Malaysia’s Expanded Health Tax Relief Boosts Support for Seniors

Broadened Tax Relief to Include Elderly Vaccinations and Medical Care

In a noteworthy development aimed at enhancing the health and welfare of Malaysia’s ageing population, the 2025 budget expands health tax relief to encompass vaccinations for parents and medical expenses for grandparents, reports The Star via Borneo Bulletin (https://borneobulletin.com.bn/). This move, commended by both health and tax professionals, signals Malaysia’s commitment to preventive healthcare for the elderly and underscores the growing focus on comprehensive family healthcare support.

The broadened initiative, part of Malaysia’s Budget 2025, also introduces tax relief for health-monitoring devices like glucose metres, oximeters, blood pressure monitors, and thermometers. According to Malaysian Pharmacists Society President Prof Amrahi Buang, “The move to provide adult vaccines is highly encouraging,” particularly as the existing National Immunisation Programme primarily serves children and teenagers. Prof Amrahi added that broadening the programme to include vaccines such as those for influenza “is in line with efforts to manage the ageing population in 2030.”

MYR45.3 Billion Allocation for Healthcare and Tax Incentives

The budget allocates a substantial MYR45.3 billion to Malaysia’s Health Ministry, which, as Borneo Bulletin highlights, is among the highest allocations for any ministry in the 2025 budget. Under this scheme, individuals can claim up to MYR10,000 in tax relief for various medical expenses, including payments toward medical and health insurance products, which often feature co-payment options.

This financial support is further extended to encompass health and fitness expenses, allowing up to MYR1,000 in tax relief for purchases related to sports activities or equipment for self, spouse, or children—a benefit now extended to parents. Additionally, the expanded relief provides for complete medical check-ups and vaccinations for parents, capped at MYR1,000, marking a substantial enhancement in family-centric healthcare incentives.

New Provisions for Grandparent Medical Care and Well-Being

A notable inclusion in the 2025 budget is tax relief on healthcare expenses for grandparents, a provision that has not been introduced since 1967. This expanded scope covers a variety of medical needs, including treatment at clinics and hospitals, specialized care such as home nursing and day care, residential care facilities, and non-cosmetic dental treatment.

“This is a good move by the government to highlight the importance of elderly care and show the seriousness of the Madani government in enhancing preventive healthcare for all ages,” remarked Associated Chinese Chambers of Commerce and Industry Malaysia treasurer-general Datuk Koong Lin Loong. Koong stressed the need to create a “caring society” that does not overlook the health and care needs of grandparents. He added, “That is why, besides taking care of our spouses, or children, we also need to care for our parents and not forget our grandparents too.”

Tax Deductions for Elderly and Childcare to Ease Financial Burden on Families

Beyond individual benefits, the 2025 budget also introduces tax deductions for employers providing childcare and eldercare allowances, expanding the existing childcare provision to include elderly dependents, namely parents and grandparents. The move is anticipated to reduce the financial burden on families, fostering a more supportive environment for eldercare in Malaysia.

Commenting on the expanded tax relief, Dr Veerinderjeet Singh, a senior advisor on tax policy at KPMG Malaysia PLT, expressed his support, stating, “Allowing grandparents to be covered is just widening the scope of coverage, which some may be able to use and claim relief.” Malaysia Association of Tax Accountants vice-president Dr Mohd Fairuz A Razak echoed these sentiments, appreciating the MYR10,000 tax relief expansion but suggesting a need for further increases in future budgets. While acknowledging the financial limitations, Dr Mohd Fairuz stated, “In terms of the quantum, it is the same as 2024. This is good but maybe it can be fine-tuned.”

Preparing for an Ageing Population Through Proactive Policy

As Malaysia’s elderly population continues to grow, the government’s decision to expand tax relief to include eldercare and vaccinations is seen as a proactive measure aligned with demographic trends. The approach highlights Malaysia’s dedication to preventive healthcare and the importance of inclusive healthcare benefits that span multiple generations.

With expanded coverage and significant budget allocations, Malaysia is positioning itself to address the complex needs of an ageing society, paving the way for a more inclusive healthcare system that supports citizens of all ages.