RM47.7bil health allocation falls short of growing needs, says think tank

KUALA LUMPUR: Malaysia's RM47.7 billion healthcare allocation in the 2027 Budget falls short of meeting escalating healthcare demands, according to a think tank. The RM1.18 billion increase represents a mere 2.5 per cent rise from this year's allocation, the smallest expansion in five years. Galen Centre for Health and Social Policy CEO Azrul Mohd Khalib emphasized that development expenditure only grew by RM5 million to RM6.75 billion.

The government cannot expect to modernize the healthcare system, expand capacity, and address years of underinvestment while keeping development expenditure stagnant, he said. This budget does not reflect the investment trajectory of a country preparing for an aging population and a rising chronic disease burden. Azrul stressed that investments in physical infrastructure must be supported by adequate funding for staffing, operations, medicines, and maintenance.

Newly opened facilities and advanced equipment would have limited impact without trained personnel, as seen in the case of Pasir Gudang Hospital. Calling the 2027 Budget a missed opportunity for urgent structural reforms, Azrul noted that the government continues to spend without resolving underlying systemic issues. While the budget offers relief in several areas, including permanent positions for over 9,000 contract doctors, it fails to address the need for a credible, funded, multi-year recruitment and retention program. Currently, more than 50,000 health worker vacancies remain unfilled in the public health sector.