MMA backs tax breaks for private sector to ease pressure on public hospitals


Bede Hong

The proposed partnership would be between the Health Ministry and the Association of Private Hospitals of Malaysia (APHM) to “decant” non Covid-19 cases from public clinics and hospitals to private facilities. – The Malaysian Insight file pic, April 1, 2020.

THE Malaysian Medical Association of Malaysia (MMA) supports a proposal for private hospitals be given tax breaks to take in non Covid-19 patients from public hospitals.

The proposed partnership would be between the Health Ministry and the Association of Private Hospitals of Malaysia (APHM) to “decant” non Covid-19 cases from public clinics and hospitals to private facilities.

Under the programme proposed by APHM, participating hospitals would receive tax incentives or deductible allowances/rebates, with tax exemption or lower tax rates for participating doctors. 

There would also be an indemnity cover for medico-legal implications extended to participating doctors and hospitals.

“Almost every privately owned company will be asking for some form of relief, be it in the form of tax exemptions, lower tax rates or rebates during this time,” said MMA president Dr N. Ganabaskaran contacted.  

“Even private hospital which have high operational costs as well as doctors who are providing professional services will require some form of relief. There will be expenses that need to be paid regardless of the economic situation.

“Hospitals are directly involved in the battle against this pandemic. This must also be taken into consideration. I think it would be fair to ask for some tax relief or exemption for their professional services in this time of national crisis.”

The programme will offer only emergency or semi-emergency medical or surgical care for patients who are not terminally ill and patients not needing active medical management. 

Meanwhile, Bandar Kuching MP Dr Kelvin Yii described the proposal as a “good and needed move.”

“The government should look at methods to incentivise the private sector, as well to get them on board to form a unified medical approach network to tackle the Covid-19 pandemic together.

“In this time, while I believe the private sector is more than happy to be part of a national service to tackle this pandemic, I believe it is also fair to them to be incentivised, including tax incentives, especially to cover their operational cost and manpower.”

Dr Yii said private hospitals can act as treatment centres for non Covid-19 patients or “clean centres” to lessen the burden of public hospitals that will have to cope directly with patients of the coronavirus. – April 1, 2020.


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