KUALA LUMPUR, July 31 — Prime Minister Anwar Ibrahim today touted taxes on unhealthy products under the 13th Malaysia Plan (RMK-13), as part of efforts to tackle Malaysia’s growing burden of non-communicable diseases (NCDs).
In tabling RMK-13 in Parliament today, he outlined the federal health agenda through 2030, with RM40 billion allocated to the health sector.
“We must tackle health risks. Pro-health taxes will be expanded from sugar to products like tobacco, vape, and alcohol — not merely for revenue, but to encourage behavioural change and curb the worrying rise in NCDs,” Anwar told the Dewan Rakyat.
“The diabetic rate is very high, and there is no reason sugar should be cheap and encouraged.”
Excise duties are already imposed on sugar-sweetened beverages (SSB), tobacco, vape liquids, and alcohol. Anwar did not specify if the government planned to raise these taxes over the next five years.
RMK-13, a five-year plan, also makes no mention of removing existing sugar subsidies.
RM40 Billion Allocated For Health Sector Over The Next Five Years
The RMK-13 allocates RM40 billion to the health sector over five years, aiming to reduce out-of-pocket (OOP) spending and improve access to care.
“The public health system is under increasing strain from inflationary medical costs, rising NCDs, and population ageing. Health reform is a vital effort to ensure sustainable financing and broader, inclusive access to quality and effective care,” Anwar said.
The plan targets a reduction in OOP expenditure from 36 per cent of total health spending in 2023 to 32 per cent by 2030. Spending on primary care is also expected to rise from 27.2 per cent to 32 per cent in the same period.
The Rakan KKM programme — which aims to set up private wings in government hospitals — will be expanded as an option for private companies and insured individuals.
A standardised basic health insurance or takaful product, managed by private firms, will also be introduced to support access to both public and private care, guided by value-based care principles to ensure affordability and lifetime coverage.
The government will further explore the establishment of a national health fund and a strategic purchasing platform to improve procurement efficiency and health financing.
High-cost services such as diagnostic imaging, elective surgeries, and virtual specialist consultations will increasingly be outsourced to private providers under a blended financing model with cost-sharing mechanisms.
RMK-13 Pushes Local Drug Production, Broader Use Of Generics
To strengthen pharmaceutical supply security, RMK-13 emphasises increased local production of medicines and medical devices, along with expanded use of generic drugs across the public and private sectors.
“To increase the security of medicine supply, domestic pharmaceutical production will be encouraged and the use of generics by the public and private sectors will be increased,” Anwar said.
Local manufacturers will be incentivised to scale up production, improve infrastructure, and enhance logistics capabilities.
A national pharmaceutical tracking system will also be developed to ensure secure, efficient, and resilient distribution. Digitisation of supply chains is expected to ensure continuous access to safe, high-quality medicines while supporting local industry growth.
Malaysia also aims to align its pharmaceutical regulatory standards with World Health Organization (WHO) benchmarks, improve digital tracking systems, and invest in vaccine production capacity and workforce development.
Talent development in vaccine production will be supported through specialised training and research funding under the National Vaccine Development Fund.
Malaysia also plans to expand its role in international pharmaceutical networks, including the Coalition for Epidemic Preparedness Innovations (CEPI), the International Vaccine Institute (IVI), and the International Council for Harmonisation (ICH).
National Health Workforce Framework To Tackle Chronic Staff Shortages
Anwar also announced the development of a national workforce framework to address long-standing staffing shortages in the health sector.
“A national-level health workforce development framework will be created to address human resource needs. This includes in-service training,” he said.
A high-level coordination committee will be established to align workforce planning across ministries and agencies, particularly in anticipation of Malaysia’s transition to an aged society.
The health system will also be strengthened to better meet the needs of older populations.
Electronic Records To Enable Public-Private Health Data Sharing
RMK-13 calls for accelerated digitalisation of the health system, with electronic medical records (EMR) positioned as the foundation of reform. The goal is to enable secure data exchange and interoperability between public and private health facilities.
“Health record management will be strengthened as the core of health system digitalisation,” Anwar said.
“This will enhance interoperability across health facilities, enable high-impact health analytics, and leverage AI to improve the quality of public health care.”
A national digital health platform will be developed to support seamless, secure data sharing across institutions and states. The EMR system will be outsourced and implemented across all public health facilities to enhance analytics and care coordination.
The use of big data, artificial intelligence (AI), and emerging technologies will be embedded to improve clinical decision-making, care delivery, and operational efficiency. The initiative will also align with the government’s broader GovTech agenda.
