Abdul Rahman Dahlan suggests levy or subsidy repayment to offset loss of Malaysian doctors and nurses
Former Malaysian minister Abdul Rahman Dahlan has proposed that Singapore pay compensation when hiring Malaysian healthcare professionals, arguing it would help offset taxpayer-funded subsidies spent on training doctors and nurses.
Proposal to Offset Subsidy Costs
In a Facebook post on 9 September, Rahman suggested that Malaysia should recover costs from the subsidies used to educate and train its medical professionals. These funds, he argued, could then be reinvested to improve healthcare services across Malaysia, especially in underserved regions.
Rahman emphasized that the idea is not to restrict Malaysians from pursuing careers abroad but to ensure that Malaysia does not shoulder the financial burden of training healthcare workers who then serve other countries.
Compensation or Levy System
The former minister proposed two options: direct compensation from Singapore or a levy paid by Singaporean hospitals employing Malaysian staff. “Hospitals in Singapore get the doctors and nurses they need, while the Malaysian government recovers the huge subsidies it spent,” Rahman explained, calling it a “win-win situation.”
He stressed that the levy should be borne by Singaporean employers, not Malaysian employees, to avoid penalizing professionals seeking better opportunities.
Concerns Over Brain Drain
Malaysia has long struggled with the outflow of skilled healthcare workers to Singapore, where salaries are significantly higher. In early 2025, Singapore’s Ministry of Health reportedly offered starting salaries of around S$110,000 annually to attract Malaysian doctors.
According to Universiti Malaya, training a single medical student costs nearly RM1 million (S$305,000). Despite this investment, the university’s dean noted in 2022 that at least 30 top graduates migrate to Singapore each year.
Singapore’s Attraction: Pay Gap and Proximity
Many Malaysian healthcare professionals cite higher wages and favorable currency exchange rates as reasons for leaving. One Johor official remarked that a nurse in Singapore can earn as much as a specialist doctor in Malaysia. The proximity of the two nations makes Singapore an especially attractive destination for young professionals.
Legal and Diplomatic Hurdles
Rahman admitted the proposal is unprecedented and would likely face technical and legal challenges. Still, he urged ASEAN members to act with “camaraderie” and prevent situations where wealthier states exploit talent from their neighbors without accountability.
“This is not about punishing our medical professionals,” he said. “It’s simply about fairness.”
Rahman’s compensation proposal reignites debate on the brain drain dilemma straining Malaysia’s healthcare system. While the feasibility of enforcing such a levy remains uncertain, the suggestion reflects growing frustration over Singapore’s recruitment drives and raises broader questions about balancing free movement of labor with fairness in ASEAN cooperation.
Sources: Must Share News (2025) , Mothership (2025)
Keywords: Malaysia Brain Drain, Singapore Compensation, Abdul Rahman Dahlan, Healthcare Workers, Medical Subsidies, ASEAN Cooperation
