KUALA LUMPUR: The association of private hospitals Malaysia on Wednesday said it supports the cost control proposals for private healthcare introduced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament.
"The Association of Private Hospitals Malaysia (APHM) enthusiastically endorses the cost containment proposals for private healthcare introduced by YAB Prime Minister Datuk Seri Anwar Ibrahim in Parliament," Association of Private Hospitals Malaysia (APHM) president, Datuk Dr Kuljit Singh said in a statement.
The measures, unveiled by Anwar in Parliament, addresses growing concerns about the rising cost of healthcare and insurance premiums.
The prime minister said he disagreed with the sharp increase in premium prices, agreeing only to a modest rise deemed reasonable.
Kuljit's remarks come amid recent headlines about rising insurance premiums, which have prompted lawmakers to debate the issue in Parliament. In Malaysia, medical insurance premiums are set to rise by 40 to 70 per cent next year.
Meanwhile, he emphasised the importance of conducting a thorough analysis of the various factors driving healthcare costs.
"For instance, high technology adoption, including digitalisation, and the pricing of medical supplies significantly contribute to the financial pressure on the sector.
"The APHM advocates for transparent dialogue among key stakeholders, including payors, Bank Negara, and the Ministry of Health, to develop effective solutions," he added.
Kuljit said in the coming weeks, private hospitals will collaborate with stakeholders from insurance, pharmaceuticals, Bank Negara, and the Ministry of Health to develop effective treatment cost models.
A key strategy is the implementation of Diagnosis-Related Groups (DRG), which requires careful data analysis to assess its effectiveness, with meaningful reform taking time, he said.
Kuljit said that, guided by the Prime Minister, Minister of Health, and Bank Negara, Malaysia is optimistic about balancing cost containment with healthcare innovation to foster sustainability, attract investment, and drive economic growth.
Last year, private hospitals contributed approximately RM6 billion to the Gross Domestic Product (GDP) while employing over 45,000 individuals.
Moreover, these hospitals facilitate collaborations with key sectors such as pharmaceuticals and healthcare tourism, fostering a synergistic healthcare ecosystem that promotes innovation and advances patient care, he said.
Kuljit said cutting-edge interventions like robotic surgery and personalized treatment plans are projected to add RM11 billion to Malaysia's GDP.
"As we adapt to regulated cost structures, it is vital to highlight that a strong, innovative private healthcare sector is key not only to economic growth but also to ensuring high-quality healthcare for the Malaysian population," he said.
"Maintaining this balance will enhance patient outcomes and support the nation's overall health and economic well-being," he said.