The Ministry of Health will receive RM47.7 billion under Budget 2027, an additional RM1 billion as the government steps up healthcare spending while rolling out reforms aimed at easing pressure on public hospitals and addressing rising medical costs.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, announcing the allocation during the tabling of Budget 2027 today, also confirmed that the government’s MediAsas basic medical protection initiative will begin nationwide in 2027.
A key component of the government’s healthcare financing reforms will be MediAsas, the standardised basic medical and health insurance/takaful (MHIT) plan developed under the government’s RESET strategy.
The nationwide rollout is scheduled for January 2027, following a pilot programme conducted in the Klang Valley involving insurers, takaful operators and selected private hospitals. The government has positioned the scheme as a more affordable option for Malaysians who are uninsured or seeking lower-cost medical protection.
MediAsas will be offered as a voluntary standalone protection plan rather than an investment-linked product. It is intended to provide coverage across different stages of treatment, including pre-hospitalisation, hospitalisation, post-hospitalisation and certain outpatient care.
Indicative premiums previously announced for MediAsas range from about RM60 to RM550 a month, depending on factors including age and the chosen plan, with final pricing and product features expected to be confirmed at the nationwide launch.
The government is also giving Employees Provident Fund members greater flexibility to use their retirement savings for health protection.
Under the framework, EPF contributors may use savings from their Akaun Sejahtera to pay premiums for basic medical and health insurance or takaful coverage, including MediAsas. Participation remains voluntary, with members deciding whether to draw on their EPF savings for such protection.
