The government has increased the Health Ministry’s allocation to RM47.7 billion under Budget 2027, up RM1.2 billion from RM46.5 billion, while pledging to resolve the long-standing contract doctor issue by offering permanent positions to more than 9,000 doctors next year.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the move would mark a major shift in public healthcare employment, with doctors who successfully complete their housemanship training subsequently offered permanent medical officer positions.
Since 2023, more than 15,000 contract doctors have been absorbed into permanent positions, including 4,000 this year.
The government will also double the post-basic incentive allowance for 47,000 paramedics and nurses from RM100 to RM200 monthly, while increasing the aerial health service incentive from RM30 to RM100.
RM200 Million To Cut Hospital Waiting Times
To ease pressure on public hospitals, the government is increasing funding for outsourcing patient treatment to RM200 million.
The initiative will expand access to private healthcare facilities, including operating theatres, while introducing more flexible arrangements for retired government specialists and private medical practitioners.
The programme will also cover expanded newborn screening, prenatal genetic testing and rehabilitation services.
Meanwhile, the Malaysian Communications and Multimedia Commission (MCMC) will continue implementing electronic medical record systems nationwide through an RM1 billion investment.
Affordable MediAsas Plan To Begin In January 2027
The government will introduce the affordable MediAsas health insurance plan in January 2027, with hospital payments determined by diagnosis and treatment categories to improve cost predictability.
Employees Provident Fund (EPF) members below 55 will be allowed to use their Akaun Sejahtera savings to pay MediAsas premiums.
For small and medium enterprises (SMEs) employing fewer than 75 workers, the government will subsidise RM200 in first-year premiums per employee, capped at 50 workers per company.
The initiative is expected to benefit up to 200,000 workers.
From 2027, private hospitals will also be required to adopt standardised billing categories to improve transparency in treatment charges.
RM1.2 Billion For Hospital Upgrades, Nine New Facilities
The government has allocated RM1.2 billion for maintenance and upgrading works at public hospitals and clinics, including remaining dilapidated facilities.
Another RM770 million will fund modern medical equipment, including 400 new ambulances, upgraded haemodialysis facilities and robotic surgery technology at Hospital Pakar USM.
Nine new healthcare facilities will also be developed, including specialist and day-treatment facilities at Hospital Sultanah Aminah in Johor, a dental specialist centre in Kuching and integrated health complexes in Gerik and Rembau.
Separately, the Medical Assistance Fund will increase from RM40 million to RM60 million, while RM80 million has been allocated for PeKa B40 to provide health screening and medical assistance to eligible recipients.
The mySalam health protection scheme will continue in 2027, having benefitted 1.6 million Malaysians with RM1.3 billion in claims since its introduction.
The government will also extend fertility treatment support to 2,000 couples and men’s health services to 42,000 individuals through the BuAi programme.
