for example cardiac care and cosmetic surgery. In Pulau Pinang, it is reported that the services most in demand by foreign patients are cardiology, cardiothoracic surgery, general surgery, orthopaedic, eye and obstetrician/gynaecological services, as well as general medical screening2. It is also a prime destination for cosmetic surgery, which accounted for about 23% of the treatment sought by foreign patients in the years 2001-20033.
Pulau Pinang should also target medical tourists from developed countries as they typically have higher spending power. Currently, the majority of foreign patients in Malaysia are from developing countries – Indonesians accounted for 72% of total foreign patients in 2003. Thailand, on the other hand, has been targeting foreign patients from Japan, the USA and Europe. It attracted 800,000 foreign patients, with healthcare spending of over USD465.5 million in 2003 – well over the USD39.8 million estimate for Malaysia4.
Langkawi can add to the medical tourism industry in Pulau Pinang by offering complementary medicine, traditional therapies and spa treatments, leveraging on the rising consciousness among developed nations on health and wellness. The global market for traditional therapies is estimated at USD60 billion5. In the past five years, 80% of people in Southeast Asia have been found to use some form of traditional therapy regularly. There is also a growing trend in the popularity of alternative medicine for convalescent and recuperative purposes – 75% of the French population have used complementary medicine at least once, while in Germany, 77% of pain clinics offer traditional remedies6.
The strategy of refocusing the NCER’s medical tourism strategy is targeted to generate more than RM350 million per annum for the Region’s economy by 2012. A vibrant healthcare services industry would also contribute towards reinforcing the services sector and creating employment opportunities.
Enhancing the local community’s participation in the tourism sector
The multiplier effect of the tourism sector in the Northern Corridor will be significantly enhanced by introducing specific mechanisms for the local community to participate in and benefit from tourism. The local handicraft sector in the Northern Corridor will be organised and increased in scale, similar to the implementation of agriculture programmes. Additionally, for major tourist destinations such as Langkawi, programmes will be introduced to farm produce in situ for supply to local hotels and restaurants. This would enable the local community to earn income from sales of produce as well as revenue from farm visits, and reduce the island’s dependency on food from the mainland.
Enhancing the NCER ports and logistics sector
Logistics service is one of the promoted sectors in the Third Industrial Master Plan. For the Northern Corridor, the strategy is to leverage on its strategic location and connectivity. Proximity to the hinterlands of Sumatera and Thailand will be taken advantage of to access raw materials and finished products which will be processed and/or exported via international ports in the Region.
The target is to increase total volume of containerised cargo from the current 770,000 TEUs to 1 million TEUs7 by 2012.
- Ministry of Health
- SERI, 2004
- The Sun Weekend, 31 July-1 Aug 2004
- The New Straits Times, 19 March 2005
- National Tourism Policy (2004-2010)
- National Tourism Policy (2004-2010)
- Penang Port Sdn Bhd (PPSB)