MARKET SUMMARY REPORT HEALTHCARE TRENDS ADAPTING HEALTHCARE IN MALAYSIA: BALANCING GROWTH AND EQUITY AMIDST GLOBAL CHALLENGES The long-term effects of COVID-19, particularly on individuals with pre-existing health conditions, have prompted Malaysia to prioritise health and wellness. The national Agenda of Healthy Malaysia is a key initiative to encourage healthier lifestyles. This focus is essential due to the high rate of deaths from non-communicable diseases (NCDs). Malaysia’s healthcare system, which heavily imports high-tech medical devices, presents a significant market for advanced medical products. The country is also undergoing a digital transformation in healthcare service delivery, creating demand for virtual consultation technologies, electronic medical records systems, and solutions for data privacy and security. Additionally, Malaysia is striving to enhance its healthcare travel ecosystem and strengthen its position in clinical research, leveraging its diverse population for a variety of medical studies. With the absence of travel restrictions, and the holiday season brewing as the year ended in 2023, Covid-19 cases have seen soaring from 200 confirmed cases in November 2023 to a peak of 3,700 confirmed cases daily in December 2023 as reported by Kementerian Kesihatan Malaysia (KKM). Medical experts have stressed that given the immunity obtained from vaccines, infections have been mild on most cases, and hospitals in the Nation are coping, hence there are slim chances on the reintroduction of lockdowns as in the previous years. Living with Covid-19 is a norm to be accepted. This transformation in the healthcare sector has also sculpted the healthcare landscape. Locally, inpatient volume trend, bed occupancy rate (BOR) and surgery numbers are underway to surpass prepandemic levels, positively geared to drive stronger earnings moving forward. Cost control remains a key variable for bottom line growth amid expansions to meet growing demand for local and foreign patients. The return of health tourism, referrals from public hospitals and high insurance penetration also serve as upside potentials for the sector. 20 BUSINESS OVERVIEW 1 3 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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