Private hospitals urge extension of SST deadline for foreign patient services
SHAH ALAM – The planned expansion of the Sales and Service Tax (SST) to private healthcare services for non-Malaysian patients is expected to pose significant operational challenges for the healthcare sector.
The Association of Private Hospitals Malaysia (APHM) has called on the government to extend the July 1 implementation deadline, warning that the short notice does not allow sufficient time for private hospitals to make the necessary adjustments.
The six per cent SST, announced as part of the government's effort to broaden the tax base, would apply specifically to services provided to non-citizens.
In a statement released today, APHM acknowledged the government's economic objectives but stressed the need for a more practical timeline.
It said hospitals would require adequate lead time to update administrative systems, adjust billing procedures and ensure full compliance with the new tax framework.
'Today, APHM sent a written request to the Finance Ministry (MOF) for a more practical timeline beyond the current July 1 implementation date.
'This is to allow smoother transition, minimise disruption to patient services and help ensure full compliance with the new requirements,' the statement read.
The association also raised the need for further clarification on specific areas of the policy, including its treatment of professional fees, implications for foreign residents in Malaysia and other implementation details.
Highlighting the vital role of private hospitals in Malaysia's healthcare system, APHM noted their contribution to both domestic care and international medical tourism.
Malaysia was recently ranked among the top 10 global medical tourism destinations by Nomad Capitalist, with the sector projected to generate USD$2.7 billion annually by 2030.
APHM reaffirmed its commitment to working collaboratively with the government to ensure sustainable implementation of the SST expansion.
'We will continue to engage constructively to help safeguard service continuity and uphold the standard of care, while supporting the Government's broader policy objectives,' the statement added.
Finance Minister II Datuk Seri Amir Hamzah Azizan - Photo by Bernama
The expanded SST, announced by Finance Minister II Datuk Seri Amir Hamzah Azizan, would take effect on July 1 and would include six new service categories: leasing, construction, finance, private healthcare, education, and beauty.
Malaysians would remain exempted from SST on healthcare services, including traditional treatments such as Malay, Chinese, Indian and Islamic medicine, as well as allied health services like physiotherapy, audiology, and speech therapy.
To support a smoother transition, the government has assured that no legal or punitive action will be taken against non-compliant businesses until Dec 31, 2025.
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