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On this episode of #ConsiderThis, Melisa Idris examines Budget 2027’s allocations and potential impact for two critical sectors: public healthcare and SMEs. The Health Ministry’s allocation rises to RM47.7 billion. However with healthcare needs growing and development spending barely increasing, will the budget strengthen public healthcare capacity and improve patient care? Meanwhile, for SMEs, the budget offers expanded financing facilities and lower corporate tax rates for qualifying businesses. Will these measures ease business pressures after a challenging year? Melisa speaks with Dr Sivanaesan Letchumanan, president of the Malaysian Medical Association (MMA), and Datuk William Ng, national president of the Small & Medium Enterprises Association Malaysia (SAMENTA)

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00:10Hello and good evening, I'm Melissa Idris. Welcome to Consider This. This is the show
00:15where we want you to consider and then reconsider what you know of the news of the day. Budget
00:202027 raises the Health Ministry's allocation to RM47.7 billion, an increase of about 2.5%,
00:28which is the smallest in five years. But the government has also pledged that permanent
00:34positions for more than 9,000 contract doctors next year will be made available. But will all
00:40of these measures be enough to address some of the pressures that have been building in public
00:47healthcare? Well, joining me now to discuss this further, I have Dr Sivanesan Lechumanan, who is
00:53the President of the Malaysian Medical Association, better known as MMA. Dr Siva, thank you so much
00:59for joining me on the show. Now that you've had some time to digest the announcements in Budget
01:052027, can we begin with the overall allocation? I think there has been some concern that the
01:13budget expenditure still isn't moving towards that global standard of 5% of GDP for the health
01:21sector. Tell me, how do you see the allocation that has been provided for the healthcare sector?
01:29Thank you, thank you, Melissa. Generally, the WHO expects the developing country like Malaysia to
01:35spend approximately 5% of the GDP. Currently, Malaysia spends approximately about 2.4%, 2.5% of
01:44GDP on its health. But in 2024, we saw an increase of approximately more than 10% increase in the
01:52health
01:53budget for Malaysia. If we have kept to that percentage of increase annually, probably we will
01:59move slowly towards the 5% GDP. To move it from 2.5% straight to 5% is definitely
02:06a fiscal disaster. It's
02:08going to be hard for the country. Of course, there's an increase now from 46.5% to 47.7%.
02:16We welcome the
02:17increase looking at current Malaysian financial tightness at the moment. But we hope whatever
02:24budget that is allocated will be used in the right manner and it really reaches the riot for its services.
02:30Okay. Are you worried or concerned about the balance around operating expenditure and
02:36development expenditure in healthcare? Maybe you can talk to me a little bit about what you think
02:43where the healthcare budget should go looking at the challenges in this sector?
02:50Yeah. Traditionally, if you look at our budget, traditionally we spend about 15% on the development
02:56and 85% on operational costs actually. So the development, this includes the building of new
03:03hospitals, upgrading the clinical sehatans. Currently, we have to upgrade our digital facilities
03:09because we are moving towards one person, one record facilities and much more. But to balance it,
03:17whatever that we are building, we have to have enough manpower as well. So this is where the
03:23operational budget plays an important role, sustaining the healthcare workers, improving the healthcare
03:29care, delivery costs. All this is very, very important. So when we increase the development
03:36allocation per se, we must remember to run these facilities, we need a human being, we need manpower
03:43as well. Therefore, it should be a balanced diet, not only just increase in the development, but the
03:49increase in development must be followed with larger portion of budget for maintenance, that is the
03:55operational costs. Okay. Well, let's talk about manpower because I think that's been, healthcare
04:00workers has been a real concern around the pressures facing the public healthcare sector. When we look
04:08at some of the announcements, particularly around the permanent appointments, do you think, Dr Siva,
04:14that this will finally resolve the contract doctor issue? Is it as it seems on the surface?
04:20Okay. First, let me just thank the Prime Minister and also the Minister of Health, who actually worked
04:28hard to bring this contract doctor issue to an end. MMA has, for the last few years, have been working
04:35very hard to find a solution for this contract doctors. As you know, since the introduction of contract
04:41doctors in 2016, we have faced lots of lots of issues, especially in terms of security of job, in terms
04:50of
04:50the progression, to do their masters, in terms of their transfer to other places. All this has caused
04:57lots of issues from the Ministry of Health. So, we thank the Prime Minister for his commitment to end
05:03this contact doctors issues. Now, contact doctors issues per se, when you end it, does not solve the
05:10problem. As you can see recently, for the posting in Sabah and Sarawak, though they were given permanent
05:15post and sent to places like Sabah and Sarawak, the uptake was very, very low. Therefore, the doctors
05:21don't just look at the job security as a permanent, but they also look at other things away from home,
05:28adequate incentives, the progression to do their specialization. All this is very important,
05:35should be taken into account when we want to retain our healthcare. Healthcare workers actually should be
05:42allocated and be paid in accordance to current time and not what they had said maybe 20 or 30 years
05:50ago.
05:51Right. Okay, I hear you when you say that maybe resolving the employment status doesn't actually
05:58resolve the broader workforce crisis. Can you talk a little bit more about that, Dr Siva? There's been reports
06:05about very high numbers of no-shows among medical offices for permanent positions. Maybe talk a little
06:13bit about what other areas the government can provide to support doctors entering the permanent
06:21service so that the healthcare workforce becomes a conducive place to work.
06:29Yeah, this is a very important question and thanks for asking this question, Melissa. First of all,
06:36the permanent appointment per se itself does not solve the problem. Doctor wants a better working
06:41condition. Currently, if you look at Malaysia, our doctors work approximately 65 to 80 hours per week
06:47compared to our peers in other countries, approximately they work about 45 to 55 hours. So, here itself,
06:55we have worked our doctors in Malaysia much longer compared to our colleagues in other countries.
07:01Number one. Second, we also see when you send a doctor fine interior off, for instance, if you want to
07:07transfer a doctor from Penisla to a place in Sabah, Sarawak, deeper in Sabah and Sarawak, approximately the cost
07:13is about 8,500 to 10,000 ringgit. So, this is a cost of transfer per se. Third, we also
07:20see some of the places,
07:22especially the rural settings or interior places. We saw the accommodations are not well maintained.
07:30And fourth, of course, when you transfer the doctors to deeper inside, we expect them to be given
07:35incentives. Previously, we have something called Bayana Incentive Wilayah, which they pay by percentage of your
07:43basic salary about 12 to 13 or 15 percent of your basic salary. However, this has been reviewed the last
07:50three years and it has brought down a person who previously received approximately 900 ringgit,
07:55currently only receives about 360 ringgit as a Bayana Incentive Wilayah. As time goes by, I believe
08:01this intentive should be increased and not decreased as what has been happening. This definitely is not
08:08encouraging. Okay. Well, we've talked about the healthcare workers, we've talked about doctors
08:13specifically. I know there's an entire workforce of nurses and allied health workers as well that
08:20we can go into, but I want to look at the perspective from patients. How much of the healthcare budget
08:28that was announced in budget 2027 do you think will be beneficial for the patients? I'm looking at the
08:38reduced waiting times, outsourced patient treatments. How are you viewing the overall impact to the
08:44patient experience? Okay. Just let me give you a statistic. Currently, approximately 60 percent of
08:52government, sorry, specialist doctors are in the private sector. But 70 percent of Malaysian public are still
08:58relying on government hospitals. So there's a mismatch here. Therefore, the waiting period for you to get an
09:04appointment to see a specialist is definitely going to be long, first of all. But we thank the government
09:10because government recently announced that they are spending about 200 million dollars to buy services
09:16from the private hospitals. So this, in one way, can actually bring down the waiting time of the
09:22patients to see a specialist doctors. In other words, there's going to be something we call as a private
09:29public partnership. So this is also, this improves the waiting time. That's a very good idea that the
09:36government has done. But the proxy, I mean, apart from that, we also expect some other incentives also
09:42to be given for the government doctors. First, of course, as you say, to retain them. We have to really
09:47incentivize our workers to retain them. From what I heard, 2017, there were approximately 12,000
09:56workers' workers vacant, places vacant in the Ministry of Health. And in 2023, this has ballooned to
10:02approximately 55,000. I don't have the latest, exact latest data. But in 2023, it was expected roughly
10:08about 55 healthcare workers' positions are vacant. So this definitely has added the burden to the work,
10:16for the workforce which is left. For instance, if a doctor, if a hospital is supposed to work with a
10:21capacity of 10 doctors, and currently it is now working only in five doctors, you can see the
10:27doctors are going to be overworked and definitely it is understaffed. And of course, when you're overworked,
10:33you can't give the best services for the patients. Okay. Well, having said all of that, what did you wish
10:41was in the Budget 2027 that maybe didn't make the cut? Was there anything missing from your perspective?
10:48Is it? One of the things that I believe that we could really utilize here is I see in the
10:54country,
10:55we have approximately 11,000 general practitioners or GPs around. And they have a bigger capable and
11:02they have a bigger role to play. And they have played a very important roles during the pandemic.
11:07For instance, during the COVID time, where 80% of the vaccination was delivered or was given by the
11:13private practitioners. That shows the private practitioners have a big role to play. And
11:18currently their talents are not really been utilized by the Ministry of Health. So I wished that we could
11:24spend more, probably we could buy more services from the private practitioners, especially in terms of
11:31screening the NCDs. NCDs, as you know, Melissa, is a very big burden. Can I just throw you a question,
11:37Melissa? How much do you think the cost of NCDs for the country every year, approximately how much it
11:43costs us? Can I throw a question to you? I cannot imagine, but I can assume it's probably a lot
11:49more
11:50that we're spending to screen, to maintain, to treat the complications and the manpower loss is estimated
12:01approximately 60 billion a year for the country. So can you see it's a very big amount. So what we
12:08need
12:08to do is pick up all these NCDs patients as fast as we can, treat them exactly. Screening alone would
12:14not solve. Screening is just what we call as an activity. But then when we is able to screen and
12:20detect the people with NCDs, that is called the output. But the most important is the outcome. What
12:26is the outcome? We're able to screen somebody, we're able to detect who has the NCDs, we treat them and
12:33give continuous care so they don't reach the complications that happen to people who are not
12:38being treated. That should be the outcome. So this is very, very important. And we have to change
12:44as what is said in the Malaysian health care white paper, we have to change our delivery service from
12:52sick care to preventive care. Definitely. Dr. Siwa, thank you so much for joining me on the show. I
12:58appreciate your time. Dr. Siwa Nesan Lecimananda from MMA. We're going to take a quick break here on
13:03Consider This. We'll be back with more on Budget 2027. Stay tuned. We'll be right back.
13:14I'll see you next time.
13:14I'm
13:14I'm
13:15I'm
13:17I'm
13:17I'm

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