Systemic overhaul needed to reform healthcare
PETALING JAYA: With Malaysia's healthcare system under mounting strain, health experts and consumer advocates are calling on the government to deliver bold, systemic reforms – not just promises. They say only transformative change can address a system burdened by rising costs, limited access and uneven accountability.
'It can't be another symbolic gesture,' said Galen Centre for Health and Social Policy CEO Azrul Mohd Khalib.
'Superficial adjustments won't be enough, we need real reform to ensure every Malaysian has fair and affordable access to healthcare.'
Prime Minister Datuk Seri Anwar Ibrahim recently announced that the government would form a high-level task force – comprising representatives from the Health Ministry, Finance Ministry and Bank Negara – to implement bold reforms to fix long-standing inefficiencies in Malaysia's healthcare system.
Azrul stressed that entrenched problems, such as fragmented services, opaque pricing and under-regulated private sector players require sweeping and urgent measures.
'The committee should urgently tackle inefficiencies by enforcing price transparency in private hospitals, standardising medical fees and introducing value-based payment systems such as the Diagnosis-Related Group model.'
He warned that disjointed data systems between the public and private sectors have led to duplicated services and unnecessary spending, and called for tighter digital integration and regulation of third-party administrators, insurers and private providers to eliminate hidden mark-ups.
Azrul also urged a complete overhaul of healthcare financing, pointing out that Malaysia's health expenditure remains below global benchmarks.
'The task force should push for a national health and social insurance model with pooled contributions from employers and employees.
'This would reduce out-of-pocket spending, protect households from catastrophic bills and ensure cost-sharing across the system.'
Azrul recommended setting clear key performance indicators requiring regular public updates and mandating independent audits.
He also called for parliamentary oversight and the involvement of civil society to ensure transparency and policy continuity.
He stressed that reaching underserved groups must be a key priority.
'Private hospitals receiving tax incentives should be required to provide affordable care quotas. We must also expand telemedicine, mobile services and subsidies for rural patients.'
Azrul added that small but visible steps could quickly build public trust in the reform effort, such as mandatory itemised billing and a national online platform for patients to report billing complaints.
Echoing his concerns, Federation of Malaysian Consumers Associations (Fomca) president Dr Saravanan Thambirajah said Malaysians are facing a dual crisis: spiralling private healthcare costs and overwhelmed public facilities.
'One of the most pressing issues is rising private healthcare costs, where patients are billed without clarity and exposed to unchecked price hikes.'
Saravanan noted that medical inflation in Malaysia is among the highest in the region, yet there is no legal mechanism to regulate it or even public data to justify the increases.
'Procedures, room charges, consultation fees and medications must be disclosed and regulated. Itemised bills should be mandatory.'
He also called for a national database of verified healthcare pricing and tighter control over insurance premiums.
'Healthcare must be governed by strong public policy. Patients, not profits, must be at the centre.'
He proposed the creation of a permanent Consumer Health Advisory Council and digital feedback mechanisms to ensure that reforms are informed by the public's live experiences.
'Fomca also backs the idea of a national health insurance scheme, provided it includes robust protections, such as subsidies for the B40 and M40 income groups and oversight by an independent, non-political body.
'The government must prioritise rural infrastructure, expand mobile clinics and offer incentives for healthcare workers. Healthcare is a public right.
'Without legislation and enforcement, aspirations won't translate into impact.
'It's time for the government to lead, not just manage,' he added.
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