KUALA LUMPUR, October 10 — The government has announced a RM46.5 billion allocation for the Ministry of Health under Budget 2026 — an increase from RM45.3 billion this year — to support a comprehensive healthcare reform guided by the Health White Paper. The reform aims to enhance collaboration between the public and private sectors, ensuring equitable and affordable access to quality healthcare nationwide.
Six key priorities have been identified, including infrastructure improvement, hospital congestion management, healthcare inflation control, workforce welfare, medicine security, and preventive health initiatives. To improve healthcare infrastructure, RM1.2 billion will be allocated for the maintenance and repair of hospitals and clinics, with RM755 million set aside for modern medical equipment.
The government will also upgrade district hospital wards (RM100 million) and enhance internet connectivity across public health facilities through a RM650 million investment. Efforts to address hospital overcrowding include outsourcing patients to military, university, and private hospitals, expanding specialist services in health clinics, and constructing new hospitals and cancer centres in Kedah, Johor, Sabah, Sarawak, and Kelantan.
To tackle rising medical costs, the government will launch affordable basic insurance products with a RM60 million joint fund and extend tax relief of up to RM3,000 for life and health insurance premiums to include dependents. Stamp duty exemptions on small-value insurance policies and Takaful plans will continue until 2028.
Meanwhile, private hospitals will be allowed to establish Charity Hospital Funds with tax exemptions, and EPF contributors may use their Akaun Sejahtera for health insurance. The mySalam programme will also continue in 2026 to support low-income groups with hospitalization and critical illness protection.
Addressing healthcare workforce concerns, the government will offer 4,500 permanent positions for contract doctorsand 935 for nursing graduates next year. Consultation fees for general practitioners will be revised from RM10–RM35 to RM10–RM80, while on-call allowances (ETAP) for medical and dental officers will increase by 40% effective Oct 1, 2025.
The budget also includes initiatives to enhance medicine supply security through public-private partnerships and reinforce the Malaysia Sihat agenda — including increased excise duties on tobacco and alcohol starting Nov 1, 2025, with proceeds directed toward lung health, diabetes, and heart disease treatments.
