Finance Ministry, Health Ministry form joint committee to tackle rising private healthcare costs
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 Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr 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, insurance providers and Takaful operators (ITOs).
"Rising healthcare costs are a major concern for Malaysians, 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 wellbeing of Malaysians and strengthening the resilience of our nation," Amir Hamzah said in a joint statement by the two ministries today.
He said 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.
It covers five 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 RESET. Work on the crucial RESET initiatives has commenced, particularly on the development of a base MHIT product that balances affordability and sustainability, 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 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.
Dzulkefly said the jointly developed RESET framework includes ongoing 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 said.
The JMCPHC recognises that the 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," the joint statement said. - BERNAMA
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
4 hours ago
- Free Malaysia Today
48 more ‘wellness hubs' to promote healthy lifestyles
Health minister Dzulkefly Ahmad (centre) at the newly-opened wellness hub in Kuala Langat, Selangor, today. (Facebook pic) PETALING JAYA : The health ministry is to set up 48 more wellness hub community centres across the country to help promote a healthy lifestyle among the people, health minister Dzulkefly Ahmad said. He said 33 such hubs have been established since 2020 in urban and rural areas and the remaining 48 hubs are expected to be completed by 2033, Bernama reported. 'While hospitals and clinics play a crucial role, I regard wellness bubs as the cornerstone of healthcare, particularly in urban and rural areas, offering substantial support for people's health,' he said at the opening of a wellness hub in Kuala Langat, Selangor. A new facility will be launched in Kuala Selangor later this year, the fourth in the state, after Hulu Langat, Sabak Bernam and Kuala Langat. Dzulkefly said the centres had helped nearly 1.5 million Malaysians, of whom 75% had successfully lost weight, 74% improved their physical fitness, and 54% quit smoking. He said the wellness hubs, formerly known as community health promotion centres, have been upgraded into community centres that offer health and wellness services, focussing on behavioural changes and promoting consistent, sustainable healthy lifestyles. At today's ceremony, the ministry entered a collaboration with the fire and rescue department on health and wellness initiatives, including activities at the Fire and Rescue Academy and fire stations. Dzulkefly said more than 1,100 firefighters have taken part in activities at wellness hubs and most of them have successfully lost weight and become more fit.
The Sun
7 hours ago
- The Sun
Malaysians use AI in shopping at rate that outpaces global average: Adyen
PETALING JAYA: Malaysian consumers are adopting artificial intelligence (AI) in their shopping habits at a rate far higher than the global average, positioning the country as one of the fastest-growing AI-driven retail markets in the world, according to the Adyen Retail Report 2025. The study, released recently by global financial technology platform Adyen, revealed that 58% of Malaysian shoppers now use AI to enhance their shopping experience, compared with 37% globally. The findings are based on surveys of 41,000 consumers and 14,000 merchants across 28 markets, including 1,000 consumers and 500 merchants in Malaysia. AI tools, ranging from chatbots such as ChatGPT to intelligent search engines, are becoming integral to how Malaysians discover and purchase products. The report found 71%d of local consumers use AI for inspiration on meals, outfits and purchases, while 69% credited AI for introducing them to brands they would not have encountered otherwise. Nearly one in five (18%) said their best product ideas came from AI, and 60% indicated openness to making purchases directly through AI platforms in future. 'We're seeing a shift from digital convenience to digital intelligence,' said Adyen Malaysia country manager Soon Yean Lee. 'AI is increasingly acting as a personal stylist or shopping assistant, curating outfits, surfacing new brands and tailoring suggestions to each individual.' Despite Malaysia's strong embrace of AI and e-commerce, physical retail remains resilient. More than half of consumers prefer in-store shopping because they value sensory experiences: 57% want to see and feel products before buying, 49% like to try items beforehand and 53% enjoy the instant gratification of walking away with their purchases. However, shoppers expect more than just product interaction. The report found 55% of Malaysians want brick-and-mortar stores to offer more engaging experiences, such as augmented reality or virtual reality features, in-store cafés or exclusive events, to keep pace with evolving expectations. Online platforms, meanwhile, appeal for different reasons: speed (62%), convenience (54%) and better deals (53%). Half of respondents also value the broader selection available online, particularly products not found in local stores. Social commerce is gaining traction too, with 57% of Malaysians shopping directly via social media platforms an average of six times per month. With shoppers demanding convenience, personalisation and seamless experiences, retailers are re-evaluating how they operate. The report noted that 57% of Malaysian businesses plan to invest in technology to enhance customer experience, including self-service kiosks and new payment options, while 58% are focusing on streamlining checkout with features like one-click purchases. A further 34% intend to ramp up investments in social commerce this year. AI is central to these efforts, extending beyond marketing to fraud prevention, payment optimisation and operational efficiency. 'Retailers generate large volumes of payments data daily, and AI helps unlock this value to drive conversions at scale,' Lee said, referencing Adyen's recently launched AI-powered payment suite designed to reduce fraud and improve transaction success rates with minimal friction. As retailers diversify their channels, integrating them effectively is becoming crucial. The report highlighted that only 52% of Malaysian businesses currently offer unified commerce, which merges online, in-store and social channels into a single system, though another 26% plan to adopt it within the next year. Unified commerce enables consistent pricing, real-time inventory management and seamless customer journeys, such as browsing online, buying in-store and returning via an app. For businesses, it offers deeper insights into consumer behaviour and operational efficiencies that reduce costs and complexity.
The Sun
7 hours ago
- The Sun
Malaysia to expand healthcare with 81 wellness hubs by 2033
KUALA LANGAT: The Ministry of Health (MOH) aims to establish 81 Wellness Hubs across Malaysia to enhance the national healthcare system. Minister Datuk Seri Dr Dzulkefly Ahmad announced that 33 hubs are already operational in urban and rural areas. He stated that the remaining 48 hubs will be completed by 2033 to further support community health. 'Wellness Hubs are the cornerstone of healthcare, offering vital support for people's health in both urban and rural areas,' he said during the Kuala Langat Wellness Hub opening. Since 2020, these hubs have benefited over 1.48 million Malaysians with measurable health improvements. Data shows 75 per cent of participants achieved weight loss, while 74 per cent improved their physical fitness. Additionally, 54 per cent successfully quit smoking through the programme. 'These hubs drive real lifestyle changes, proving they are more than just service centres,' Dr Dzulkefly added. Selangor currently has three operational hubs in Hulu Langat, Sabak Bernam, and Kuala Langat. A new facility in Kuala Selangor is set to launch later this year. Formerly called Community Health Promotion Centres, the hubs now focus on behaviour change and sustainable healthy living. MOH also signed a cooperation agreement with the Malaysian Fire and Rescue Department (JBPM) for joint wellness initiatives. The partnership includes health activities at fire academies and stations nationwide. - Bernama
