PETALING JAYA: The authorities has to double the healthcare funds if it needs to extend sector spending to round 4% of gross home product (GDP) and remedy long-term funding issues, former well being minister Dr S Subramaniam mentioned.
The well being white paper advisory council’s co-chair acknowledged that authorities spending on public healthcare has elevated over time, and at RM41.2 billion takes up 10.5% of the 2024 funds, however mentioned it nonetheless solely makes up 2.1% of the nationwide GDP.
“Even spending simply 4% of GDP would imply doubling the funds,” he mentioned, when talking at a joint session between Academy of Medicine of Malaysia, the Faculty of Medicine, Universiti Malaya and the International Institute of Global Health, United Nations University.
The session, themed “National Health Service (NHS): Rise and decline – Lessons for Malaysia!” session, was held in Kuala Lumpur just lately.
According to the white paper, Malaysia’s public sector share of present well being expenditure is low in comparison with 6.4% and 4.4% of the GDP, which is the common spent by high- and higher middle-income nations, respectively.
Subramaniam mentioned Malaysia is underinvesting and as a consequence the public well being sector faces a myriad of issues, equivalent to delays in service supply, an absence of infrastructure and problem in retaining staff.
Subramaniam defended his introduction of a voluntary medical insurance scheme, regardless of international economists favouring a tax-funded system.
He mentioned normal taxation can be splendid if the federal government offers sufficient funding.
“Our downside is, many occasions, the sum the well being ministry receives is simply 50% of that requested,” he mentioned, including that this was even if the request was primarily based on proof, with the ministry truly charting out its particular wants.
Hence, there’s a concern that the final taxation technique could not meet the ministry’s wants, he mentioned.
Health coverage analyst Dr Chan Chee Khoon mentioned {that a} treasury official advised him Malaysia engages in aggressive reducing of earnings and company tax to compete in opposition to its Southeast Asian neighbours to draw international direct funding.
“It was partially true however he didn’t point out that there’s a aware coverage choice to advertise the enlargement of the non-public medical sector.
“There was a aware coverage to limit the additional enlargement of the public sector and permit house for the non-public sector to develop,” he mentioned, including that IHH Healthcare Berhad had change into the second largest listed healthcare supplier on the planet.
