Johor poised for major hospital expansion amid rising healthcare demand
KUALA LUMPUR: Johor is set for a major expansion in both public and private hospital developments, driven by rapid population growth, accelerating urbanisation, and increasing demand for high-quality healthcare services.
According to Samuel Tan, founder and chief executive officer of Olive Tree Property Consultants, the state's growing population—driven by local expansion, migration, and its close ties with Singapore—is generating an urgent need for additional hospitals.
"The expanding population is putting pressure on existing healthcare infrastructure. We're seeing a growing demand for hospital beds, medical specialists, and advanced treatment facilities," Tan told Business Times.
He further noted that Johor's economic diversification, continued industrialisation, and enhanced cross-border connectivity are reinforcing the urgency of healthcare infrastructure development.
"While each district has at least one hospital, the increasing number of workers, tourists, and investors in Johor makes it clear that more healthcare infrastructure is necessary," he said.
Tan added that strategic planning and sustained investment will be critical to ensure Johor's healthcare system can meet future public health needs and support long-term socio-economic development.
"As Johor continues to grow, ensuring equitable access to healthcare across both urban and rural areas is essential. This is not just about adding more hospitals—it's about building a modern, integrated healthcare ecosystem that can support the region's future growth," he said.
Johor's healthcare landscape and the role of JS-SEZ
Tan pointed out that Johor already has a relatively well-developed healthcare landscape, featuring a balanced mix of public and private institutions. The private healthcare sector, in particular, is known for its efficiency, quality of care, and appeal to medical tourists.
Johor's healthcare profile is further elevated by the Johor-Singapore Special Economic Zone (JS-SEZ)—a strategic cross-border initiative formalised on Jan 7, 2025. The agreement, signed by Prime Minister Datuk Seri Anwar Ibrahim and Singapore's Deputy Prime Minister Lawrence Wong, included six memoranda of understanding and a letter of intent.
As part of the JS-SEZ, the Johor state government is actively inviting international healthcare and pharmaceutical companies to invest within the zone. Several stakeholders have already expressed interest in developing hospitals, clinics, and pharmacies.
"Medical tourism will be a key growth driver under the JS-SEZ," said Tan. "Singaporeans and international patients are increasingly choosing Johor for medical treatment due to its lower costs, availability of skilled professionals, and state-of-the-art medical technology."
He added that rising healthcare costs in Singapore further enhance Johor's appeal as a cross-border healthcare destination.
Ongoing and upcoming hospital projects
Urbanisation and industrial development across Johor, especially in Johor Bahru, are amplifying demand for modern healthcare facilities. This is compounded by rising incidences of chronic diseases and an ageing population requiring long-term care.
Johor Bahru currently hosts several established private hospitals catering to both local and international patients, including KPJ Johor Specialist Hospital, Regency Specialist Hospital, Columbia Asia Hospital, and Gleneagles Medini.
On the public side, Hospital Sultanah Aminah (HSA) remains the largest government hospital in the state, while Hospital Sultan Ismail (HSI) functions as a major referral centre, particularly for cancer and specialised care.
To alleviate pressure on these facilities, new hospitals are in development. Among them is the 304-bed Pasir Gudang Hospital in Bandar Seri Alam, Masai—slated for completion in June 2025 at a cost of RM380 million. It is expected to significantly ease patient congestion at HSI.
Another major initiative is Hospital Sultanah Aminah 2, a public-private partnership project set to begin construction in 2026. The new hospital will offer 1,500 beds and will be developed on a 28.33-hectare site provided by the Ministry of Defence.
"With these developments, Johor is not only enhancing its healthcare system for residents but also positioning itself as a hub for medical tourism, elderly care, and wellness," Tan said.
Future outlook: Elderly care and preventive healthcare
Looking ahead, Tan believes Johor is well-positioned to become a centre for elder care, rehabilitation, and retirement living. He also highlighted a shift toward preventive healthcare, with trends like genome sequencing and lifestyle-based disease prevention gaining traction.
"These emerging approaches are expected to reduce long-term medical costs and help ease the burden on healthcare facilities," he said.
According to the Department of Statistics Malaysia (DOSM), the percentage of Malaysians aged 65 and above is projected to rise from 8.1 per cent in 2024 to 14.5 per cent by 2040. This demographic shift underscores the urgent need to expand healthcare infrastructure and services to meet the demands of an ageing population.
Malaysia continues to be recognised globally for its robust healthcare system. Tan pointed out that in the 2019 International Living Annual Global Retirement Index, Malaysia scored 95 out of 100 and ranked first in the "Best Healthcare in the World" category.
"Malaysia remains a top choice for international patients seeking affordable, high-quality medical care—and Johor is emerging as one of its most important healthcare frontiers," Tan concluded.
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