KUALA LUMPUR: Malaysia’s healthcare sector’s growth in 2025 will be supported by increasing medical tourism, inpatient admissions, and complex case treatments, according to Maybank Investment Bank Bhd (Maybank IB).
In a note today, the investment bank highlighted that Indonesia’s growing demand for complex healthcare has led to an influx of medical patients into Malaysia, especially Penang, Kuala Lumpur and Johor.
“This is positive for the sector as foreign patients typically register 20 per cent higher revenue intensity due to higher prevalence of complex cases (such as cancer treatments) and utilisation of additional services,” it said.
At the same time, it noted that Malaysia is also seeing an increased level of wealth, with a growing number of middle-to-high-income earners purchasing medical insurance not just for themselves but also for their family members, including the elderly.
“This eventually translates into increased demand for private healthcare as more people shift from paying out-of-pocket to insurance claims, including corporate coverage under company medical schemes as well as personal medical and health insurance and takaful.
“This leads to a rise in both inpatient admissions and outpatient treatments in private hospitals, with an even more exponential increase post-Covid, which supports the rate of expansion of bed capacity by private players, as well as further expansion plans over the next three years to cater to demand growth,” it said.
Maybank IB noted that with income growth, there is a corresponding rise in complex and acute lifestyle diseases, namely, non-communicable diseases such as cancer, stroke, heart diseases, diabetes, and hypertension, due to changes in lifestyle or eating habits.
“As populations age, we are also seeing rising demand for complex age-related conditions such as spine and joint replacements, heart attacks and lung ailments, arthritis, as well as neurodegenerative disorders such as Parkinson’s and Alzheimer’s.
“Not to mention the prevalence of geriatric syndrome (where patients register several health conditions) for senior citizens beyond the age of 65 years old, which further adds to case complexities and likelihoods of complications,” it added.
Overall, Maybank IB remained positive on the sector, with ‘buy’ calls for IHH, KPJ and OPTIMAX for their growth outlook.
– BERNAMA
