Private hospitals ask for more time to comply with SST expansion
KUALA LUMPUR: The Association of Private Hospitals Malaysia (APHM) has requested an extension for the compliance of the expanded Sales and Service Tax (SST), which is scheduled to come into effect on July 1.
Under the new rules, private healthcare services provided to non-Malaysian patients will be subject to a 6 per cent SST.
APHM said that while it supports the Government's plans to broaden the tax base to support economic growth, the short implementation timeframe poses "significant operational challenges".
"Private hospitals would need sufficient lead time to adjust administrative systems, billing processes, and compliance procedures," APHM said in a statement.
The association has submitted a written request to the Finance Ministry for a more practical timeline beyond July 1.
"This is to allow a smoother transition, minimise disruption to patient services, and help ensure full compliance with the new requirements.
"APHM has also sought further clarification on the policy's application, including its impact on professional fees, its treatment of foreigners residing in Malaysia, and other related implementation matters."
APHM said that private hospitals are an essential part of Malaysia's healthcare ecosystem, with the country being recognised as one of the top 10 global destinations for medical tourism.
"APHM remains committed to working collaboratively with the government to ensure effective and sustainable policy implementation."
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