Malaysia mulls basic medical insurance scheme to tackle rising healthcare costs
KUALA LUMPUR: The Malaysian government is evaluating the introduction of a basic medical insurance scheme aimed at alleviating the financial burden of escalating healthcare costs on the public.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, said a joint committee, comprising the Ministry of Finance (MOF), Ministry of Health (MOH), and Bank Negara Malaysia, has been established to study the matter.
"Medical inflation is a significant concern for the people. To address this, we have brought together various stakeholders through a joint committee to explore ways to mitigate the impact of rising medical costs," he said at the launch of SME Bank's Budget 2025 financial initiatives.
According to Amir Hamzah, one of the proposals under discussion is the introduction of a second account contribution under the Medical and Health Insurance/Takaful (MHIT) product.
"Discussions are ongoing to develop a basic insurance scheme for Malaysians. I urge everyone not to speculate on its structure just yet."
"Let the relevant parties, including Bank Negara and other stakeholders, deliberate on finding the best possible approach. Once the proposal is finalised, it will be presented in detail," he explained.
The MHIT, central to the discussions, was introduced to offer Malaysians affordable access to medical and health insurance or takaful plans.
However, with medical costs outpacing general inflation rates, the government aims to enhance the scheme to ensure it continues to meet public needs effectively.
On the potential inclusion of SOCSO contributions in the proposal, Amir Hamzah said, "All recommendations are being considered."
"However, for now, we are allowing Bank Negara and the involved agencies to discuss the most effective way to establish a basic insurance product for the nation."
The outcomes of the discussions and the proposed structure will be announced after thorough deliberations and consultations with relevant stakeholders.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
18 minutes ago
- The Sun
Short-term impact on oil prices from Israel-Iran conflict: Amir Hamzah
KUALA LUMPUR: The Israel-Iran conflict is expected to have only a short-term impact on crude oil prices, according to Minister of Finance II Datuk Seri Amir Hamzah Azizan. He said that while prices surged sharply during renewed hostilities, oil prices quickly retreated as signs of peace talks and ceasefire efforts emerged between the two countries. Amir Hamzah highlighted that despite initial volatility, market stability returned as fears of prolonged conflict and supply disruption subsided, reinforcing the government's confidence in managing the situation amid ongoing global economic uncertainty. 'Oil prices rose sharply when the conflict occurred. However, with the onset of peace talks, prices have declined. For now, the overall impact appears to be short term,' he told reporters at the Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) 2025 Budget Initiative launch today. Amir Hamzah emphasised that peace is crucial not only for humanity but also for sustaining economic stability. 'We hope that efforts towards peace talks will continue, and Malaysia will remain steadfast in supporting all initiatives to maintain peace in the region,' he said. Oil prices briefly jumped by about 7% earlier this month due to fears that the war between Israel and Iran could disrupt supply. But prices have since fallen back to around US$67 per barrel after tensions eased and talks began. Meanwhile, a fragile ceasefire seemed to be holding for a second day today. SME Bank has launched a suite of strategic initiatives valued at RM211 million, reinforcing its commitment to advancing the government's Madani Economic Framework and aligning with the bank's mandate under Budget 2025. Focused on high-impact sectors such as technology, tourism, halal, and environment, social and governance, these initiatives also promote inclusivity by empowering B40 and asnaf entrepreneurs, reinforcing SME Bank's role in building a resilient and future-ready MSME ecosystem. Amir Hamzah said the initiatives reflect the country's future direction towards a more modern, sustainable, and competitive economy. In line with the Madani Economic Framework, Amir Hamzah, said Budget 2025 has provided extensive support for MSMEs. 'This includes more than RM40 billion in the form of loans and guarantees, stamp duty exemptions to reduce the cost of financing access, and matching grants to support digitalisation and sustainable business practices.' He said the aim is to strengthen the competitiveness of MSMEs, while ensuring they remain relevant in a future economic landscape driven by technology and sustainability agendas. 'Therefore, for 2025, the government has mandated SME Bank to roll out various initiatives with an allocation exceeding RM1 billion, including five new initiatives worth over RM200 million designed to support sustainable and inclusive growth for the MSME segment. 'The launch of these strategic programmes by SME Bank today is to realise the government's vision and aspiration to stimulate MSME-driven growth, strengthen domestic economic resilience, and in turn help maintain investor confidence in Malaysia,' Amir Hamzah said. SME Bank acting group president and CEO Datuk Dr Mohammad Hardee Ibrahim shared initiatives, including MySMELady 2.0, Umbrella Ecosystem Financing, Dana Kelestarian Alam, and Maju Usahawan Madani, which demonstrate an approach to nation-building and a commitment to strengthening the national entrepreneurial landscape. 'Additionally, we are also proud to roll out the fourth edition of the SME Bank iTekad Ishraf, a beyond-financing initiative designed to equip the B40 and asnaf entrepreneurs with the knowledge, skills and resources needed to sustain and grow their businesses,' he said. Riding on this momentum, Mohammad Hardee said, the bank remains on track to achieve its RM3 billion approved financing target for this year, with continued emphasis on key strategic sectors, with RM2 billion already recorded as of May 2025. 'These achievements reaffirm our sustained role in fostering MSME development, in alignment with the government's Madani vision to build a more inclusive, resilient and future-ready Malaysia,' he said.
Barnama
21 minutes ago
- Barnama
- VMY 2026 An Opportune Time For Hotels To Showcase ESG Readiness
Opinions on topical issues from thought leaders, columnists and editors. This article focuses on hotels, which play a vital role in shaping visitor experiences, promoting national branding and supporting Malaysia's sustainability goals. As Malaysia gears up for Visit Malaysia 2026, attention is turning to the hotel industry, being one of the tourism sector's key pillars. Experts are calling for strategic reforms to ensure digital transformation supports long-term sustainability. Digitalisation was also progressing, though conservatively, with a focus on enhancing efficiency through online booking platforms and loyalty programmes. Before the COVID-19 pandemic, the hotel sector had begun to show stronger commitment to sustainability. A number of upscale hotels were pursuing green certifications, investing in energy-efficient systems and engaging in community-based tourism. Many Malaysian hotels are still falling short in aligning digital transformation efforts with broader environmental, social and governance (ESG) priorities. This misalignment could slow the momentum gained during the post-pandemic recovery and may affect Malaysia's standing as a credible sustainable travel destination. While these efforts were encouraging, they remained fragmented and were not yet supported by comprehensive ESG strategies. The pandemic acted as both a catalyst and a disruptor. Between 2020 and 2023, hotels rapidly adopted technologies such as contactless check-ins, smart room automation and remote guest services to enhance safety and maintain operations. Although these tools improved operational continuity, many were adopted without being anchored in broader sustainability planning. Integration with environmental performance tracking, such as carbon monitoring or electronic waste management, remains limited. This disconnect between digitalisation and environmental accountability highlights a broader challenge. In many cases, digital upgrades were introduced for convenience or cost reduction, without considering long-term ESG implications. As a result, these systems can contribute to higher energy consumption, increased data demands and unmanaged digital waste. The key for Malaysia's hotel industry is not only to innovate but to ensure innovation is aligned with measurable sustainability outcomes. Integrating ESG into digital systems is essential for credible reporting and strategic management. Without it, hotels may struggle to produce reliable data, potentially limiting access to green financing opportunities such as sustainability-linked loans. A lack of transparent and evidence-based disclosures may also reduce stakeholder trust and investment appeal. This gap also fails to meet the expectations of post-pandemic travellers, who are increasingly environmentally conscious and digitally informed. Rising demand for sustainability According to Sustainable Travel Report 2024, 76 per cent of global travellers expressed a desire to travel more sustainably in the coming year, and 65 per cent said they would feel more confident selecting accommodation with recognised sustainability certification. These trends reflect rising demand for visible and credible sustainability performance at the booking stage. In Malaysia, although digital technologies have become more widespread, their use to support or communicate sustainability commitments remains limited. A 2024 study on hotel environmental practices found that most sustainability efforts are still basic, such as energy-saving measures or waste reduction; and are often driven by cost efficiency rather than long-term planning. Similarly, a 2025 analysis of tourism recovery found that while digital tools are increasingly used, they are rarely accompanied by systems that monitor or report environmental impact. Communication of ESG efforts is another challenge. Hotels frequently highlight social initiatives, such as staff activities or charity drives, as these are more relatable and easier to share digitally. However, effective ESG reporting requires a balanced approach that covers environmental, social and governance pillars. Without this balance, hotels risk presenting an incomplete picture of their performance and value, potentially weakening brand position and stakeholder trust. This communication gap has operational and reputational implications. With Visit Malaysia 2026 approaching, international travellers, travel platforms and rating agencies will likely assess how well Malaysia's hotels align with global sustainability benchmarks such as the UN Sustainable Development Goals (SDGs) and the Global Reporting Initiative (GRI). Inadequate ESG transparency may result in lost competitiveness compared to destinations seen as more accountable. Government support has begun to respond to these challenges. The Ministry of Tourism, Arts and Culture (MOTAC) has positioned sustainability as a key focus in the Visit Malaysia 2026 campaign. In addition, MOTAC is investing in digital marketing to promote eco-conscious tourism experiences, signalling a stronger alignment between destination marketing and sustainable development objectives. Green Hotel Certification On the certification front, the Malaysia Green Hotel Certification, developed in line with ASEAN standards, has been introduced to recognise hotels that meet specific sustainability benchmarks. While still in the early adoption phase, the certification reflects growing institutional efforts to formalise ESG practices in the sector. These measures can help hotels integrate sustainability more systematically into both operational strategies and digital engagement, especially as the industry prepares for greater scrutiny. Industry observers stress that time is of the essence. Hotels are encouraged to reassess their digital investments through a sustainability lens, recognising that this is not just about technological advancement but also about strengthening operational continuity, stakeholder confidence and long-term financial sustainability. Hotels that move early to align digital transformation with ESG principles are likely to gain a competitive advantage, particularly as sustainability performance grows in importance to both consumers and investors. Malaysia's hotel sector now stands at a critical juncture. The momentum from post-pandemic recovery and the visibility offered by Visit Malaysia 2026 presents an opportunity to redefine the industry's approach to sustainability. Achieving this will require coordination between public policy, private sector practices and improved ESG reporting frameworks. The path forward lies in adopting integrated and transparent sustainability strategies that are actively communicated through digital platforms. By doing so, Malaysian hotels can strengthen their market position, attract environmentally conscious travellers and investors, subsequently contribute meaningfully to the country's broader development agenda. -- BERNAMA Dr Dalilawati Zainal is a senior lecturer at the Department of Accounting, Faculty of Business and Economics, Universiti Malaya.
The Star
28 minutes ago
- The Star
About 97% of goods will be taxed under expanded SST, says Dr Wee
PETALING JAYA: About 97% of goods in the market will be taxed once the expanded Sales and Services Tax (SST) comes into effect on July 1, increasing pressure on the public, according to Datuk Seri Dr Wee Ka Siong. The MCA president stated that under the new scheme, thousands of products previously exempt from SST would now be taxed. "Back in 2018, a total of 8,094 items were SST-exempted but under the expanded SST, people can only enjoy tax exemption for around 1,000 items. "The SST will apply not only to wellness and beauty products but also to traditional items such as red dates, black fungus, dried longan and snow fungus, along with basic products like butter, cheese and yogurt," he said on Thursday (June 26). In a Facebook video, Dr Wee highlighted that the SST rate had already increased from 6% to 8% on March 1, 2024. "What is more concerning about the SST is the cascading effect because it will apply to raw materials, manufacturing machinery and the end product. "This is why most business associations and guilds, from the rubber, plastics, medicine and oil palm industries to the Federation of Malaysian Manufacturers, have voiced their concerns. "Although the government seems ready to make a U-turn on the SST for imported fruits, I think it would be better for them to review or scrap it altogether or face the threat of a silent inflation wave in the coming months," said the Ayer Hitam MP. He added that it was unfortunate the expanded SST would start on July 1, coinciding with the rise of the base electricity tariff and increases in Port Klang tariffs. The Finance Ministry had announced that the reviewed and expanded SST, as stated in Budget 2025, would take effect on July 1. The measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base.
