The cost of medical treatment in Malaysia is projected to jump 16% next year, driven by a brain drain of healthcare professionals and increasing speciality drug prices, according to MBSB Research.
In its monthly sector report, the firm highlighted the exodus of local doctors, nurses, and specialists to higher-paying overseas markets as a key driver of rising costs.
"This labour shortage directly increases the cost of hiring and retaining talent in the private healthcare sector," it said, as reported by Berita Harian.
The report noted that globally, labour costs often account for more than half of hospital operating expenses.
Private hospital operators are now offering higher salaries to retain specialists who had previously left the public sector
Between 2020 and 2024, 440 professional staff from the Health Ministry (MOH) moved abroad, including five medical specialists, 54 medical officers, and 381 nurses, Health Minister Datuk Seri Dr Zulkefly Ahmad told Parliament in September.
Rising prices of speciality drugs are another contributor to medical inflation.
High-value medicines for non-communicable diseases, including popular GLP-1 drugs for diabetes and obesity, have been affected by expensive Active Pharmaceutical Ingredients. Local pharmaceutical manufacturers are facing margin pressures as a result.
The integration of new medical technology is also pushing hospital operating costs higher.
Major private hospitals, such as those under IHH Healthcare Bhd, could face additional cost pressures from both labour shortages and rising drug prices.
The government has said it will implement structural reforms to manage medical cost inflation and improve healthcare spending transparency.
Finance Minister II Datuk Seri Amir Hamzah Azizan recently outlined the government's plans to roll out a basic 'Medical & Health Insurance/Takaful (MHIT)' product by the end of next year.
This will be designed to provide Malaysians with affordable protection against hospitalisation and select outpatient care, improve cost transparency and address structural pressures in the healthcare system.
https://says.com/my/news/medical-costs-in-m...sCuBg5WKmHWWELA
Medical Costs In Malaysia May Rise 16% Next Year, Amid Doctor Shortages & Drug Price Hikes
Nov 13 2025, 03:01 PM, updated 4w ago
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