Business · Malaysia Bureau
Malaysia scraps contract doctor system but faces specialist shortage crisis
Health advocacy groups have welcomed the government's decision to end the controversial contract doctor employment model announced in Budget 2027, though medical professionals warn significant workforce gaps remain unresolved.
LSN Malaysia ·

The Malaysian Medical Association (MMA) has backed the policy shift away from the contract-based system for medical professionals, signalling cautious optimism about improved working conditions and job security in the public healthcare sector. However, the organisation cautioned that terminating the scheme addresses only one aspect of a broader human resources crisis affecting Malaysia's health services.
According to the MMA, the country continues to grapple with an acute shortage of nearly 11,000 specialists across various medical disciplines. This deficit represents a critical gap in the nation's capacity to deliver quality healthcare, particularly in addressing complex medical conditions and reducing patient waiting times in public hospitals and clinics.
The phasing out of contract positions has long been a priority for healthcare workers and unions, who argued the arrangement created job insecurity and disadvantageous working conditions compared to permanent positions. The new approach is expected to provide greater stability and improve retention of medical talent within Malaysia's public healthcare system.
Health groups have nevertheless urged policymakers to develop comprehensive strategies to address the underlying specialist shortage. Proposed solutions include accelerating medical training programmes, enhancing remuneration packages to attract practitioners, and implementing retention incentives for experienced doctors. Without concurrent action on workforce planning and recruitment, analysts warn the benefits of the contract system's elimination may be constrained.