KUALA LUMPUR – Malaysia’s healthcare sector will receive a total allocation of RM46.5 billion in Budget 2026, reflecting a slight increase from RM45.3 billion this year. This move signals the government’s commitment to strengthening and reforming the public health system.
In his presentation of the Budget 2026 at Parliament today, Prime Minister Datuk Seri Anwar Ibrahim reaffirmed the government’s dedication to a comprehensive reform agenda outlined in the Health White Paper. This agenda aims to improve integration between the public and private healthcare sectors to ensure equitable and affordable access for all Malaysians.
The government has identified six key areas of focus for the coming year: enhancing public healthcare facilities, alleviating hospital overcrowding, controlling medical cost inflation, addressing the welfare of contract doctors and staff, reinforcing drug security, and advancing the National Healthy Malaysia Agenda.
Key measures include RM1.2 billion for the maintenance and repair of hospitals and clinics across the country, alongside RM755 million for upgrading or replacing outdated medical equipment. New healthcare infrastructure projects are also in the pipeline, such as the Northern Region Cancer Centre in Kedah and the Sabah Heart Centre at Queen Elizabeth II Hospital.
To alleviate pressure on public hospitals, the government will allocate RM140 million to outsource patients to military, university, and private hospitals, while RM60 million will be earmarked for the development of affordable basic health insurance products. In a significant move, 4,500 contract doctors will be offered permanent positions, with a 40 per cent increase in on-call allowances for medical and dental officers.
To encourage healthier lifestyles, excise duties on cigarettes and alcohol will rise starting 1 November 2025, with the additional revenue directed towards the Health Ministry’s lung health initiatives and the treatment of diabetes and heart disease.
“Prevention is better than cure,” Anwar said, adding that individual tax relief for vaccination will now cover all vaccines approved by the Health Ministry. - October 10, 2025
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