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Daily Express
2 days ago
- Health
- Daily Express
Malaysia's healthcare at a tipping point as costs surge
Published on: Monday, July 28, 2025 Published on: Mon, Jul 28, 2025 By: FMT Reporters Text Size: For illustrative purposes only. PETALING JAYA: Malaysia's healthcare system is edging towards a crisis. According to the Khazanah Research Institute, medical inflation is projected to hit 12.6% this year, outpacing both the global and Asia-Pacific averages. At the same time, insurance premiums are rising well beyond Bank Negara Malaysia's 10% cap, while public hospitals are overwhelmed with long queues, a shortage of specialists and stretched resources. However, instead of focusing on faults, experts say the conversation must shift toward practical and transparent solutions that improve outcomes for all Malaysians. Medical costs are escalating worldwide. Malaysia is no different, experts say, yet in some ways, it is even more exposed. Why are healthcare costs climbing? Private hospital charges are often perceived as excessive, yet data shows they operate on modest post-tax margins of between 7% and 11%—lower than the margins reported by insurers (13%), pharmaceutical firms (15%), and MedTech companies (16%). Up to 90% of private hospital earnings is reinvested in infrastructure, equipment and staffing. This reinvestment is critical in a competitive environment where retaining skilled specialists has become increasingly difficult. Healthcare costs are rising in part because hospitals must bear the cost of globally-priced technologies, imported drugs and rising wages. Meanwhile, the public system remains severely overburdened. Over 70% of Malaysians depend on public healthcare, where the doctor-to-patient ratio exceeds 1,500:1. Those who can afford private treatment gain faster access and a more personalised care environment, complementing the essential services offered by public hospitals. Medical bills also vary depending on a patient's health profile. A young, healthy individual will naturally incur lower costs than an elderly patient with multiple chronic conditions. However, variations are driven by the complexity of treatment, not arbitrary pricing. The insurance factor Patients are often taken aback by the cost of private treatment, particularly in insured cases. However, these outcomes are frequently the result of how insurance policies are structured. Hospitals usually charge the same base prices for treatments regardless of whether a patient pays out-of-pocket or via insurance. However, insurance companies often negotiate business-to-business (B2B) discounts with hospitals premised on patient volume. In such cases, the final bill that an insured patient incurs would likely be lower than the standard rate. Before admission, hospitals typically offer patients an estimated treatment cost based on the clinical recommendations of doctors. Patients are always informed of options available to them if the insurance coverage excludes certain procedures or the treatment cost exceeds their policy limit. Patients who choose to self-pay may, in some cases, incur lower overall costs. This can result from patients opting for less intensive treatment or receiving discretionary discounts and financial aid from hospitals and doctors in deserving cases. While these practices are typically rooted in clinical judgement and goodwill, they may contribute to the perception of dual pricing between insured and self-paying patients. When appraised of the estimated costs, patients can then decide whether to pay for treatment out of their own pocket or seek a transfer to a public hospital. This process ensures decisions are made transparently and with informed consent. Health economist Prof Syed Mohamed Aljunid of IMU University attributes the inflationary pressures to factors affecting both demand and supply. 'On the demand side, an ageing population and the rise in chronic non-communicable diseases are important factors. They require a huge amount of resources—especially in the long term—to treat. 'On the supply side, new technologies, specialised equipment and treatment, and the development of new drugs are also costly,' he told FMT. He said the insurance sector must also be subject to scrutiny as some policyholders have seen premiums rise by as much as 50% over three years—well above official caps. When insurance coverage lapses or is exhausted, patients often fall back on the public system. This shift is especially pronounced in cases of recurring illnesses like cancer, where policies typically cover only the initial diagnosis. Transparency vs. reality in medical billing Unlike retail products, medical costs can't always be quoted upfront. Treatments may evolve in real-time depending on a patient's condition, complications and their recovery trajectory. While hospitals provide detailed, itemised bills post-treatment, estimating exact costs in advance is often impossible. Since May 1, private healthcare providers have had to publicly display medication prices—a move aimed at enhancing transparency. However, industry stakeholders have voiced concern over practical hurdles, from administrative burdens to unclear regulatory oversight. Critics of the move say doctor-patient consultations may end up becoming price-haggling sessions. Smaller clinics, already struggling with rising costs, may find it difficult to absorb the compliance burden. Penalties for non-compliance—up to RM50,000 for individuals and RM100,000 for companies—are also raising alarm. Dr Nomee Ashikin, group medical director at state-owned Selgate Healthcare Sdn Bhd, said private hospitals already operate on tight margins and absorb significant overheads to maintain high standards of care. 'Hospitals have no choice, as they are facing a lot of headwinds. With the current issue of tariffs and a poor ringgit, a lot of these problems will trickle down and be borne by the public,' she told FMT. Other countries offer mixed lessons. Thailand's price controls were met with resistance due to fears of stifling innovation. Vietnam has capped basic services but allowed premium offerings to offset costs. Singapore has sought to balance public and private roles through hybrid funding and structured pricing. What can be done? One critical area is better regulation of the insurance industry, said Nomee. 'When the bottom line is prioritised, it will be to the detriment of the public. We need some sort of regulation. 'We know that the medical doctors are the ones who are being regulated. Our fees have not changed for the last decade. Before, the ratio of medical bills was one to the doctor, three to the hospital. Now it's one to ten,' she said. Some patients have faced steep premium hikes and coverage inconsistencies. Improving transparency around claims and clearly communicating co-payment structures could help rebuild trust. Another priority is strengthening coordination between public and private healthcare. Both sectors are essential, and better collaboration can ease congestion and improve access across the board. At the policy level, reform needs to be cautious and deliberate as overly aggressive regulation could deter investment and affect service quality. Dr Khor Swee Kheng, CEO of Angsana Health, said reforms must be gradual and consultative. 'Reforms should take place with enough notice so that people are not surprised by it. As long as you manage the reforms in a gradual, predictable way that is familiar to people—without scaring them—reforms will work,' he told FMT. He said addressing Malaysia's healthcare challenges will require cooperation from all sides. 'Stop blaming each other. Stop saying that a certain stakeholder has got more duty, more responsibility, and therefore has more on the hook than other stakeholders. 'The middle way must be collaborative, evidence-based and should be implemented in a pilot fashion. If it shows some early promising signs of results, then we go all in,' he said. - FMT * 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
17-07-2025
- Business
- The Star
Call for tighter controls to curb property speculation
ACCORDING to studies by Khazanah Research Institute, house prices in Malaysia rose by an average of 5.8% per year between 2010 and 2022. This is well above the healthy growth range of 3% to 4%, making it difficult for many in the M40 income group to become homeowners. In urban areas, the typical 'modern' three-bedroom apartment ranges from 800 sq ft to 1,000 sq ft. This limited space is not conducive to multi-generational or extended family living. Cancel anytime. Ad-free. Full access to Web and App. RM 13.90/month RM 9.73 /month Billed as RM 9.73 for the 1st month, RM 13.90 thereafter. RM 12.39/month RM 8.63 /month Billed as RM 103.60 for the 1st year, RM 148 thereafter.
New Straits Times
17-07-2025
- Business
- New Straits Times
CAP calls for vacancy tax, tighter controls to curb property speculation
GEORGE TOWN: The Consumers' Association of Penang (CAP) has called for the introduction of a vacancy tax on residential properties that are left unoccupied for extended periods. It also called on the government to review and strengthen the Real Property Gains Tax (RPGT). CAP president Mohideen Abdul Kader said these measures were urgently needed to address the deepening problems of property speculation and declining housing affordability in Malaysia. "A vacancy tax typically applies to properties that remain vacant — unsold or unrented — for more than six months in a year. "In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value. "Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners," he said in a statement today. According to the Khazanah Research Institute, housing prices in Malaysia rose by an average of 5.8 per cent per year between 2010 and 2022, well above the healthy growth range of three to four per cent. As a result, many in the M40 income group found it difficult to purchase their own homes. In urban areas, the typical 'modern' three-bedroom apartment ranges from 800 to 1,000 square feet. Mohideen said this limited space was not conducive to multi-generational or extended family living, nor does it offer adequate privacy or comfort for those forced to share with other families. "Speculators often compete directly with genuine homebuyers, inflating demand and thereby encouraging developers to acquire more land to keep up with what is essentially artificial pressure. "In land-scarce areas like Penang, this has resulted in a rise in land prices and a growing reliance on costly land reclamation from the sea. "It is also worth noting that many apartment blocks are not fully occupied, despite having been sold. In these developments, owners of vacant units — who are not living in them and cannot easily sell or rent them out —often neglect their obligations to pay maintenance fees. "This undermines the upkeep of the building and penalises residents who do live there. At present, many residential properties, particularly in urban centres, remain empty while thousands of Malaysians continue to struggle to find homes they can afford," he added. The property market, Mohideen noted, had become increasingly dominated by those who treat housing as a speculative investment rather than a basic human need. He said this trend had led to inflated prices and a false sense of scarcity, especially in cities where housing demand is greatest. "A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market. "In addition, CAP also calls on the government to review and strengthen the RPGT, as the current system fails to adequately discourage short-term speculation. "We propose a more progressive model that imposes significantly higher tax rates on profits from properties sold within a short holding period," he added. Mohideen also called for a revision of stamp duty rates and tighter controls on housing loans. He said that unless the government introduced comprehensive policy reforms, Malaysia's housing sector would continue to favour investors at the expense of ordinary citizens.
The Sun
10-07-2025
- Business
- The Sun
Structural barriers still hindering Malaysian women from economic participation: Nurul Izzah
KUALA LUMPUR: Despite Malaysia's progress in women's education, structural inequalities from algorithmic bias to unpaid care burdens continue to obstruct women from participating in the economy, said leaders at the World Women Economic and Business Summit 2025 today. Former special adviser to the finance minister Nurul Izzah Anwar said systemic barriers, including unpaid care responsibilities and emerging digital biases, are keeping millions of Malaysian women out of the labour force despite rising education levels. 'As of 2022, women's labour force participation remains at 55.8%, well below the government's 60% target and far behind the 82% participation rate for men,' she said. 'Millions of women are absent from the workforce not because of a lack of ambition or talent, but because of the disproportionate burden of caregiving that still falls on their shoulders.' Citing a 2018 Khazanah Research Institute Time Use Study, Nurul Izzah noted that Malaysian women spend over 60% more time on unpaid care work compared to men. Globally, women carry out 76.4% of such work, often without institutional recognition. She stressed that reforms must go beyond quotas and visibility to address deeper issues of economic valuation and structural support. 'We must reimagine how our economy values care, how society shares responsibility, and how businesses define success, not merely by profits, but by purpose,' she said. 'Our brilliance must be matched with a moral compass.' Nurul Izzah also raised concerns about gender bias in artificial intelligence (AI) and its implications for employment, finance and legal systems. 'Current AI systems, used in job matching, credit assessments and facial recognition, often replicate historical gender biases embedded in the data they are trained on,' she said. 'We need diverse datasets, regular bias audits and cross-sector cooperation to ensure tech development is inclusive from the ground up.' Deputy Director-General of Education (Policy and Curriculum) Dr Rusmini Ku Ahmad said Malaysia has achieved near-universal access to education for girls, with female enrolment surpassing males in public universities. Yet, this has not translated into economic equality. 'Despite leading in educational attainment, only 56.2% of women are in the workforce. Closing this gap could raise Malaysia's per capita income by more than 25%,' she said. To address this, the Education Ministry is supporting gender-responsive workplace policies in collaboration with the private sector. In May, Malaysia launched the inaugural Women's Empowerment Principles Corporate Action Lab, providing companies with a global framework to build inclusive work environments. Additionally, the newly established Asia Women's Economic Empowerment Centre in Kuala Lumpur will spearhead gender-inclusive policies across the region, including better access to finance for women-led micro, small and medium enterprises. Rusmini called on all sectors, including government, business, education, and families, to challenge outdated norms and actively build environments where women can thrive. 'Every investment in women's education is an investment in Malaysia's economic competitiveness,' she said. 'We are not just building tomorrow's leaders, we're building tomorrow's economy.'
Malaysia Sun
09-07-2025
- Business
- Malaysia Sun
News Analysis: Increased tariffs will strain Malaysia-U.S. ties, disrupt trade links
by Jonathan Edward, Wang Jiawei KUALA LUMPUR, July 9 (Xinhua) -- Bilateral ties between Malaysia and the United States are likely to be strained following the U.S. administration's imposition of a 25 percent tariff on Malaysian exports, according to analysts. Noting that Malaysia has limited leverage against the unilateral decision by the U.S., they urged the country to deepen ties with other key trade partners and build economic resilience against such external disruptions, as the tariffs and other disruptive policies are likely to persist as a long-term trend. Economist Samirul Ariff Othman told Xinhua that although Malaysia has avoided emotional retaliation, continued provocation or further economic pressure may leave the government with no choice but to adopt a tougher stance. "Quiet diplomacy can only go so far. Should the U.S. persist, Malaysia will need to recalibrate its strategic alignments," he said. Khazanah Research Institute Deputy Director of Research Yin Shao Loong said that the tariffs seem to be driven more by the U.S. administration's failure to meet its own deadlines for tariff negotiations, and that negotiations are likely to continue and eventually make headway. Meanwhile, Federation of Malaysian Manufacturers President Soh Thian Lai said that the latest round of tariffs risks destabilizing business links and supply chains with feedback from manufacturers during the initial implementation of the 10 percent tariff already pointing to serious concerns over the sustainability of export operations. "This latest escalation risks further destabilizing an already fragile industrial landscape, severely impacting export competitiveness and placing additional strain on manufacturers," he said. Soh added that while strategic exports such as semiconductors were exempted, the broader ecosystem supporting the semiconductor industry including parts, machinery and services remains exposed to disruption. The Institute for Democracy and Economic Affairs (IDEAS), a Malaysian think-tank, cautioned the government against accepting terms imposed by the U.S. that will be harmful to Malaysia's long-term strategic interests while stressing the need for a collective defense by the Association of Southeast Asian Nations (ASEAN) against disruptive policies. "The underwhelming outcomes from bilateral negotiations for Malaysia and other countries reinforce the need for collective action to combat Washington's divide-and-conquer strategy. We can not allow fragmented engagement to weaken ASEAN's position on the global stage," it said in a statement. "Malaysia must continue to avoid being drawn into retaliatory trade barriers or a false choice between major powers, and continue to diversify and deepen partnerships with countries that share its interest in open and mutually beneficial trade," it said.
