Urban Vision: Healthcare Today and Tomorrow

Healthcare is at a pivotal crossroads in Malaysia, and Urban Vision session, held on February 13, 2025, brought together industry leaders to discuss the challenges, opportunities, and reforms shaping the nation’s healthcare system. The event featured distinguished speakers:

Dato' Dr Norhizan Ismail – Former Deputy Director General of Health, MOH Dr. Premila – Deputy Director, Planning Division, MOH

With an engaging discussion on Malaysia’s healthcare landscape, the session provided insights into healthcare financing, patient access, and policy-driven reforms aimed at ensuring sustainability and equity in the healthcare sector.

Dato' Dr Norhizan Ismail and Dr. Premila

The Evolving Landscape of Healthcare in Malaysia

Malaysia operates under a dual healthcare system, balancing publicly funded universal healthcare with a private sector catering to those with financial means. While the public sector, funded primarily through taxation, has successfully maintained Universal Health Coverage (UHC). However, challenges remain in funding sustainability and equitable service distribution.

Bridging the Healthcare Divide: The Role of PHCorp and PeKa B40

To address healthcare inequities, PHCorp, a government-led strategic purchasing agency, is spearheading key initiatives. One such program, PeKa B40, provides free health screenings for low-income individuals aged 40 and above, helping over 1 million Malaysians since 2019. These screenings aim to detect chronic diseases early and reduce the financial burden on vulnerable populations.

By complementing primary and secondary care, PeKa B40 ensures access to health aids, medication, and continued treatment for those most in need. Expanding such programs will be critical in addressing the healthcare access gap.

Malaysia Healthcare Funding

Malaysia's Total Expenditure on Health (TEH) in 2023 came to RM84.2 billion, or 4.6% of GDP. The financial commitment to healthcare was reflected in the RM2,521 per capita health spending. Both public (52.7%) and private (47.3%) sources provided funding.

The Ministry of Health (MOH) contributed 43%, while out-of-pocket (OOP) payments made up a significant 36% of total health spending, highlighting the financial burden on individuals. The largest portion of healthcare spending (53.4%) went to hospitals, Healthcare expenditure was mainly directed toward curative care (60.9%), with inpatient services taking 50.3%, outpatient 42.1%, and day care 7.6%.

Key Challenges in Malaysia’s Healthcare System

Despite Malaysia’s healthcare successes, several pressing challenges were highlighted during the session:

Healthcare Resource Distribution – The public sector handles 74% of hospital beds and 73% of hospital admissions, yet private sector spending is nearly equal. Strengthening public-private partnerships and optimizing resource allocation is key to reducing healthcare disparities.

Rise of Non-Communicable Diseases (NCDs) – Malaysia faces a growing burden of NCDs such as diabetes, hypertension, and obesity. Alarmingly, 1 in 6 adults is diagnosed with diabetes (15.6%), 1 in 3 with hypertension (29.2%), and over half the population (54.4%) is overweight or obese. Preventative healthcare is more important than ever.

Aging Population and Future Healthcare Demands – By 2044, Malaysia will officially be an aged nation, with over 14% of its population aged 65 and above. This demographic shift will lead to higher medical costs and increased demand for elderly healthcare services.

Communicable Diseases -– Malaysia continues to battle dengue, malaria, tuberculosis, HIV, and vaccine-preventable diseases (polio, measles), requiring strong public health interventions. (WHO, PMC)

Crisis & Disaster Preparedness Planetary Health - We also need to prepare for Pandemics, natural disasters, and climate change threaten healthcare resilience. Strengthening preparedness, surveillance, and response systems is vital to safeguarding public health. (WHO, data.who.int)

The Health White Paper (HWP): A Roadmap for Reform

A major focus of the session was the Health White Paper (HWP), a landmark reform plan approved by Parliament in 2023. It outlines a strategic roadmap to strengthen our healthcare system, ensuring it remains accessible, equitable, and financially sustainable.

Aspirations of HWP:

• A Healthy Nation: Health is a shared responsibility across all sectors and across all stakeholders including community level

• A Health System Prized and Valued by the Rakyat: Health system which provides good universal health coverage to the people, whether rich or poor

• Equitable & Person-Centred Healthcare System: Tailoring healthcare services to individual needs and circumstances. 

• A strong Resilient Healthcare System with  An Open and Innovative Health Ecosystem: Leveraging technology and data for continuous improvement in healthcare.

The four pillars outlined of Health White Paper (HWP):

Pillar 1: Transforming Healthcare Service Delivery

Pillar 2: Advancing Health Promotion & Disease Prevention:

Pillar 3:  Ensuring Sustainable and Equitable Health Financing

Pillar 4: Strengthening Health System Foundation & Governance

The Call to Action: A Shared Responsibility

One of the most important takeaways from the Urban Vision session was that healthcare is a shared responsibility. While policy reforms and financial strategies play a crucial role, individuals must also take charge of their health.

• Investing in preventative healthcare by maintaining a healthy lifestyle

• Raising awareness of non-communicable diseases and early detection

• Advocating for sustainable healthcare policies and public-private collaborations

Looking Ahead

Malaysia's healthcare system today has made significant strides in Universal Health Coverage (UHC) and accessibility. Strategic reforms are needed to address the growing burden of diseases, an aging population, and rising healthcare expenses. A well-organized plan for improved service delivery, sustainable funding, and fortified governance is offered by the Health White Paper (HWP).

To guarantee a healthcare system that is accessible, equitable, and future-proof, cooperation between the public, healthcare providers, and legislators is crucial.

However, we are ultimately in charge of our own health. All parties involved must be committed to preventive actions in order to build a healthier populace and a long-lasting healthcare system.