Malaysia

Budget 2026: MMA calls for public healthcare spending to double to 5% of GDP

Association president suggest funding the increase can be done by removing the sugar subsidy and expanding the sugar tax on sugary drinks

Updated 1 year ago · Published on 05 Oct 2025 6:14PM

Budget 2026: MMA calls for public healthcare spending to double to 5% of GDP
Dr Thirunavukarasu said the most pressing issue was tackling the severe shortages and retention challenges facing the public healthcare workforce - October 5, 2025

THE Malaysian Medical Association (MMA) has urged the government to increase public healthcare expenditure from the current 2.4 per cent to five per cent of Gross Domestic Product (GDP) in Budget 2026, framing it as a vital long-term investment in the nation’s health system.

MMA president Datuk Dr Thirunavukarasu Rajoo proposed funding this boost by removing the sugar subsidy and expanding the sugar tax on sugary drinks, with all revenues ringfenced exclusively for the Ministry of Health.

“This not only discourages unhealthy consumption, but also channels resources directly into strengthening healthcare,” he stated.

Highlighting urgent priorities, Dr Thirunavukarasu said the most pressing issue was tackling the severe shortages and retention challenges facing the public healthcare workforce.

“The best policies could not be delivered effectively without a strong workforce,” he said, welcoming the government’s commitment to abolish the contract doctor system and urging that all remaining contract doctors be absorbed into permanent positions.

 Greater support for postgraduate training, both through master’s and parallel pathways, was also recommended.

The MMA also called for a review of doctors’ on-call allowances, which remain at an outdated rate of RM9.16 per hour, and suggested establishing a national dashboard to map healthcare workers and services nationwide to ensure transparency and equitable resource distribution.

In addition, Dr Thirunavukarasu emphasised the need for stronger prevention of non-communicable diseases (NCDs) through enhanced screenings at private clinics, outsourcing national health checks, and expanding mental health support services.

To reduce health risks, the MMA advocated clearer food labelling, tax relief incentives for healthy lifestyles, and increasing the Madani Medical Scheme allocation to RM150 million.

Digitalisation was proposed as a cornerstone of healthcare reform, with standardised patient identification stickers recommended nationwide to reduce errors.

The MySejahtera app should also be enhanced to function as a platform mapping private general practitioners’ clinics participating in healthcare services.

Looking ahead to elderly care, Dr Thirunavukarasu warned that its cost was projected to reach RM21 billion, or 1.08 per cent of GDP, by 2040.

“We urge greater investment in home care services to keep seniors healthy within their communities, reducing unnecessary hospital admissions.

“We need more geriatricians, palliative care specialists, and allied health professionals, while hospitals and clinics should be upgraded with age-friendly facilities,” he said.

The MMA also proposed incentivising private hospitals to lend diagnostic equipment after hours and formalising integration between general practitioners, health clinics, and hospitals, citing the successful collaborative models witnessed during the pandemic.

Budget 2026 is due to be tabled on 10 October. - October 5, 2025

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