'Overweight' call stays on healthcare

KUALA LUMPUR: The use of artificial intelligence (AI) in Malaysia's healthcare sector could gain traction, driven by its low cost, ease of access and ability to provide personalised responses to patients.

Hong Leong Investment Bank Bhd (HLIB Research) cited a Boston Consulting Group (BCG) survey showing that a majority of adults polled across 15 countries in November 2025 had already used generative AI tools for health-related issues.

It added that an OpenAI survey in December 2025 found that three in five adults in the United States had used AI tools for health-related questions in the preceding three months.

"While there is currently limited data on Malaysians' use of large language models (LLMs) for healthcare-related queries, we take reference from the other regions as an indication of the potential trend in Malaysia," HLIB Research said in a note.

According to the BCG survey, higher-income individuals were substantially more likely to use LLMs for healthcare-related purposes.

The firm said the use of LLMs as a first point of consultation could have meaningful implications for hospital demand, particularly by breaking the "wait and see" mentality among patients.

HLIB Research said LLMs allow patients to better understand the potential significance of their symptoms and determine appropriate next steps, which could prompt them to seek professional care earlier and increase demand for healthcare services.

It said the potential was particularly relevant in Malaysia, where many health conditions remain under-diagnosed.

HLIB Research said the growing use of LLMs for healthcare queries could provide a more immediate tailwind for Malaysian hospital operators, such as IHH Healthcare Bhd, Sunway Healthcare Holdings Bhd and KPJ Healthcare Bhd.

Its top picks are IHH, with a target price of RM9.10, and KPJ, with a target price of RM3.79.

The firm maintained its "neutral" call on the healthcare sector.