Health inflation in Malaysia more than doubles to 3pc in 2025, says Stats Dept

Health inflation in Malaysia surged to 3 percent in 2025 from 1.3 percent in 2024, according to the Department of Statistics Malaysia (DOSM). The rise was primarily fueled by the Health Services category, which saw a significant increase of 4.4 percent in 2025, up from 0.9 percent in the previous year. This surge was primarily due to the Insurance connected with health expenditure class, which rose by 9.1 percent in 2025, compared to 0.0 percent in 2024.

The Medicine category, representing the largest share at 38.9 percent in the Health Price Index (HPI), experienced a 2.8 percent increase in 2025, up from 2.2 percent the year before. This growth was driven by the Medicines expenditure class, which saw a notable rise of 4.5 percent in 2025, compared to 2.2 percent in 2024. The report, titled the Annual Health Price Index 2025, provides comprehensive insights into the HPI (2022=100) and Health Inflation, which encompasses both treatment and prevention healthcare aspects across three categories: Medicine, Medical Devices, and Health Services at the national level.

The development of the HPI is a collaborative effort involving various health-related agencies from both public and private sectors, with data integration from multiple sources. The Medical Devices category also saw a 1.1 percent increase in 2025, up from 0.6 percent in 2024, driven by the Medical products expenditure class, which rose by 1.3 percent, compared to 0.6 percent in the previous year.