KUALA LUMPUR — Analysts have expressed concern over the government’s modest increase in healthcare funding under Budget 2026, arguing that the allocation fails to meet the nation’s growing healthcare needs and improve system efficiency.
In an episode of Scoop Insight, Muhammad Daniel Kittu, senior researcher at the Social and Economic Research Initiative (SERI), pointed out that this year’s health sector allocation saw only a 2% increase, a significant drop from the 10 per cent rise in the previous budget.
“The increase in healthcare allocation this year was only 2% compared to 10% last year,” Kittu said. “I would have liked to see more expansion in schemes such as the Madani Medical Scheme, which allows B40 Malaysians to access private healthcare services.”
While he welcomed the focus on the B40 demographic, Kittu emphasised that the M40 income group is also increasingly vulnerable to rising medical costs.
“Many in the M40 are just one illness or tragedy away from financial hardship,” he said. “Extending some form of protection to them would be crucial.”
Economist Geoffrey Williams, of Williams Business Consultancy, agreed that despite efforts to improve fiscal efficiency, Malaysia’s healthcare system continues to struggle with structural inefficiencies.
“Many healthcare systems, including ours, are managed by doctors rather than professional administrators,” Williams noted. “That can lead to inefficiency and misallocation of resources. Healthcare is one of the few systems everyone interacts with at some point,” he added.
“If we want to build a more resilient and equitable Malaysia, this is where it should start.”
Williams further explained that with overall government spending rising by only 1.8 % — roughly in line with inflation — the Ministry of Health will have to maximise its resources, making efficient management even more critical.
Meanwhile, Datuk Zainul Arifin, Group CEO of Big Boom Media, shared his personal experience with public healthcare, noting that government hospitals continue to provide quality care at minimal cost. However, he called for greater grassroots involvement in healthcare initiatives.
“Public hospitals like Shah Alam Hospital provide excellent service at RM1 or RM5 — that’s where you really see your tax ringgit at work,” he said.
“But the budget should also empower communities and NGOs. Too many initiatives are top-down.”
The government has allocated RM46.5 billion to healthcare in Budget 2026, marking an increase of RM1.2 billion from RM45.3 billion this year. Prime Minister Datuk Seri Anwar Ibrahim announced that government hospitals and clinics will undergo maintenance and repairs, with RM1.2 billion set aside for the work.
Additionally, outdated medical equipment will be replaced, and advanced equipment will be acquired for new medical disciplines, with RM755 million earmarked for this. Government hospitals and clinics will also see improved Internet connectivity, thanks to an allocation of RM650 million from the Malaysian Communications and Multimedia Commission (MCMC).
New healthcare infrastructure is also in the pipeline, including the Northern Region Cancer Centre in Kedah, additional blocks at Hospital Pontian in Johor, Hospital Banting and Hospital Sungai Buloh in Selangor, an advanced surgical block at USM Specialist Hospital in Kelantan, and the Sabah Heart Centre at Queen Elizabeth II Hospital.
Thirteen new clinics will also be built across various regions, including Machang (Kelantan), Teluk Kemang (Negeri Sembilan), Mukah (Sarawak), and Nabawan (Sabah). – October 17, 2025