PETALING JAYA: The adoption of telemedicine has grown by leaps and bounds in Malaysia, especially after the Covid-19 pandemic hit, analysts say.
In a report, BIMB Research said one of the key growth factors for the industry is the convenience for patients.
“Telemedicine allows patients to schedule appointments flexibly, removing the need to follow strict clinic hours. It also reduces transportation costs and travel time, making healthcare more accessible and affordable,” the report said.
It added, telemedicine helps patients maintain continuity of care and supports the ongoing management of chronic diseases without frequent physical visits.
As of last year, the global telemedicine market was estimated to be worth between US$107.5bil and US$135.7bil, with significant growth expected in the future.
Within Malaysia, the increased Internet penetration, governmental support and a shift in consumer behaviour toward digital health solutions have all contributed to the surge.
The report suggested there is potential for this industry to continue growing, citing data from Market Research Southeast Asia, which said Malaysia’s digital health market would reach US$587.9mil last year, expanding at a compound annual growth rate (CAGR) of 9.14% through to 2028, ultimately reaching US$834.2mil.
According to BIMB Research, the corporate sector is emerging as a key opportunity for telemedicine, as more companies today are integrating telemedicine into their employee benefits.
“This opens a large, captive user base for telehealth providers. Strategic partnerships between corporations and telemedicine service providers are on the rise, offering scalable growth potential,” the research house said.
It pointed to examples of large companies such as Google Inc and Amazon.com Inc that have set the standard by offering telemedicine to employees.
The report said the government has been supportive of the industry by laying out a comprehensive framework for telemedicine services with the Telemedicine Blueprint.
With a focus on improving accessibility, care quality, and regulatory standards, the framework also lays the groundwork for public-private partnerships and investments in the industry.
Another important framework is the National Health Digital Framework, under the 12th Malaysia Plan that looks at transforming the national healthcare sector through digitalisation.
The report said despite the benefits, however, telemedicine incurs a high cost due to its infrastructure.
“Healthcare providers need to invest in secure digital systems, high-speed Internet, video conferencing tools, and specialised medical devices like telemedicine carts and remote monitoring equipment,” BIMB Research said.
It added that smaller clinics where there are limited resources might be prohibited by the cost.
On top of that, in underdeveloped regions, supply of stable electricity and reliable Internet connectivity may be lacking.
Regardless, the research house said it foresees the possibility of telemedicine becoming normal in the future.
“We maintain an ‘overweight’ call on healthcare. We opine that the healthcare sector is set for robust future on the back of increasingly discerning patients, greater affordability with accessible credit facilities like credit cards and medical insurance, rising demand for elective surgeries, organic growth in the sector, the digitalisation of healthcare services, a growing trend in health tourism, and an ageing population.”
BIMB Research said it has a “buy” call on IHH Healthcare Bhd
with a target price of RM8.60, as it anticipates robust performance from increased hospital activity and organic growth, and a “hold” call on KPJ Healthcare Bhd with a target price of RM2.52.
