Malaysia on track to become healthcare hub

The Star

4 days ago

PETALING JAYA: Malaysia is poised to be a major healthcare hub due to quality care, advancing technologies and growth in the sector, says MBSB Research.
However, the research house said it believes challenges persist due to the country's ageing population, increasing prevalence of non-communicable diseases and communicable diseases, as well as financing pressures.
'The challenges are no longer just about basic access, which has largely been achieved in Peninsular Malaysia, but about quality, efficiency, equity and sustainability in the face of rising costs and demand.
'Malaysia is not adhering rigidly to one ideological model – fully public or fully private. Instead, it's embracing a pragmatic, dual-tier system with increasing public-private partnerships,' the research house said.
It pointed out that the Malaysian healthcare industry is in a critical phase of transformation, where the success of the journey will depend on the ability to effectively implement strategic changes.
MBSB Research added that the country has a strong foundation in the healthcare sector as well as a clear understanding of its complex challenges and an ambitious roadmap for reform.
The research house believes the country will need to sustain the political will to navigate the inherent difficulties of comprehensive reforms, ultimately aiming for a truly equitable, high-quality and sustainable healthcare system for all.
It said it believes that the government's continued heavy subsidisation of public healthcare and the active pursuit of universal health coverage through various initiatives demonstrate a fundamental commitment to ensuring that healthcare remains a right for all citizens.
This was evident by the Budget 2025's allocation of RM45.3bil for the local healthcare sector. 'The willingness to address high out-of-pocket payments also directly signifies a focus on financial-risk protection for its citizens,' it said.
It added that the Health Ministry's emphasis on digitalisation, data analytics and value-based healthcare also indicates a forward-looking approach.
MBSB Research maintained its 'positive' stance on the sector due to its resilient support from the government, the drive from ongoing trends and the leverage of contributing to local and regional economies.
It expects the Malaysian healthcare sector's overall revenue to grow at a five-year compound annual growth rate of between 6% and 8% up to 2030.
Its top pick for the sector is KPJ Healthcare Bhd , as it is well-positioned to capitalise on the sector's positive outlook due to its established market presence, strategic growth initiatives and improving financial performance.
'With its large network of private hospitals (30 hospitals and four ambulatory care centres), the group has strong brand recognition across the country while serving the growing domestic demand for quality and affordable private healthcare services,' the research house said.
KPJ also has the advantage of improving its operational efficiencies through its 'KPJ Health System' framework, while heavily investing in digital capabilities with about RM400mil allocated for digitalisation and advanced medical technology.
'Overall, KPJ's robust growth strategy, strong financial performance and leading market position in a structurally growing sector make it an attractive proposition in the Malaysian healthcare landscape,' MBSB Research added.