More than 90% of adjusted health insurance and takaful health policies have seen premium increases of less than 10% according to information provided by country's ministry of finance in a written reply posted on the government Dewan Rakyat portal.
The information provided by the ministry reveals that over 200,000 policyholders have benefitted from the deferred premium adjustments and more than 14,000 health insurance policies were reactivated as of 30 April 2025.
In its response the ministry also said the interim measures have been introduced to reduce the financial burden on policyholders while ensuring continued access to MHIT coverage. “The challenge of addressing medical cost inflation is complex and requires a whole-of-nation approach.”
Bank Negara Malaysia (BNM) in its directive issued on 20 December 2024 had capped the annual premium increases at 10% for most policyholders in response to public outrage over steep health insurance premium hikes, with some exceeding over 200%. The directive had also mandated the insurers and takaful operators to spread out the health insurance premium hikes over three years.
BNM had also directed a one-year premium freeze for policyholders /certificate holders aged 60 and above on minimum medical and health insurance/takaful plans.
Surging health insurance premiums in Malaysia had caused wide public distress to the extent that the Public Accounts Committee (PAC) of the country’s parliament had held public hearings on the issue. It was for the first time that the PAC held open public hearings on rising health insurance and takaful premiums and private hospital fees.
The Malaysian government has also launched the RESET initiative — a collaborative effort involving the MoF, the Ministry of Health, Bank Negara Malaysia (BNM), and other key stakeholders — aimed at curbing medical cost inflation and strengthening the private healthcare system in the medium and long term.
RESET is overseen by the joint ministerial committee on private healthcare costs (JBMKKS), chaired by second finance minister Datuk Seri Amir Hamzah Azizan and health minister Datuk Seri Dr Dzulkefly Ahmad.