KUALA LUMPUR: Discussions are still ongoing with the relevant parties regarding the expected increase in medical insurance premiums, ranging from 40% to 70% next year, says Lim Hui Ying.
The Deputy Finance Minister said that Bank Negara Malaysia (BNM) has recently issued a statement on the matter.
"This falls under BNM's jurisdiction and involves various stakeholders, such as insurance companies, private hospitals, and others.
"We are in the process of negotiating how to address this issue," she said during the winding-up session of the Finance Bill 2024 at the Dewan Rakyat on Wednesday (Dec 3).
Earlier, several MPs had raised concerns about the rise in insurance premiums, which they described as unreasonable and burdensome to the people.
On Nov 28, BNM instructed insurance companies and takaful operators (ITOs) to review their medical and health insurance (MHIT) pricing strategies to ensure they are more appropriate.
This includes managing premiums or contribution increases while considering the impact on policyholders.
On Tuesday (Dec 3), the Life Insurance Association of Malaysia (LIAM) said that it was still in discussions with Bank Negara about measures to ease the burden on policyholders.
Citing an "unprecedented" rise in claims over the past several years, it said from 2021 to 2023, cumulative medical claims cost inflation of 56% placed many insurers in a critical position.
Meanwhile, the Finance Bill 2024 was passed in the Dewan Rakyat.
It seeks to amend the Income Tax Act 1967, Real Property Gains Tax Act 1976, Stamp Act 1949, Petroleum (Income Tax) Act 1967, Finance Act 2012, and Finance Act 2023.
Lim said these amendments were intended to improve policies and tax-related changes announced in Budget 2025, including the introduction of Dividend Tax, improvements to Capital Gains Tax and Global Minimum Tax, a review and extension of individual tax reliefs, the establishment of mechanisms for the implementation of the Self-Assessment System for Real Property Gains Tax, and a revision of stamp duty rates.
