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BANK Negara Malaysia (BNM) has announced that the design of the base medical and health insurance or takaful product, introduced as part of Budget 2026, is expected to be finalised by the end of 2025 with a planned launch in 2027.
The initiative, supported by a RM60 million joint allocation from the government and industry, seeks to accelerate health reforms aimed at curbing rising medical costs while enhancing protection for Malaysians, BNM said in a statement.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, revealed during the Budget 2026 presentation that the fund will accompany the implementation of the Diagnosis Related Group (DRG) system.
To encourage broader insurance participation, the existing personal income tax relief of up to RM3,000 for life insurance or takaful premiums covering self and spouse will be extended to include children.
Additionally, BNM highlighted the expansion of the iTEKAD social finance initiative, which now aims not only to spur entrepreneurship and enhance protection but also to generate employment opportunities for vulnerable groups.
An extra RM35 million has been allocated in matching grants to strengthen the financial resilience and capacity of these segments.
“These funds will be matched with social finance resources such as donations, corporate social responsibility contributions, zakat, and cash waqf,” BNM stated, adding that further details will be announced in due course. - October11, 2025
