October 9, 2026

New Malaysia Times

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Health Ministry Allocated RM47.7 Billion In Budget 2027 As Government Moves To End Contract Doctor System

Budget 2027 Health Ministry contract doctor permanent posts

KUALA LUMPUR, Oct 9 – The Ministry of Health (MOH) has been allocated RM47.7 billion under Budget 2027, as the MADANI Government commits to fully resolving the long-standing contract doctor issue across public healthcare institutions.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the record budgetary allocation during the presentation of Budget 2027 in the Dewan Rakyat on Friday afternoon, October 9, 2026.

Anwar highlighted that since taking office in 2023, the administration has absorbed over 15,000 contract doctors into permanent civil service posts, including 4,000 appointments executed in 2026.

Permanent Posts Transition and Paramedic Allowance Increases

The Ministry will transition thousands more medical officers into permanent roles while boosting allowance rates for frontline healthcare staff:

  • Permanent Officer Transitions: Over 9,000 contract doctors will be offered permanent positions in 2027, effectively ensuring that medical graduates who successfully complete their housemanship will directly transition into permanent medical officer appointments.
  • Pos Basic Incentive Increase: The Pos Basic Incentive Payment for approximately 47,000 eligible paramedics and nurses will double from RM100 to RM200.
  • Air Health Service Allowance: The Air Health Service Incentive Payment will be raised significantly from RM30 to RM100 to recognize medical personnel serving remote medical response teams.

The allocation and structural staffing updates form part of broader public health spending goals under Budget 2027 to retain medical talent and improve healthcare service delivery nationwide.

–NMT