September-October. 2025 | The HEALTH

COVER STORY

INFRASTRUCTURE BOOST

• RM1.2 billion for maintenance and repair of hospitals and health clinics nationwide.

• RM755 million to procure and replace ageing medical equipment.

• RM100 million to upgrade district hospital wards.

• Two major projects announced:- Northern Region Cancer Centre( Kedah)- Sabah Heart Centre( Kota Kinabalu)

Goal: reduce waiting times and improve access to specialised care closer to home.

OUTSOURCING & COLLABORATION

RM140 million to outsource patients to private, military, and university hospitals.

RM30 million to strengthen health clinics with visiting specialist services.

Intent: to shorten queues for surgery and diagnostic services while spreading patient load more evenly across the system.

HEALTH FINANCING & PROTECTION

• mySalam health protection scheme to continue for lower-income groups.

• EPF“ Sejahtera Account” allows members to buy affordable basic health insurance.

• Diagnosis-Related Group( DRG) system to improve hospital billing transparency.

• RM60 million set aside to work with insurers and industry on cost containment.

The broader aim: to keep out-of-pocket expenses manageable while building a more sustainable financing base.

TAX & POLICY MEASURES

• Excise duties on tobacco and alcohol raised; proceeds channelled to MOH programmes on lung, heart, and diabetes care.

• Tax relief for vaccination and preventive treatments extended.

• Tax exemption for nicotine-replacement therapy products extended to 2027.

Policy message: preventive health and behavioural change remain fiscal priorities.

PRIVATE SECTOR & DIGITAL INTEGRATION

• Expansion of the National Digital Health Blueprint to link hospitals and clinics through secure electronic medical records.

• Improved connectivity for rural clinics to enable teleconsultation and e-pharmacy services.

• Private-public data-sharing pilot projects planned for 2026 under the Madani Digital initiative.

Promise: better continuity of care and real-time health management, especially in remote areas.

PREVENTIVE HEALTH & COM- MUNITY OUTREACH

• Continued focus on non-communicable diseases( NCDs) through screening and community health programmes.

• Healthy Malaysia National Agenda strengthened with school-based nutrition and physical-activity campaigns.

• Partnerships with NGOs and local councils for anti-vaping, mental-health awareness, and healthy-ageing initiatives.

Long-term goal: shift the health system from reactive treatment to proactive prevention. years to at least keep up with inflation.

Incremental improvements to infrastructure and equipment may help reduce inequalities, especially in rural and underserved areas. Enhancing specialist services in local clinics, outsourcing patient load, and upgrading district hospital wards could help reduce wait times and overcrowding in major hospitals.

Welfare improvements( permanent appointments, higher allowances) should help staff morale, retention, and potentially quality of care. Insurance and relief measures may reduce out-of-pocket expenses for households, especially among lower-income groups.

The emphasis on preventive health and medicine security can contribute to long-term sustainability.

Budget 2026 shows a reaffirmed commitment by the government to strengthen Malaysia’ s public healthcare system, with modest but focused increases in funding.

While many of the initiatives are positive and targeted, the relatively small growth in development spending and the slowing rate of increase compared to past years suggest that delivering broader systemic transformation will depend heavily on implementation efficiency and possible future budget injections.- The HEALTH