Malaysia mulls basic medical insurance scheme to tackle rising healthcare costs
Finance Minister II, Datuk Seri Amir Hamzah Azizan, said a joint committee, comprising the Ministry of Finance (MOF), Ministry of Health (MOH), and Bank Negara Malaysia, has been established to study the matter.
"Medical inflation is a significant concern for the people. To address this, we have brought together various stakeholders through a joint committee to explore ways to mitigate the impact of rising medical costs," he said at the launch of SME Bank's Budget 2025 financial initiatives.
According to Amir Hamzah, one of the proposals under discussion is the introduction of a second account contribution under the Medical and Health Insurance/Takaful (MHIT) product.
"Discussions are ongoing to develop a basic insurance scheme for Malaysians. I urge everyone not to speculate on its structure just yet."
"Let the relevant parties, including Bank Negara and other stakeholders, deliberate on finding the best possible approach. Once the proposal is finalised, it will be presented in detail," he explained.
The MHIT, central to the discussions, was introduced to offer Malaysians affordable access to medical and health insurance or takaful plans.
However, with medical costs outpacing general inflation rates, the government aims to enhance the scheme to ensure it continues to meet public needs effectively.
On the potential inclusion of SOCSO contributions in the proposal, Amir Hamzah said, "All recommendations are being considered."
"However, for now, we are allowing Bank Negara and the involved agencies to discuss the most effective way to establish a basic insurance product for the nation."
The outcomes of the discussions and the proposed structure will be announced after thorough deliberations and consultations with relevant stakeholders.
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