PETALING JAYA: The Life Insurance Association of Malaysia (LIAM) has welcomed the government’s plan to subsidise the first-year MediAsas premium by RM200 per employee at eligible small and medium-sized enterprises (SME), saying the initiative could widen access to basic medical protection.
Under Budget 2027, the subsidy will apply to SME with fewer than 75 employees, capped at 50 employees per company. The initiative is expected to benefit up to 200,000 workers.
LIAM CEO Mark O’Dell said the subsidy could help ease the financial burden on smaller businesses while encouraging wider access to medical coverage.
“We welcome the government’s initiative to introduce MediAsas as part of its efforts to improve access to affordable basic medical protection.
“The provision of a first-year premium subsidy for eligible SME employees is particularly encouraging, as it could help more workers obtain medical coverage and provide greater peace of mind for themselves and their families,” he said in a statement.
O’Dell said access to medical protection is an important part of financial preparedness. “Initiatives such as MediAsas can help more Malaysians take their first step towards managing the financial risks associated with hospitalisation and medical treatment.”
The government will launch MediAsas in January 2027 as part of efforts to make basic medical protection more affordable and improve cost predictability in private healthcare.
Under the plan, hospital charges will be based on diagnosis and treatment categories to help control costs.
Employees Provident Fund members below the age of 55 will also be permitted to pay MediAsas premiums through their Akaun Sejahtera savings.
MediAsas is designed for individuals without medical insurance or takaful coverage for major medical expenses, as well as those seeking a more affordable alternative to existing medical and health insurance and takaful plans.
The standalone product will offer two options: MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan.
LIAM said it looked forward to working with Bank Negara Malaysia, relevant government agencies and participating insurers to support the plan’s introduction and raise public awareness.
It also encouraged Malaysians to understand the plan’s benefits, coverage, eligibility requirements and limitations to make informed decisions about their medical protection needs.