KUALA LUMPUR, Oct 18 — The Ministry of Health (MOH) received an allocation of about RM45.3 billion for Budget 2025, a 9.8 per cent increment from the RM41.2 billion allocated this year.
The biggest announcement by Prime Minister Anwar Ibrahim in today’s tabling of Budget 2025 related to health was the end of universal and nearly free health care for all citizens, as Anwar’s administration seeks, for the first time, targeted subsidies for health care.
Anwar, who is also finance minister, did not specify how much more the top 15 per cent (T15) of income earners would be required to pay to access health care at public health care facilities under the MOH, beyond the current RM1 and RM5 fees for outpatient and specialist care respectively.
Below is a summary of health items in Budget 2025:
MOH’s budget increased by RM4.1 billion to RM45.3 billion
- Emoluments increased by RM2.4 billion to RM24.1 billion.
- Opex: RM38.5 billion, devex: RM6.7 billion.
Existing patients can continue treatment at the National Heart Institute (IJN)
- Those aged 65 years and older, particularly, can stay at IJN.
- So far this year, IJN has discharged about 4,000 government patients covered by MOH from outpatient services. Many government pensioners have complained about their discharge from IJN and referral to public hospitals.
Targeted subsidies for health care
- T15 are set to pay “slightly more” for public health care services.
- The collection of medical fees comprised only 1 per cent of MOH’s expenditure in 2021.
Rakan KKM gets RM25 million initial funding in partnership with government-linked investment companies (GLICs)
- Launch in five MOH hospitals, including Cyberjaya Hospital.
- Paid health care services at “reasonable” rates.
Increased collaboration with 91 private hospitals to outsource MOH patients
- Covers cardiology, radiology, and nephrology services.
- The Association of Private Hospitals Malaysia (APHM) calls for the use of technology to facilitate referrals between public and private hospitals.
Tax relief for medical expenses for individuals
- Expanded to cover diagnostic tests, and purchase of health check devices and test kits.
- Individual income tax reliefs for payment of medical and education insurance premiums increased to RM4,000.
- Individual income tax reliefs for medical expenditure up to RM10,000 also covers medical payments for medical and health insurance/ takaful with copayment features.
- Increase in the sugar-sweetened beverage (SSB) tax in phases from January 1, 2025, by 40 sen per litre.
- Additional procurement of SGLT2 inhibitors to treat diabetes, as well as an expansion of peritoneal dialysis services for patients with kidney failure.
- RM27 million for MOH’s Agenda Nasional Malaysia Sihat.
Increase of on-call allowance (ETAP) by between RM55 and RM65 for medical and dental officers
- Subject to certain fields of service and departments.
- Currently, government doctors receive RM9.16 per hour for on-call duties (RM220 per shift for weekend active on-call). With the new increase, this would rise to about RM11.50 or RM11.90 per hour – far below the RM25 per hour requested by the Malaysian Medical Association (MMA).
Infrastructure/ facilities
- RM1.35 billion to upgrade health facilities, including dilapidated hospital toilets and wards.
- RM300 million to upgrade dilapidated clinics nationwide.
- RM100 million to procure the latest equipment for identified Centres of Excellence: Sultan Idris Shah Serdang Hospital (cardiology); Selayang Hospital (transplants and hepatobiliary); National Cancer Institute (IKN); Endocrine Institute, Putrajaya Hospital; Institute of Urology and Nephrology HKL; and Tunku Azizah Hospital (formerly known as the Kuala Lumpur Women’s and Children’s Hospital).
- Early works to build a Cancer Centre in Kuching, Sarawak, and a Heart Specialist Centre in Kota Kinabalu, Sabah.
Rare Disease Fund (not mentioned verbally, but in the speech text)
- Allocation for rare disease drugs increased to RM25 million.
- mySalam scheme expanded to cover rare diseases and rheumatoid arthritis.
- Contributions to the Rare Disease Fund eligible for tax breaks equivalent to the actual contribution.
Others
- Offtake policy and specific procurement from companies with new domestic investments for critical pharmaceutical products and medical devices.
- Universiti Malaya focusing on medical artificial intelligence (AI) to tackle cancer.
Additionally, the Galen Centre for Health and Social Policy has produced an analysis of Budget 2025.
