In a statement, the Association of Private Hospitals Malaysia (APHM) raised concerns over the implementation timeframe, saying “private hospitals will need sufficient lead time to adjust administrative systems, billing processes, and compliance procedures”.

APHM also said it had sent a written request to the finance ministry today for a “more practical timeline”.

“This is to allow for a smoother transition, minimise disruption to patient services, and help ensure full compliance with the new requirements.”

APHM also said it had sought further clarification on the policy’s application, including its impact on professional fees, treatment of foreigners residing in Malaysia, and other related implementation matters.

The finance ministry announced two days ago that the service tax would be expanded to include rent, lease, construction, financial services, private healthcare, and education, with hopes that it would help generate RM51.7 billion in SST revenue next year.

Under this policy, private hospitals will charge a 6% SST on healthcare services provided to foreign nationals.

Since the announcement, several associations have raised concerns about the potential impact on service accessibility, pricing transparency, and operational preparedness, especially for sectors like healthcare and education which serve many non-Malaysians including foreign workers, expatriates, and international students.