Budget for health significantly increased, not reduced

November 9, 2020 editor

PUTRAJAYA: The 2021 Budget allocation for the Health Ministry has taken into account all requirements and resources needed to enable the ministry to function effectively, and provide holistic and efficient services to the people amid the Covid-19 pandemic.

Health Ministry secretary-general Datuk Seri Dr Chen Chaw Min said the ministry had consistently received one of the highest budget allocations, after the education, and finance ministries.

“The allocation has continued to show a significant increase from only RM15.35 billion in 2010 to RM30.60 billion last year. “That is a huge jump of RM15 billion in a mere 10 years. During that period, various health programmes were implemented,” he said at a press briefing on the 2021 Budget at the ministry, here, yesterday.

Dr Chen said the government had continued with this rising trend with RM31.94 billion allocated for next year, compared to RM30.6 billion this year — an increase of 4.38 per cent.

Of this, he said RM27.2 billion was provided for under the ministry’s Operating Expense (Opex) and RM4.7 billion under development expenditure (Devex).

“There have been claims by medical experts and the public that the government had slashed the medical and public health allocation,” said Dr Chen in refuting the criticisms.

“In general, many saw a reduction of 2.57 per cent in the Health Ministry’s allocation.

“Previously, all provisions for medical supplies (including medicines, medical gases, reagents, vaccines, consumables and X-ray films) for hospital pharmacy and health clinics, including dental clinics were placed under their respective activities and areas of expertise, amounting to RM4.29 billion.

“However, beginning next year, this allocation has been separated and placed under ‘Medical Supplies for Medical Facilities’ (RM2.89 billion) and ‘Financial Commitment’ to implement the Drug Laboratory and Store Privatisation Concession (RM1.4 billion).

“The ‘Medical Supplies for Medical Facilities’ has been categorised under the ‘Specific Programme Detail’, which has an overall budget allocation of RM5.5 billion.”

This reclassification, said Dr Chen, was an improvement in the new budget that allowed the ministry to control and monitor the allocation and expenditure more comprehensively and efficiently.

Additionally, he said a RM2.065 billion allocation for “Hospital Support Services and Clinical Support Services” had been reclassified and transferred from “Managing Allocation” to “Development Allocation”.

He also noted that allocations for the health sector were not limited to the Health Ministry.

“The government’s focus this time is more comprehensive, for example, offering tax exemption for health expenditure which will benefit all those involved.”

Besides, there are many other health programmes such as mySalam (free national health protection scheme under Finance Ministry) and cervical cancer screening programme and mammogram test subsidy (Women, Family and Community Development Ministry).

Dr Chen said the substantial budget allocated to battle Covid-19 pandemic did not mean that initiatives to tackle non-communicable diseases (NCDs) were sidelined.

He said the government had allocated an additional RM1 billion to stem the third wave of Covid-19, which was on top of the initial budget requested by the ministry, including funds to manage NCDs.

“There has not been any reduction in the allocations to address NCDs. The 2021 Budget has also allocated RM19 million for Agenda Nasional Malaysia Sihat programme aimed at reducing NCDs in the population.”

On plans to set up an Infectious Diseases Hospital, Dr Chen said the ministry had submitted an application to the Economic Planning Unit under the Prime Minister’s Department.

“This is essential because as the nation progresses, there could be new kinds of diseases cropping up. Hence, we must be prepared.”

Dr Chen noted that the ministry had implemented various programmes and initiatives over the years, among them the PeKa B40 (healthcare protection scheme), treatment for the less fortunate at the National Heart Institute, medical aid support for those in need, and health-related activities conducted in collaboration with non-governmental organisations.

“The same goes for the implementation of development projects. The government has allocated a substantial amount for building and upgrading the ministry’s health facilities, including hospitals, health and dental clinics, ICT facilities, and purchase of medical equipment and ambulance.

“The Health Ministry would like to thank the government for its concern and for prioritising the ministry and the people’s healthcare.”

Health systems and policies specialist Dr Khor Swee Kheng, in responding to criticisms of budget cuts, stressed that the 2021 Budget was not cutting health budgets.

“No government is so foolish to cut health spending to zero overnight. The money is being reallocated from Opex to Devex.

“Why move from Opex to Devex? In our fiscal rules, Opex can be financed by revenue and Devex by revenue or borrowing. Revenue (tax, for instance) is likely to decrease next year. Hence, it’s logical to shift health spending from Opex to Devex so we can borrow money to pay for health.

“It’s inaccurate to say that funding is drastically cut.”

Meanwhile, the Malaysian Medical Association said many parts of the budget merited praise. Among the notable plus points was the significant allocation of RM1 billion to combat the pandemic, said its president Professor Datuk Dr Subramaniam Muniandy.

“We also thank the government for the RM90 million allocation for the pneumococcal vaccination programme, RM600 bonus each for all civil servants, including the frontliners, as well as the RM500 one-off payment for almost 100,000 frontliners.”