Kuala lumpur: Bank Negara Malaysia (BNM) will strengthen regulatory requirements for all medical and health insurance/takaful (MHIT) products following the introduction of a 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 stated that the enhanced regulatory framework would align market offerings with the principles of the base MHIT plan, reinforcing affordability and transparency across the private healthcare financing ecosystem.
According to BERNAMA News Agency, the base MHIT plan, which will be offered on a voluntary basis, is scheduled for pilot implementation in the second half of 2026, with a full rollout targeted for early 2027 to coincide with the expiry of BNM's interim measures on medical insurance repricing. Amir Hamzah highlighted that policyholders facing repricing will have the option to switch seamlessly to this base plan with their current insurer without new medical underwriting. He emphasized the need for adaptability and dynamism in bringing the base MHIT plan to maturity, with realistic expectations for its initial stages.
During a joint-press conference with Health Minister Datuk Seri Dr Dzulkefly Ahmad, Amir Hamzah discussed fiscal measures, stating that the government is expanding its support for community healthcare initiatives through tax incentives announced under Budget 2026. He noted the existing tax exemption framework for non-profit hospitals, introduced in 2024, has benefitted four institutions and will be widened to allow private hospitals to establish tax-exempt welfare funds for underprivileged patients, subject to guidelines.
Amir Hamzah mentioned that this initiative 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 added that operational details are being finalized with the Association of Private Hospitals Malaysia by the first quarter of 2026, with the hope that major hospitals will adopt this mechanism to serve the underprivileged effectively.