Private healthcare to sustain growth momentum

By the Editorial Team · Friday, September 25, 2026

CIMB Research forecasts continued growth in Malaysia’s private healthcare sector, with second-quarter profits rising due to higher patient volumes and more complex cases. The firm favors IHH Healthcare for its strong earnings visibility and strategic focus on specialized care, maintaining an overweight sector rating amid demographic and health trends driving demand.

The private healthcare sector in Malaysia is poised to sustain its growth momentum, driven by rising cases of non-communicable diseases, an ageing population, and increased health awareness, according to a recent analysis by CIMB Research. The research firm maintained an “overweight” rating on the sector following the release of second-quarter financial results for 2026.

Private hospitals reported solid performance in the second quarter, benefitting from a stronger case mix and higher patient footfall. Core net profit across hospital operators covered by CIMB Research grew by 18% year-on-year, supported by an increase in higher-acuity cases, which boosted the average revenue intensity per inpatient.

Specifically, IHH Healthcare Bhd recorded a 16% year-on-year rise in average revenue intensity per inpatient for the second quarter, while Sunway Healthcare Holdings Bhd (SunMed) saw an 8% increase. Inpatient admissions also showed significant growth, with SunMed experiencing a 19% year-on-year rise partly due to its brownfield expansion efforts, while IHH posted a more modest 3% increase.

CIMB Research highlighted a strategic shift among hospital operators toward prioritizing quality and the complexity of care instead of focusing solely on capacity utilization. Investments are increasingly directed at Centres of Excellence, specialised care units, daycare services, and ambulatory care centres.

IHH Healthcare is advancing a hub-and-spoke model by centralizing complex medical specialties within select hospitals, allowing for focused expertise and resources. Meanwhile, Sunway Healthcare’s growth benefits from the expansion and operational ramp-up of newer facilities, including Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh, alongside ongoing brownfield bed expansions.

The research firm expressed a preference for IHH Healthcare, citing stronger earnings visibility and assigned it a “buy” recommendation with a target price of RM10.30. Sunway Healthcare Holdings was rated as a “hold” with a target price of RM2.10. Overall, the sector’s outlook remains positive as underlying demographic and health trends continue to support demand for private healthcare services.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.