Over 90% of medical, health insurance and takaful policies saw hikes below 10%

The government has also rolled out the RESET initiative.

More than 90% of Malaysia's adjusted medical and health insurance and takaful (MHIT) policies recorded premium increases of less than 10% as of 30 April.

Whilst over 200,000 policies benefited from deferred adjustments and more than 14,000 policies were reactivated as at 30 April, according to the Ministry of Finance (MoF).

In a written reply to Parliament, the MoF said interim measures had been introduced to reduce the financial burden on policyholders and ensure continued MHIT coverage. 

These include spreading premium adjustments over at least three years, phased increases for policyholders aged 60 and above, and the reactivation of all policies without requiring re-underwriting.

The government has also rolled out the RESET initiative, a joint effort by the MoF, Ministry of Health, Bank Negara Malaysia and industry stakeholders, to address rising medical costs and strengthen the private healthcare system. 

RESET is overseen by a Joint Ministerial Committee co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad.

The MoF confirmed that a basic MHIT product under RESET is in development, with conceptual work expected to be completed by December 2025 and implementation targeted by end-2026. 

The product will be voluntary, with premiums payable from any source, including the Employees Provident Fund’s Sejahtera Account. Stakeholder consultations are ongoing to ensure affordability and sustainability.