KUALA LUMPUR, Jan 22 (Bernama) -- The Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) today endorsed four key initiatives to address rising private healthcare costs while widening healthcare access and choice for Malaysians.
In a joint statement today, Finance Ministry and Health Ministry said the initiatives are - the publication of a white paper on the Base Medical and Health Insurance/Takaful (MHIT) plan; the launch of consumer decision aids; the publication of medical treatment costs; and tax incentives for private hospital welfare funds.
“The initiatives announced today are part of the RESET strategy, a collaborative effort by the Finance Ministry, Health Ministry, Bank Negara Malaysia, academia and key stakeholders from the private sector to address medical claims inflation and strengthen Malaysia's healthcare system for wider access, choice, and sustainability,” the statement read.
The JBMKKS is co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad.
Meanwhile, in a press conference after JBMKKS’s meeting today, Dzulkefly said the RESET strategy places value-based healthcare at the centre of national reform efforts and represents a milestone in the whole-of-nation approach.
“By prioritising value-based healthcare, these efforts ensure that strong health outcomes remain central to our efforts to reduce inflation and safeguard affordability,” he said adding that the approach also ensures long-term access to quality healthcare by aligning private sector reforms with the broader national health system.
“These private sector initiatives complement our public healthcare system, ensuring that quality care remains accessible to all Malaysians, regardless of setting, for the long term,” he said.
Meanwhile, Amir Hamzah in the same press conference said tackling medical claims inflation requires systemic reform across the healthcare ecosystem rather than isolated interventions.
“The base MHIT plan is a pivotal step towards widening access to sustainable protection. However, the RESET strategy recognises that addressing medical claims inflation requires elevating the entire ecosystem—addressing protection while modernising delivery,” he said.
Amir Hamzah said sustained collaboration across stakeholders is critical to ensuring meaningful and lasting outcomes that better protects individuals and strengthens the Malaysian healthcare system.
According to the joint statement, the white paper on the base MHIT plan establishes a standardised and affordable baseline for private healthcare coverage.
“It is also expected to drive improvements towards more sustainable MHIT offerings by insurers and takaful operators (ITOs) by providing a common and accessible baseline for coverage and premium pricing, as well as underwriting and claims practice,” it said.
On the consumer decision-support aids, the statement said these aim to empower individuals in planning their healthcare finances through tools such as the MHIT Made Simple Guide and the Hospitalisation and Surgical Insurance/Takaful (HSIT) Preparedness Calculator.
To improve market transparency, it said benchmark cost ranges for common medical procedures at private hospitals have been published to provide clearer reference points for treatment expenses.
In addition, private hospitals are now eligible to apply for tax incentives to establish Welfare Funds aimed at financing healthcare services for underprivileged patients, particularly in emergency and chronic cases.
The committee also welcomed efforts by the Healthcare Partners Protocol and Solutions Committee to develop clearer claims protocols to resolve disputes, and noted the progress of a World Bank study on medical inflation scheduled for release in February 2026.
“Looking to 2026, JBMKKS is continuing measures to streamline licensing for affordable care models, revamp hospital billing for better transparency, and drive Electronic Medical Records (EMR) interoperability,” said the statement.
-- BERNAMA
