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A Base Medical and Health Insurance/Takaful (MHIT) plan, consumer decision aids, medical treatment costs, and tax incentives for private hospital welfare funds will be implemented to address medical claims inflation and strengthen Malaysia's healthcare system for wider access, choice, and sustainability.
Four key initiatives have been endorsed by the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by Finance Minister II Amir Hamzah Azizan and Health Minister Dr Haji Dzulkefly Ahmad to manage rising private healthcare costs in Malaysia.
As shared by the Ministry of Finance (MOF), these initiatives fall under the RESET strategy — a collaborative effort involving MOF, the Ministry of Health (MOH), Bank Negara Malaysia, academia, and private-sector stakeholders. The strategy aims to curb medical claims inflation while strengthening Malaysia’s healthcare system to ensure broader access, greater choice, and long-term sustainability.
The RESET strategy encapsulates five strategic thrusts to address challenges in Malaysia's private healthcare system through 11 initiatives. The five strategic thrusts are:
- To revamp the medical and health insurance/takaful (MHIT),
- To enhance price transparency,
- To strengthen digital health systems,
- To expand cost-effective options, and to
- Transform provider payment mechanism.
The four initiatives are as follows:
- A whitepaper on the Base Medical and Health Insurance/Takaful (MHIT) plan will be published. The base MHIT plan is a standardised, affordable plan that aims to provide meaningful coverage for individuals who seek private healthcare coverage and individuals looking for additional options due to the repricing or changes in their existing plans.
- The whitepaper is also expected to drive improvements towards more sustainable MHIT offerings by insurers and takaful operators (ITOs) by providing a common and accessible baseline for coverage and premium pricing, as well as underwriting and claims practice.
- To empower individuals in planning their healthcare finances, new tools are being introduced, including the MHIT Made Simple Guide and the Hospitalisation and Surgical Insurance/Takaful (HSIT) Preparedness Calculator which will assess insurance needs, navigate claims and plan personal budgets.
- Benchmark cost ranges for common medical procedures at private hospitals have been published to provide a clear reference point for treatment expenses and improve market transparency.
- Private hospitals will be eligible to apply for tax incentives to establish Welfare Funds that support charitable healthcare services for underprivileged patients.
In a Facebook post, MOH said this initiative reflects the Government's commitment "to ensure quality, transparent and affordable healthcare, and completes the role of public and private healthcare systems for the welfare of the Malaysian people."
Health Minister Dr Haji Dzulkefly described RESET as "a milestone in our whole-of-nation approach."
"By prioritising value-based healthcare, these efforts ensure that strong health outcomes remain central to our efforts to reduce inflation and safeguard affordability."
He also noted that private-sector initiatives under RESET complement the public healthcare system, ensuring quality care remains accessible to all Malaysians over the long term.
Meanwhile, Finance Minister II Amir called the base MHIT plan is "a pivotal step towards widening access to sustainable protection", adding that RESET recognises the need to elevate the entire healthcare ecosystem — addressing protection while modernising delivery — to effectively tackle medical claims inflation.
"By working together, we can make lasting change that better protects individuals and strengthens the Malaysian healthcare system."
The JBMKKS also expressed support for measures being taken by the Healthcare Partners Protocol & Solutions Committee (HPPSC), formerly known as the Grievance Mechanism Committee, to establish clearer claims protocols for dispute resolution. In addition, the Committee noted progress on a World Bank study on medical inflation, which is scheduled for publication in February 2026.
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Lead image / MOH Malaysia Facebook
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