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2025 Budget for healthcare a positive shift for human resources

KUALA LUMPUR: An independent think tank believes that the 2025 Budget for healthcare sets a positive tone for human resources.

However, it says that some proposals should focus on modernising the ministry's healthcare system.

Galen Centre for Health and Social Policy CEO Azrul Mohd Khalib said that the increase in emoluments and enhanced training initiatives reflected a serious commitment to recruiting and retaining skilled healthcare professionals.

He welcomed the announcement of increased tax relief for those making health and education insurance premium payments, raising it to RM4,000.

"Health insurance has undergone significant changes recently, with plans shifting towards higher premiums and copayments. The RM10,000 individual tax relief for medical expenditures is also commendable, particularly for those caring for individuals with chronic and rare diseases," he said in a statement.

However, Khalib expressed concerns about the government's approach to the "War on Sugar."

While the tax on sugar-sweetened beverages will rise to 40 cents per litre, he pointed out that the government continued to subsidise sugar manufacturers by RM500 million to RM600 million annually.

"This revenue could have funded health education, preventive measures, and healthy breakfast programs for school children. We need to invest more in this area if we are to genuinely transition from sick care to health care," he said.

Khalib also welcomed the collaboration with government-linked investment companies (GLICs) to enhance public health services, but stressed that funding should prioritise modernising the Health Ministry's information systems, such as electronic medical records.

He believes that investments in digital health can improve the efficiency, quality, and effectiveness of health services while generating significant savings.

Furthermore, Khalib urged the government to adopt a national health and social insurance scheme to pool funds for investing in both health and aged care.

"To ensure that Malaysia's healthcare system can continue to provide quality, affordable, and accessible health services for all in the coming decades — and to tackle challenges related to non-communicable diseases, mental health, and an ageing population — the government must have the will and boldness to invest now in a sustainable approach to health funding," he said.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that the government had allocated RM45.3 billion for the Health Ministry for the next year, an increase from RM41.2 billion allocated this year.

To support the "War on Sugar" initiative, the government plans to increase the excise duty on sugary drinks in phases, starting Jan 1, 2025, by 40 cents per litre.

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