Budget 2027: Medical groups hail end to contract doctor system, enhanced public-private synergy but seek more on retention

KUALA LUMPUR, Oct 9 — Health sector stakeholders have reacted positively to the health budget allocated in Budget 2027, with the Malaysian Medical Association (MMA) applauding the decision to phase out the contract doctor system, while the Association of Private Hospitals Malaysia (APHM) endorsed the move to strengthen public-private partnerships.

However, both organizations raised concerns over workforce retention, with MMA demanding more investment in specialist and subspecialist training, career progression, fair remuneration, and improved working conditions. The MMA president, Dr Sivanaesan Letchumanan, stated that the government's commitment to end the contract doctor system is a significant milestone, but the appointments must be paired with a broader strategy to retain healthcare workers.

The Ministry of Health's budget for 2027 has been increased to RM47.7 billion from RM46.5 billion in 2026. The MMA also stressed the need for strengthening primary healthcare to address non-communicable diseases and suggested utilizing the private general practitioners' network for disease prevention and early detection. The APHM welcomed the budget's measures to reduce patient waiting times and the RM200 million allocation for outsourcing patients to other hospitals.

Dr Kuljit Singh, APHM president, also welcomed the increased focus on billing transparency, stating that the portal for online licensing of private healthcare facilities would reduce processing times by up to 65 per cent.