Kuala lumpur: The MADANI government has allocated RM46.5 billion to the Health Ministry (MOH) under Budget 2026, increasing from RM45.3 billion in the current year, to ensure equitable, quality, and affordable healthcare access.
According to BERNAMA News Agency, Prime Minister Datuk Seri Anwar Ibrahim announced that RM1.2 billion has been earmarked for upgrading and maintaining public hospitals and clinics as a part of efforts to improve public health infrastructure. The budget includes RM100 million to upgrade district hospital wards nationwide, with RM755 million allocated to replace outdated equipment and acquire new advanced tools for emerging medical disciplines.
Anwar, who also serves as the Finance Minister, revealed that the Malaysian Communications and Multimedia Commission (MCMC) will allocate RM650 million to enhance internet connectivity at public hospitals, health clinics, maternal and child health clinics, community clinics, and rural clinics. To address overcrowding in public hospitals, the government plans to spend RM140 million to outsource patients to military, university, and private hospitals. Additionally, RM30 million will be allocated to empower health clinics by providing specialist services.
The budget also includes plans to build new hospitals, clinics, and additional blocks, including the Northern Region Cancer Centre in Kedah, new blocks at Pontian Hospital in Johor, Banting and Sungai Buloh Hospitals in Selangor, and the Sabah Heart Centre at Queen Elizabeth II Hospital. Other developments include an Advanced Surgical Block at the USM Specialist Hospital in Kubang Kerian, Kelantan; construction of 13 new health clinics in areas such as Machang, Teluk Kemang, Mukah, and Nabawan; and fast-tracking the National Cancer Centre in Kuching and Hospital Sultanah Aminah 2 in Johor.
Furthermore, Anwar stated that 4,500 contract doctors will be offered permanent positions next year, and 935 graduates from MOH training institutes will be appointed as permanent nurses, alongside 833 contract nurses confirmed in permanent posts this year. Since 2023, the government has approved 1,500 additional positions to absorb contract doctors into permanent posts, bringing the total to 12,900 contracts converted to permanent roles, including annual intakes.
Anwar also announced a revision of consultation fees for general practitioners, which have remained unchanged since 2006. The new rates will range between RM10 and RM80, up from the previous RM10 to RM35 range. To recognize healthcare personnel's dedication, including medical and dental specialists, Anwar declared a 40 per cent increase in the On-Call Allowance (ETAP), effective 1 October 2025, involving an additional RM120 million.
The government also aims to address rising medical inflation by establishing a joint government-industry fund of RM60 million to introduce affordable basic insurance products and implement the Diagnosis Related Group (DRG) system. To encourage insurance participation, personal income tax relief of up to RM3,000 for life insurance or takaful premiums for self and spouse will be extended to cover children. A three-year extension until 2028 of full stamp duty exemptions for insurance policies, takaful certificates, and Perlindungan Tenang products was also announced.
The MySalam scheme will continue to support low-income households, having disbursed RM1.2 billion in hospitalisation and critical illness claims, benefiting 1.7 million recipients. To further assist underprivileged patients, private hospitals will be permitted to establish Hospital Welfare Funds managed by companies limited by guarantee (CLBGs), and EPF contributors may use their Sejahtera Account savings to subscribe to basic medical and health insurance or takaful (MHIT) plans.