Healthcare sector to record 12% growth towards 2030

KUALA LUMPUR: Malaysia’s healthcare sector is projected to record around 12% growth towards 2030, driven by an ageing population, rising chronic diseases, expanding private healthcare services, medical tourism and digital health adoption, according to Frost & Sullivan.
Frost & Sullivan head of healthcare & life sciences (advisory, APAC) Rathanesh Ramasundram said these structural trends are expected to create long-term opportunities across hospitals, pharmaceuticals, medical devices, diagnostics, healthcare technology and other healthcare-related industries.
“The healthcare market is growing because of an ageing population, demographic shifts, private sector expansion, non-communicable diseases (NCDs), medical tourism and digital health. What is more important is understanding the implications of these trends for Malaysia’s healthcare system and where the opportunities lie,” she said at the Hong Leong Investment Bank (HLIB) and Bursa Malaysia co-hosted 21st Bursa Malaysia-HLIB Stratum Focus Series themed “Malaysia Healthcare Industry Moving Forward” yesterday.
She pointed out that Malaysia is approaching a major demographic turning point, with the country expected to become an ageing nation by 2030 when about 15% of its population will be aged 60 and above. By 2050, nearly one in four Malaysians is projected to be over the age of 60, increasing demand for chronic disease management, long-term care, geriatric services and home healthcare.
According to Rathanesh, the country’s changing demographics, coupled with the rising prevalence of chronic illnesses, will fundamentally reshape healthcare demand over the coming decades as more Malaysians require long-term treatment, rehabilitation and continuous disease management.
“Demand is expected to continue rising across pharmaceuticals, medical devices, oncology, cardiology, endocrinology and home healthcare services as Malaysia’s ageing population and growing prevalence of non-communicable diseases drive the need for long-term treatment and disease management.”
Private healthcare, she said, will remain one of the sector’s primary growth engines, supported by a growing middle-income population, expanding health insurance penetration and increasing utilisation of private healthcare services.
Besides hospital operators, the expansion is expected to benefit pharmaceutical companies, medical device manufacturers, diagnostic service providers and other ancillary healthcare businesses as demand for more specialised healthcare services continues to rise.
“Insurance is one of the major drivers in private healthcare because greater access to private insurance encourages more patients to utilise private healthcare services,” she said.
Rathanesh said non-communicable diseases continue to pose Malaysia’s biggest healthcare challenge, with cardiovascular disease, cancer and diabetes accounting for nearly 60% of NCD-related deaths while driving more than 60% of demand for pharmaceuticals and specialty healthcare services.
She said the growing prevalence of these chronic illnesses is placing increasing pressure on the country’s healthcare system, requiring sustained investment in specialised treatment, medical technologies, hospital capacity and long-term patient care.
She noted that NCDs impose an annual economic burden of about RM64.2 billion, equivalent to 4.2% of Malaysia’s gross domestic product (GDP), underscoring the need for greater investment in preventive healthcare, diagnostics, early health screening and specialty care.
She also highlighted Malaysia’s Health White Paper 2023 as a key long-term policy blueprint underpinning the country’s healthcare transformation.
The framework is built around five strategic pillars which are strengthening preventive healthcare, reinforcing primary care services, fostering greater public-private collaboration, accelerating digital health adoption and reforming healthcare financing to support the long-term development of Malaysia’s healthcare system.
Rathanesh added that Malaysia has already developed one of the region’s strongest private healthcare ecosystems, underpinned by an extensive network of private hospitals, rising health insurance penetration and growing demand from an expanding middle-income population.