GEORGE TOWN: The 6% sales and service tax (SST) imposed on foreign patients seeking treatment in Malaysia has not affected the healthcare travel sector, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said the tax on non-citizens had not dampened demand with private hospitals nationwide continuing to receive large numbers of patients.
“In Penang, medical tourism is still strong with plenty of overseas patients in private hospitals here. Malaysia continues to offer quality healthcare at reasonable prices.
“Even in private hospitals in Johor and the Klang Valley, there is growing demand from foreign patients.
“Many of them are coming to Malaysia specifically for medical treatment,” he told a press conference after visiting the Intel Pelican Project in Bayan Lepas yesterday.
Amir Hamzah said Malaysia remains an increasingly popular destination for healthcare travellers and the industry should continue to be supported.
He said the SST was introduced to strengthen the government’s revenue base and expand its fiscal position.
“This was discussed over the past few years before it was introduced.
“Throughout the process, we carefully studied the impact to ensure it would not burden Malaysians, which is why exemptions are given to citizens,” he said.
Beginning July 1 last year, private healthcare providers with annual revenue exceeding RM1.5mil are required to impose a 6% tax on services provided to non-citizens.
Malaysians are exempt, including for traditional and allied health services.
This year is Malaysia Medical Tourism Year, on top of Visit Malaysia 2026.
