The merger and acquisition (M&A) momentum in the healthcare sector is expected to continue next year with investors capitalising on the growing demand for healthcare products and services in Malaysia and the region, a research house said.
OSK Research said there was ample room for consolidation within the private healthcare segment, driven by the tighter regulations and rising competition, which has made it more difficult for small and standalone private hospitals to remain competitive.
"The impending listing of Parkway-Pantai could spark a valuation re-rating of the sector in 2012 as this listing is expected to set a high valuation benchmark for the sector," it said in its Investment Strategy 2012 note today.
Among potential growth opportunities in the sector include addressing the outpatient, community-based care and living needs of the elderly.
Although it is still a novel concept in Malaysia, the long-term goal is to create a number of centres offering assistance to people who need help with daily living activities, yet wish to live as independently as possible, for as long as possible.
The research house said unlike nursing homes which focus on the final stages of care, "seniors living" promote active ageing and productive living.
The key services that can be offered under the umbrella of seniors living include integrated personal assistance, domiciliary and personal and medical care.
"Realising the growth opportunities inherent in this segment in view of the dearth of such business models in Malaysia, local companies like KPJ have started venturing abroad to acquire prerequisite expertise with the intention of replicating such business models locally," said OSK Research.
On medical tourism, it said Malaysia still lags behind its regional peers, Singapore and Thailand, despite offering services that are on par or of better value.
However, the research house said there was a potential for Malaysia to become a major player by developing a national medical tourism brand via effective marketing campaigns and joint efforts to promote Malaysia as a world-class medical tourism destination.
Citing the sector's huge growth potential and defensive nature, OSK Research has retained its "Overweight" outlook on the healthcare sector. -- Bernama
OSK Research said there was ample room for consolidation within the private healthcare segment, driven by the tighter regulations and rising competition, which has made it more difficult for small and standalone private hospitals to remain competitive.
"The impending listing of Parkway-Pantai could spark a valuation re-rating of the sector in 2012 as this listing is expected to set a high valuation benchmark for the sector," it said in its Investment Strategy 2012 note today.
Among potential growth opportunities in the sector include addressing the outpatient, community-based care and living needs of the elderly.
Although it is still a novel concept in Malaysia, the long-term goal is to create a number of centres offering assistance to people who need help with daily living activities, yet wish to live as independently as possible, for as long as possible.
The research house said unlike nursing homes which focus on the final stages of care, "seniors living" promote active ageing and productive living.
The key services that can be offered under the umbrella of seniors living include integrated personal assistance, domiciliary and personal and medical care.
"Realising the growth opportunities inherent in this segment in view of the dearth of such business models in Malaysia, local companies like KPJ have started venturing abroad to acquire prerequisite expertise with the intention of replicating such business models locally," said OSK Research.
On medical tourism, it said Malaysia still lags behind its regional peers, Singapore and Thailand, despite offering services that are on par or of better value.
However, the research house said there was a potential for Malaysia to become a major player by developing a national medical tourism brand via effective marketing campaigns and joint efforts to promote Malaysia as a world-class medical tourism destination.
Citing the sector's huge growth potential and defensive nature, OSK Research has retained its "Overweight" outlook on the healthcare sector. -- Bernama
