The Ministry of Health (MOH) has been allocated approximately RM45.3 billion for Budget 2025, representing a 9.8% increase from the RM41.2 billion received this year.

A significant announcement by Prime Minister Anwar Ibrahim during the Budget 2025 presentation was the decision to end universal and nearly free healthcare for all citizens. Instead, the administration will implement targeted subsidies for healthcare services for the first time. Anwar, who also holds the finance minister position, did not disclose how much more the top 15% (T15) of income earners will need to pay to access public healthcare facilities beyond the current fees of RM1 for outpatient care and RM5 for specialist consultations.

A summary of the key health items in Budget 2025;

• The MOH budget has increased by RM4.1 billion to RM45.3 billion.
• Emoluments are up by RM2.4 billion, totalling RM24.1 billion.
• Operating expenditure (Opex) is set at RM38.5 billion, while development expenditure (Devex) amounts to RM6.7 billion.
• Existing patients will continue to receive treatment at the National Heart Institute (IJN), with those aged 65 and older remaining eligible for care. So far this year, IJN has discharged around 4,000 government patients from outpatient services, leading to complaints from many pensioners about being referred to public hospitals.
• Targeted subsidies for healthcare will require T15 individuals to pay “slightly more” for public health services.
• Medical fee collection constituted only 1% of MOH’s expenditure in 2021.
• The Rakan KKM initiative receives RM25 million in initial funding in partnership with government-linked investment companies (GLICs), launching in five MOH hospitals, including Cyberjaya Hospital.
• Paid healthcare services will be offered at “reasonable” rates.
• There will be increased collaboration with 91 private hospitals to outsource MOH patients, covering cardiology, radiology, and nephrology services.
• The Association of Private Hospitals Malaysia (APHM) advocates for technology use to improve referrals between public and private hospitals.
• Tax relief for medical expenses has been expanded to include diagnostic tests and the purchase of health check devices and kits.
• Individual income tax reliefs for medical and education insurance premiums have increased to RM4,000, while medical expenditure reliefs now cover up to RM10,000 for medical payments related to health insurance with copayment features.

War on Sugar

• The sugar-sweetened beverage (SSB) tax will rise in phases starting January 1, 2025, by 40 sen per litre.
• The procurement of SGLT2 inhibitors for diabetes treatment will increase, alongside an expansion of peritoneal dialysis services for kidney failure patients.
• RM27 million is allocated for MOH’s Agenda Nasional Malaysia Sihat.

On-call Allowance

• The on-call allowance (ETAP) for medical and dental officers will increase by RM55 to RM65, depending on specific service fields and departments. Currently, government doctors earn RM9.16 per hour for on-call duties (RM220 per shift during weekends), which will rise to approximately RM11.50 or RM11.90 per hour—still below the RM25 per hour requested by the Malaysian Medical Association (MMA).

Infrastructure and Facilities

• RM1.35 billion is allocated for upgrading health facilities, including repairs to dilapidated hospital toilets and wards.
• RM300 million is designated for improving run-down clinics nationwide.
• RM100 million will be used to procure modern equipment for various Centres of Excellence: Sultan Idris Shah Serdang Hospital (cardiology), Selayang Hospital (transplants and hepatobiliary), National Cancer Institute (IKN), Endocrine Institute at Putrajaya Hospital, Institute of Urology and Nephrology HKL, and Tunku Azizah Hospital (formerly Kuala Lumpur Women’s and Children’s Hospital).
• Preliminary work will begin on building a Cancer Centre in Kuching, Sarawak, and a Heart Specialist Centre in Kota Kinabalu, Sabah.

Rare Disease Fund

• The allocation for rare disease drugs has increased to RM25 million.
• The mySalam scheme will be expanded to cover rare diseases and rheumatoid arthritis. Contributions to the Rare Disease Fund will be eligible for tax breaks equivalent to the actual contribution made.

Additional Initiatives

• A policy is in place for specific procurement from companies making new domestic investments in critical pharmaceutical products and medical devices.
• Universiti Malaya is focusing on developing medical artificial intelligence (AI) solutions to combat cancer.