BNM Reset Product’s Pilot to Start Next Year, Targeting Medical Inflation, Premium Pressures -- Governor

KUALA LUMPUR, Nov 14 (Bernama) – Bank Negara Malaysia’s (BNM) proposed basic medical and health insurance/takaful (MHIT) product is being finalised this year, with a pilot to begin next year as part of a strategy to address medical inflation and rising insurance premiums.

This product is part of BNM’s Revamp, Enhance, Strengthen, Expand, and Transform (RESET) strategy, an initiative designed to address rising medical costs and reform the private healthcare system.

Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour Abdul Rasheed said the central bank had introduced temporary measures for MHIT products, which include capping yearly premium adjustments at less than 10 per cent for the majority of policyholders until the end of next year.

“So far, we have seen this working very well. And this repricing cap of 10 per cent has covered 90 per cent of insurance premiums,” he said at a joint press conference held in conjunction with the announcement of the third-quarter Gross Domestic Product (3Q2025) here today.

He said RESET focuses on revamping MHIT products, enhancing transparency, strengthening the e-commerce system, expanding cost-effective options and transforming the payment mechanism in the country.

According to MBSB Research, medical inflation is expected to increase by 16 per cent next year, driven by the brain drain of doctors and nurses, as well as rising drug prices.

The country is facing a significant brain drain, with local doctors, nurses and specialists moving abroad to markets offering higher salaries. 

-- BERNAMA