• The EU-ASEAN Health Summit 2025 spotlights the challenges posed by ageing populations and noncommunicable diseases( NCDs)

• Key dialogues delved into innovative financing mechanisms for sustainable healthcare, urging strategic reforms and publicprivate partnerships( PPPs)

• ASEAN regional healthcare collaboration to focus on mutual regulatory recognition, capacity building, and leveraging the ASEAN Free Trade Area( AFTA)

BY ZAFIRAH ZAFRUDDIN

Leaders, policymakers, and stakeholders from the EU and ASEAN gathered in Kuala Lumpur on May 27, 2025, for the 2nd EU-ASEAN Health Summit.

The 2025 summit focused on two key themes: sustainable healthcare financing and public-private partnerships( PPPs). These focus areas are indicative of growing concerns over rising healthcare costs, primarily driven by ageing populations and the increasing prevalence of non-communicable diseases( NCDs).

In his welcome address, EU-ASEAN Business Council Chairman Jens Ruebbert stressed the region ' s alarming demographic transition.

He said: " By 2035, those aged 60 and above will account for nearly 15 per cent of the population. This demographic shift makes it imperative that we move from corrective to preventive care."

EXPERT INSIGHTS:( from left) Ong Ye Kung, Azwar Kamarudin, and Dzulkefly Ahmad, on the panel discussion for ' Sustainable Healthcare- Financing for the Present & Future: Bridging Policy and Practice.'

Echoing similar concerns, Minister of Health Datuk Seri Dr Dzulkefly Ahmad pointed out that by 2050, Southeast Asia will be home to over 170 million older adults.

" This is both a challenge and an opportunity that demands smart, long, and future-focused investment, agefriendly infrastructure and policies that support healthy ageing and independence," he added.

Ageing populations are clearly driving up healthcare demand and costs, especially with the rising prevalence of NCDs. According to Singapore ' s Minister of Health, Ong Ye Kung, this issue has become a global challenge, impacting healthcare systems in countries across all levels of economic development.

In fact, in 2022, NCDs accounted for seven of the top 10 causes of death and nearly half of the fatalities worldwide. Alongside their devastating health impact, NCDs place immense strain on national health budgets and deepen existing socioeconomic disparities.

In 2019, upper-middle-income countries( UMICs) spent an average of US $ 527 per person on NCDs. Lowermiddle-income countries( LMIC) spent significantly less, at US $ 214 per person. On the other hand, low-income countries( LICs) could only allocate US $ 20 per person.

These figures indicate that people in poorer nations often lack access to adequate care, perpetuating poor health outcomes and reinforcing poverty cycles.

Despite growing awareness, the available funding is insufficient to meet demands. A 2021 World Health Organisation( WHO) Evaluation found that 44 countries collectively spent only US $ 12 billion on NCDs over three years, with 95 per cent coming from domestic budgets.

Overall, these trends demand urgent reform in healthcare financing, one that supports equity and preventive care, particularly in the fight against NCDs.

RESILIENT FUNDING MODELS

In a presentation titled, ' Exploring Innovative Financing Mechanisms,' Crowell Global Advisors Director Sejal Mistry discussed financing the growing costs of NCD care without compromising accessibility or equity.

Mistry called for forward-looking solutions, such as earmarked taxes, value-based healthcare contracts, managed entry agreements( MEAs), and health savings accounts( HSAs). These, she asserted, could help expand universal health coverage in fiscally constrained environments.

However, turning ideas into actionable frameworks remains a significant challenge. Hence, Novartis has partnered with global stakeholders to develop a practical guide to support policymakers in navigating the complexities of financing NCD responses.

This call for strategic reform took on a sense of urgency during the panel session, ' Bridging Policy and Practice,' featuring the Ministers of Health from Malaysia and Singapore. The need for immediate action was underscored as the panel discussed the pressing issue of healthcare financing.

Dzulkefly raised concerns over Malaysia ' s unsustainable healthcare financing, revealing: " Malaysia ' s Total Expenditure on Health( TEH), combining both public and private sector spending, was estimated at 4.2 per cent of its Gross Domestic Product( GDP), with public funding accounting for roughly 2.3 per cent."

As government revenue declines in relation to economic growth, Dzulkefly pointed to the private sector ' s role in safeguarding the future of healthcare. " The private sector must be seen as a key strategic partner in ensuring the entire health ecosystem remains responsive and future-proof."

Additionally, Malaysia is actively exploring new financing models to expand coverage. These include:

• Premium services in public hospitals: Introducing tiered services where higher-income patients pay for upgrades. The revenue will be reinvested