He said out-of-pocket payments for medical services expose individuals, even those in higher-income groups, to unexpected financial shocks in times of health crises.

“OOP expenditure can also have inflationary effects. That’s why the ministry urges upper-middle and T20 groups to subscribe to insurance,” he said at a press conference at the launch of the Association of Private Hospitals Malaysia’s (APHM) Factbook today.

According to the National Health Accounts: Health Expenditure Report (2011-2021), Malaysia’s OOP health expenditure reached RM24.643 billion in 2021. This accounts for 31.5% of total healthcare expenditure and 74.8% of private sector health spending.

From 2011 to 2021, OOP health expenditure grew from RM11.466 billion to RM24.643 billion, representing 1.6% of the nation’s gross domestic product.

According to APHM president Kuljit Singh, the association’s Factbook aims to dispel myths, highlight contributions and challenges and, most importantly, outline the path forward for the private healthcare sector.

Separately, Dzulkefly highlighted the importance of the factbook as it underscores the private healthcare sector’s role in the country’s healthcare landscape.

He said private hospitals have been vital in supporting public health efforts and enhancing Malaysia’s reputation as a global healthcare travel destination.

He also said the private sector plays a critical role in building a strong ecosystem for healthcare, and that he hopes for continued collaboration between the public and private sectors as well as society at large.

“This would help us achieve a more resilient, equitable and efficient healthcare system for all,” he said.