PETALING JAYA: The insurance and takaful industry has backed the government’s introduction of a base Medical and Health Insurance/Takaful (MHIT) plan under the Reset Strategy, calling it a key step to widen healthcare coverage and manage rising private healthcare costs.
In a joint statement, the Life Insurance Association of Malaysia (Liam), Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (Piam) said the initiative by the Joint Ministerial Committee on Private Healthcare Costs would expand financial protection for essential healthcare needs and strengthen long-term health system reforms.
"The Malaysian insurance and takaful industry welcomes and fully supports the introduction of the base MHIT plan under the RESET Strategy,” the associations said in a statement on Thursday (Jan 29).
The associations said the plan would help channel private healthcare spending more efficiently and support a shift to value-based care that improves health outcomes and keeps costs under control. They added that the industry is ready to deliver the base MHIT plan nationwide in line with Bank Negara Malaysia’s (BNM) White Paper on the initiative.
They said the plan’s design includes features such as deductibles, co-payments and defined annual limits to help keep premiums and contributions stable.
“As outlined in BNM’s White Paper on the Base MHIT Plan, it is intended to expand coverage among the uninsured, while also offering more cost-effective alternatives for existing policyholders and certificate holders, particularly retirees and middle-income families seeking long-term affordability.
“These mechanisms are applied with fairness and transparency, supporting responsible utilisation of healthcare services while safeguarding the sustainability of coverage over time,” they said.
Liam, MTA and Piam said the industry would work closely with BNM to finalise implementation details, with the base MHIT plan expected to be launched in early 2027.
They also gave assurances on operational readiness, saying members were committed to timely claims payouts, clear communication with hospitals and efficient claims processing so patients could access care without delay.
"The base MHIT plan is designed to complement existing medical plans, which will continue to be available," the associations said, adding that standardisation of the base plan would encourage broader participation, improve public understanding of coverage and boost confidence.
The joint statement also highlighted the role of publicly available guides to help Malaysians better understand healthcare costs.
"Publicly available guides empower Malaysians with better cost visibility, help them plan for potential out-of-pocket expenses, and support more informed discussions with healthcare providers.
"These efforts were part of wider initiatives to raise awareness, manage healthcare costs responsibly and ensure the long-term sustainability of insurance and takaful protection," they said.
Reaffirming their commitment, the associations said they would support a smooth rollout of the base MHIT plan and deliver its promise of affordable and transparent healthcare protection.
"By balancing access with affordability, embedding transparency into product design and cost structures, and leveraging our decades of experience in protecting Malaysian families, the industry is ready to drive meaningful reform and maintain the public’s trust in medical and health insurance as a cornerstone of financial security,” they said.
