Procedures for Foreigners Accessing Healthcare in Malaysia Being Reviewed

Malaysia’s Ministry of Health is revising deposit and bank guarantee procedures to address unpaid medical bills from foreign patients, aiming for better cost recovery and sustainable healthcare.

The Malaysian Ministry of Health (MOH) is currently reassessing fee collection mechanisms for foreign patients, aiming to address an unpaid medical bill tally of RM36.24 million as of September 2024. This marks a 9.58% reduction from RM40.08 million the previous year, attributed to active recovery measures initiated between December 2023 and September 2024.

In a statement to Parliament, the ministry underscored the urgency of ensuring sufficient upfront deposits and bank guarantees to cover treatment costs for non-citizens. “We are reviewing procedures for deposits and bank guarantees in terms of rates and collection procedures so that the amount is enough to cover the treatment cost of foreigners,” the statement read.

Though a specific breakdown of which category of foreigners are contributing to these unpaid bills does not seem to be available, it is likely to be more aligned with foreign workers. Working expats typically tend to have healthcare insurance coverage either through their employer or through a private policy.

ADDRESSING OUTSTANDING MEDICAL COSTS

Under existing frameworks, private firms employing foreign workers are required to provide a bank guarantee for inpatient services. For example, companies employing up to 200 workers must furnish a RM2,500 bank guarantee. If a firm fails to clear a medical bill within the stipulated period, the amount owed is deducted from this guarantee.

The government has also noted the high financial burden foreign patients can place on public healthcare. Between 2021 and 2023, Malaysia implemented stricter health screening and documentation requirements for migrant workers, ensuring their employers bear financial responsibility for any incurred medical costs​.

EXPATS AND HEALTHCARE IN MALAYSIA

Malaysia’s healthcare system offers excellent care at highly subsidized rates for citizens, but foreigners—including expatriates, migrant workers, and tourists—are generally expected to pay the full cost of treatment at public facilities. Expats may access public hospitals for emergencies or elective procedures, but they are charged higher fees compared to locals. This pricing disparity is aimed at preserving resources for Malaysian citizens while ensuring quality care remains available.

Many expats opt for private healthcare, relying on employer-provided health insurance or private insurance policies. These plans are essential, given the higher costs associated with private hospitals and the comprehensive care they offer. Despite the affordability of private healthcare compared to Western nations, uninsured expats can face significant out-of-pocket expenses for major procedures.

To tackle the persistent issue of unpaid medical fees, the MOH is actively collaborating with private healthcare providers and insurers, aiming for more robust systems that ensure timely payment and reduce financial strain on public facilities

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