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MALAYSIA will invest RM107 billion across the health, education and labour sectors under the 13th Malaysia Plan (RMK13), aimed at expanding public access to essential services while fostering long-term structural reform.
Prime Minister Datuk Seri Anwar Ibrahim, in tabling the RMK13 in Parliament on Thursday, said RM40 billion has been allocated for the public healthcare system to ease the cost burden on Malaysians and improve medical infrastructure nationwide.
“Through this allocation, more projects for the construction and upgrading of hospitals and government clinics will be carried out, including those in poor condition,” he said. Major projects include the new Tuanku Ja’afar Hospital in Negeri Sembilan, Sultanah Aminah Hospital 2 in Johor, the Northern Region Cancer Centre in Kedah, the Sabah Heart Centre at Queen Elizabeth II Hospital, and a new Sarawak Cancer Centre.
Anwar warned that Malaysia’s public health system is under increasing strain from rising medical inflation, the growing burden of communicable and non-communicable diseases, and an ageing population.
“In response, the Government will expand health-related taxes beyond sugar to include tobacco, vape and alcohol, to promote behavioural change and curb the rise of non-communicable diseases,” he said.
He also announced that a national professional development framework will be established to address human resource gaps in the healthcare sector. This includes reforms in pre-service training, licensing, recruitment, placement, and career development to retain skilled talent in public health.
Health record management will be strengthened as a core part of digital transformation in the sector. “This effort will enhance cross-facility interoperability and support the generation of high-impact health analytics powered by AI, ultimately improving the quality of care for the people,” Anwar said.
Meanwhile, the Government will allocate RM67 billion for education under RMK13. The funding will go towards the construction of new schools, repairs and upgrades to existing school buildings, and the development of early childhood education centres (Tabika) under the Community Development Department (KEMAS).
Public universities will also see improved facilities and infrastructure.
“School construction will be made a condition for planning approvals in new large-scale housing projects,” said Anwar. “In addition, vertical schools will be expanded to address issues of student overcrowding and limited land availability.”
To date, 1,200 dilapidated schools have been upgraded nationwide, and the Government remains committed to ensuring inclusive and high-quality access to education.
“The Government is determined to ensure preschool and secondary school enrolment rates reach 98 percent, exceeding the global enrolment benchmark,” he added.
In a separate move under RMK13’s labour reform agenda, the Government has set a target to reduce the share of foreign workers in Malaysia’s labour market from the current 15 percent to just 10 percent by 2030.
“This is in line with our efforts to strengthen the local workforce and encourage the adoption of modern technologies in employment,” said Anwar.
To achieve this, the Government will expand the Multi-Tiered Levy Mechanism to incentivise employers to automate processes, prioritise local recruitment and shift away from low-skilled foreign labour.
“This strategy will not only reduce dependency on foreign workers but also enhance productivity, competitiveness and job quality within the country,” said Anwar, adding that the policy supports Malaysia’s ambition to become a high-income, technology-driven economy by the end of the decade. - Jlu 31, 2025