The Health Ministry has clarified that a RM500 million expenditure restriction announced in Budget 2026 does not affect healthcare services, dismissing claims that it constitutes a large budget cut.
The ministry said it is aware of public concerns over reports regarding its operating expenditure.
It stressed that under Budget 2026, the Health Ministry remains the second-largest recipient of national funding at RM46.5 billion, showing the government’s continued support for the public healthcare system.
According to the ministry, the RM500 million restriction issued by the Finance Ministry on 5 June 2026 is only a technical adjustment. It relates to surplus allocations for vacant posts that could not be filled this year.
It added that the restriction does not involve the 18,641 approved positions sanctioned by the Public Service Department for 2026.
Importantly, the ministry said core spending is not affected.
“This means spending for medicines, vaccines, medical supplies, hospital maintenance, as well as daily operations of clinics and public health facilities continues as normal.”
The ministry also said training and healthcare worker development programmes will continue as planned.
It rejected claims that there was a RM3.06 billion cut in operating expenditure, saying the figure being circulated is misleading.
“The figure being circulated is only an initial estimated saving based on the Ministry of Finance formula and is not the final amount of the restriction.”
The ministry assured that hospitals, clinics and all public healthcare facilities across the country will continue to operate as usual, and that patient access to treatment and medicines will not be affected.
