PETALING JAYA: Malaysia’s healthcare system is undergoing a digital revolution with the adoption of artificial intelligence (AI) that promises to enhance efficiency, reduce costs and improve patient care, though there are challenges involved, say health experts.
Dr Mahesh Appannan, director of the Health Ministry’s Digital Health Department, said AI is significantly raising efficiency and cost-effectiveness in Malaysia’s healthcare system without replacing human expertise.
Noting patients’ waiting times at the ministry’s digital primary healthcare facilities, he said: “AI automation in patient registration, record retrieval and consultation room assignments has cut waiting times to under 30 minutes – an improvement over manual processes.”
This system is currently in place in 56 clinics across Malaysia, with plans to triple this number by this year, he revealed.
AI is also transforming patient management with tools like scheduling, chatbots and virtual assistants, which ease staff’s workload, he added.
“AI-powered remote monitoring and personalised treatment plans are improving patient outcomes and reducing hospital readmissions.
“In addition, it optimises drug inventory and supply chains, preventing wastage.
“Telemedicine and AI-assisted consultations enhance accessibility and reduce hospital congestion.
“Studies have suggested that AI could lower healthcare costs by 10% to 30%,” he said when contacted.
Though specific studies quantifying AI’s impact on medical expenses in Malaysia are limited, international research has underscored its potential.
McKinsey & Company estimates that AI could save 13% to 25% in administrative costs and 5% to 11% in medical costs while Harvard University reports that AI can improve health outcomes by 40% and reduce treatment costs by up to 50%.
However, challenges exist, such as in integrating AI with outdated hospital IT systems and safeguarding data privacy.
“To drive broader AI adoption, Malaysia must invest in healthcare technology, establish clear AI regulations, and build local capacity, ensuring sustainable growth and innovation in the sector,” said Dr Mahesh.
At the annual meeting of the World Economic Forum in Davos, Switzerland, recently, Prime Minister Datuk Seri Anwar Ibrahim noted that AI in the healthcare system would boost efficiency and help cut cost wastage.
National Cancer Society of Malaysia managing director Assoc Prof Dr M. Murallitharan said the society and the ministry have implemented two AI projects focusing on reducing costs and improving efficiency.
In many private clinics, patients undergo yearly check-ups, but with AI, it can determine if such frequent testing is necessary, he explained.
“For example, lung cancer screening traditionally requires costly annual low-dose CT scans in hospitals. By adapting existing chest X-rays in GP (general practitioner) clinics with AI, the cost per scan increases by less than RM5. X-rays are inexpensive, costing only around RM35 to RM40, so lung cancer can now be detected in GP clinics for only about RM50,” he said.
This pilot programme, he added, has been running for six to eight months and is expanding across Malaysia, making lung cancer screening more accessible and affordable.
However, Dr Murallitharan said challenges remain in the private sector because AI-enabled home monitoring reduces doctor visits, thus affecting doctors’ income and causing resistance.
AI also poses risks as errors raise questions about responsibility, he said.
“Doctors need guidelines and training to use AI as a supportive tool while maintaining their judgment,” he added.
St John Ambulance of Malaysia executive manager Kevin Peter Ryapan said AI enables speedy diagnosing of health issues, allowing for treatment to be administered and faster recovery.
But it could only be achieved if private clinic owners prioritise patients’ interests over their own, he opined.
“Our healthcare system is divided; government and private healthcare facilities don’t share the same patient information system.
“This can lead to repeated tests at the patient’s expense. It’s crucial for both sectors to integrate and offer consistent services at the same cost,” he said.
Dr Azree Nazri, head of laboratory at Universiti Putra Malaysia’s Institute of Mathematical Research, highlighted Malaysia’s healthcare digitalisation efforts, notably through MySejahtera during the Covid-19 pandemic.
However, he said the widespread adoption of AI in both public and private healthcare sectors comes with hurdles such as data interoperability, regulatory gaps and infrastructure limitations.
“For private clinics, adopting the value-based healthcare (VBHC) model with AI integration for remote monitoring and diagnostics is essential to maintain efficiency and high-quality care,” he said.
Dr Azree cites the example of Singapore, which excels in AI-powered telemedicine and predictive hospital resource management.
In Britain, its NHS (National Health Service) uses AI for patient triage and robotic-assisted surgeries, boosting efficiency.
Denmark’s VBHC model employs AI for remote patient monitoring, reducing hospitalisation rates by 30% for chronic disease patients.
South Korea’s AI health analytics aids early cancer detection and drug development.
In Malaysia, the MySejahtera app could evolve to integrate AI-driven patient management, he said, adding that the Central Database Hub (Padu) system ensures data interoperability and real-time tracking.
For private clinics, he said, AI-integrated VBHC models can tailor treatments to patient outcomes.
“AI-driven predictive analytics can improve chronic disease management,” he added.
Dr Azree also suggested that Malaysia leverage MySejahtera and Padu to create risk-based insurance models that lower premiums for preventive care.
