Latest news with #AbdulRasheedGhaffour
The Star
18-06-2025
- Health
- The Star
Malaysia seeks to reduce high medical inflation through Bank Negara's RESET health financing initiative
KUALA LUMPUR: There is both room and opportunity for Malaysia to reduce its high medical inflation, one of the highest in Asia, through reforms under Bank Negara Malaysia's (BNM) RESET health financing initiative. BNM governor Datuk Seri Abdul Rasheed Ghaffour said Malaysia's medical inflation rate stood at 15 per cent compared with the regional average of 11 per cent, based on data from Aon International Insurance Brokers. "However, with the right reforms and collaboration, this can be addressed,' he said during a panel session titled "Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation', at the Sasana Symposium 2025, here today. Abdul Rasheed said the initiative was not merely a response to rising costs but a broader reset of the ecosystem involving multiple stakeholders, including hospitals, insurance providers, physicians and patients. He emphasised that previous BNM annual reports had highlighted the issue of high inflation and the need for reform. "In December last year, we introduced new measures which provide some room for us to address this issue that has been confronted for a long time. "With the involvement of the World Bank and various government entities, I am confident that this time the reforms will be implemented effectively,' Abdul Rasheed said. The RESET framework is anchored on five strategic thrusts and supported by 11 dedicated working groups, and among of its objectives are to redesign health insurance products to better support value-based healthcare services, improve the availability of tools for consumers to assess and select appropriate coverage, and enhance price transparency, especially in procedures, medication and hospital fees. The governor noted that one of the challenges faced by patients is the wide variance in treatment costs, with little transparency on actual prices. "Efforts are also underway to establish a national healthcare database by consolidating information from hospitals, insurers, the Ministry of Health and universities to better monitor healthcare costs and outcomes,' he said. Abdul Rasheed also underscored the importance of digital health systems in ensuring continuity of care, citing the example that diagnostic results, such as X-rays conducted at primary care clinics, should be transferable to hospitals to avoid unnecessary duplication and reduce costs. The RESET initiative, he said, is also working toward the rollout of a base health insurance product that offers essential coverage at affordable prices. "The design of this product is expected to come out by the second half of this year, with pilot testing targeted to run by next year. Hopefully, we can finalise the pilot before the end of 2026, that is, before the expiry of the current interim measures period,' he said. Abdul Rasheed said the goal of RESET is to ensure protection for all, enable insurance portability and broader coverage, while also strengthening primary care and preventive services to improve overall healthcare outcomes. "We want to ensure protection for everyone and better performance of the healthcare system, especially at the primary care and preventive levels,' he said, adding that full digitalisation of services will be critical to reducing unnecessary procedures and maximising healthcare spending efficiency. With coordinated implementation, the RESET initiative can deliver long-overdue improvements in access, affordability and performance of Malaysia's healthcare system, said Abdul Rasheed. - Bernama
New Straits Times
18-06-2025
- Health
- New Straits Times
DRG payment plan to cover both public, private healthcare providers, Health Minister clarifies
KUALA LUMPUR: The government's plan to implement the diagnosis-related group (DRG) payment model will include both public and private healthcare providers, with particular focus on the private sector, said Health Minister Datuk Seri Dr Dzulkefly Ahmad. The health minister dismissed a report last month which claimed that private healthcare providers would be left out of the DRG framework. "Completely wrong. The DRG payment system is intended for both public and private healthcare providers, especially the private sector. "While we do want the public system to adopt it as well, the main focus is on the private sector," he told reporters after a panel discussion at Bank Negara Malaysia's Sasana Symposium 2025. The panel discussion on "Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation" featured Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour, Finance Ministry secretary general of treasury Datuk Johan Mahmood Merican, and World Bank senior economist Aakash Mohpal. Dzulkefly said the DRG is designed to provide a standardised, fair and equitable framework for healthcare remuneration. "It ensures there is no overcharging by basing payments on clearly defined groupings, such as diagnosis, procedures and complications," he said.
New Straits Times
18-06-2025
- Health
- New Straits Times
Malaysia seeks to reduce high medical inflation through BNM's reset health financing initiative
KUALA LUMPUR: There is both room and opportunity for Malaysia to reduce its high medical inflation, one of the highest in Asia, through reforms under Bank Negara Malaysia's (BNM) RESET health financing initiative. BNM governor Datuk Seri Abdul Rasheed Ghaffour said Malaysia's medical inflation rate stood at 15 per cent compared with the regional average of 11 per cent, based on data from Aon International Insurance Brokers. "However, with the right reforms and collaboration, this can be addressed," he said during a panel session titled "Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation", at the Sasana Symposium 2025, here today. Abdul Rasheed said the initiative was not merely a response to rising costs but a broader reset of the ecosystem involving multiple stakeholders, including hospitals, insurance providers, physicians and patients. He emphasised that previous BNM annual reports had highlighted the issue of high inflation and the need for reform. "In December last year, we introduced new measures which provide some room for us to address this issue that has been confronted for a long time. "With the involvement of the World Bank and various government entities, I am confident that this time the reforms will be implemented effectively," Abdul Rasheed said. The RESET framework is anchored on five strategic thrusts and supported by 11 dedicated working groups, and among of its objectives are to redesign health insurance products to better support value-based healthcare services, improve the availability of tools for consumers to assess and select appropriate coverage, and enhance price transparency, especially in procedures, medication and hospital fees. The governor noted that one of the challenges faced by patients is the wide variance in treatment costs, with little transparency on actual prices. "Efforts are also underway to establish a national healthcare database by consolidating information from hospitals, insurers, the Ministry of Health and universities to better monitor healthcare costs and outcomes," he said. Abdul Rasheed also underscored the importance of digital health systems in ensuring continuity of care, citing the example that diagnostic results, such as X-rays conducted at primary care clinics, should be transferable to hospitals to avoid unnecessary duplication and reduce costs. The RESET initiative, he said, is also working toward the rollout of a base health insurance product that offers essential coverage at affordable prices. "The design of this product is expected to come out by the second half of this year, with pilot testing targeted to run by next year. Hopefully, we can finalise the pilot before the end of 2026, that is, before the expiry of the current interim measures period," he said. Abdul Rasheed said the goal of RESET is to ensure protection for all, enable insurance portability and broader coverage, while also strengthening primary care and preventive services to improve overall healthcare outcomes. "We want to ensure protection for everyone and better performance of the healthcare system, especially at the primary care and preventive levels," he said, adding that full digitalisation of services will be critical to reducing unnecessary procedures and maximising healthcare spending efficiency. With coordinated implementation, the RESET initiative can deliver long-overdue improvements in access, affordability and performance of Malaysia's healthcare system, said Abdul Rasheed.
The Sun
17-06-2025
- Business
- The Sun
BNM, govt to work on implementing ‘RESET' initiative to address high medical inflation
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the government are working on implementing the RESET initiative to address the high medical inflation in Malaysia. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the initiative is a joint commitment undertaken with the Ministry of Health and the Ministry of Finance (MOF) aimed at revamping medical and health insurance and takaful. He stated that the RESET initiative would also serve to enhance price transparency, strengthen digital health systems, expand cost-effective care options and transform provider payment mechanisms. 'The success of RESET hinges on the involvement of all stakeholders in building a more accessible and resilient healthcare system and formulations,' he said in his welcoming address at the Sasana Symposium 2025, here today. Abdul Rasheed added that more details on RESET and the broader healthcare reforms will be discussed in the panel session entitled 'Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation', which will be held tomorrow, June 18. The session will feature Abdul Rasheed alongside Health Minister Datuk Seri Dr Dzulkefli Ahmad, Treasury secretary-general Datuk Johan Mahmood Merican and World Bank senior economist Aakash Mohpal. Meanwhile, Abdul Rasheed emphasised that structural reforms require a whole-of-nation approach, and one area where this was on full display is in the healthcare reforms, where rising medical inflation demands a more coordinated approach. The central bank governor noted that against the backdrop of economic uncertainties, open discourse is vital for gathering the best ideas to enable Malaysia to respond effectively to external challenges while continuing to drive structural reforms for the country. 'We are approaching this environment from a position of strength. The latest high-frequency indicators, such as the manufacturing industrial production index (IPI), services, exports and wages, point toward a resilient growth of the Malaysian economy,' he added.
The Sun
17-06-2025
- Business
- The Sun
BNM, govt launch RESET to tackle medical inflation
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the government are working on implementing the RESET initiative to address the high medical inflation in Malaysia. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the initiative is a joint commitment undertaken with the Ministry of Health and the Ministry of Finance (MOF) aimed at revamping medical and health insurance and takaful. He stated that the RESET initiative would also serve to enhance price transparency, strengthen digital health systems, expand cost-effective care options and transform provider payment mechanisms. 'The success of RESET hinges on the involvement of all stakeholders in building a more accessible and resilient healthcare system and formulations,' he said in his welcoming address at the Sasana Symposium 2025, here today. Abdul Rasheed added that more details on RESET and the broader healthcare reforms will be discussed in the panel session entitled 'Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation', which will be held tomorrow, June 18. The session will feature Abdul Rasheed alongside Health Minister Datuk Seri Dr Dzulkefli Ahmad, Treasury secretary-general Datuk Johan Mahmood Merican and World Bank senior economist Aakash Mohpal. Meanwhile, Abdul Rasheed emphasised that structural reforms require a whole-of-nation approach, and one area where this was on full display is in the healthcare reforms, where rising medical inflation demands a more coordinated approach. The central bank governor noted that against the backdrop of economic uncertainties, open discourse is vital for gathering the best ideas to enable Malaysia to respond effectively to external challenges while continuing to drive structural reforms for the country. 'We are approaching this environment from a position of strength. The latest high-frequency indicators, such as the manufacturing industrial production index (IPI), services, exports and wages, point toward a resilient growth of the Malaysian economy,' he added.
