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Wednesday, February 4, 2026
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Malaysia’s RM46.5b healthcare spend welcomed but challenges remain

PETALING JAYA: Health experts have largely welcomed the government’s record RM46.5 billion healthcare allocation under Budget 2026, but cautioned that effective implementation, long-term planning, and protection of key priorities — such as workforce welfare and sustainable financing — are essential to ensure real impact.

Universiti Kebangsaan Malaysia public health specialist Prof Dr Sharifa Ezat Wan Puteh said the increased funding is timely and must continue to strengthen primary care, prevention, and early treatment among at-risk groups.

“The increment for staff welfare is important as more doctors are needed in rural areas.

“There’s also a need for more specialist posts and higher allowances, as many are leaving the public workforce,” she said.

“Doctors, nurses, and healthcare staff need better pay and safe working conditions. Using ‘sin taxes’ from tobacco and alcohol is a smart way to fund health programmes and non-communicable disease (NCD) care,” she added, noting that Malaysia’s health expenditure remains below 5% of GDP — limiting access to optimum treatment for many.

Meanwhile, Malaysian Medical Association (MMA) president Dr Thirunavukarasu Rajoo said the record allocation reflects the government’s commitment to strengthen healthcare in line with the Health White Paper, but urged for clarity and fairness in implementation.

He welcomed the increase in on-call allowances and creation of 4,500 permanent positions for contract doctors, but stressed the need for long-term workforce planning.

“The on-call increment is well-deserved recognition of doctors’ dedication, but details on the quantum are awaited.

“Hardware alone is not enough — without adequate doctors, nurses, and allied health professionals, facility upgrades won’t reduce system pressure,” he said.

Thirunavukarasu also expressed disappointment that the RM10 minimum GP consultation fee, unchanged since 1992, remains unrevised, calling it “unsustainable” and urging a RM50 minimum to reflect fair value for frontline care.

He further supported excise duty hikes on tobacco and alcohol but reiterated MMA’s call for a total ban on vaping due to its rising health impact on youth.

The association also cautioned against allowing EPF funds to be used for healthcare financing, noting the risk of compromising retirement security.

Echoing this concern, Federation of Malaysian Consumers Associations chief executive officer Dr Saravanan

Thambirajah said using EPF Akaun Sejahtera savings for BASIC medical insurance (MHIT) could weaken long-term financial wellbeing for Malaysians.

“Many already have low EPF balances. Diverting funds to insurance could reduce retirement security.

“The government should instead strengthen pooled protection schemes or provide targeted subsidies for vulnerable groups,” he said.

However, Saravanan welcomed the government’s decision to absorb 4,900 contract doctors into permanent positions by 2026, saying it would help reduce waiting times, improve service delivery, and restore confidence in public healthcare.

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