Malaysia’s health expenditure to grow by 8.3% CAGR until 2028

Its medium-term health expenditure growth is expected to be one of the fastest in the ASEAN. 

Health expenditure in Malaysia is projected to grow at a compound annual growth rate (CAGR) of 8.3% until 2028 on the back of strong government support for the sector, according to a BMI report.

The report stated that the country’s expenditure growth would see it outpace regional peers such as Singapore, Thailand, the Philippines and Indonesia over the medium term, whilst its annual per capita health expenditure remains above global and emerging market averages.

This positive outlook is supported by double-digit increases in the government’s healthcare budget in 2023 and 2024.

Moreover, the country’s public and private expenditure within the forecast period is expected to grow by 8.5% and 8.1%, respectively.

The report revealed that the public sector’s growth will be driven by the ageing population, the growing burden of chronic diseases, and efforts to enhance public health infrastructure and access for underserved communities.

Furthermore, continuous advancements in the private sector will contribute to the country’s health expenditure growth.

“Private healthcare providers will continue to attract patients with higher incomes including medical tourists and domestic patients looking to avoid long waiting times amidst Malaysia’s shortage of physicians and nurses,” BMI said.