From 2013 to 2023, Malaysia's health expenditure as a unit of GDP has shown a consistent upward trend, starting at 4.02% in 2013 and reaching approximately 4.56% in 2023. Over recent years, the year-on-year growth has been stable, showing slight incremental increases, while the Compound Annual Growth Rate (CAGR) for the past five years stands at approximately 1.02%. This trend underscores a steady, albeit modest, increase in the allocation towards health expenditure.
Future projections from 2024 to 2028 anticipate the continuation of this upward trajectory, increasing to 4.77% of GDP by 2028. However, the projected CAGR for the next five years is slightly lower at 0.69%, suggesting a deceleration in the growth rate. The overall forecasted growth rate for this period is about 3.51%.
Future trends to watch for include:
- Potential impact of demographic shifts like an aging population, which might demand higher health expenditures.
- Government policy changes and healthcare reforms that could significantly influence budget allocations.
- Technological advancements in healthcare that could either raise immediate costs or lead to efficiencies and long-term savings.
