Impact NEUTRAL

Measures

• RM36b compared to RM32.4b in Budget 2022 set aside for Health Ministry.

• RM4.9b to provide medicines, reagents, vaccines and consumables.

• RM1.8b to build hospitals, clinics, new facilities and procurement of medical equipment.

• RM420m to repair dilapidated hospitals and clinics.

• RM20m allocated to the Malaysia Healthcare Travel Council to promote health tourism.

• RM25m to treat rare diseases.

• RM80m for Socso health screening programme.

• RM80m for the PEKA B40 programme.

• RM15m for Agenda Nasional Malaysia Sihat programme to encourage healthier lifestyles.

• RM11m for subsidies for mammograms and cervical cancer screening.

• RM10m to purchase 3D printing machines for dental health services.

• The government will set up a mental health centre of excellence.

Comments

• The majority of the incentives directly benefit the public healthcare, with little impact on the private healthcare sector.

Beneficiaries

• We believe PHARMA (MP; TP: RM0.59) is expected to benefit from the allocation for purchase of medicines, and capitalise on newly build hospitals as its potential customers over the longer term.

• We are neutral on the allocation for the Malaysia Healthcare Travel Council because it is not expected to benefit both KPJ (MP; TP: RM0.87) and IHH (OP; TP: RM7.20) materially as medical tourism only contributes around 3– 5% of their revenue in Malaysia

Source: Kenanga Research - 8 Oct 2022