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New Straits Times

[UPDATED] Malaysia's health spending jumps 4 times in 20 years

KUALA LUMPUR: Malaysia's per capita health expenditure nearly quadrupled between 2000 and 2020. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the figure surged from RM600 in 2000 to RM1,600 in 2020, driven by rising demand for healthcare and advances in medical technology. "Private sources accounted for RM40 billion, or 47 per cent, of total health expenditure in 2024. "Out-of-pocket spending remains high, at around 36 per cent of total health expenditure. "Our vision is to sustainably expand fiscal space while ensuring healthcare remains accessible, high-quality, and equitable," he said at the launch of the 31st Association of Private Hospitals Malaysia (APHM) International Healthcare Conference & Exhibition 2025, here, today. Dzulkefly said the Health Ministry was working with the Finance Ministry, Bank Negara Malaysia (BNM), and the Employees Provident Fund (EPF) to develop a health insurance and takaful product. This product will support the rollout of the new Diagnosis-Related Groups (DRGs) system, which aims to transform the way healthcare services are paid for. He also dismissed speculation of a delay in the DRG implementation, adding that the initiative remained on track to be introduced in phases by the end of this year, starting with the "Rakan KKM" project. "This is not privatisation. It is publicly owned and developed for public benefit, offering optional value-added services within the Health Ministry's hospitals. "We are already seeing proof-of-concept through the Hospital Service Outsourcing Programme (HSOP), which applies bundled payment principles. "For example, waiting times for arteriovenous (AV) fistula creation for haemodialysis patients have been reduced by over 75 per cent," he added. Turnaround times for Magnetic Resonance Imaging and Angiography (MRI/MRA) services have also improved by more than 20 per cent, Dzulkefly said, saying these value-based models demonstrated that system efficiency and clinical outcomes could be enhanced. Meanwhile, APHM president Datuk Dr Kuljit Singh highlighted the lack of a national electronic health record system, which he said was a critical gap in the DRG implementation process. "The absence of such a system makes DRG implementation more complex," he said. Nevertheless, he expressed appreciation for the ministry's commitment to collaboration and its data-driven, evidence-based approach to the DRG rollout.