Malaysia is at a turning point in its healthcare journey, facing the twin challenges of an aging population and the growing burden of noncommunicable diseases (NCDs) – a situation faced by healthcare ecosystems around the globe. Recognizing these transformative pressures, the Partnership for Health System Sustainability and Resilience (PHSSR) initiative emerged as a global collaboration between public and private organizations including KPMG, alongside regional and national partners. PHSSR seeks to build more resilient and more sustainable health systems that are not only sustainable but also resilient to evolving demands for the future. This mission is ever more important today following the hard lessons we’ve had to learn from the global pandemic.

KPMG and its PHSSR partners Philips, Angsana Health, CAPRI, and the London School of Economics collaborated to produce this report on Malaysia titled "Sustainability and Resilience in the Malaysian Health System", which outlines key pillars for sustainability in healthcare. These pillars complements the reform strategies proposed in the Health White Paper released by Malaysia’s Ministry of Health (MOH), which provide a robust framework to achieve an equitable and resilient healthcare system—one that ensures no individual or community is left behind. 

In essence, our collective studies determine these areas of focus the healthcare sector needs to prioritize:

Tackling workforce shortages and equity

A sustainable healthcare system begins with a strong and well-supported workforce, yet Malaysia faces acute challenges in this area. One for starters, huge disparity in doctor-to-resident ratios between urban and rural areas. For example, in 2021, Kuala Lumpur had one doctor for every 178 residents, compared to just one per 776 in Sabah. These inequalities, compounded by workforce burnout and dissatisfaction, have pushed many healthcare professionals to consider leaving the public sector. Without bold reforms, these challenges will continue to undermine the system's resilience. 

To counter these challenges, the MOH advocates for workforce investments, as highlighted in the PHSSR report. Initiatives include retaining talent in underserved regions through enhanced incentives, improved working conditions, well-defined career pathways, and mental health support. Additionally, leverage technology to mobilize trained volunteers and social workers who can help bridge resource gaps and expand access to critical healthcare information and services in hard-to-reach communities.

Harnessing technology for transformation

The pandemic has fast-tracked the adoption of digital health tools, but gaps in infrastructure and digital literacy persist, hindering the full potential of these innovations. The nationwide rollout of 5G connectivity offers an opportunity to establish a seamless, integrated digital health ecosystem. Technologies such as virtual consultations, remote patient monitoring, and interoperable digital systems can reduce costs and improve access to care, especially in rural areas. Equitable healthcare access also requires resource-sharing mechanisms between public and private facilities. By enabling sustainable access to medical technologies, diagnostics, and underutilized resources across sectors, Malaysia can improve efficiency and patient experience.  

Financing for sustainability and inclusivity

Malaysia’s healthcare financing, heavily subsidized by the government, ensures affordability but strains public resources. Inefficient healthcare utilization and limited private insurance uptake compound the problem. With the annual costs of managing cardiovascular diseases, diabetes, and cancer exceeding RM9.65 billion as at 2017, sustainable financing models are urgently needed.

By gradually introducing preventive care incentives and harmonizing public-private coverage disparities, one can achieve the balance between affordability and accessibility of health services while promoting holistic health management. Additionally, to address the old-age dependency ratio, which affects gross domestic product (GDP) growth, will require thoughtful reforms. Measures such as progressive contributory schemes and inclusive insurance policies can alleviate the financial burdens on Malaysia’s aging population while safeguarding economic resilience.

Governance for transparency and accountability

Effective governance is the backbone of a resilient healthcare system. Malaysia faces notable gaps in its accountability frameworks, including centralized planning that limits local autonomy. Open data initiatives, as recommended by the PHSSR report, are equally critical. Transparent, de-identified data can drive evidence-based decision-making, attract research collaborations, and optimize resource allocation. Moreover, empowering local authorities to forge public-private partnerships can enhance service delivery tailored to local needs.

A unified vision for the future

Realizing the vision of “healthcare for all” requires a concerted effort from public and private entities, not just regulators, healthcare providers, but also input from general public. By aligning strategic priorities and fostering collaborative efforts across sectors, Malaysia has the opportunity to lead by example in developing a health system that not only addresses present demands but also anticipates future challenges. In doing so, the nation can reaffirm its commitment to deliver quality healthcare that all patients deserve. More than that, we should realize that by working cohesively, we have the potential to foster a healthier, more resilient future for the generations to come, one where no one is left behind.

Related content