Bank Negara Malaysia will strengthen regulations for all medical insurance products following the introduction of a new standardised base MHIT plan, aimed at improving consumer protection.
KUALA LUMPUR: Bank Negara Malaysia (BNM) will strengthen regulatory requirements for all medical and health insurance and takaful (MHIT) products.
This follows the introduction of a new standardised base MHIT plan, aimed at improving consumer protection and ensuring long-term premium sustainability, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the enhanced framework would align market offerings with the principles of the base plan, reinforcing affordability and transparency across the private healthcare financing ecosystem.
The base MHIT plan will be offered on a voluntary basis.
It is scheduled for a pilot implementation in the second half of 2026, with a full rollout targeted for early 2027.
This timeline coincides with the expiry of BNM’s interim measures on medical insurance repricing.
“Crucially, policyholders facing repricing will have the option to switch seamlessly to this base plan with their current insurer – without new medical underwriting,” Amir Hamzah said.
He added that authorities would need to be dynamic and adaptable in bringing the base MHIT plan to maturity over the years.
The minister was speaking at a joint press conference with Health Minister Datuk Seri Dr Dzulkefly Ahmad.
Also present were BNM Governor Datuk Seri Abdul Rasheed Ghaffour and Treasury secretary-general Datuk Johan Mahmood Merican.
On fiscal measures, Amir Hamzah said the government is expanding its support for community healthcare initiatives through tax incentives announced under Budget 2026.
He said an existing tax exemption framework for non-profit hospitals, introduced in 2024, has already benefitted four institutions.
This framework will now be widened to allow private hospitals to establish tax-exempt welfare funds for underprivileged patients, subject to guidelines.
“This encourages providers to scale up impactful work – such as IHH’s ‘Life Renewed’ programme, which has sponsored critical surgeries for over 2,000 patients,” he said.
Operational details are being finalised with the Association of Private Hospitals Malaysia by the first quarter of 2026.
