Financing Reform Must Keep Pace With Rising Healthcare Needs -- Mohd Shahar
KUALA LUMPUR, Sept 10 (Bernama) -- 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 said increasing healthcare costs and insurance premiums cannot be addressed simply by shifting costs from one payer to another.
“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,” he said in a keynote address at the Malaysia Healthcare Summit 2026 themed “Aligning Private Sector Growth with National Health Priorities” here today.
Mohd Shahar cited three other priorities, including the need to treat data and interoperability as public infrastructure.
“Just as roads and ports connect the physical economy, trusted health-data platforms connect the digital health system.
“The 13th Malaysia Plan calls for more integrated, secure and reliable sharing of health information across public and private healthcare providers,” he said.
He added 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.
Thirdly, the organisation of care must evolve with demographic needs.
Mohd Shahar said an ageing population will require stronger integration between preventive health, primary care, hospitals, rehabilitation, community services and long-term care.
On the fourth priority, he said healthy longevity must be supported by an active approach to workforce and social participation.
He noted that ageing is a demographic fact, but economic dependency is shaped by choices in health, education, employment and social protection throughout the life course.
“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.
“Under the MADANI Economy framework and 13th Malaysia Plan, we must use them together to raise the ceiling through higher-value growth, and raise the floor through better access, resilience and social protection,” he said.
He said the government’s role is to set clear direction, uphold standards, protect trust and create the conditions for responsible investment and partnership.
Mohd Shahar pointed out that Malaysia’s health expenditure had been rising steadily, citing official Malaysia National Health Accounts data which show that per capita health expenditure increased from RM1,237 in 2011 to RM2,521 in 2023.
He said total health expenditure reached RM84.2 billion in 2023, equivalent to 4.6 per cent of 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 targeted to reach RM3.83 billion in 2026.
-- BERNAMA