Malaysia recorded a significant increase in health inflation in 2025, with healthcare-related prices rising by 3.0 per cent compared with 1.3 per cent in 2024, highlighting the growing cost of accessing medical services, medicines and healthcare products.
According to the Department of Statistics Malaysia (DOSM), the increase was largely driven by higher costs in the Health Services category, which recorded a 4.4 per cent rise in 2025, compared with just 0.9 per cent in the previous year.
One of the major contributors was health-related insurance expenditure, which increased by 9.1 per cent in 2025 after recording no change in 2024. This reflects the growing financial considerations households may face when managing medical coverage and healthcare expenses.
Medicines also continued to contribute significantly to the increase. Accounting for 38.9 per cent of the Health Price Index (HPI), the Medicine category recorded a 2.8 per cent increase in 2025, up from 2.2 per cent in 2024.
DOSM explained that the increase was driven by higher prices in the Medicines expenditure class, which includes pharmaceutical preparations, vaccines, herbal medicines and homeopathic products. Both pharmaceutical and herbal medicine subclasses recorded price increases of 4.5 per cent in 2025, compared with 2.2 per cent and 0.7 per cent respectively in 2024.
The Medical Devices category also experienced an increase, rising by 1.1 per cent in 2025 compared with 0.6 per cent in 2024. Medical products expenditure contributed to this growth, recording a 1.3 per cent increase. Medical diagnostic products experienced a more noticeable rise of 1.6 per cent, compared with 0.3 per cent in the previous year.
The findings were published in DOSM’s Annual Health Price Index 2025 report, which provides a detailed assessment of changes in healthcare-related prices across Malaysia. The index, based on 2022 as its reference year, covers three main categories: Medicine, Medical Devices and Health Services.
The report considers both treatment and preventive healthcare expenditure, offering a broader picture of how the cost of maintaining good health is changing for Malaysian households.
DOSM introduced the Health Price Index following the release of its Preliminary Report on Malaysia Health Price Index 2025 in July 2026. The initiative was developed in collaboration with relevant healthcare agencies from the public and private sectors, bringing together information from multiple data sources.
The compilation also incorporates healthcare-related components from three Consumer Price Index (CPI) groups: Health, Insurance and Financial Services, and Personal Care, Social Protection and Miscellaneous Goods and Services.
According to the department, the index is designed to complement existing indicators of health-related inflation. It can help the government, industry stakeholders and the public better understand healthcare price movements and support more informed decisions concerning healthcare planning, policies and expenditure.
Why rising healthcare costs matter to every Malaysian
Healthcare is not an expense that households can simply ignore. From purchasing everyday medicines and undergoing diagnostic tests to paying for medical treatment and insurance coverage, rising costs can place additional pressure on family budgets.
The latest figures highlight why understanding healthcare inflation is becoming increasingly important. Even relatively small annual increases can make a difference over time, particularly for families managing regular medical needs.
For Malaysia, the challenge goes beyond monitoring rising prices. It is about ensuring that quality healthcare remains accessible, affordable and sustainable for everyone. Better data, informed policies and responsible planning will be essential in helping households navigate the changing cost of healthcare.
