Budget 2026: Remove RM500m Sugar Subsidies, Fund RM80m To Increase Medical Officers’ On-Call Allowance

The Galen Centre says doctors’ on-call allowance raise costing RM80 million can be funded by removing sugar subsidies in Budget 2026 that would save the government at least RM500 million a year. Malaysia faces high diabetes rates. Hence, this is a win-win.

With a month to go before the tabling of Malaysia’s Budget 2026, the Galen Centre for Health and Social Policy calls upon the federal government to allocate at least RM80 million in the upcoming Budget 2026 to fund long-overdue increases in on-call allowances (ETAP) for all medical officers and specialists under the Ministry of Health (MOH).

This modest yet crucial allocation can be achieved by removing existing sugar subsidies and redirecting these funds to strengthen Malaysia’s health care workforce.

The current ETAP rates at RM220 for medical officers and RM250 for specialists per weekend shift, translate to less than RM10 per hour – rates which are considered unfair and sustainable as well as contributing to reasons for the exodus of skilled health care workers from public health care.

The promise to increase these allowances remains unfulfilled.

According to MOH officials during a Health parliamentary special select committee session held in February, raising ETAP allowances by RM55 to RM65 per shift across the board would cost approximately RM75 million to RM80 million.

This is definitely within the means of the government to implement.

We support Health Minister Dzulkefly Ahmad’s renewed pledge to ensure that a full ETAP allowance increase is implemented in 2026. We must ensure that the government honours the promise made to our health care professionals.

Malaysia is one of the few countries globally which subsidises sugar. Sugar subsidies artificially lower prices (Malaysia has among the lowest prices in the world), encourage unhealthy consumption, and contradict national NCD (non-communicable disease) prevention goals.

Sugar subsidies undermine the Health Ministry’s war on sugar.

Each year, the Malaysian government gives around RM500 million to sugar manufacturers as subsidies/ incentives or around RM42 million per month, which translates to RM1.00 per kilogram of sugar for raw sugar and refined sugar.

Removing or rationalising these subsidies will free up at least RM500 million without burdening the overall budget. There is more than enough to provide the RM80 million needed to raise allowances.

Every ringgit redirected from subsidising sugar to supporting frontline medical staff directly strengthens public health delivery and retention of skilled personnel.

Malaysia is currently facing exploding rates of diabetes, heart disease and children with obesity. It makes no sense to subsidise sugar while underpaying doctors.

Redirecting subsidies to fund on-call allowances is a win-win. We get healthier Malaysians and a stronger, more motivated health care workforce.

Azrul Mohd Khalib is the chief executive of the Galen Centre for Health and Social Policy.

  • This is the personal opinion of the writer or publication and does not necessarily represent the views of CodeBlue.

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