PETALING JAYA: Malaysia’s healthcare sector is well-positioned for continued growth, supported by structural trends such as an ageing population and rising cases of non-communicable diseases (NCDs).
These factors, coupled with an expanding healthcare pipeline, provide a positive outlook for the industry moving forward, analysts said.
RHB Research recently shared its insights following its second Healthcare Sectoral Sharing session, organised in collaboration with Bursa Malaysia.
The research house reiterated its “overweight” stance on the sector, emphasising that “the industry’s healthcare expansion pipeline, a growing number of NCDs, and ageing society” remain key growth drivers.
One significant topic discussed was the proposed implementation of the diagnostic-related group (DRG) billing system.
Datuk Dr Kuljit Singh, a key speaker representing the Association of Private Hospitals of Malaysia (APHM), expressed support for the DRG system provided “the mechanism is carefully designed and able to demonstrate an improving patient outcome”.
While DRG has already been long in place in several countries’ healthcare systems, it is not mandatory for private healthcare.
RHB Research noted: “APHM is of the view that the proposed DRG mechanism in Malaysia should be implemented in such a manner where private hospitals are reimbursed based on DRG rates when public hospitals shift patients to the private sector.”
The issue of rising medical insurance claims was also addressed.
Following Bank Negara’s recent ruling to cap premium hikes until the end of next year, insurance and takaful operators (ITOs) are exploring cost-control measures.
RHB Research noted that “despite the ITOs considering delisting private hospitals from the guarantee-letter facility, APHM firmly opposes such a move as this could undermine a patient’s right to access quality care.”
In response, APHM has proposed alternative solutions, including co-payment schemes, the National Health Insurance Scheme (NHIS), non-claim bonuses and exemption of sales and service tax on group insurance for employees.
The NHIS remains an unresolved matter due to changes in Malaysia’s political landscape.
According to RHB Research, APHM sees several challenges such as long waiting time at public hospitals, rate of contributions from income earners, as well as service quality.
The research house maintained KPJ Healthcare Bhd
as its top pick for the sector, citing its domestic- focused operations.
Conversely, healthcare players with significant overseas exposure may face continued challenges due to “inflationary and geopolitical uncertainty”, the research house said.
