logo
SST on private healthcare may drive up cost

SST on private healthcare may drive up cost

ISKANDAR PUTERI: The newly imposed six per cent expanded Sales and Service Tax (SST) on private healthcare services for non-citizens could quietly inflate medical costs across the board, raising real concerns over affordability, equity and long-term system resilience.
Gleneagles Hospital Johor chief executive officer and regional chief executive officer of Southern and Eastern IHH Malaysia, Dr Kamal Amzan, said that while the government maintains the tax targets medical tourists and expatriates, its ripple effects may land much closer to home.
"Healthcare is not made up of standalone bills. It's an ecosystem held together by hundreds of interdependent services," Dr Kamal said.
"By taxing services like cleaning, linen supply, lab logistics and security, which are integral to hospital operations — you are essentially taxing the cost of care itself," he told the New Straits Times.
These costs are not peripheral. They form the architecture of safe, modern healthcare.
Yet under the current tax framework, many contracted support services are now subject to SST — a move that could compound financial pressures on hospitals already grappling with medical inflation, wage hikes and post-Covid service recovery.
"Hospitals facing slimmer margins may resort to fee increases, administrative charges, or cuts in services to stay afloat. This isn't reform — it's erosion," said Dr Kamal.
This policy arrives at a time when the cost of private healthcare in Malaysia has already outpaced wage growth, with a recorded 12 per cent increase last year alone. In many hospitals, margins are tightening even as expectations for quality and safety rise.
"We are taxing the scaffolding of care while pretending the house will still stand," he added.
Contrary to popular belief, private hospitals are not the exclusive domain of the wealthy. Middle-income families often rely on them to avoid long queues at public hospitals. Employers turn to private facilities to minimise workplace absenteeism. Many cancer patients move between public and private care as public oncology services buckle under rising demand.
"Private hospitals are the pressure valve for an overstretched public system. When access narrows in the private sector due to rising costs, patients will inevitably default to public hospitals — and they're already under immense strain," said Dr Kamal.
To avoid that outcome, Dr Kamal urges the government to exempt core hospital services — such as linen supply, lab transport, cleaning and security — from SST when provided to licensed healthcare facilities.
"These aren't luxuries. They're the minimum conditions for safe care," he said.
The argument isn't about shielding providers from taxes. It's about aligning policy with national goals. The government is trying to rein in medical inflation. Yet this tax expansion works in the opposite direction — quietly raising costs, eroding efficiency and ultimately, reducing access.
"We should be reducing the cost to deliver care, not layering it. Taxing the backbone of hospital operations while asking the industry to absorb payor discounts is a contradiction we can't afford."
While the government has maintained that medicines and services for Malaysians remain tax-free, stakeholders warn that this new layer of indirect cost will ultimately find its way into patient bills — especially for those on the margins of affordability.
"If we're serious about protecting the rakyat from rising healthcare costs, then exempting services that keep hospitals running isn't charity — it's common sense," said Dr Kamal.
Because no hospital can deliver modern care without its invisible hands — the ones who clean, sterilise, transport and guard its patients and staff.
"We've exempted apples from tax. Maybe that's fitting," Dr Kamal added wryly.
"After all, an apple a day keeps the doctor away — especially when seeing one gets more expensive," he added.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

COVID-19 special envoy David Nabarro dies at 75
COVID-19 special envoy David Nabarro dies at 75

The Star

timean hour ago

  • The Star

COVID-19 special envoy David Nabarro dies at 75

David Nabarro, World Health Organisation (WHO) Special Envoy for COVID-19 Preparedness and Response, poses after he was made a Knight Commander of the Order of St Michael and St George during an investiture ceremony at Buckingham Palace in London, Britain, Friday March 3, 2023. Victoria Jones/Pool via REUTERS (Reuters) -David Nabarro, the World Health Organization's special envoy for COVID-19 since the early stages of the outbreak in 2020, has died at the age of 75, the WHO said on Saturday. "David was a great champion of global health and health equity, and a wise, generous mentor to countless individuals," World Health Organization chief Tedros Adhanom Ghebreyesus said of the Briton in a post on X. Nabarro was also co-director of the Institute of Global Health Innovation at Imperial College in London. At the height of the pandemic in 2021 Nabarro called for more global cooperation and aid to poorer countries during a health crisis he said was "nothing like anything else we've ever seen in my professional life". In 2017, he was a candidate for WHO director general, finishing second to Tedros in the election. (Reporting by Harshita Meenaktshi in Bengaluru; Editing by Andrew Cawthorne)

Expert: House arrest can ease prison crowding, but must include safeguards
Expert: House arrest can ease prison crowding, but must include safeguards

New Straits Times

time4 hours ago

  • New Straits Times

Expert: House arrest can ease prison crowding, but must include safeguards

KUALA LUMPUR: The government's move to introduce house arrest as an alternative to imprisonment has been welcomed as a timely measure to reduce prison overcrowding. However, an expert says its implementation must come with clear guidelines, targeted eligibility, and strong monitoring systems to ensure its effectiveness. The Human Rights Commission of Malaysia (Suhakam) former Commissioner and academic Professor Datuk Noor Aziah Mohd Awal said the initiative reflects a progressive step towards reforming the penal system, especially for low-risk and remand detainees. "I certainly welcome the government's intention to implement home arrest. "As a former Suhakam commissioner, I have been involved in efforts to address prison congestion and overcrowding. "Home arrest will definitely reduce the number of detainees. More importantly, it would allow individuals to continue working and supporting their families while serving their sentence at home under certain conditions," she told the New Straits Times. Home Minister Datuk Seri Saifuddin Nasution Ismail recently announced that the ministry is in the final phase of finalising a bill on house arrest. The proposal has already received policy approval and is aimed at curbing overcrowding in Malaysian prisons. Noor Aziah said that while house arrest offers a practical solution, it should be one of several alternatives in a broader reform framework. "It's definitely an effective measure, but just one option. We must also ensure that it applies to remand prisoners, who currently make up nearly one-third of the prison population." She proposed that the policy focus on specific categories of offenders to maximise its impact, especially those who pose minimal public safety risks. "We hope house arrest will apply to groups such as senior citizens (65 and above), women, and those with chronic illnesses." On enforcement, she expressed confidence in the Prisons Department, citing their existing systems for monitoring individuals on parole and those released with licence conditions. "I am sure the government is studying models from other countries that have successfully implemented home arrest," she added.

Sudden deaths likely linked to genetics and lifestyle, not Covid-19 vaccination: India's Union Health Minister Nadda
Sudden deaths likely linked to genetics and lifestyle, not Covid-19 vaccination: India's Union Health Minister Nadda

The Star

time8 hours ago

  • The Star

Sudden deaths likely linked to genetics and lifestyle, not Covid-19 vaccination: India's Union Health Minister Nadda

NEW DELHI: Genetic predisposition and risky lifestyle choices could be the primary factors behind sudden deaths in India, rather than Covid-19 vaccination, Union Health Minister JP Nadda told Parliament on Friday (July 25). Speaking in the Lok Sabha, Nadda highlighted the significant role of underlying health conditions and genetic factors in the rising number of unexplained deaths across the country. 'Covid-19 vaccination does not appear to increase the risk. On the other hand, underlying health issues, genetic predisposition, and risky lifestyle choices do contribute to unexplained sudden deaths,' said the BJP national president. He referred to studies conducted by the Indian Council of Medical Research (ICMR), the National Centre for Disease Control (NCDC), and the All India Institute of Medical Sciences (AIIMS) to investigate these incidents. 'These studies found that Covid-19 vaccination did not elevate the risk of unexplained sudden death among young adults in India. However, past Covid-19 hospitalization, family history of sudden death, and certain lifestyle behaviours did increase the likelihood,' Nadda added. He further stated, 'Preliminary data from the AIIMS-led study shows that heart attacks, or myocardial infarctions (MIs), continue to be the leading cause of sudden death in this age group. Importantly, no major change in the pattern of causes has been observed compared to pre-Covid years.' Meanwhile, the government informed Parliament that 164 people have died from Covid-19 between April and July. In a written reply in the Lok Sabha, Union Minister of State for Health and Family Welfare Prataprao Jadhav shared updates on the recent trend in Covid-19 cases. 'There was a slight increase in Covid-19 cases reported by States and Union Territories from the end of May 2025, which declined significantly by mid-June,' Jadhav said. 'As of July 22, 164 deaths due to Covid-19 had been reported by the States and UTs since April 1; most of these cases involved individuals with comorbidities,' he added. - The Statesman/ANN

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store