KUALA LUMPUR (March 17): RHB Investment Bank (RHB IB) expects Malaysia's planned revision of private general practitioner (GP) consultation fees to have no financial impact on hospitals, as their fees are governed by separate regulations.

It also said insurers, already grappling with the potential impact of Bank Negara Malaysia’s (BNM) repricing cap for premiums, will face minimal impact due to the small share of medical claims from private clinics.

“We are not entirely surprised by the news (of the revision in GP fees), as such matters were brought up even before the Covid-19 pandemic, since private GP fees (RM30-RM125 per visit) had remained unchanged for more than 10 years,” RHB IB said.

Last Friday, the Health Ministry announced that the government is in the final stages of discussions with the Department of Statistics Malaysia to determine the new consultation fees, with an official announcement expected by April.

The regulated fee currently stands at between RM10 and RM35.

The revision follows concerns that many GPs are struggling with rising operational costs, affecting the sustainability of private primary care.

The Malaysian Medical Association has suggested a minimum consultation fee of RM60 for GP consultation.

“Such a move, in our view, will not have any material financial impact on hospital players under our coverage, as they do not operate private clinics in Malaysia,” it said.

“For the insurance sector, a revision of private GP consultation fees will be inflationary for claims, although we think this should be manageable,” it said.

RHB IB has maintained its “overweight” rating on Malaysia’s healthcare sector and its top pick KPJ Healthcare Bhd (KL:KPJ) due to its domestic focus.

For insurers, RHB IB prefers Syarikat Takaful Malaysia Keluarga Bhd (KL:TAKAFUL) over Allianz Malaysia Bhd (KL:ALLIANZ) due to Syarikat Takaful's lower vulnerability to the premium repricing cap imposed by BNM. Syarikat Takaful's relatively smaller direct exposure to medical takaful makes it more resilient in navigating the regulatory changes.

“Although the regulatory overhang arising from the diagnosis-related group (DRG) mechanism could affect investor sentiment in the near term, we are of the view that investor appetite for good-quality healthcare assets remain intact, in view of the permanent, structural shift driven by an ageing population,” it added.

Nonetheless, the key risks to the sector include higher-than-expected operating costs, lower patient visits, slower revenue intensity growth, and potential regulatory changes under the DRG mechanism.

Late last year, BNM announced a 10% cap on medical insurance premium increases for at least 80% of policyholders until end-2026 and a pause in premium adjustments for those aged 60 for one year.

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