Budget 2026: Health Ministry Allocation Raised To RM46.5 Billion

KUALA LUMPUR, Oct 10 (Bernama) -- The MADANI government has allocated RM46.5 billion to the Health Ministry (MOH) under Budget 2026, up from RM45.3 billion this year, to ensure equitable, quality and affordable healthcare access.

Prime Minister Datuk Seri Anwar Ibrahim said RM1.2 billion has been set aside to upgrade and maintain public hospitals and clinics, as part of efforts to improve public health infrastructure.

“District hospital wards nationwide will also be upgraded with an allocation of RM100 million, while outdated equipment will be replaced and new advanced tools procured for emerging medical disciplines (RM755 million),” he said when tabling Budget 2026 in the Dewan Rakyat today.

Anwar, who is also the Finance Minister, said the Malaysian Communications and Multimedia Commission (MCMC) will provide RM650 million, among others, to enhance internet connectivity at public hospitals, health clinics, maternal and child health clinics, community clinics and rural clinics.

To address overcrowding in public hospitals, he said the government will strengthen collaboration to outsource patients to military, university and private hospitals at a cost of RM140 million, while RM30 million will be channelled to empower health clinics by providing specialist services.

The Prime Minister said the government will also build new hospitals, clinics and additional blocks, including the Northern Region Cancer Centre in Kedah, new blocks at Pontian Hospital in Johor, Banting and Sungai Buloh Hospitals in Selangor, and the Sabah Heart Centre at Queen Elizabeth II Hospital.

The plans also cover the development of an Advanced Surgical Block at the USM Specialist Hospital in Kubang Kerian, Kelantan; the construction of 13 new health clinics in areas including Machang, Teluk Kemang, Mukah and Nabawan; and the fast-tracking of the National Cancer Centre in Kuching and Hospital Sultanah Aminah 2 in Johor.

Meanwhile, Anwar said 4,500 contract doctors will be offered permanent positions next year, while 935 graduates from MOH training institutes will be appointed as permanent nurses — in addition to 833 contract nurses confirmed in permanent posts this year.

“Since 2023, the MADANI government has approved 1,500 additional positions to absorb contract doctors into permanent posts, bringing the total to 12,900 contracts converted to permanent roles, including annual intakes,” he said.

With consultation fees for general practitioners unchanged since 2006, Anwar announced that the government has agreed to revise the rates to between RM10 and RM80, from the previous RM10 to RM35 range.

To recognise the dedication of healthcare personnel, including medical and dental specialists, Anwar announced a 40 per cent increase in the On-Call Allowance (ETAP), effective 1 Oct 2025, involving an additional RM120 million.

“For instance, specialist doctors on active on-call duty during public holidays will see their ETAP rate rise to RM350 from RM250. In addition, the government will pilot a public-private partnership project to produce essential medicines and strengthen national pharmaceutical security,” he said.

To address rising medical inflation, a joint government-industry fund of RM60 million will be established to introduce affordable basic insurance products for all, alongside the implementation of the Diagnosis Related Group (DRG) system.

To encourage greater insurance participation, Anwar said the personal income tax relief of up to RM3,000 for life insurance or takaful premiums for self and spouse will be extended to cover children.

He also announced a three-year extension until 2028 of full stamp duty exemptions for insurance policies, takaful certificates and Perlindungan Tenang products.

The MySalam scheme will continue to assist low-income households, having disbursed RM1.2 billion in hospitalisation and critical illness claims, benefiting 1.7 million recipients.

“To encourage private hospitals to assist underprivileged patients, they will be allowed to establish Hospital Welfare Funds managed by companies limited by guarantee (CLBGs). EPF contributors may also use their Sejahtera Account savings to subscribe to basic medical and health insurance or takaful (MHIT) plans,” he said.

-- BERNAMA