KUALA LUMPUR: The design of the base medical and health insurance/takaful product, which is being introduced as part of the Budget 2026 agenda, is expected to be finalised by end-2025 with a view to launch in 2027, said Bank Negara Malaysia (BNM).
The initiative involves a RM60 million allocation by the government and industry to accelerate health reforms, which aim to help curb medical cost inflation and enhance protection for Malaysians, the central bank said in a statement.
When presenting Budget 2026 yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced that to address rising medical inflation, a joint government-industry fund of RM60 million will be set up to introduce affordable basic insurance products for all, alongside the implementation of the Diagnosis Related Group (DRG) system.
To encourage greater insurance participation, Anwar, who is also the Finance Minister, said the personal income tax relief of up to RM3,000 for life insurance or takaful premiums for self and spouse will be extended to cover children.
Meanwhile, BNM noted that iTEKAD social finance initiative is now expanded to not only spur entrepreneurship and enhance protection, but also to create employment opportunities for vulnerable segments.
The additional RM35 million allocation in matching grants is intended to strengthen the financial resilience and capacity of the intended segments, enabling them to sustain and improve their livelihoods.
"These funds will be matched with social finance funds, such as donations (including corporate social responsibility contributions), zakat, and cash waqf.
"Further details will be announced later,” BNM added. - Bernama
