KUALA LUMPUR, Oct 9 — Healthcare stakeholders had mixed responses to the national health allocations announced in Budget 2027, with the Malaysian Medical Association (MMA) applauding the move to end the contract doctor system while highlighting critical gaps in workforce retention

The Association of Private Hospitals Malaysia (APHM), meanwhile, welcomed measures to boost public-private cooperation.

The Ministry of Health’s allocation has increased to RM47.7 billion, from RM46.5 billion in 2026.

MMA president Dr Sivanaesan Letchumanan described the commitment to end the contract doctor system as a major win for the profession, noting that over 9,000 contract doctors are set to be offered permanent positions in 2027.

“This is a significant milestone and addresses one of MMA’s longstanding calls. We commend the Government for taking this important step towards providing greater job security and career certainty for our young doctors,” he said.

He, however, noted that permanent appointments must be accompanied by a broader strategy to retain healthcare workers. 

Malaysia faces a shortage of nearly 11,000 specialists, he said, with demand for specialist care expected to rise amid the growing burden of non-communicable diseases (NCDs) and an ageing population.

“We cannot afford to lose more specialists when we urgently need to train and retain more of them,” he said, calling for greater investment in specialist and subspecialist training, career progression, fair remuneration and better working conditions.

MMA also said more emphasis should be placed on strengthening primary healthcare to tackle NCDs. 

The country’s network of private general practitioners remains underutilised and could play a greater role in prevention, early detection and long-term disease management, Sivanaesan said.

“Strengthening primary care is essential to reducing avoidable hospital admissions and easing pressure on specialist services,” he said.

Sivanaesan said the success of Budget 2027 should be measured not only by its allocations, but by improvements in patient care, waiting times, workforce retention and access to healthcare.

MMA reiterated its call for a national healthcare workforce distribution dashboard, providing transparent information on staffing levels and shortages at individual public hospitals and clinics. The data could support workforce planning and help direct resources to areas of greatest need, it said.

The association also noted that the RM1.2 billion allocation for hospital and clinic maintenance was unchanged from 2026, despite ageing facilities and growing maintenance needs. 

It called for sufficient funding to address manpower shortages in Sabah and Sarawak, including better incentives and career opportunities, and reiterated its call to restore the previous percentage-based Regional Incentive Payment.

Meanwhile, APHM president Datuk Dr Kuljit Singh welcomed measures to reduce patient waiting times, including a RM200 million allocation for outsourcing patients to other hospitals and expanded sessional arrangements for private-sector specialists, with the maximum engagement period extended.

APHM also welcomed Budget 2027’s reflection of work on billing transparency, saying it looked forward to further discussions with stakeholders on implementation.

Dr Kuljit said the e-CKAPS portal, which is due to enable private healthcare facilities to be licensed entirely online from 2027, targets a reduction of up to 65 per cent in processing times. 

He said faster licensing could also support Malaysia’s medical tourism sector.

“What matters most is not the size of the budget increase but the outcome for patients.

“APHM stands ready to work closely with the Health Ministry and other stakeholders to turn these measures into real improvements on the ground,” he said.