Private doctors urge SST exemption on foreign workers' primary healthcare
KUCHING (June 28): The Federation of Private Medical Practitioners' Associations, Malaysia (FPMPAM) has proposed for the government to fully exempt primary care services for foreign workers from the Sales and Services Tax (SST).
FPMPAM president Dr Shanmuganathan Ganeson said that as an alternative, the government could implement a temporary moratorium on the tax to allow time to explore a fair and sustainable healthcare financing mechanism.
'We have formally submitted an appeal to the Ministry of Finance (MoF), urging an urgent exemption from the upcoming six per cent SST on primary healthcare services provided to foreign workers, scheduled to take effect on July 1,' he said in a statement yesterday.
Dr Shanmuganathan said although the Foreign Workers Medical Examination Monitoring Agency (Fomena) screenings remained exempt, many foreign workers would still require outpatient care for common illnesses, injuries, and chronic conditions — essential services typically paid for out-of-pocket by the workers themselves, or arranged through employer or Third-Party Administrator (TPA) programmes.
Under the new SST rules, such services would be taxed once a clinic's annual revenue exceeds RM1.5 million.
Dr Shanmuganathan said: 'The foreign workers are already vulnerable and underserved, and the SST to basic medical treatment risks deterring them from seeking timely care, delaying diagnosis, and ultimately compromising public health.
'We are also concerned about the eight per cent SST on commercial property rentals, which would further escalate operating costs for clinics renting shoplots, medical suites, or office units.
'These taxes compound the strain on solo and small-group practices that have seen no fee adjustments for decades.'
Dr Shanmuganathan also highlighted that the Federation of Malaysian Manufacturing (FMM) recently called for a broader reassessment of the SST expansion, citing its potential to harm the business environment and consumers.
'FPMPAM echoes this concern, urging the MoF to prioritise public health and service sustainability.
'FPMPAM also notes a policy anomaly where beauticians and cosmeticians, which are not related to essential health, now have no tax, whilst tax is imposed for essential health and medical services.'
Nonetheless, Dr Shanmuganathan said the federation stood ready to work with the MoF to ensure that tax policies would not inadvertently undermine access to essential healthcare or threaten the survival of community clinics.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
6 hours ago
- The Sun
Service tax exemption on ship and aircraft leasing clarified by MOF
KUALA LUMPUR: The Ministry of Finance (MOF) has clarified that the service tax exemption on ship and aircraft leasing was not implemented secretly. The exemption aims to maintain the competitiveness of Malaysia's local industries. Without the exemption, local ship and aircraft owners might register their assets abroad, reducing economic activity in Malaysia. The MOF stated that taxation could drive owners to relocate registrations overseas, negatively impacting tourism and business. 'This exemption is granted for two main reasons - to prevent the registration of ships and aircraft abroad, and because taxation could drive local owners to register overseas, thereby reducing economic and tourism activities in Malaysia,' the ministry said. Neighbouring countries do not impose similar taxes, making the exemption necessary to retain business. 'Without the exemption, customers may turn to foreign shipping or aviation services,' the MOF added. The exemption was officially announced on July 24, 2025, via the MySST portal of the Royal Malaysian Customs Department. - Bernama
BusinessToday
6 hours ago
- BusinessToday
MOF: Tax Break On Rentals To Boost Competitiveness, Avoid Overseas Shift
The Finance Ministry (MOF) clarified that the service tax exemption on ship and aircraft rentals was introduced to protect Malaysia's competitiveness and prevent capital flight. In a statement, MOF said imposing the tax risked pushing local ship and aircraft owners to register abroad, reducing Malaysia's share of economic and tourism-related activity. At the same time, it noted that neighbouring countries do not impose such levies, meaning Malaysian operators could lose out to foreign competitors without the exemption. 'This exemption is targeted at the aviation and maritime sectors, which are vital to the supply chain, tourism and the national economy. It does not apply to other rentals such as cars, buses or premises,' MOF said, while emphasising that the tax exemption was not done through any 'silent' move. The ministry highlighted that the policy was officially communicated through Service Tax Policy No 2/2025 (Amendment No. 1), uploaded to the MySST portal on July 24, 2025.
Malaysian Reserve
7 hours ago
- Malaysian Reserve
MOF: Service tax exemption on ship and aircraft leasing was not done discreetly
KUALA LUMPUR — The service tax exemption on ship and aircraft leasing was not done discreetly, with the exemption aimed at maintaining local industry competitiveness, says the Ministry of Finance (MOF). The MOF emphasised that the imposition of such a tax could have encouraged local ship/aircraft owners to register abroad, which would subsequently reduce economic activity and tourism in Malaysia. 'This exemption is granted for two main reasons – to prevent the registration of ships and aircraft abroad, and because taxation could drive local owners to register overseas, thereby reducing economic and tourism activities in Malaysia,' the ministry said in a media statement today. MOF also noted that neighbouring countries do not impose similar taxes. 'Without the exemption, customers may turn to foreign shipping or aviation services,' it added. It stressed that the service tax exemption on the leasing of ships and aircraft was not done discreetly, and that official notification was made on July 24, 2025 when it was uploaded on the MySST portal of the Royal Malaysian Customs Department. — BERNAMA
