How to Set up a Medical Clinic in Malaysia

How to Set up a Medical Clinic in Malaysia

After years of experience in hospitals and long working hours, are you ready to set up a medical clinic in Malaysia you can call your own?

With overcrowding being a persistent problem in the public healthcare system, Malaysians started favouring private healthcare since they provide more advanced facilities and better medical care. So, setting up a clinic would be a sensible choice.

Due to the surge in demand for private healthcare, the Private Healthcare Facilities and Services Act 1998 and Regulations 2006 was formed. It constitutes a private clinic as one that is built on a non-government premise with intentions to practice medicine and treat outpatients.

treatment

It defines treatment as:

  1. Identification, diagnosis, and treatment of a patient suffering from any physical or mental ailment
  2. Preventive or promotive healthcare
  3. To provide the patient relief from any physical or mental abnormal condition prevailing in them

Hence, the Act helped to simplify the licensing and incorporation process for private healthcare services in Malaysia.

The Malaysian healthcare system is a two-tier organisation – Public Universal healthcare and Private healthcare. The Ministry of Health regulates and monitors the latter whereas, the Licensing Unit of Ministry issues licenses to clinics, private hospitals, nursing homes, and maternity homes.

A Guide on How to Set Up a Medical Clinic in Malaysia

Guide on How to Set Up a Medical Clinic

Location Selection

  • When selecting a location, consider and research:
    1. The demographic and their financial status.
    2. The population density.
    3. Residential or commercial are, as somewhere with sufficient parking is ideal.
    4. Are there other clinics in the vicinity? Because you might want to avoid too much competition.
  • Renting or owning a building is necessary.
  • If you are renting, be prepared for at least three months’ worth of rent and a well-written and reviewed rental agreement.
  • The Private Healthcare Facilities and Services Act 1998 and Regulations 2006 require you to register with your respective state. The state office may accept your application after you pay a processing fee and meet all requirements. They will then issue a Letter of No Objection, permitting you to begin your clinic’s interior renovation and furnishing.

Preparing Your Medical Clinic

  • As stipulated in ACT 586, you are required to draw up your clinic’s floor plan with a contractor. Be sure to include a room list and the measurements for treatment rooms, consultation rooms, etc.
  • Amend your APC (Annual Practicing Certificate) at the Ministry of Health to include your new clinic address. The Medical Act 1971 states that medical practitioners must register with the MMC and apply for the APC every year.
  • Then, you need to obtain a license for clinic advertisement from your local council or Kuala Lumpur City Hall. The processing time is approximately two months.
  • Using your APC, open an account with manufacturing companies and place your drug supply orders.
  • Moreover, complete your staff’s EPF and SOCSO accounts beforehand.
  • Additionally, installing an x-ray machine will require a specific license.
  • Register with the Companies Commission of Malaysia under the Registration of Business Act 1956. Foreign companies will need to incorporate their company under the Companies Act 2016 to set up a private practice in Malaysia.

Once everything is in place, you are ready to open a medical clinic!

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Company registration in Malaysia: Here’s what you need to know

Cr. Drew Beamer

Source from bas.com.my

There are few different methods in legal structure to register your new venture or company in SSM Malaysia:

A) (LLC )Limited Liability Company also know as Sendirian Berhad (Sdn. Bhd.) in Malaysia
B) (LLP) Limited Liability Partnership 
C) Partnership or Individual Company  (Sole-proprietorship)

The size and scalability of your business is important as the type of registration would be based on your business.

Option A would be the best recommendation to register a Limited Liability Company (Sdn. Bhd.) as it offers:

  • A vehicle for your business to a separate entity legal structure and it protects your personal wealth and end up with the company having a limited liability up to its paid-up capital.
  • More tax savings plan for small and medium business in terms of tax incentives and better tax rates by the Malaysia government.
  • Better monitoring and control for Sales and Services Tax (SST) under a company
  • A variety of sources of financing fom banks loan, investor and even capital market with the vehicle
  • An investment for holding company and joint venture project using the Special Purpose Vehicle (SPV)
  • Starting and maintaning a company is affordable for all type of businesses when comparing the values.

Budget and plans needed before starting

  • Search the availability of the name you have chosen: pick more than one just to be safe
  • Have at least one director and shareholder, based on the new Company Act 2016
  • Open a bank account and check with your banker to make sure that they accept your company.
  • Have a budget estimate at an appropriate amount of rate for yearly professional charges for the company.
  • Prepare a full set accounts for audit and tax purposes by hiring a full-time clerk or part time account person to help you.
  • Open an income tax file number with LHDN once the company start to issue bill/invoice.
  • To register with IRB (LHDN) as Employer (E number) when your company is starting to hire staff
  • Contribute EPF, SOCSO and EIS for your staff is statutory requirements
  • Deduct PCB from their pay and remit it to LHDN if you are paying your staff more than RM3,000 per month.
  • If you are withdrawing director’s salary from the company, please contribute EPF, SOCSO and EIS for yourself
  • If you are withdrawing director’s fee from the company, then you do not need to contribute EPF, SOCSO and EIS
  • Apply for SST license if your company’s yearly sales for taxable goods and taxable services is expected to be more than RM500,000 and RM1,500,000 for a restaurant. Refer to Taxable Services threshold table.
  • Get trading/signboard licenses from local authorities/governments (DBKL, MBPJ, MBSJ, MBAJ, etc…) before opening your shop/office
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Setting up your own clinic

Cr. Martha Dominguez de Gouveia

Source from bas.com.my

Malaysians nowadays are gradually shifting towards private healthcare system due to better facilities and care that are being offered compared to Public healthcare system. Not to forget how Public healthcare system are usually dealing with overcrowding issues.

Hence it is very appropriate for you to open your own private clinic at this time, which could bring a great deal of profit.

Ministry of Health regulates and monitors the private healthcare system while the Licensing Unit of Ministry is responsible for issuing licenses to private hospitals, maternity homes, clinics and nursing homes.

Steps to set up a Clinic in Malaysia

1. Location

A proper research is needed before a location is picked and lots of factors have to be considered like is it going to be in a residential or a commercial area, the population density, the financial status of the diaspora and most importantly presence of other clinics.  Having a spacious parking area available for your customers is always advantageous while catering to patients.

2. Obtain the Premises

Having your own building is great but if you’re thinking on renting then have an advance 3 months amount of rent ready and prepare a proper rental agreement after a  discussion with the building owner. 

3. Registration Process

Setting up a private clinic in Malaysia is not easy as they should register under the Private Healthcare Facilities and Services Act 1998 and Regulations 2006 with the respective state. The application may be accepted by the state office after taking a small amount of processing fee with all requirements fulfilled and after being issued a Letter of No Objection, the interior renovation and furnishing of the clinic can be started.

4. Proper Floor Plan Layout

Various physical criteria needed to be approved under Act 586 and it is necessary to work closely with the contractor that has been hired to draw out the layout you have in mind for your clinic which may include measurements for consultation room, treatment room, waiting area, pantry, pharmacy, dispensary, etc.

5. Annual Practising Certificate

Every medical practitioner needs to be registered with the MMC (Malaysian Medical Council) as per the Medical Act 1971 and must necessarily apply for Annual Practising Certificate (APC) every year. When you have kick-started your own private clinic, it is highly recommended to amend your APC to include your new clinic address. This can be quite easily done at the Ministry of Health, Putrajaya.

6. License for Advertisement

Starting with advertisements is advisable as it would attract future customers to your clinic but before that, a license need to be obtained for clinic advertisement issued your local council – like DBKL (Kuala Lumpur City Hall) which takes two months. You may start your advertisement campaign when it is approved and beat your competitors.

7. Procurement of Drugs

Open an account from various manufacturing companies so that you could procure the medicines and drugs needed for your clinic. Once the account is active (by using APC (Annual Practicing Certificate), you can place orders for drug supply.

8. Staff

Ensure staff’s EPFF and SOSCO procedures are completed at the nearby KWSP/EPF and PERKESO offices and to hire well-qualified staffs and helpers that would make your clinic thrive.

9. X-ray Machine Installation 

Remember to apply for a license if you ever planning to install an X-ray machine at your clinic as it is entirely different than the ones you currently have.

10. Companies Commission of Malaysia

The final mandatory requirement to set up your own clinic is to get registered with the Companies Commission of Malaysia, under the Registration of Business Act 1956.

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