KUALA LUMPUR – In a move to address growing concerns over medical inflation and affordability, the Finance Ministry (MOF) and the Health Ministry (MOH) have jointly established a ministerial-level committee aimed at curbing rising private healthcare costs in Malaysia.
The Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), which held its inaugural meeting today, is tasked with coordinating a national-level response to ensure private healthcare remains accessible and sustainable for the public.
It comes amid increasing pressure on household budgets as insurance premiums and out-of-pocket medical expenses continue to rise.
Co-chaired by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, the committee comprises representatives from MOF, MOH, and Bank Negara Malaysia (BNM).
It will be supported by a Consultative Council made up of key industry players, including private hospitals, medical professionals, insurance and takaful providers, consumer groups, and academics.
“Rising healthcare cost is a major concern for Malaysians — and the MADANI Government is taking the lead to address it,” Amir Hamzah said.
“This joint committee reflects our commitment to work with all stakeholders to shape a private healthcare system that is sustainable, transparent, and delivers real value.
At its core, this is about protecting the well-being of Malaysians and strengthening the resilience of our nation.”
The JMCPHC will oversee the implementation of the RESET framework — a strategic initiative aimed at tackling medical inflation. Reset consists of five key thrusts: revamping medical and health insurance/takaful (MHIT), enhancing price transparency, strengthening the digital health ecosystem, expanding cost-effective care options, and transforming provider payment models.
BNM’s recent co-pay requirement policy and temporary measures to cushion premium increases from 2024 to 2026 fall under this wider framework, which is backed by both ministries and industry stakeholders.
Ongoing efforts under Reset include developing a more affordable base MHIT product, piloting Diagnostic-Related Group (DRG) payments, and improving transparency in healthcare pricing — measures aimed at offering consumers clearer options and lowering their overall burden.
Dzulkefly said the Reset framework also aligns with MOH’s long-term vision of strengthening the national healthcare system through more equitable access to care.
“The framework also signifies our ‘whole-of-nation’ commitment to implementing solutions like value-based care, which prioritises health outcomes through the phased implementation of Diagnostic-Related Groups (DRG) and the expansion of cost-effective healthcare options for the rakyat,” he said.
“These initiatives will deliver tangible benefits for all Malaysians who benefit through reduced overcrowding and congestion of public hospitals and clinics.”
The committee will serve as the main platform for monitoring the progress of reforms, while ensuring continuous engagement with stakeholders in the private healthcare ecosystem.
The government is also expected to explore further initiatives to strengthen the role of primary care providers and expand affordable private healthcare options through efforts such as the Rakan KKM (MOH) programme. - June 25, 2025
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