Budget 2027: Medical groups hail end to contract doctor system, enhanced public-private synergy but seek more on retention

KUALA LUMPUR, Oct 9 — Healthcare stakeholders had mixed responses to the national health allocations announced in Budget 2027, with the Malaysian Medical Association (MMA) applauding the move to end the contract doctor system while highlighting critical gaps in workforce retention

The Association of Private Hospitals Malaysia (APHM), meanwhile, welcomed measures to boost public-private cooperation.

The Ministry of Health’s allocation has increased to RM47.7 billion, from RM46.5 billion in 2026.

MMA president Dr Sivanaesan Letchumanan described the commitment to end the contract doctor system as a major win for the profession, noting that over 9,000 contract doctors are set to be offered permanent positions in 2027.