Malaysia’s Finance Minister II, Datuk Seri Amir Hamzah Azizan, announced on 18 May that the country continues to attract foreign medical tourists, maintaining its competitiveness despite the recent six per cent sales and service tax (SST) on private healthcare services.
Speaking after a visit to Intel in GEORGE TOWN, Amir Hamzah stated that private hospitals in Penang, Johor, and the Klang Valley are drawing international patients due to Malaysia’s provision of “reasonable and very good healthcare.”
He specifically mentioned Island Hospital in Penang: “If you come to Island Hospital in Penang, quite a lot of its patients are actually from overseas because Malaysia still provides reasonable and very good healthcare.” He added, “If you go to hospitals in Johor and the Klang Valley, you will also see growing demand from foreign tourists coming in for medical services. This is a growing space that we should continue to support.”
The Finance Minister II confirmed the six per cent SST on private healthcare services is in effect, but noted the government has provided exemptions to ensure the tax does not unduly burden the population.
Amir Hamzah explained the SST aims to strengthen government revenue and improve the country’s fiscal capacity. Collections from the healthcare SST are channelled into the Consolidated Fund to support overall government expenditure. He cited the sugar tax, increased last year, as an example of targeted revenue used to address health issues such as diabetes and kidney diseases.
Why this matters
This statement from the Finance Minister II reassures the medical tourism sector about continued government support for the industry, even as new taxation measures are implemented to strengthen national finances. It highlights the perceived resilience of Malaysia’s medical tourism offering against increased operational costs.
Source: Bernama(https://bernama.com/misc/rss/news.php?id=2558605)