The country’s healthcare system faces growing pressure from the combined effects of climate change, recurring transboundary haze and antimicrobial resistance (AMR), potentially increasing hospital admissions, treatment costs and demand for specialised medical services, according to MBSB Research.
MBSB in its research report said higher temperatures and prolonged dry conditions may contribute to the spread of drug-resistant bacteria, while haze adds an immediate burden through respiratory illnesses and increased healthcare utilisation.
AMR occurs when bacteria and other microorganisms develop resistance to medicines used to treat infections, making common illnesses more difficult and expensive to manage.
The World Health Organization’s 2025 surveillance report found that one in six laboratory-confirmed common bacterial infections worldwide in 2023 was resistant to antibiotic treatment. Resistance also increased in more than 40% of monitored pathogen-antibiotic combinations between 2018 and 2023.
Haze Adds To Healthcare Costs
MBSB Research said worsening air quality could increase outpatient visits and hospital admissions involving asthma, respiratory inflammation and upper respiratory tract infections.
It also highlighted emerging research suggesting that airborne particulate matter may carry microorganisms and resistance genes, potentially contributing to the wider environmental spread of AMR.
However, the relationship between haze exposure and antibiotic resistance remains an evolving area of research, with further evidence needed to establish the extent of its direct contribution to human infections.
For Malaysia, the research house cited estimates of more than 4,000 deaths directly attributable to AMR and approximately 17,200 associated deaths annually.
It said resistant infections can require longer hospital stays, specialised isolation facilities, additional diagnostic testing and more expensive antibiotics, placing further pressure on public healthcare expenditure.
The report also highlighted the importance of Malaysia’s Action Plan on Antimicrobial Resistance, particularly measures to improve antibiotic prescribing, strengthen surveillance and monitor antibiotic use in healthcare, livestock farming and aquaculture.
KPJ, UMedic Identified In Healthcare Outlook
Against this backdrop, MBSB Research expects demand for specialised hospital treatment and medical technology to increase as healthcare providers strengthen their ability to diagnose and manage respiratory illnesses and resistant infections.
The research house maintained a BUY call on KPJ Healthcare Bhd with a target price of RM3.35, citing its extensive domestic hospital network, specialised services and exposure to higher-acuity medical treatment.
It also maintained a BUY call on UMedic Group Bhd with a target price of 43 sen, highlighting potential demand for respiratory consumables, laboratory equipment and point-of-care diagnostic products.
MBSB Research expects healthcare providers to place greater emphasis on rapid diagnostic testing to distinguish bacterial infections from other respiratory conditions, helping reduce unnecessary antibiotic prescriptions.
It also identified Duopharma Biotech Bhd and Hartalega Holdings Bhd as companies with potential exposure to increased demand for respiratory medicines and infection-prevention products.
The research house concluded that climate-related health risks and rising AMR could support longer-term investment in Malaysia’s healthcare infrastructure, particularly specialised hospital services, diagnostics and infection control.
Its central message is that preventing infections and improving diagnostic accuracy will become increasingly important, both to protect patients and to contain the financial burden of more complex medical treatment.
