Documenti di Didattica
Documenti di Professioni
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School of Government
College of Law, Government and International Studies (COLGIS)
Abstract
Public sector spending is the expenditure incurred by the federal government, state
and development expenditure. Every year the federal government will announce
government spending in the budget siding. In the budget siding, the government will
spend on each existing ministry to be used for the following year. The health sector is
on this health sector can be considered important in ensuring that all citizens can enjoy
the best health facilities from the government. Every year the amount of government
expenditure in this health sector is also seen to increase in order to improve the quality
of health and life of the people. Hence the purpose of this writing is to evaluate and
1.0 INTRODUCTION
country's planning to take place. The budget allocation through the annual budget
presented by the Prime Minister has its own unique strategy to ensure that the nation's
wealth continues to flourish and can be enjoyed by all citizens as well as to increase
the growth and development of the nation as a whole. Mohd Zainudin Saleh (2004)
states in Malaysia for example, this government's expenditure has contributed to the
and development (R & D). The Government also focuses on projects that can support
its expenditure are basically aimed at improving the well-being of the people in which
it involves human development. It is the group's ability to define and develop a future
seen in 2017, the total government expenditure was RM262.8 billion compared to the
year 2000 of RM84.4 billion and 2010 at RM204.4 billion. In the health sector it
doctors and nurses and the supply of medicines and equipment as well as the
From the aspect of human development, the UNDP Report (2011) states that
Malaysia ranks 61 out of 187 countries with a Human Development Index value of
0.761 in a high level of development. Next to economic growth, Norain et al. (2010)
states that starting in the 1980s, Malaysia experienced high economic growth following
the government's move to develop the industrial sector and adopt the Look East Policy
through cooperation and economic integration with the most advanced Asian countries
attract foreign investment have been seen to have boosted output growth in the 1990s.
Among the issues discussed is whether government spending is really able to boost
economic growth and how far the government's expenditure can affect human
Writing will discuss past studies on government spending, human development and
healthcare by its citizens. The dominant view among economists as well as public
policy makers is that the government can play a very important role in economic
determining the healthcare expenditure of the country. There are a number of studies
discussing the relationship between healthcare expenditure and economic growth but
this paper will probe on the issue of public healthcare impact on healthcare
expenditure.
Some studies indicated that there is a growing interest and examining the
Thus is it relevant to say that public expenditure plays an important role in healthcare
expenditure as well. In other study conducted in Nigeria, the study concluded that the
growth in Nigeria. More so, the result of disaggregated analysis concluded that
agriculture, social and community services, health and services are significant
Rasaki.O, 2014) Therefore, it is sufficing to say that the government plays a huge role
Serdar Kurt (2015) in his study concluded that there is a mutual interaction
between a population’s health level and its level of economic growth and development.
significantly better nutrition and disease treatment opportunities along with wider
individuals. This shows that a public expenditure is pivotal and should be able to cater
to people’s needs to able them to contribute more the development of the country.
Benjamin and Tin Wei Lai (1997) in their study the government expenditures
and economic growth in South Korea concluded that the government has played
(2005) found that in all countries public expenditures causes growth in national income
either in the short or the long run. Niloy Bose, M Emranul Haque , and Denise R
Osborn(2003) carried out a study title "Public Expenditure and Economic Growth: A
Disaggregated Analysis for Developing Countries" this study found out that the share
expenditure and economic growth which is crucial in the discussion of this concept
paper that a public expenditure will also have a huge impact on the healthcare
expenditure.
3.0 Objective
1. To clarify the role of the government in public spending on the health sector.
3. To provide suggestions or views in improving the quality of the health sector in the
country.
Malaysia aspires to become a developed and high income nation by 2020. The
enacted and implemented during the 10th Malaysia Plan period and 11th, will provide
a platform for achieving that goal. The country's health sector is no exception to this
restructure the healthcare system so that quality services can be provided to the
shared by the public and private sectors. As Malaysia gets closer to the level of high-
growth; increase in life span leading to more senior citizens; disease pattern change
with more chronic diseases; and advances in medical technology as well as increased
consumer expectations.
will delay this achievement and require more allocation for the health sector than the
such private sector development will widen the access gap between healthcare
providers between rural and urban populations, and among the poor and the poor.
Under the proposed 1Care for 1Malaysia transformation plan, all levels of the
people regardless of their level of ability, have the option of using government or
private health services. This can also ease the burden on expenses that the
administering healthcare with more manageable; and control the rising healthcare
costs dramatically. At present, the financing of national health services comes from
two sources, namely government and private. Each contributed 55% and 45% of all
while private expenditure mostly comes from private pocket or out-of-pocket (OOP),
spending also fell by RM7.8 billion. The main reason why government revenue fell was
due to a drop in petroleum (oil and gas) yields after falling crude oil prices by over 70%
from US $ 114 per barrel in 2014 to US $ 28 per barrel in early 2016. Although there
The fall in government petroleum revenue is also a major reason why the
government cut spending since last year. Last year the government cut RM7.8 billion
in spending to maintain fiscal discipline and target deficit reduction. As a result, the
health sector has also been impacted by the cuts in spending budgets.
The issue of rising healthcare costs is often said in recent years. Worldwide
evidence suggests that getting rich in a country, the higher its health expenditure.
per annum, more than the general inflation rate. Without a transformation to health
RM102 billion by 2020. This expenditure will be borne by the people over OOP
general revenue and social health insurance (SHI) schemes. It involves the
individual and family responsibilities as well as the community and the corporate sector
By 2030, Malaysians will grow old like Japan. Asia and Malaysia, in particular,
Singapore-based Asia Pasific Risk Center (APRC), the region's aging situation will
Japan spends 8% of its GDP for healthcare; where 80% of this expenditure is
funded by the government, while Malaysia is lagging behind with only 4.4% of GDP
allocated for health care and only 52.4% financed by the government. Total public and
156th position. The majority of Malaysians use public healthcare facilities. 75% of
Malaysians use the hospital treatment system and 90% of Malaysians use the public
healthcare. This proves two things; higher costs for private facilities and the ability of
An attempt to formulate a healthcare system in just one plan is not an easy task.
medical suppliers, business networks, and agencies that support healthcare activities,
not follow America's footsteps. A continuous monitoring plan can ensure quality
measurements should also cover the overall aspects of health care including patient
measurable, the cost of delivering infants in hospitals in the UK and Australia with the
duration of stay in the hospital for 2.6 days is at the median per month salary compared
to the median 3-month salary in Malaysia. Maternity costs are deliberately chosen for
example because pregnancy and birth are the number one hospital admission of 19.9%
responsibility. It's easy to accuse individuals of not taking care of their health while the
government is doing their best to ensure the best service. However, a person with high
awareness of healthcare will not be able to do anything if the public health environment
provided does not have good quality standards. The Government has the
various areas including healthcare. Since then healthcare costs have risen
organizations and religious bodies are increasingly being taken over by profit-oriented
private hospital management. The idea of implementation is simple, the rich are able
to seek treatment in private hospitals and this will reduce the burden on government
hospitals which in turn will provide better services to less fortunate patients.
Not only that, in 1993 pharmaceutical services under the Ministry of Health had
also been privatized. In fact, Renong has been granted exclusive long-term contracts
to supply medicines to the extent that the allocation of government supplies has
doubled for the following year. But privatization is still ongoing, with other support
services such as laundry and linen, clinical waste management, cleaning, engineering
and maintenance services were privatized three years later in 1996. In just one year,
the cost of the service increased to RM450 million from RM140 million.
also move to the private sector. Within twenty years alone, the privatization sector had
two-thirds of all physicians and surgeons. Human resource issues occur. Finally the
waiting time and quality of service at government hospitals are facing major problems.
There is also a tragedy when a patient is diagnosed late or late in the treatment of
death.
As previously described, the cost of health care in private hospitals is very high.
For example, the cost of delivering Class 1 to a public hospital is only RM800
compared to the cost of the same treatment at a private hospital for a total of RM3500-
RM6000. Recently, the cost of drugs has also increased sharply since the
implementation of the GST. In the private sector, GST costs are transferred to patients
According to the Health Ministry (2016), we have 46,491 doctors in public and
private hospitals; which gives us a ratio of 1: 656 to population, dentist at ratio 1: 4,775,
pharmacist at ratio 1: 2,900, optical specialist ratio is 1: 2,900 and eye specialist with
ratio 1: 19,053. The 11th Malaysia Plan (2016-2020) sets a ratio of 1: 400 which means
the target of 75,000 doctors by 2020. Do we have enough training hospitals and
enough medical student supplies to achieve that goal? This means that 28,905 new
However, the Health Ministry said they did not have enough facilities to absorb
new graduates for practical and houseman ship training. Therefore, new medical
students are forced to be frozen. This does not mean that we do not have enough
hospitals. There are currently 143 public hospitals with 41,389 beds and 183 private
hospitals with 12,963 beds. Since 75% of Malaysians choose a public hospital, this
means that a public hospital needs to serve 157,342 Malaysians while a private
Currently there are only 44 training hospitals. The lack of training hospitals is
translated into the extra time that medical graduates must go before they can be
placed. Existing medical officers buried with excessive workloads are also unable to
provide the best training to new medical graduates. In addressing this problem, the
government can build more training hospitals, and we also need to re-evaluate existing
can also be upgraded to a fully equipped mini hospital with a qualified physician. This
In the future, payments to doctors should not be based on the services provided,
thereby avoiding investigations and treatment is not required. The inequality of income
important for the country to invest more in public health facilities by multiplying the
number of our medical officers, hospitals and training hospitals over the next ten years.
Privatization needs to be revised, national healthcare insurance for the poor should be
5.0 Conclusion
to key sectors, particularly the health sector as the basis for human quality assurance
solving this problem. First of all, in terms of government spending where planning and
project selection should be based on priorities. Hence, the emphasis given by the
and industrial requirements by providing a healthy and highly skilled workforce and
providing infrastructure in ensuring the health sector is well worth the money.
to maintain their health. According to the State Housing Report II issued in August
2016 by the Khazanah Research Institute (KRI), most households, especially in urban
areas, are unable to afford adequate nutrition-based diet after taking into account other
expenses to be spent. This directly affects their health situation. This is a reflection of
many things that indirectly affect healthcare. Therefore, health care is not the absolute
Malaysian.
Collective tax collection, real estate tax, goods and services tax, road tax and
various funds collected from the community, should be translated into the benefit of
the people. Money collected by the government should be transferred back to two
allocated to medical activities and programs. This will ultimately bring many benefits
6.0 Reference
Benjamine S. Cheng and Tin Wei Lai, 1997. Government Expenditures and Economic
Growth in South Korea: A VAR Approach. Journal of Economic Development, Volume
22, number 1, June 1997.
Serdar Kurt, 2015. Government Health Expenditures and Economic Growth: A Feder–
Ram Approach for the Case of Turkey. International Journal of Economics and
Financial Issues, 2015.
Kareem Rasaki .O, 2014. The Impact of Public Sector Spending on Economic Growth
of Nigeria. Journal of Economics and Sustainable Development, Vol.5, No.3, 2014.
Niloy Bose, M Emranul Haque and Denise R Osborn. Public Expenditure and
Economice Growth Disaggregated Analysis for Developing Countries.
https://www.moh.gov.my
https://www.bnm.gov.my
Appendix