'Overweight' call stays on healthcare

Malaysia's healthcare sector could see increased interest in artificial intelligence (AI) due to its affordability, accessibility, and personalized responses, according to Hong Leong Investment Bank Bhd (HLIB Research). A survey conducted by Boston Consulting Group (BCG) in November 2025 revealed that many adults across 15 countries had already utilized generative AI tools for health-related issues.

Furthermore, an OpenAI survey in December 2025 indicated that three out of five adults in the United States had employed AI tools for health-related questions within the last three months. Although data on Malaysians' use of large language models (LLMs) for healthcare-related inquiries is limited, HLIB Research used data from other regions as an indication of the potential trend in Malaysia.

Higher-income individuals were more likely to use LLMs for healthcare purposes, as reported by the BCG survey. The adoption of LLMs as a first point of consultation could significantly impact hospital demand by altering patients' attitudes towards seeking medical help. By helping patients comprehend the seriousness of their symptoms and guiding them towards appropriate next steps, LLMs might encourage them to consult healthcare professionals more frequently, thereby elevating demand for healthcare services.

This potential advantage is particularly pertinent in Malaysia, where numerous health conditions are still under-diagnosed.

According to HLIB Research, the increased utilization of LLMs for healthcare queries could generate a positive tailwind for hospital operators in Malaysia, such as IHH Healthcare Bhd, Sunway Healthcare Holdings Bhd, and KPJ Healthcare Bhd. The investment bank has identified IHH and KPJ as top picks, targeting prices of RM9.10 and RM3.79, respectively. The firm has, however, maintained a neutral stance on the healthcare sector as a whole.