Healthcare sector a structural growth story with long-term upside: Bursa

KUALA LUMPUR: Malaysia’s healthcare sector is a structural growth story, supported by resilient earnings, demographic trends and rising investor interest, according to Bursa Malaysia.
Speaking at the 21st Bursa Malaysia-Hong Leong Investment Bank (HLIB) Stratum Focus Series themed “Malaysia Healthcare Industry Moving Forward”, Bursa Malaysia director of group commercial and market coverage Stephanie Tan Kar Mun said the sector has become increasingly important within Malaysia’s capital market landscape.
“The healthcare sector today is no longer just a social necessity. It is increasingly a structural growth story with a strong investment landscape,” she remarked.
Tan said long-term demand continues to be underpinned by an ageing population, the rising prevalence of non-communicable diseases and growing health awareness.
At the same time, she noted that structural gaps remain, with out-of-pocket healthcare spending accounting for around 35% to 38% of total healthcare expenditure and relatively low public healthcare spending, reinforcing the expanding role of private healthcare providers.
Despite a more volatile macroeconomic and geopolitical environment, Tan said the healthcare sector has continued to demonstrate resilience.
She said healthcare companies recorded approximately 13% year-on-year earnings growth in the first quarter of 2026 despite seasonal softness during the festive period, while Ebitda growth among major hospital groups ranged from 4% to 29%, reflecting continued operational leverage and sustained demand.
“Even during a seasonally softer quarter, results were broadly in line with expectations, reinforcing the sector’s defensive earnings profile,” she added.
Tan said that the sector has consistently outperformed the broader market, with healthcare companies continuing to deliver results in line with expectations while maintaining positive outlooks.
“Overall, this underscores healthcare’s positioning as a defensive yet structurally growing sector, offering both earnings stability and long-term upside, she added.
Looking ahead, Tan identified four structural drivers expected to support the sector’s long-term growth: healthcare travel, with industry revenue projected to reach RM12 billion by 2030; continued capacity expansion and brownfield developments; a shift towards higher-intensity and specialised care to improve revenue quality; and the growth of daycare and ambulatory services to enhance operational efficiency and patient throughput.
“Collectively, these trends point towards a sector that is evolving, not just in scale, but in sophistication and value creation,” she said.
Tan said Bursa Malaysia remains committed to supporting the industry’s growth by providing healthcare companies with access to capital for expansion, innovation and capacity building, while offering investors exposure to a sector characterised by resilience and long-term growth.
She added Bursa Malaysia has seen strong listing momentum across both the Main and ACE Markets, from large-scale offerings to emerging players.
The strong market reception and valuation of Sunway Healthcare Group’s listing reflected a growing investor confidence in Malaysia’s healthcare sector and recognition of its long-term structural growth drivers, including rising healthcare demand, an ageing population, increasing health awareness, medical tourism and continued investment in healthcare infrastructure, Tan said.
She added that stronger valuations enable listed healthcare companies to raise capital more efficiently while supporting partnerships, consolidation and future expansion across the broader healthcare ecosystem.