Insurance and Takaful Industry Supports Government’s Base MHIT Plan Under the RESET Strategy
Kuala Lumpur, 29 January 2026 — The Malaysian insurance and takaful industry, represented by the Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA) and the Persatuan Insurans Am Malaysia (PIAM) welcomes and fully supports the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) introduction of the base Medical and Health Insurance/Takaful (MHIT) plan under the RESET Strategy. This is an important initiative which will expand financial protection for essential healthcare needs, channel private spending more efficiently and strengthen conditions for broader health system reforms in line with value based care that improves health outcomes with disciplined cost management.
The insurance and takaful industry stands ready to play its part in delivering the base MHIT plan to Malaysians across the country. As outlined in BNM’s published White Paper on Base MHIT Plan, it is intended to expand coverage among the uninsured, while also offering more cost-effective alternatives for existing policyholders/certificate holders, particularly retirees and middle-income families seeking long-term affordability. To ensure premiums/contribution remain stable while delivering meaningful protection, the base MHIT plan design incorporates features such as deductibles, co payments and defined annual limits. These mechanisms are applied with fairness and transparency, supporting responsible utilisation of healthcare services while safeguarding the sustainability of coverage over time. The insurance and takaful industry will work closely with BNM to finalise implementation details and operations which will be launch in early 2027.
Our members are committed to ensuring timely claims payouts, clear communication with hospitals, and efficient claims processing, so Malaysians can access care without delay. The base MHIT plan is designed to complement existing medical plans, which will continue to be available. The industry supports offering the base MHIT plan at scale, as standardisation provides a strong foundation for broader participation, consistent understanding of coverage, and greater public confidence.
Transparency remains a priority in our work, and under the RESET strategy we have recently published Reference Price Ranges for Common Private Healthcare Services on the websites of LIAM, MTA and PIAM using actual claims data:
This publicly available guide empowers Malaysians with better cost visibility, helps them plan for potential out-of-pocket expenses, and supports more informed discussions with healthcare providers. It is one of several initiatives the industry has undertaken to promote awareness, manage healthcare costs responsibly, and protect the sustainability of insurance and takaful protection for the long term.
LIAM, MTA and PIAM — together representing the insurance and takaful community — remain steadfast in our commitment to supporting the smooth rollout of the base MHIT plan and delivering on its promise of affordable, transparent and sustainable 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.
