KUALA LUMPUR, June 25 (Bernama) -- The Ministry of Finance (MOF) and the Ministry of Health (MOH) have formalised the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), building on on-going engagements among various stakeholders, to address rising private healthcare and medical inflation.
The Committee, which convened its first meeting today, will coordinate a whole-of-nation approach to collaboratively develop and implement measures aligned with value-based healthcare.
The JMCPHC is co-chaired by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan, and Health Minister YB Datuk Seri Dr Haji Dzulkefly Ahmad, with committee members consisting of representatives from MOF, MOH, and Bank Negara Malaysia (BNM). The Committee will be supported with inputs and technical advice by a Consultative Council, comprising representatives from key stakeholders across the private healthcare ecosystem, including private hospitals, healthcare professionals, insurance providers and Takaful operators (ITOs), consumer advocacy groups, and academia. The list of Committee and Consultative Council members is detailed in the appendix to this press release.
"Rising healthcare cost is a major concern for Malaysian— and the MADANI Government is taking the lead to address it. 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," said YB Senator Datuk Seri Amir Hamzah.
The JMCPHC builds upon previous groundwork, including BNM’s implementation of co-pay requirements, interim measures to cushion the impact of medical premium adjustments for policyholders affected in 2024-2026, and the RESET framework which covers five (5) strategic thrusts to address medical inflation namely;
Revamp Medical and Health Insurance/Takaful (MHIT),
Enhance price transparency,
Strengthen the Digital Health ecosystem,
Expand cost effective options and
Transform provider payments. RESET is broadly endorsed and supported by MOF, MOH, BNM, and key industry stakeholders as the strategic framework to address rising private healthcare and insurance costs.
Moving forward, the Committee will be the primary platform to guide and monitor the implementation of the initiatives under the RESET. Work on the crucial RESET initiatives have commenced, particularly on the development of a base MHIT product that balances affordability and sustainability, for the development of Diagnostic-Related Group (DRG) payments for phased implementation, and improving the transparency of pricing information.
For current medical insurance policyholders, these measures are intended to improve greater price transparency while offering more affordable options. Over the tenure of this Committee, measures to expand affordable private healthcare access will be pursued, including by strengthening the role of primary healthcare and a continuum of healthcare providers, building upon measures which have been announced previously, such as the Rakan KKM initiative.
YB Datuk Seri Dr Haji Dzulkefly said the jointly developed RESET framework includes on-going and planned efforts by the MOH to strengthen Malaysia’s healthcare system for all.
“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. Such initiatives will deliver tangible benefits for all Malaysians who benefit through reduced overcrowding and congestion of public hospitals and clinics,” he added.
The JMCPHC recognises that successful implementation of the whole-of-nation RESET initiatives critically relies on multi-stakeholder collaboration. The Consultative Council is therefore essential, reinforcing the MADANI Government’s commitment to provide a dedicated platform for key industry stakeholders to work together collaboratively and contribute expertise towards the shared objective of ensuring affordable and accessible private healthcare for all Malaysians while fostering sustainable sector growth.
Ministry of Finance
Ministry of HealthPutrajaya
24 June 2025
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APPENDIXSOURCE : Ministry of Health Malaysia
FOR MORE INFORMATION, PLEASE CONTACT:
Name : Timothy A/L Palavadram
Pegawai Perhubungan Awam
Seksyen Media Massa
Unit Komunikasi Korporat
Kementerian Kesihatan Malaysia
Email: timothy.palavadram@moh.gov.my
--BERNAMA