Referring to the tabling of Budget 2018 in the Dewan Rakyat by Prime Minister Najib Razak today, MMA president Dr Ravindran R Naidu said it was quite disappointing that healthcare was not in the list of GST exemptions.
“When we submitted our wishlist to the prime minister, we highlighted that our main concern was the implementation of GST in healthcare. It was disappointing that Najib gave exemptions in other areas but not healthcare.
“Healthcare is one of the most essential services for the rakyat and there was no GST exemption for it. This is a bit disappointing,” he said.
In the Budget 2018 announcement today, Najib announced the zerorising of GST for several items, including oil and gas equipment imports under lease agreement, the import of big ticket items like planes and ships, and for cruise operators.
Ravindran pointed out, however, that the overall increase of RM2 billion for healthcare was good.
“The overall increase of RM2 billion is good for healthcare, provided the allocation is not slashed later, during the course of the year.
“Last year, they allocated RM25 billion for healthcare but slashed the allocation after that. If they do this again, we will be back to square one,” he said.
FMT recently reported on the problems faced by government hospitals and clinics due to lack of funding, including a shortage of medication, consumables, reagents for blood tests, and the use of generic drugs as well as lack of maintenance of medical equipment.
In his speech today, Najib announced a RM27 billion allocation to the health ministry to boost the quality of healthcare in the country.
Ravindran described the RM100 million allocation for medical supplies and consumables as sufficient, provided there were no cuts.
“We are okay with the extra RM100 million but this also depends on the crowds at these government hospitals and clinics. If the crowds get bigger, then even this will not be enough.
“The most important allocations in healthcare are for reagents, supplies and consumables. What will happen is if there is a shortage in this area, we are hoping they might take out money from other places since RM2 billion has been added to the overall budget.
Health financing
Meanwhile, Galen Centre for Health & Social Policy chief executive Azrul Mohd Khalib said the government made a bold move with its RM50 million allocation for the setting up of a Voluntary Health Insurance Scheme.
“In its commitment to innovate and create sustainable conditions for a change in Malaysian healthcare, the insurance scheme signals that the government is moving ahead to strengthen health financing.
“The national budget allocation can never really commensurate with medical costs. Hence the need for a separate healthcare financing mechanism to complement the existing framework and government allocation.
“By participating in such a national health insurance, individual Malaysians can be part of the process of improving healthcare in our country,” he said.
Azrul also praised the allocation of RM10 million for the treatment of rare diseases, saying that Malaysia was one of the few countries in the region that provided public subsidies for rare diseases.
“We need more affordable diagnostic services. Currently, due to the lack of specialised facilities and relevant expertise, genetic testing is expensive and samples are often sent abroad. The lack of awareness of rare diseases has also resulted in patients being deprived of welfare assistance and services.
“I hope that with this specific mention of rare diseases in the national budget, there will be more attention and consideration by the government to include new ‘innovator drugs’ into the health ministry’s drug formulary and to support more patient drug assistance programmes.
Asked about the issue of shortages highlighted by FMT recently, Azrul said the allocation for the supply of drugs, consumables, vaccines and reagents remains surprisingly the same as this year’s, which was around RM4 billion.
“This is despite the government addressing the issue before.
“There were 10 million more outpatient cases recorded in 2016 compared with the previous year. This year, it is expected to end with an even higher number.
“This is cause for concern as an insufficient allocation can result in shortages of essential drugs needed to treat diseases, particularly non-communicable diseases such as hypertension, heart disease and diabetes.
“These shortages, which have already occurred in the past, will affect those most vulnerable such as senior citizens, pensioners and those from the lower-income bracket.”
GST, cost of living see more people choosing govt healthcare