Health into two category to either public

Health is important to an individual. In the Budget
2017, the Prime Minister Datuk Seri Najib Razak has announced that the
government had allocated a total of RM 25 billion to Ministry of Health (MOH)
for the use of nation’s health expenditure. The allocation given included the
use for building and upgrading new hospital also the hospital facilities.While,
in Budget 2018, there is an increase of 9.5% or 1.7 billion which is RM 26.58
billion from RM 24.88 billion in 2017. Plus, government said that they will
focus more on healthcare welfare of the poor people,

Total health expenditure is the sum of both public
and private health expenditure. This expenditure covers the provision of health
services for both preventing and curating expenditure, family planning
activities, nutrition and emergency aid for health. In some other words, health
expenditure is use to help in improving health system. Health system is needed
to combat diseases and increase the health status of population.

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Based on the line chart above, the data explains the
upward trend of health expenditure throughout the years. The data shows that
the health expenditure was the lowest during year 1997 with only 2.72% while the highest was 2014 with
4.17%. Based on the line graph above, the highest growth was in 2002 to 2003
with 16.18% growth while the highest dropped was in 2004 to 2005 with 12.1%.

Basically, health expenditure can be divided into
two category to either public or private sector. But, among both, private
sector will be allocated more than public sector because private sector is
important to attract more medical tourist. So, government will give more focus
to the private sector  because it will
give higher return in term of number medical tourist than public sector. Plus,
public sector will mostly focus on the service for local patients only.

In view of health expenditure, for over the past
year, Malaysia have experienced significant improvement in the healthcare
system. Plus, health is not only a vital requirement in human need but health
is an investment. So, investment in this area is important to stimulate the
economic growth of a nation.

The health system in Malaysia is a two-tier system
between public and private healthcare system. Public healthcare is accessible
to all Malaysian and funded by the government to provide low cost and
comprehensive services. In the relation with the large number of ageing
population in Malaysia as well as increasing number of population, government
started to increase funding in the public healthcare. This is proven by Tang
(2007) who studied the relationship between health expenditure and income. He
used group population over the age of 65 years old as his variable and found
out that the particular group population was positively related to the
healthcare expenditure in the long-run.

While public healthcare dominated the local
industry, over the past years, private healthcare system has seems to be
growing tremendously. This is due to the aim that government has to escalate
private sector by endorsing more investment on this such as manufacturing of
pharmaceutical products, medical devices, clinical research, aged-care services
and supporting collaborative efforts between both sector (“Healthcare”,n.d).
The increase in invest of private sector can be seen in the amount of money
allocated in 2018 Budget which is RM 30 million to help in growing medical
tourism industry. Other than that, there were collectively 40 projects
announced under the NKEA Healthcare which targeted to create 26,966 job opportunities
and generate RM 6.59 billion income as well as RM 4.96 billion of new
investment by 2020.

As
we were moving closer to 2020, the focus will be more on projects that will
change the landscape of Malaysia healthcare industry which will emphasis on
innovative solution towards higher quality and affordable healthcare. Plus, the
demand for more healthcare solution increase in an era where there are lots of
chronic and lifestyle disease and increase in ageing population. So, increase
in healthcare expenditure is relatable to the innovative solution and NKEA aims
to spur a veritable shift in the delivery of healthcare in the country

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