Malaysia Oversight

Bolder health reforms needed in 13MP, says think tank

By FMT in August 2, 2025 – Reading time 2 minute
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Strategic actions remain imperative for the well-being and resilience of Malaysia’s healthcare system, said the Galen Centre for Health and Social Policy.
PETALING JAYA:

A think tank has urged the government to execute bolder reforms for the health sector under the 13th Malaysia Plan, tabled yesterday, saying it falls short in several key areas.

The Galen Centre for Health and Social Policy said the government could show more ambition in areas like healthcare financing, health workforce, and non-communicable diseases.

Galen CEO Azrul Khalib said reforming healthcare financing was especially critical as the current tax-funded system was unsustainable.

He also said the Rakan KKM programme, offering “premium economy” services at selected public hospitals, and the proposed basic medical and health insurance and takaful (MHIT) product from the government were insufficient initiatives.

“What is needed is compulsory national health and social insurance to provide complementary funding to support health and aged care.

“Adopting a (salary deduction) rate similar to Perkeso contributions, we could raise at least RM6 billion annually to complement the annual health allocation under the federal budget,” he said in a statement.

Azrul said the government should have also announced a health services commission under the 13MP, which would take over the task of managing public health workers from the public services department.

“This commission would potentially enhance governance, improve accountability, and better manage human resources, leading to improved service delivery, and stronger confidence by the public and healthcare workers,” he said.

He said there was no clear vision or plan on how to stem the rise in non-communicable diseases, of which treating them takes up about 70% of the billions in ‘s annual health expenditure.

Azrul also said that failure to increase investment in effective treatments and care for NCDs could lead to more patients dying from suboptimal treatment.

“The 13MP should represent a bold and ambitious vision to ensure that the country’s healthcare system continues to be fit for purpose. Strategic actions remain imperative for the well-being and resilience of Malaysia’s healthcare system.

“We cannot afford to be timid,” he said.

Prime Minister Ibrahim said will allocate RM40 billion for the health sector under the 13MP.

Apart from building and upgrading health facilities in several states, he said, a framework for professional development will be developed to ensure talent retention in the health sector.

Yesterday, Azrul said the RM40 billion should fund long-term investment in healthcare infrastructure, modernisation of medical equipment, and improvements to the workplace environment.

He also said more must be invested in health literacy programmes that inform and empower people to take charge of their health.



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