By Dr. Shanmuganathan Ganeson
President, FPMPAM
Kuala Lumpur – The Federation of Private Medical Practitioners’ Associations, Malaysia (FPMPAM) has formally submitted an appeal to the Ministry of Finance (MOF), urging an urgent exemption from the upcoming 6% Sales and Services Tax (SST) on primary healthcare services provided to foreign workers, scheduled to take effect on 1 July 2025.
While FOMEMA screenings remain exempt, FPMPAM warns that many foreign workers still require outpatient care for common illnesses, injuries, and chronic conditions — essential services typically paid for out-of-pocket by the workers themselves, or arranged through employer or TPA (Third-Party Administrator) programmes.
Under the new SST rules, such services will be taxed once a clinic’s annual revenue exceeds RM1.5 million.
Foreign workers are already vulnerable and underserved. Adding SST to basic medical treatment risks deterring them from seeking timely care, delaying diagnoses, and ultimately compromising public health.
FPMPAM also raises concerns over the 8% SST on commercial property rentals, which will further escalate operating costs for clinics renting shoplots, medical suites, or office units.
These taxes compound the strain on solo and small-group practices that have seen no fee adjustments for decades.
FPMPAM further notes that a coalition of healthcare associations, will also voice strong concerns on these issues.
We are fully supportive of their efforts and stand in solidarity with all healthcare providers affected by these measures.
The federation also highlights that the Federation of Malaysian Manufacturers (FMM) recently called for a broader reassessment of the SST expansion, citing its potential to harm the business environment and consumers. FPMPAM echoes this concern, urging the MOF to prioritise public health and service sustainability.
FPMPAM also notes a policy anomaly where beauticians and cosmeticians, which is not related to essential health, now has no GST whilst tax is imposed for essential health and medical services.
FPMPAM therefore proposes that the government either:
* Fully exempt primary care services for foreign workers from SST; or
* Implement a temporary moratorium — effectively a pause on the tax — while a fair and sustainable financing mechanism is explored.
We stand ready to work with the Ministry of Finance to ensure that tax policies do not inadvertently undermine access to essential healthcare or threaten the survival of community clinics.
