Dental body calls for SST exemption on foreign patient services

Summary

• The Malaysian Dental Association has urged the government to exempt dental services for foreign patients from the new 6pct SST.

• Its president, Dr Chong Zhen Feng argues that the administrative burden and increased costs will ultimately affect healthcare affordability for Malaysians, with 94.6pct of Malaysian adults requiring dental treatment.

The Malaysian Dental Association (MDA) has called on the government to exempt dental services for foreign patients from sales and service tax (SST).

In a statement today, its president Dr Chong Zhen Feng said that this is crucial in order to “avoid unintended consequences on access to essential oral healthcare”.

He said that most dental clinics in Malaysia see very few foreign patients, and still bear the administrative and compliance burdens stemming from the SST.

Chong said this raises operating costs, with downstream effects on treatment affordability for Malaysians.

“According to the National Oral Health Survey for Adults 202, 94.6 percent of Malaysian adults require treatment, and cost remains one of the main barriers to access.

“Rising costs risk deterring patients from seeking timely care.

“The application of SST on services for foreign patients also impacts low-income groups such as migrant workers in essential sectors.

“Taxing basic healthcare access for the population raises both humanitarian and public health concerns,” he added.

Support, not hinder

Chong also echoed similar sentiments shared by other healthcare associations, lamenting that an annual revenue exceeding RM1.5 million equates to high profitability.

“In healthcare, this threshold is often surpassed due to the continuous and essential nature of services, not because of large margins. A uniform tax approach does not reflect the social role and responsibilities of healthcare providers," he said.

According to the Customs Department guidelines, a six percent SST will be applied to healthcare services provided to non-Malaysian patients at private facilities under the government’s new expanded tax policy.

“MDA respectfully urges the government to ensure that fiscal policies support-rather than hinder-access to affordable healthcare, and to consider sector-specific mechanisms that ease administrative burden, and protect the rakyat from unintended consequences.

“While we appreciate the government’s willingness to review the SST framework, we believe that further steps are needed to safeguard affordability and access in the dental and primary care sectors,” Chong said.

Similar call

Last month, the Federation of Private Medical Practitioners’ Associations, Malaysia (FPMPAM) urged the government to provide full exemption from the SST for primary care services delivered to foreign workers.

According to FPMPAM president Dr Shanmuganathan Ganeson, the government could alternatively introduce a temporary moratorium on the tax, providing time to develop a fair and sustainable healthcare financing mechanism.

“We have formally submitted an appeal to the Finance Ministry, urging an urgent exemption from the upcoming six percent SST on primary healthcare services provided to foreign workers, scheduled to take effect on July 1,” The Borneo Post reported him saying in a statement.

Shanmuganathan noted that, while Foreign Workers Medical Examination Monitoring Agency screenings remain exempt, many foreign workers will still need outpatient care for common illnesses, injuries, and chronic conditions, which are essential services typically funded directly by the workers or through employer or Third-Party Administrator programmes.

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