THE Federation of Malaysian Consumers Associations (Fomca) commends the government's decisive move to enforce the display of medicine prices in private clinics and hospitals under the Price Control and Anti-Profiteering Act 2011 (Act 723). This initiative, spearheaded by the Domestic Trade and Cost of Living Ministry, marks an important step toward enhancing price transparency and accountability within the private healthcare sector.
For too long, consumers have faced a lack of price transparency in private healthcare facilities, leaving them vulnerable to excessive medical charges without the ability to make informed decisions. By mandating price display for medicines and services, the government is ensuring that patients know their rights, can compare prices, and make informed choices, fostering healthy competition among healthcare providers. Additionally, if there are any cartel-like practices within the industry, this measure will help reduce their influence and curb excessive profiteering.
Why regulation is crucial for private healthcare
Fomca firmly believes that it is the government’s responsibility to regulate both public and private healthcare sectors to ensure security, affordability, and accessibility. This is especially crucial in the face of rising medical inflation, which, if left unchecked, could create a wider affordability gap, making healthcare inaccessible to low- and middle-income groups.
The reality is that some businesses take advantage of regulatory loopholes to engage in price manipulation, overcharging vulnerable consumers. The enforcement of price display regulations acts as a safeguard against such exploitative practices and ensures fairer pricing in private healthcare.
Strengthening consumer protection laws
While the government’s latest initiative is a step in the right direction, it should not stop here. There is a pressing need to fast-track reforms to key consumer protection laws, specifically:
1. Consumer Protection Act 1999 (CPA 1999) – To include comprehensive provisions that regulate pricing and service standards in private healthcare.
2. Private Healthcare Facilities and Services Act 1998 (Akta 586) – To close existing loopholes and ensure fair medical pricing.
Currently, without specific legal provisions, private healthcare businesses actively lobby against regulations that would hold them accountable. This must be addressed to ensure a well-regulated, transparent, and fair healthcare system.
Moreover, Section 10 of Act 723 grants the Domestic Trade and Cost of Living Minister the authority to require any party selling goods or offering services to display their prices. Since private healthcare facilities both sell medicines and provide services, this provision can and should be used to mandate price transparency and prevent price gouging.
Ensuring a consumer-centric healthcare system
Fomca fully supports the Madani government’s direction in regulating private healthcare and urges further action to ensure comprehensive, consumer-friendly healthcare policies. Healthcare is not just a business—it is a fundamental service that should prioritise patient welfare over profit maximisation.
The government must remain firm in its commitment to consumer protection by enforcing fair pricing, transparency, and accessibility in private healthcare. Fomca remains committed to working with policymakers and advocating for stronger consumer rights to ensure that Malaysia’s healthcare system remains fair, transparent, and accessible to all.
Dr Saravanan Thambirajah
Chief Executive Officer
Federation of Malaysian Consumers Associations (Fomca)
