Kuala lumpur: Financing reform must keep pace with rising healthcare needs, providing affordable access across the life course with public resources being used strategically and vulnerable groups protected, said Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah. He emphasized that increasing healthcare costs and insurance premiums cannot be addressed simply by shifting costs from one payer to another.
According to BERNAMA News Agency, Mohd Shahar stated, "We need a financing system that strengthens financial protection, uses resources more effectively, and shares responsibility fairly among the government, employers, insurers, providers, and households," during his keynote address at the Malaysia Healthcare Summit 2026 themed 'Aligning Private Sector Growth with National Health Priorities.'
Mohd Shahar highlighted three additional priorities, including treating data and interoperability as public infrastructure. He explained, "Just as roads and ports connect the physical economy, trusted health-data platforms connect the digital health system." He referenced the 13th Malaysia Plan, which calls for more integrated, secure, and reliable sharing of health information across public and private healthcare providers.
He further elaborated that these foundations, supported by strong standards, privacy, cybersecurity, and data governance, will determine whether artificial intelligence can be deployed safely, responsibly, and at scale. The organization of care must also evolve with demographic needs, particularly with an aging population requiring stronger integration between preventive health, primary care, hospitals, rehabilitation, community services, and long-term care.
On the fourth priority, Mohd Shahar stressed that healthy longevity must be supported by an active approach to workforce and social participation. He noted, "A whole-of-nation approach is needed if we want to achieve this, as financing, workforce policy, digital infrastructure, and industrial strategy are economic instruments."
He explained that under the MADANI Economy framework and the 13th Malaysia Plan, these instruments must be used collectively to enhance value growth and improve access, resilience, and social protection. The government's role, he added, is to set clear direction, uphold standards, protect trust, and create conditions for responsible investment and partnership.
Mohd Shahar pointed out that Malaysia's health expenditure has been on the rise, citing official Malaysia National Health Accounts data showing that per capita health expenditure increased from RM1,237 in 2011 to RM2,521 in 2023. Total health expenditure reached RM84.2 billion in 2023, equivalent to 4.6 percent of the gross domestic product.
Meanwhile, Malaysia's healthcare travel industry welcomed about 1.8 million international patients in 2025, generating RM3.35 billion in revenue, with revenue projected to reach RM3.83 billion in 2026.