Takaful operators are on track to launch the pilot phase of the new medical and health insurance and takaful (MHIT) base plan on 1 July 2026, according to the Malaysian Takaful Association (MTA). The plan is intended to make health coverage more affordable, or at the very least, more accessible. MTA interim chairman Borhanudin Samsudin acknowledged the tight timeline but said participating operators are committed to the roll-out.
Operators Were Invited To Express Interest
Borhanudin declined to name the participating operators, noting that the selection process falls under Bank Negara Malaysia’s (BNM) purview. All insurance and takaful operators were invited to submit expressions of interest, with BNM selecting those that will take part in the pilot.
BNM is expected to provide further guidance at an industry town hall session scheduled for next week, including details on how the pilot phase will run between July and December before a nationwide roll-out early next year.
The Industry Needs More Policyholders, Not Higher Premiums
MTA chief executive Mohd Radzuan Mohamed noted that the industry needs volume and broader participation to remain sustainable, rather than relying on higher contributions from a shrinking pool of individual policyholders.
The MHIT base plan is designed to address exactly that, by making medical coverage more accessible to Malaysians who are currently uninsured or have dropped their existing plans due to rising costs.
A Standardised Plan With More Stable Premiums
The MHIT base plan forms part of BNM’s RESET initiative, which aims to improve the affordability and long-term sustainability of private medical and health coverage amid rising healthcare costs and medical inflation. The plan is intended to give Malaysians access to a standardised, lower-cost medical coverage option, with premiums designed to remain more stable over time.
Public awareness of the initiative remains limited, as detailed information is still being finalised. “Any perception formed now may not be accurate because information is still limited, both for the public and for the industry,” Mohd Radzuan said.
Why Should You Care About The New Plan
The base plan comes after two years of steep premium increases that led many policyholders to cancel or downgrade their coverage.
BNM’s interim measures, which included spreading premium increases over at least three years and pausing adjustments for policyholders aged 60 and above, were always intended as short-term relief. Borhanudin noted that lasting improvements require structural reforms across the entire healthcare ecosystem, not just adjustments to insurance pricing.
We’ll continue to watch this topic closely as, if executed to BNM’s intent, it should have a major impact on access to affordable health care coverage.
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