KUALA LUMPUR, Oct 10 — Putrajaya has raised the healthcare allocation to RM46.5 billion in Budget 2026, an increase of RM1.2 billion from RM45.3 billion this year.

Prime Minister Datuk Seri Anwar Ibrahim said all government hospitals and clinics will undergo maintenance and repairs with an allocation of RM1.2 billion.

“Wards in district hospitals in the whole country will be upgraded with an allocation of RM100 million,” he said when tabling the Budget 2026 today.

He said outdated medical equipment will be replaced and advanced equipment will be acquired for new disciplines with a new budget of RM755 million.

Government hospitals and clinics will get a boost in Internet connectivity with an allocation of RM650 million from the  Malaysian Communications and Multimedia Commission (MCMC).

On the issue of overcrowding in public hospitals, Anwar said the government will enhance collaboration to outsource patients to military, university and private hospitals with an allocation of RM140 million.

“Government clinics will be upgraded to provide specialist services to reduce dependence on public hospitals with an allocation of RM30 million,” he said.

New hospitals, clinics and healthcare infrastructure in the works included the Northern Region Cancer Centre in Kedah; additional blocks at Hospital Pontian in Johor; Hospital Banting and Hospital Sungai Buloh in Selangor; an advanced surgical block at USM Specialist Hospital in Kubang Kerian, Kelantan; and a Sabah Heart Centre at Queen Elizabeth II Hospital.

A total 13 new clinics will be built including in Machang (Kelantan), Teluk Kemang (Negeri Sembilan), Mukah (Sarawak), and Nabawan (Sabah).

“This also includes expediting the implementation of the Cancer Centre in Kuching and Hospital Sultanah Aminah 2 in Johor,” he said.

One of the measures to tackle rising medical inflation is a RM60 million joint funding between the government and the healthcare industry to introduce affordable basic insurance products and to implement the diagnosis related group (DRG) system.

“To encourage better take up of insurance or takaful coverage by the public, the government will expand the individual income tax relief of up to RM3,000 for life insurance premium payments or life takaful contributions for individuals and their spouse to include children,” he said.

The full stamp duty exemption on small-value insurance policies or takaful purchased by individuals and small-medium enterprises will be extended for three years until 2028.

Similarly, full stamp duty exemption on insurance policies and takaful under Perlindungan Tenang products will also be extended for three years until 2028.

“Private hospitals will be allowed to establish welfare funds managed by companies limited by guarantee to encourage private hospitals to help underprivileged patients access healthcare,” he said.

He added that income received by these funds will be tax-exempt, and contributors to the funds will also qualify for tax deductions.

“EPF contributors will be allowed to use savings in their Sejahtera Account to subscribe to basic medical and health insurance or takaful plans,” he said.

The mySalam scheme has paid out over RM1.2 billion in hospitalisation and critical illness benefits, benefiting more than 1.7 million recipients since its introduction.

“The mySalam initiative will continue in 2026 to support low-income Malaysians through subsidised hospitalisation and critical illness coverage,” he said.

 Malay Mail – Malaysia