KUALA LUMPUR: The Cabinet paper on the National Health Fund is in its final stages of preparation, says the Health Ministry.
"The direction of healthcare financing was presented at the first 2025 meeting of the National Social Protection Council, chaired by the Prime Minister,” it said.
It then added that it was agreed at the meeting on May 6 that the Health Ministry is to conduct a study on establishing a National Health Fund.
“The Cabinet paper on this matter is currently in its final stage of preparation," said the ministry in a parliamentary written reply dated August 27, 2025.
It added that the National Health Fund as outlined in the 13th Malaysia Plan (13MP) represents the strategic direction for transforming the public sector health financing system.
The ministry said that this fund would consolidate financing from various sources to fund services for all Malaysians—not solely relying on employee contributions or general taxation.
“It will act as a safety net, providing Universal Health Coverage (UHC) without overburdening the nation’s fiscal position or the people's personal finances," it added.
To complement public health financing transformation, efforts to restructure Medical and Health Insurance and Takaful (MHIT) in the private sector are also underway.
This includes the RESET strategy, coordinated across agencies with the Finance Ministry and Bank Negara Malaysia.
"This initiative is expected to offer alternative options for individuals who want additional insurance coverage beyond existing access to government healthcare facilities," it said.
The ministry was responding to Capt (Rtd) Datuk Dr Zulkafperi Hanapi (IND–Tanjong Karang) on the future of health financing and whether the ministry will continue relying on the current tax revenue mechanism.
