Malaysia is witnessing a notable shift in healthcare utilisation, with individuals from higher income brackets increasingly turning to public hospitals.
This trend has been attributed to the escalating costs of private health insurance, which are becoming less affordable even for the country’s top earners.
The Federation of Malaysian Consumers Associations (FOMCA) has highlighted that this development signals a broader issue affecting all income levels.
Saral James Maniam, senior manager at FOMCA, commented that while Health Minister Datuk Seri Dr Dzulkefly Ahmad has proposed targeted subsidies as one solution, broader strategies are required.
“We need more than that – like better regulation of insurance prices, clearer billing, and more focus on preventive care so people don’t end up with huge medical bills later on,” she said, as reported by Asia News.
She emphasised that expanding public hospital capacity is essential to avoid overburdening the system as more people seek care there.
“Public hospitals are already stretched thin, and if more people from the T20 group start going there, it could make things worse unless we increase capacity,” Saral said.
Saral also noted the importance of maintaining service quality and accessibility, regardless of cost-saving efforts.
The Consumers’ Association of Penang has raised concerns about the rapid rise in health insurance premiums, which are increasing at a rate that surpasses wage growth.
President Mohideen Abdul Kader warned that this could force many families to abandon their private insurance policies, pushing them toward public healthcare facilities.
“The Health Ministry must strategise affordable options. With more people expected to turn to public facilities, the government has to either expand existing hospitals or build new ones,” he said, as reported by Asia News.
He also suggested that private healthcare providers could support the public sector by sharing advanced medical equipment at subsidized rates as part of their corporate social responsibility.
Harminder Singh, secretary-general of the Malaysia Consumers Movement, urged the government to review public healthcare services to ensure that the population receives adequate care.
“Private healthcare, although efficient, comes with a huge financial cost,” he said. “We don’t want the public to become debtors for life, borrowing in desperation just to cover critical medical costs if public healthcare efficiency is lacking.”
Lee Heng Guie, executive director at the Socio-Economic Research Centre, added that the rising costs of private healthcare are leading both middle- and high-income households to seek treatment in government facilities, further straining public resources.
“We urgently call for the regulation of private healthcare costs and insurance premiums to make it affordable and ensure continued access for the public,” he said.
A recent Manulife survey has underscored that healthcare costs are the primary financial concern for consumers in Asia, even surpassing general inflation.
The 2024 Manulife Asia Care Survey, which gathered responses from 8,400 people in eight markets, introduced the MyFuture Readiness Index to assess perceptions of wellbeing.
The results revealed a gap between the desired and expected levels of future wellbeing, with respondents expressing uncertainty about their ability to meet future needs.
Physical wellbeing was identified as the top priority for 39% of respondents, ahead of financial and mental wellbeing.
This trend was observed consistently across all surveyed markets, indicating that insurers may need to adapt their offerings to address evolving consumer expectations in health and wellness.
Despite widespread concern about rising medical costs, the uptake of critical illness insurance remains relatively low.
Only 18% of survey participants reported having such coverage, compared to higher rates for accident, inpatient, and outpatient insurance. The most common health concerns included heart disease, cancer, diabetes, and stroke.
The survey also found that a significant portion of respondents rely on cash savings to achieve financial goals, with 68% preferring this approach over investment products. This reliance on savings was especially pronounced in the Philippines and less so in Hong Kong.
