Malaysia’s healthcare system in critical condition

Free Malaysia Today

Stakeholders seek balanced solutions to ensure long-term sustainability, accessibility and transparency amid rising medical costs.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/07/28/malaysias-healthcare-system-in-critical-condition   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #Doctor #Medical #Insurance #Healthcare

Transcript

00:00Have you or someone you know ever faced an expensive hospital bill or been told

00:05your insurance doesn't cover certain treatments? You're not alone. Right now

00:10Malaysia's healthcare system is struggling and it affects everyone. Let's

00:14start with the basics. Healthcare costs in Malaysia are going up much faster than

00:19in many other countries. Medical inflation, basically how fast treatment

00:24costs rise, is expected to hit nearly 13% this year. That means hospitals

00:29have to spend a lot more on things like imported medicines, high-tech machines and

00:34salaries to keep doctors here instead of overseas. Private hospitals are also under

00:40pressure. Not only do they earn profits of about 7 to 11% but they also reinvest

00:46most of that money into maintaining facilities, purchasing new equipment and

00:50compensating qualified staff. And that's just part of the puzzle.

00:54To the demand side, as you know, increasing in the population that are aged, it's one of

00:59the important factors. And then the prevalence of chronic non-communicable diseases. So all

01:06these actually require huge amount of resources in the long term for treatment. The

01:15surplus side, one of the important aspects is that how the development in terms of the

01:22technology. So we know there are a lot of new technologies available now. We have special

01:28equipment, a special way of treating or new drugs that we use which are very expensive.

01:34Because private care is expensive, many people rely on public hospitals. But these hospitals

01:39are overwhelmed. Over 70% of Malaysians depend on them. Some doctors have to care for more than

01:451,500 patients each, leading to long waiting times and stressed staff. So what about insurance?

01:52Many people think hospitals charge more if you have insurance. But that's not really how it works.

01:58Hospitals actually charge the same base prices whether you pay cash or use insurance. What changes

02:04is that insurance companies often negotiate discounts with hospitals if they send a lot of patients there.

02:10That's why some insured patients may pay less. Not because hospitals charge differently, but because

02:16insurers negotiate volume-based discounts. At the same time, self-paying patients can also end up with lower bills.

02:24Often due to package deals, upfront payments, or discounts offered on a case-by-case basis by doctors or hospitals.

02:31However, insurance doesn't always cover everything. Some policies, especially older or more basic ones, may

02:39only cover the first occurrence of a serious illness like cancer. When a condition recurs or policy limits are reached,

02:47patients often end up paying out-of-pocket or turning to the public system for continued care.

02:52Meanwhile, insurance premiums, the monthly or yearly amounts you pay, are shooting up. Some people have seen their premiums go up by 50%

03:01in three years, even though the official limit is supposed to be 10% a year. And many don't know

03:07exactly what's included in their policies. In May, the government told clinics, private hospitals,

03:13and pharmacies they have to publicly display medicine prices so people can see what they're paying for.

03:19It sounds like a good idea, but doctors worry it could turn consultations into bargaining sessions

03:25instead of focusing on what treatment is best.

03:27And with the threat of fines reaching up to RM100,000 for non-compliance, clinics, private hospitals,

03:35and pharmacies fear these new requirements could push them closer to financial strain, limiting their

03:41ability to invest in better care for patients.

03:44They also have no choice. They face a lot of headwinds. We do believe that. And because we've got the tariff

03:51problem, we've got our poor currency exchange, there's a lot there that will cause the problems that

03:57would trickle down to the Malaysian public.

04:00The result? People who can't afford private care or whose insurance runs out, end up crowding into

04:07public hospitals. This puts even more pressure on government doctors and nurses who are already

04:12stretched thin. And as medical costs keep rising, fewer Malaysians will be able to afford insurance at all.

04:19Experts say regulation of the insurance industry is needed to keep the system sustainable.

04:25When the bottom line is the most important objective, it will be to the detriment of the public.

04:33So we need some sort of regulation. We know that the medical doctors are the ones who are being

04:39regulated. Our fees have not changed for the last decade.

04:42And while doctors are earning less of the healthcare ringgit spent, patients are also

04:47feeling the squeeze, especially as insurance premiums and out-of-pocket costs continue to climb.

04:54But they also warn against rushing into new rules. Too many changes too fast could make private care

04:59unprofitable, which would leave public hospitals even more overcrowded. What Malaysia needs is a balanced approach.

05:06There's almost always a third way, almost always a middle way, almost always a consensus decision.

05:11So collaboration between stakeholders is very important.

05:14Any real fix must start with the system most Malaysians rely on.

05:19With over 70 percent depending on public hospitals and doctors already stretched thin,

05:24it's clear that no reform can work without strengthening the backbone of our healthcare.

05:30One way the government is addressing this is through the recent formation of the Joint

05:34Ministerial Committee on Private Healthcare Costs, bringing together public, private,

05:39and insurance stakeholders to work toward a balanced long-term solution for medical inflation.

05:45Malaysia's healthcare crisis affects every one of us. But by improving transparency,

05:51regulating insurance fairly, and working together, we can build a system where everyone,

05:56no matter their income, has a chance to get the care they need.

05:59Narmatharajah, FMT.

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