Malaysian Re report calls for healthcare finance reform

The healthcare expenditure in Malaysia accounts for only about 4% of the GDP.

The main key drivers of rising healthcare costs in Malaysia stem from medical inflation, an ageing population, and the growing incidence of non-communicable diseases, according to Malaysian Reinsurance Berhad’s (Malaysian Re) latest report.

Public sector under funding remains a central issue, with healthcare expenditure in Malaysia accounting for only about 4% of GDP—well below the 6% to 7% average seen in comparable economies, revealed the Malaysian Insurance Highlights (MIH) 2025. 

In the private sector, misaligned interests amongst policyholders, insurers, and healthcare providers have contributed to concerns about service overconsumption and inflated medical billing.

Malaysian Re President and CEO Ahmad Noor Azhari Abdul Manaf said the report aims to address the structural issues affecting access and affordability in Malaysia’s healthcare system. 

He said the rising cost burden, coupled with limited public resources and inefficiencies in private healthcare delivery, calls for new financing and provision strategies.

MIH 2025 is based on structured interviews and expert insights, and examines emerging trends in medical and health insurance, as well as the role of insurers in developing more sustainable solutions. 

It also highlights the importance of collaboration between the insurance industry, regulators, and healthcare providers to manage cost pressures whilst improving access.