LIAM WELCOMES GOVERNMENT’S INITIATIVE TO EXPAND ACCESS TO AFFORDABLE BASIC MEDICAL PROTECTION THROUGH MEDIASAS
LIAM Response on the tabling of 2027 Budget by the Prime Minister/Minister of Finance Malaysia, Yang Amat Berhormat Datuk Seri Anwar Ibrahim
(Issued by the Chief Executive Officer of Life Insurance Association of Malaysia (LIAM), Mark O’Dell in conjunction with the tabling of the 2027 Budget by the Prime Minister/Minister of Finance Malaysia, Yang Amat Berhormat Datuk Seri Anwar Ibrahim)
Kuala Lumpur, 9 October 2026 – The Life Insurance Association of Malaysia (LIAM) welcomes the Government’s announcement under Budget 2027 to introduce the MediAsas Plan from January 2027, as part of its efforts to make basic medical protection more accessible and affordable to Malaysians.
The introduction of MediAsas represents an important step towards expanding access to basic medical and health insurance, particularly for individuals and employees of small and medium-sized enterprises (SMEs) who may face financial constraints in obtaining medical coverage.
LIAM particularly welcomes the Government’s initiative to subsidise the first-year premium by RM200 per employee for eligible SMEs subject to a maximum of 50 employees per company. This initiative is expected to benefit up to 200,000 workers and could help ease the financial burden on smaller businesses while encouraging wider access to medical protection among their employees.
The provision allowing Employees Provident Fund (EPF) members below the age of 55 to pay MediAsas premiums through Akaun Sejahtera also offers an additional payment option for eligible individuals seeking to obtain basic medical coverage.
Making Basic Medical Protection More Accessible
MediAsas is expected to be introduced at an affordable premium, with hospital payments based on diagnosis and treatment to help improve cost control and predictability. This approach is intended to support efforts to address rising healthcare costs while making basic medical protection more accessible to the public.
Commenting on the announcement, LIAM Chief Executive Officer, Mark O’Dell, said:
“We welcome the Government’s initiative to introduce MediAsas as part of its efforts to improve access to affordable basic medical protection. The provision of a first-year premium subsidy for eligible SME employees is particularly encouraging, as it could help more workers obtain medical coverage and provide greater peace of mind for themselves and their families.
“Access to medical protection is an important part of financial preparedness. Initiatives such as MediAsas can help more Malaysians take their first step towards managing the financial risks associated with hospitalisation and medical treatment.”
MediAsas is a key initiative designed to provide Malaysians with access to more affordable and sustainable medical protection over the longer term. The MediAsas pilot programme which commences end July, marks a further milestone in preparing the ground for nationwide implementation in January 2027. MediAsas is expected to play a pivotal role in reshaping private healthcare financing and supporting broader long-term healthcare transformation.
MediAsas is designed for individuals who do not have any medical insurance/takaful
coverage for major medical expenses, but can afford basic private healthcare protection, as well as those seeking a more affordable alternative as their existing MHIT premiums increase with age.
The plan will be offered as a standalone medical insurance and takaful product with two options: MediAsas Teras, a standard plan and MediAsas Fleksi, a standard-plus plan. It will provide coverage for individuals up to 85 years of age.
The plan will provide a firm foundation to support longer term healthcare financing reforms, reflecting the Government’s commitment to delivering affordable medical protection while ensuring the sustainability of Malaysia’s healthcare financing ecosystem. MediAsas is designed to be affordable over time and expands access to medical protection for a wider segment of Malaysians.
Strengthening Public Awareness and Understanding
LIAM looks forward to working closely with Bank Negara Malaysia, the relevant government agencies and participating insurers to support the introduction of MediAsas and promote greater public awareness of the plan.
LIAM also encourages Malaysians to understand the benefits, coverage, eligibility requirements and limitations of MediAsas so that they can make informed decisions about their medical protection needs. The plan can serve as an important starting point for individuals and families to consider their broader healthcare financing and protection needs.
LIAM remains committed to supporting initiatives that promote financial literacy, responsible financial planning and wider access to life and medical insurance protection for Malaysians.
