The Association of Private Hospitals Malaysia is urging the Ministry of Finance to postpone the planned implementation of a 6% Sales and Service Tax on private healthcare services for non-Malaysian patients, scheduled to take effect on 1 July 2025.

The association said the short timeframe does not give private hospitals enough time to update administrative systems, billing processes, and compliance measures. In a written request sent to the ministry, it asked for a more practical timeline to ensure a smoother transition and to avoid disruption to patient services.

While supporting the government’s goal of expanding the tax base to boost economic growth, the association has also asked for further clarification on how the tax will be applied. 

This includes questions about whether it covers professional fees, how it affects foreigners living in Malaysia, and other related matters. The association also said it remains committed to working with the government to ensure the policy is implemented effectively and without compromising the quality or continuity of care. 

Two days ago, the Ministry of Finance announced that the scope of the service tax will be expanded to cover several new sectors, including rental, leasing, construction, financial services, private healthcare, and education. The expansion is part of the government’s effort to increase tax revenue, with the aim of collecting RM51.7 billion in Sales and Service Tax next year.

As part of this update, private hospitals will begin charging a 6% service tax on healthcare services provided to foreign nationals.

• TAGS:
• Foreign Patients
• Ministry of Finance
• Private Hospitals
• SST