PETALING JAYA: MCA has called for the exemption of the commercial rent and the expanded Sales and Service Tax (SST) from primary and private healthcare services.
Its deputy president Datuk Dr Mah Hang Soon (pic) said that implementation would add a burden on top of the rising electricity costs, and these changes come at a time when healthcare providers were already struggling.
"We must urgently protect our country's access to healthcare.
"This call is not a push for increased profits for medical institutions but a plea to defend the fundamental right of every individual to access healthcare," he said in a statement yesterday.
On June 30, six major associations representing doctors, community pharmacists and physiotherapists called for an exemption of the expanded SST on private primary care.
The groups expressed concern with the impact of 8% SST on commercial rent, 6% SST on private healthcare services provided to foreign patients, as well as the revision of electricity tariffs.
Dr Mah said many private healthcare providers already operated with narrow profit margins, and the imposition of additional taxes would force numerous clinics to shut down.
"Consultation fees for private doctors have not increased in years, and rates are strictly regulated. Pharmacies and physiotherapists also face extremely limited margins," he added.
With the rise in commercial rents, operational costs and electricity bills, coupled with taxes, Dr Mah, who is also the Perak MCA chairman, argued that this burden could be the tipping point.
"If clinics close, communities, especially in suburban and rural areas, will suffer. If private healthcare becomes unaffordable, public hospitals will face an even greater strain."
Aside from that, Dr Mah said the construction, cleaning and plantation sectors (the 3D sectors) relied heavily on foreign workers, who often seek affordable treatment at private clinics.
"The 6% SST will make treatment more expensive, placing undue strain on these low-paid workers.
"If they delay medical treatment due to higher costs, it will worsen their health and trigger broader public health concerns, including a higher risk of infectious disease transmission, which could escalate outbreaks in primary healthcare settings," he said.
The increase in the SST threshold to RM1mil still does not address the unique nature of healthcare, he noted.
"Many clinics exceed this threshold due to high demand for services, not because of significant profits.
"A 'one-size-fits-all' tax approach fails to recognise the social responsibility of healthcare providers.
"This policy risks discouraging primary healthcare providers, ultimately undermining Malaysia’s healthcare system.
"Healthcare is a vital service that directly impacts the well-being of the population, it should not be viewed through a profit-driven lens," he said.
Dr Mah also urged the government to reconsider the concerns raised by the medical community and exempt commercial rent and SST for primary private healthcare services.
"It is vital to protect the last line of defence in our healthcare system, ensuring services remain accessible to all citizens.
"Ultimately, the tax system should be fair, just and reflect the unique needs of healthcare," he said.
