HLIB: AI adoption could boost demand for Malaysian hospitals

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) 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 US 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 said in a note.

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

The use of AI for healthcare was also not confined to younger consumers, with meaningful adoption across older age groups.

Usage was highest among Gen Z at 78 per cent, followed by millennials at 71 per cent and Gen X at 50 per cent.

Adoption among baby boomers stood at 31 per cent, while 16 per cent of those aged 78 and above had used AI tools for personal healthcare.

"We believe this could increase health awareness and encourage greater utilisation of healthcare services, particularly among consumers who use AI to explore symptoms, understand medical conditions and evaluate treatment options," HLIB said.

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.

Before AI, patients experiencing symptoms might ignore them or attempt to self-treat, potentially allowing underlying conditions to go undetected for years.

HLIB 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.

"Based on our trial run on ChatGPT, we observed that this LLM proactively prompts users to seek professional medical attention when symptoms are concerning or persistent, as well as for life-threatening red-flag symptoms."

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

According to the Statistics Department, ischaemic heart disease (IHD) remained the leading cause of death in both 2022 and 2024, accounting for 16.1 per cent and 13 per cent of medically certified deaths, respectively.

HLIB said there was a common misconception that heart attacks occur suddenly and without warning.

Clinical data compiled from cardiac centres across Malaysia showed that 98 per cent of acute coronary syndrome patients had underlying health conditions or risk factors that could potentially have been identified well before a life-threatening cardiac event occurred, it added.

"These findings suggest that a significant proportion of IHD remains under-diagnosed, including among patients who ultimately present with acute cardiac events.

"Against this backdrop, the increasing adoption of LLMs for personal healthcare could encourage more Malaysians to seek information, assess symptoms and pursue medical attention earlier."

HLIB 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.

HLIB said both companies were well positioned to benefit from the emerging trend, while recent share price declines had made their valuations relatively attractive.

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