KUALA LUMPUR, June 11 — The Association of Private Hospitals Malaysia (APHM) has called for a delay in the implementation of the expanded sales and service tax (SST) on private health care services for foreigners, which is scheduled to take effect on July 1.
In a statement today, APHM said while it supports the government’s broader policy objectives to broaden the tax base and stimulate economic growth, private hospitals require more time to make the necessary operational adjustments to comply with the new tax rule.
“The short implementation timeframe presents significant operational challenges as private hospitals would need sufficient lead time to adjust administrative systems, billing processes, and compliance procedures,” APHM said.
APHM said it has submitted a written request to the Ministry of Finance (MOF) for a more practical timeline beyond the current July 1 start date to minimise disruption to patient services and ensure full compliance.
APHM has also sought further clarification on several aspects of the new policy, including its application on professional fees charged by doctors, treatment of foreigners residing in Malaysia, and other implementation matters.
“Private hospitals are an essential part of Malaysia’s health care ecosystem, delivering quality care to both local and international patients,” APHM said.
“In a recent publication by the Nomad Capitalist, Malaysia was recognised as one of the top 10 global destinations for medical tourism. Malaysia’s tourism industry is projected to generate US$2.7 billion (RM11.45 billion) annually by 2030 as the global demand for accessible, world-class medical care increases.”
The expansion of the SST announced Monday includes new tax measures on selected services and goods starting July 1, as part of the government’s fiscal consolidation plans. Under the revised framework, private health care services for non-Malaysian patients will be subject to a 6 per cent service tax, while services for Malaysian citizens remain exempt.
Other sectors affected by the SST expansion include construction, commercial rentals, financial services, private education, and wellness services, with tax rates ranging from 6 to 8 per cent and exemptions for small businesses below certain revenue thresholds.
The government said the changes aim to strengthen revenue collection while safeguarding the cost of living for Malaysians, as essential goods and services remain exempt or zero-rated.
APHM said it remains committed to working collaboratively with the government to ensure effective and sustainable policy implementation.
“We will continue to engage constructively to help safeguard service continuity and uphold the standard of care, while supporting the government’s broader policy objectives,” it said.
