KUALA LUMPUR, Oct 10 — The Ministry of Health (MOH) has received an allocation of RM46.5 billion under Budget 2026 — a modest 2.8 per cent increase, or RM1.25 billion, from the RM45.3 billion allocated in Budget 2025.
The 2.8 per cent rise in MOH’s overall 2026 budget marks the smallest year-on-year increase since Budget 2022, when the ministry’s allocation grew by just 1.5 per cent to RM32.4 billion from RM31.9 billion in Budget 2021 during the Covid-19 pandemic.
In subsequent years, the government raised MOH’s allocation by double digits — up 11.5 per cent in Budget 2023 and 13.5 per cent in Budget 2024 — followed by a 9.8 per cent increase in Budget 2025.
Budget 2026, which was tabled by Finance Minister and Prime Minister Anwar Ibrahim in Parliament today, reflects a slowdown in government spending growth for health after several years of double-digit increments.
While most of the additional funds go toward operating costs and emoluments, the government is still allocating development funds for hospital and clinic upgrades, new facility construction, and digital infrastructure expansion.
Prime Minister Anwar Ibrahim, who is also finance minister, said the government remains committed to health system reforms outlined in the Health White Paper.
He said the government will focus on six key challenges in the health sector next year, beginning with efforts to improve the quality of public health infrastructure.
“All government hospitals and clinics will undergo maintenance and repair works with an allocation of RM1.2 billion,” Anwar said during the tabling of Budget 2026 in Parliament today.
Another RM100 million will go towards upgrading district hospital wards, while RM755 million will be used to replace outdated medical equipment and procure new, advanced technology for emerging medical disciplines.
To support digital expansion in health care, the Malaysian Communications and Multimedia Commission (MCMC) will allocate RM650 million to enhance internet connectivity at public hospitals, health clinics, maternal and child health clinics, community clinics, and rural clinics.
To ease overcrowding in public hospitals, the government will allocate RM140 million to outsource patients to military, university, and private hospitals, and RM30 million to strengthen specialist services at government health clinics.
New infrastructure projects include the Northern Region Cancer Centre in Kedah; new hospital blocks in Pontian, Banting, and Sungai Buloh; an advanced surgical block at Hospital USM Kubang Kerian; and the Sabah Heart Centre at Hospital Queen Elizabeth II.
The government will also build 13 new health clinics, including in Machang, Teluk Kemang, Mukah, and Nabawan, as well as expedite the Northern Region Cancer Centre in Kuching and Hospital Sultanah Aminah 2 in Johor.
Rakan KKM, the much-touted programme to establish “premium economy” private wings in select government hospitals that has yet to launch, was not mentioned in Anwar’s Budget speech or listed in MOH’s budget in the federal expenditure document.
Of the RM46.5 billion allocated to MOH under Budget 2026, RM39.8 billion is for operating expenditure (opex) and RM6.7 billion for development expenditure (devex).
The devex allocation increased by just RM7 million, or 0.1 per cent, from RM6.738 billion in 2025 to RM6.745 billion in 2026 — the smallest rise in a decade since 2016. Meanwhile, opex increased by about RM1.24 billion, or 3.2 per cent, from RM38.5 billion this year to RM39.8 billion next year.
Within MOH’s opex, RM24.8 billion has been set aside for emoluments in 2026, an increase of RM720 million, or 3 per cent, from the RM24.1 billion allocated in 2025.
In the new federal budget, MOH’s RM46.5 billion allocation represents 9.9 per cent of the government’s total RM470 billion budget.
