Kuala lumpur: The Malaysian healthcare sector is set for sustained long-term demand growth, underpinned by the growing number of non-communicable diseases (NCDs) and an ageing demographic.

According to BERNAMA News Agency, CIMB Securities Sdn Bhd highlighted that Malaysia currently has two hospital beds per 1,000 population compared to the developed countries’ average of 2.5, indicating potential for organic expansion in the coming years.

CIMB Securities noted in a research note that IHH Healthcare remains the sector’s preferred choice with a ‘Buy’ recommendation and a target price of RM8.50. The recommendation is supported by IHH Healthcare’s diversified asset base, which provides stability against the challenges posed by Malaysia’s regulatory environment.

As of 9.56 am, IHH’s shares were stable at RM7.45 with 264,900 shares traded.