Malaysia fields roughly 2,500 active veterinarians against an estimated national requirement of at least 6,000 — a shortfall of more than half the workforce that now frames every growth projection for the country's animal health sector, according to MBSB Research.

The research house lays out the broader context first: the global veterinary industry is projected to exceed US$500 billion by 2035, expanding at 6% to 10% annually. Three forces drive that growth — recurring companion animal healthcare spending, food security requirements for livestock health products, and technological innovation.

For practitioners, the numbers translate into concrete pressure at the clinic level. Pet supplements and nutraceuticals spending in Malaysia is growing by more than 11% annually, and diagnostics is emerging as a fast-growing investment area. Yet with one veterinarian for every position that needs filling twice over, clinics face capacity constraints even as demand rises.

Policy responses under discussion

Measures being considered or already introduced include easier pathways for qualified foreign veterinarians to practise in Malaysia, and expanded responsibilities for veterinary technicians working under supervision. Both moves would shift workload distribution in clinics and could accelerate throughput without expanding the veterinary headcount.

The "Oyen Economy"

MBSB Research highlights what it calls the "Oyen Economy" — a market structure defined by cats, which account for more than 55% of Malaysia's pet population. That species skew matters for practice planning: feline-focused services, cat-specific nutrition lines and feline-friendly handling protocols carry disproportionate weight in the Malaysian market compared with markets where dogs dominate.

Companion animal care is expected to grow faster than the livestock segment, particularly as owners spend more on premium healthcare, specialised treatments and nutrition. The report attributes the trend to owners increasingly treating pets as family members, alongside rising pet insurance adoption.

Four segments, with diagnostics leading

The report identifies four major areas within the industry: pharmaceuticals and biologics, diagnostics, veterinary services, and nutrition and feed additives. Diagnostics is expected to be among the fastest-growing areas. Advanced services — oncology, orthopaedic surgery, imaging and physical therapy — are becoming more common in companion animal practice.

The distinction matters for food-animal and public-health planning as well. Livestock health products continue to see sustained demand on food security grounds, even as companion animal spending outpaces the segment. The report does not specify regulatory changes affecting either segment.

Technology at the clinic level

Technology is changing how the sector operates. Artificial intelligence can assist veterinarians in clinical work, while smart collars and monitoring devices detect early signs of health problems before owners present animals at the clinic. Clinics are also adopting digital systems, telehealth and cloud-based management tools to reduce administrative workloads — a direct answer to workforce pressure in a market short more than 3,500 veterinarians.

Listed exposure

For investors tracking the sector, MBSB Research names two Malaysian-listed top picks: Rhone Ma Holdings Bhd, cited for its integrated animal health and diagnostic business, and Yenher Holdings Bhd, cited for its zero-debt balance sheet and capacity expansion.

The report, dated Sept 30, 2026, positions the veterinary sector as a growth story contingent on one variable above all others: whether Malaysia can close a workforce gap that leaves the country with less than half the veterinarians it needs.