Private hospitals call for delay to 6% SST for non-Malaysians
Published on: Wed, Jun 11, 2025
By: FMT Reporters Text Size: Several associations raised concerns about the potential impact on service accessibility, pricing transparency, and operational preparedness, especially for sectors like healthcare. (Envato Elements pics) PETALING JAYA: Private hospitals are urging the finance ministry to postpone the implementation of the 6% sales and service tax (SST) on private healthcare services for non-Malaysians, set to take effect on July 1. In a statement, the Association of Private Hospitals Malaysia (APHM) raised concerns over the implementation timeframe, saying 'private hospitals will need sufficient lead time to adjust administrative systems, billing processes, and compliance procedures'.
Advertisement APHM also said it had sent a written request to the finance ministry today for a 'more practical timeline'. 'This is to allow for a smoother transition, minimise disruption to patient services, and help ensure full compliance with the new requirements.' APHM also said it had sought further clarification on the policy's application, including its impact on professional fees, treatment of foreigners residing in Malaysia, and other related implementation matters. The finance ministry announced two days ago that the service tax would be expanded to include rent, lease, construction, financial services, private healthcare, and education, with hopes that it would help generate RM51.7 billion in SST revenue next year. Under this policy, private hospitals will charge a 6% SST on healthcare services provided to foreign nationals. Since the announcement, several associations have raised concerns about the potential impact on service accessibility, pricing transparency, and operational preparedness, especially for sectors like healthcare and education which serve many non-Malaysians including foreign workers, expatriates, and international students. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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