Malaysia’s health and finance ministries are stepping up reforms to rein in rising private healthcare costs, with the Joint Ministerial Committee on Private Healthcare Costs taking note of recommendations raised in the Public Accounts Committee (PAC) report while reaffirming progress under the RESET Strategy aimed at building a more affordable and sustainable system.
The committee, co-chaired by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, said the PAC’s proposals broadly align with ongoing reforms and will be reviewed as part of efforts to accelerate implementation.
The committee said it recognises the urgency of addressing rising insurance premiums and private hospital charges, noting that the issue has broader implications for the sustainability of Malaysia’s healthcare system.
It added that since the launch of the RESET Strategy, coordinated efforts involving the Ministry of Finance, Ministry of Health, Bank Negara Malaysia and key industry stakeholders have been underway to tackle both short-term cost pressures and structural drivers of medical inflation, while ensuring continued access to quality private healthcare.
Several initiatives are already progressing under the framework, including the planned pilot phase of the Malaysia Health Insurance and Takaful (MHIT) basic plan expected by end-July. Other measures include the phased rollout of Diagnosis-Related Group (DRG) payment mechanisms for healthcare providers, improved pricing transparency, stronger data standards and enhanced dispute resolution systems.
According to the committee, these initiatives reflect closer collaboration between policymakers, regulators, payers and healthcare providers as Malaysia pushes forward with sector-wide reform.
The committee reiterated its commitment to ensure the RESET Strategy is implemented on schedule, with tangible outcomes for the public, and said further updates will be provided after its next meeting scheduled in July.
