KUALA LUMPUR – The Galen Centre for Health and Social Policy has cautioned that the 2026 federal budget still falls short of addressing deep-rooted weaknesses in the country’s healthcare system, despite a higher allocation for the Health Ministry.
Chief executive Azrul Mohd Khalib said structural gaps in areas such as aged care, primary care, and tobacco control remain unaddressed, warning that “overcrowding, understaffing and underinvestment” continue to strain the public healthcare system.
“It’s now 2025 and the situation remains serious,” he said, pointing out that the issues highlighted in the Auditor-General’s 2018 report are still unresolved.
“Health now takes up about 9.9% of the overall RM470 billion federal budget, but the development side remains static at RM6.74 billion, which does not bode well for future-proofing the system,” he said.
While acknowledging positive measures such as the long-awaited revision of general practitioners’ consultation fees, a 40% hike in on-call allowances, and the conversion of more contract staff to permanent posts, Azrul said deeper reforms are needed to prepare the system for an ageing population.
“Aged care is not the same as aged welfare. Without stronger investment in aged-care services and infrastructure, we risk leaving many older Malaysians behind,” he said, noting that 15.3% of Malaysians will be aged 60 and above by 2030, approximately 5.8 million people.
Azrul also criticised the government’s decision to maintain sugar subsidies despite its campaign against excessive sugar consumption.
“These subsidies cost between RM500 million and RM600 million annually, while the sugar-sweetened beverage tax already collects RM400 million. Even manufacturers have asked for prices to be floated. This money could have been redirected to aged care,” he said.
He described the halving of the Skim Perubatan Madani’s allocation to RM50 million as a “setback”, arguing the scheme had successfully eased congestion in public hospitals by partnering with private clinics.
“This was a game-changer for primary care — it is puzzling to see its budget cut,” he said.
Azrul further called the two-sen increase per cigarette stick in excise duty “disappointingly timid”, saying it would do little to curb smoking.
“After ten years without any significant rise, this is nowhere near enough. Malaysia spends RM16 billion annually treating smoking-related diseases — for every ringgit collected in tobacco tax, RM4 is spent on treatment,” he said.
He reiterated the Galen Centre’s call for a national health and social insurance scheme that could raise an additional RM6 billion annually to complement federal health funding.
“Budget 2026 makes progress in rewarding healthcare workers and improving services, but the government must be bolder,” Azrul said. “Without greater investment in aged care, primary care, and long-term health financing, we’re simply kicking the can down the road.” — October 11, 2025
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