World · Malaysia Bureau
Malaysia cuts service tax on elderly care to 6 percent
The Malaysian government has reduced the service tax on elderly care services to 6 percent and introduced full exemptions for care fees up to RM96,000 annually, according to Prime Minister Anwar Ibrahim.
LSN Malaysia ·
The tax reduction is part of efforts to make elderly care services more affordable and accessible for Malaysian families. The move applies to care services for senior citizens, reflecting the government's focus on supporting the aging population amid rising healthcare and social care costs.
Under the new arrangement, care providers will benefit from full exemptions on fees up to RM96,000 per year, reducing the financial burden on families seeking professional elderly care services. The lower tax rate of 6 percent applies to service charges beyond the exemption threshold.
The initiative addresses growing concerns about the affordability of quality elderly care in Malaysia. With an aging demographic and increasing numbers of working families requiring professional care solutions for elderly relatives, the tax incentives are designed to encourage wider uptake of regulated care services.
The announcement reflects broader government priorities to strengthen social safety nets and support multigenerational family welfare. The reduced tax burden on care providers is expected to help stabilize pricing and improve service quality in the elderly care sector.