Opening a clinic in Malaysia: What Are the Costs?
As the population becomes more educated and wealthy, there is also an increase in demand for private healthcare and services. This is a golden opportunity to branch out of your own clinic.
However, establishing a clinic on your own can be a time-consuming and tedious process. Thus, the procedure is frequently lengthy, difficult, and costly to open this business.
Hence, the aim of Private Healthcare Facilities and Services Act 1998 and Regulations 2006 is to simplify the licensing and incorporation process for private medical services in Malaysia.
Furthermore, private clinics in Malaysia are regulated by the Private Healthcare Facilities & Services Act 1998 and Regulations 2006, are established on a premise other than a government healthcare facility, and are intended to provide medical and outpatient services.
The treatments include:
- Firstly, the screening, diagnosis, and treatment of a person suffering from any disease, injury, or disability of the mind or body
- Secondly, providing preventative or promotional healthcare services.
- Thirdly, the treatment or alleviation of a human body abnormal condition.
Moreover, if you want to open a clinic, you must pay the processing fee. A processing fee of RM500 must be paid to UKAPS Jabatan Kesihatan Negeri/Wilayah Persekutuan (JKN/WP) and submitted for processing.
Next, when the application is approved, you have to pay RM1000 for the registration fee.
However, you will need to visit the nearest SSM office once for confirmation of identification. Then, make the payment of RM1,000 as an incorporation fee (before tax) and get a transaction receipt.
How Much Does It Cost to Open a Clinic in Malaysia?
Clinic overhead costs used to range between RM20,000 and RM30,000, but they have risen to between RM200,000 and RM300,000 now that the cost of purchasing equipment and supplies is included, or possibly even higher. For instance, rent, insurance, wages, and living expenses for the first few months.
Example of the rental price of the premises: RM5,000.00
You need to include:
👉 Advance Rent: RM5,000.00
Advance rent is a security deposit for the rent that is agreed upon between the owner and the tenant to ensure that the tenant is not reluctant to pay the rent every month.
👉 Security Deposit (2 months): RM10,000.00
The security deposit is used to cover any damages to the property or any furniture provided by the owner caused by the tenant during the rental period.
👉 Utility Deposit (1 month): RM5,000.00
A security deposit for utility bills such as water, electricity, or shop maintenance fees.
👉 Rental Agreement: RM350.00
Legally record the conditions to avoid doubts such as rental rates and fixed periods, protect the tenant’s deposit, protection for the owner, and others.
👉 Signing a Rental Agreement (2 years): RM462.00
A contract agreed between the owner and the tenant to protect their rights throughout the tenancy period.
⚡️ TNB Transfer: RM2,673.00 (if necessary)
💧 SYABAS transfer: RM362.10 (if necessary)
Estimated total: RM23,847.10
However, the price above is only about the place to rent to open a clinic based on location, not including medical equipment and others. If you buy premises to open a clinic, the price may be more expensive because it requires renovation.
Here are the other costs after you have successfully obtained the premises to open the clinic such as:
🔷 Building renovation RM100,000
🔷 Medical equipment RM150,000
🔷 Furniture RM10,000-RM50,000
🔷 KKM license fee/ business license RM5,000
🔷 Procurement of drug RM20,000
🔷 Others RM4,000
The estimated cost to open a clinic is between RM300,000-RM350,000.
That’s just a rough estimate to open a clinic. Maybe less or more than the amount I shared.
Here are the basic steps to opening your own clinic in Malaysia:
- Make sure you have done your research on the location of your new clinic.
- The procedure for registration with SSM
- Approval of signboard for your clinic from the local city council
- Renovation of your premise…It is important to have a proper floor plan layout.
- Certificate of Practicing for each year (APC).
- Advertisement Licensing.
- Inspection of the private clinic by UKAPS.
- The procurement of drugs.
- Launch your clinic.
To open your own clinic, you need a large budget and, of course, you want to reduce the budget by purchasing medications from suppliers who supply cheaper and good products to your clinic.
With this in mind, you can place your first order of drug supply with us at Mayflax!
Mayflax serves healthcare professionals and one-stop pharmaceutical wholesaler that provides over 2,000 quality pharmaceutical products to healthcare professionals at low prices with fast delivery. Then, Mayflax is the best choice for your medicinal needs.
Find out more about our quality products and affordable services on our website.
About the author
Bachelor of Science (Hons) Pharmacology, is a Customer Relationship Executive of Mayflax, one of the nation’s leading healthcare and marketing companies.