SST, tax hikes putting country's healthcare sector at risk, says MCA
In support of the Malaysian Medical Association's (MMA) recent call and five other leading medical organisations, MCA urges the government to exempt commercial rent and SST from primary and private healthcare services. We must urgently protect Malaysia's access to healthcare.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 hours ago
- The Star
Mah: Exempt private healthcare providers from SST
PETALING JAYA: MCA has called for the exemption of the commercial rent and the expanded Sales and Service Tax (SST) from primary and private healthcare services. Its deputy president Datuk Dr Mah Hang Soon ( pic ) said that implementation would add a burden on top of the rising electricity costs, and these changes come at a time when healthcare providers were already struggling. "We must urgently protect our country's access to healthcare. "This call is not a push for increased profits for medical institutions but a plea to defend the fundamental right of every individual to access healthcare," he said in a statement yesterday. On June 30, six major associations representing doctors, community pharmacists and physiotherapists called for an exemption of the expanded SST on private primary care. The groups expressed concern with the impact of 8% SST on commercial rent, 6% SST on private healthcare services provided to foreign patients, as well as the revision of electricity tariffs. Dr Mah said many private healthcare providers already operated with narrow profit margins, and the imposition of additional taxes would force numerous clinics to shut down. "Consultation fees for private doctors have not increased in years, and rates are strictly regulated. Pharmacies and physiotherapists also face extremely limited margins," he added. With the rise in commercial rents, operational costs and electricity bills, coupled with taxes, Dr Mah, who is also the Perak MCA chairman, argued that this burden could be the tipping point. "If clinics close, communities, especially in suburban and rural areas, will suffer. If private healthcare becomes unaffordable, public hospitals will face an even greater strain." Aside from that, Dr Mah said the construction, cleaning and plantation sectors (the 3D sectors) relied heavily on foreign workers, who often seek affordable treatment at private clinics. "The 6% SST will make treatment more expensive, placing undue strain on these low-paid workers. "If they delay medical treatment due to higher costs, it will worsen their health and trigger broader public health concerns, including a higher risk of infectious disease transmission, which could escalate outbreaks in primary healthcare settings," he said. The increase in the SST threshold to RM1mil still does not address the unique nature of healthcare, he noted. "Many clinics exceed this threshold due to high demand for services, not because of significant profits. "A 'one-size-fits-all' tax approach fails to recognise the social responsibility of healthcare providers. "This policy risks discouraging primary healthcare providers, ultimately undermining Malaysia's healthcare system. "Healthcare is a vital service that directly impacts the well-being of the population, it should not be viewed through a profit-driven lens," he said. Dr Mah also urged the government to reconsider the concerns raised by the medical community and exempt commercial rent and SST for primary private healthcare services. "It is vital to protect the last line of defence in our healthcare system, ensuring services remain accessible to all citizens. "Ultimately, the tax system should be fair, just and reflect the unique needs of healthcare," he said.
Sinar Daily
18 hours ago
- Sinar Daily
Taxing fruits while fighting obesity feels like a bitter pill to swallow
AS Malaysia rolls out its revised Sales and Service Tax (SST) on imported fruits starting today, the irony is hard to miss. While the nation battles rising obesity rates and a diabetes crisis, the price of one of the easiest and healthiest solutions just went up. You really have to pause and wonder: what exactly are we doing? The Malaysian government officially implemented the revised five per cent SST on imported goods and yes, that includes imported fruits. However, apples and oranges were eventually excluded after public response, despite initially being on the list. They were described as 'the people's fruit,' which led the government to reconsider and grant an exemption. Meanwhile, local fruits like bananas, pineapples, rambutans, longan and jackfruit are exempted, a move that supposedly encourages people to support local agriculture and raise national revenue. As Malaysia enforces its revised SST on imported fruits today, the irony is clear—fruit prices are rising just as the nation faces growing obesity and diabetes crises. Photo: Edited via Canva Fair enough, on the surface. But dig a little deeper and it is hard not to be sceptical. Because the more urgent crisis Malaysia is facing is not a lack of love for local pineapples, it is obesity. A growing one. According to the World Obesity Atlas, nearly 20 per cent of Malaysians were already obese and projections show that number ballooning to 41 per cent by 2035. The Health Ministry has also highlighted that Malaysia has one of the highest diabetes rates in the world, with 3.6 million people diagnosed as of 2019, a number expected to double by this year. Alarmingly, many are walking around without even realising they have the disease: 40 per cent of adults and 84 per cent of young adults aged 18–29 do not even know they are diabetic. Data from the CIA World Factbook shows Malaysia ranks second in Southeast Asia for obesity, with 19.7 per cent of the population affected. Photo: Screenshot via Sea Asia Stats Instagram account When you factor in the infamous "Three Highs" - high blood sugar, high blood pressure and high cholesterol - the situation only grows bleeker. Over 500,000 Malaysians are now living with all four conditions. So why, of all things, are we making fruits more expensive? Fruits, after all, are the simplest, most accessible health solutions out there. Unlike fitness programmes, gym memberships or fancy diets, fruits are straightforward. You eat them, they are nutritious and they help. You do not need an app to track them or a trainer to tell you how to bite into a cherry. And I do not know anyone - really, anyone - who does not eat at least one fruit. Sure, some people are not into vegetables, but fruits? Everyone has a favourite. Now, we are making it less attractive to choose them, just as we are trying to convince people to take better care of their health. That is the contradiction that makes this new SST expansion so frustrating. It is like raising the price of bottled water during a heatwave and calling it a strategy to encourage people to use public fountains. Will this tax stop people from buying imported fruits? Probably not. Will people even realise what has been taxed and what has not? Doubtful. Malaysians are already overwhelmed with economic concerns. And let us be real, no one is memorising the government's updated tax catalogue before heading to the supermarket. If the goal was to redirect people toward local produce, there are better ways to do it. One could subsidise local fruits or launch awareness campaigns, alternatives that are more encouraging. Instead, we have just made a basic health necessity more expensive, hoping people will 'get the message'. As Malaysia enforces its revised SST on imported fruits today, the irony is clear—fruit prices are rising just as the nation faces growing obesity and diabetes crises. Photo: Edited via Canva But it is not just about pricing. Malaysia's battle with obesity goes deeper - into infrastructure, culture and lifestyle. This is a country where walking is not easy. It is hot, humid and not exactly pedestrian-friendly. Public transportation is not the most dependable and when people are tired, busy and stressed, grabbing a quick meal at the nearest 'mamak' becomes the default choice. 'Lepak' culture is a big part of who we are, but let us be honest, Roti Canai at 11pm while watching football is not exactly a nutritionist's dream. We are proud of our food heritage and rightfully so. But that pride should also come with some responsibility. If we want Malaysians to be healthier, we have to make healthy options easier and more appealing; not pricier. Fruits and vegetables should be the last things we make harder to access. They are neutral, universal and do not come with the socioeconomic stigma of gym memberships. They are just food, good food. So while we are all trying to eat better, live longer and manage this nationwide health concern, let us hope future policy decisions reflect a bit more thought on the actual barriers people face. Because this five per cent tax may seem small on paper, but in the broader fight against obesity, it is sending the wrong message entirely.
The Star
19 hours ago
- The Star
SST, tax hikes putting country's healthcare sector at risk, says MCA
The recent wave of price increases introduced by the government is significantly impacting the provision of private healthcare services. As of July 1, 2025, the government has expanded the scope of the Sales and Service Tax (SST), now including an 8% tax on commercial rent and a 6% tax on private healthcare services for foreign or non-Malaysian patients. Adding to the rise in electricity costs, these changes come at a time when healthcare providers are already struggling. In support of the Malaysian Medical Association's (MMA) recent call and five other leading medical organisations, MCA urges the government to exempt commercial rent and SST from primary and private healthcare services. We must urgently protect Malaysia's access to healthcare.
