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Malaysia embarks on bold healthcare reforms

14 Sep 2025, 2:10 AM
Malaysia embarks on bold healthcare reforms
Malaysia embarks on bold healthcare reforms

GEORGE TOWN, Sept 14 — Malaysia is embarking on a bold wave of healthcare reforms aimed at building a more resilient, equitable, and future-ready system, said Health Minister Datuk Seri Dr Dzulkefly Ahmad.

Speaking at the Malaysian Medical Association (MMA) annual banquet in conjunction with its 65th Annual General Meeting last night, he outlined several key pillars of the national healthcare reform agenda.

These include healthcare financing reform, the Rakan KKM initiative to enhance MOH hospitals and clinics for all Malaysians, and implementing the Diagnosis-Related Group (DRG) payment system by mid-2026 to address runaway medical inflation.

He said a revamped basic Medical and Health Insurance/Takaful (MHIT) is being introduced in collaboration with Bank Negara Malaysia (BNM) and industry players to provide better coverage to the M40 population.

“Second reform is the digitalisation programme that has already been rolled out, and we now have about 200 clinics using the Cloud-Based Clinic Management System (CCMS).

“Nearly 15 hospitals are adopting Electronic Medical Records (EMR) in 2025, with 16 hospitals to follow next year,” Dr Dzulkefly said.

He also highlighted challenges in retaining medical professionals, including an acute shortage, while confirming that the Cabinet has been briefed on the consultation fees for private general practitioners (GPs) and third-party administrator (TPA) issues.

The amendments to the Private Healthcare Facilities and Services Act 1998, specifically the Seventh Schedule, are similarly under active discussion.

Previously, it was reported that the Seventh Schedule had never been amended since it was gazetted in 2006.

Meanwhile, Dr Dzulkefly also emphasised that the healthcare system also now faces challenges from rising dual disease burdens, an ageing population and soaring medical inflation.

He noted that Malaysia country spends some RM64.3 billion annually on non-communicable diseases (NCD) treatment, including direct and indirect costs such as loss of productivity and premature mortality.

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