PM announces special committee to tackle rising private healthcare costs

Summary

• A special committee has been formed to address rising private healthcare costs as part of broader Madani Economy reforms.

• Prime Minister Anwar Ibrahim says reforms will focus on value-based care, pricing transparency, digital health tech, and affordable insurance for the public.

• He stresses subsidies must target the needy, not the wealthy or foreigners, to ease fiscal pressure and ensure fairness.

Prime Minister Anwar Ibrahim has announced the formation of a special committee featuring the Finance Ministry and the Health Ministry to address the rising cost of private healthcare services.

Anwar, who is also the finance minister, said the move aims to ease the burden shouldered by the public while ensuring continued access to affordable and quality healthcare.

The initiative is expected to form part of the broader structural reforms under the Madani Economy framework.

“As we resiliently progress with reforms, we cannot ignore immediate challenges that directly impact the people, particularly the rising cost of healthcare.

“This is not just an economic issue (as) it is a matter of the well-being of our nation. Many Malaysians can’t afford treatment due to high costs,” Anwar said in a speech at the Sasana Symposium 2024 in Kuala Lumpur today.

He stressed that the committee is not a minor step, but a fundamental reform towards a value-based private healthcare system, which prioritises treatment outcomes, cost transparency, and fairness for consumers.

Proposed reforms, he noted, included clearer price structures, greater use of digital health technologies, and an affordable basic health insurance scheme for the general public.

Anwar also shared his experience seeking treatment at a public hospital, saying it revealed the need to strengthen the public healthcare system and reduce wastage.

“There are beds costing hundreds of thousands of ringgit that are underutilised. This reflects waste that must be addressed,” he said.

He noted that a special session involving the Finance Ministry, the Health Ministry and Bank Negara Malaysia will be held tomorrow for a detailed discussion on implementation and policy direction.

“Our goal is to make healthcare a pillar of national resilience driven by compassion, sound policy, and people’s needs. I will oversee the implementation of these reforms,” Anwar added.

Subsidies not for the wealthy

Separately, Anwar reiterated that subsidies should not continue to benefit the wealthy and foreign nationals while vulnerable groups remain burdened.

“Subsidies are not wrong if they reach those in need. But, subsidies for the rich and foreigners who don’t pay taxes?

“That is unfair and strains the national fiscal position,” he said.

Anwar acknowledged that the reforms may be unpopular, but stressed they are necessary to lay the foundation for a more sustainable and inclusive economy.

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