Latest news with #GEAR-uP
Daily Express
a day ago
- Health
- Daily Express
Medical insurance first product under diagnosis pricing system, says Dzulkefly
Published on: Monday, June 09, 2025 Published on: Mon, Jun 09, 2025 By: Tan Chin Tung, FMT Text Size: Health minister Dzulkefly Ahmad said 78 health clinics have adopted the cloud-based clinic management system, with another 90 set to come on board later this year. (Bernama pic) Kuala Lumpur: Health minister Dzulkefly Ahmad says the government's introduction of a basic medical and health insurance and takaful (MHIT) product marks the first step in the phased implementation of a diagnosis-related group (DRG) pricing system. Speaking at the launch of the APHM International Healthcare Conference & Exhibition 2025 here today, he said the product would broaden private sector financing options and steer private healthcare towards a value-based healthcare model. Advertisement 'We are also exploring a more diversified health financing ecosystem that will combine tax-based allocations, social contributions, employer-based schemes, and targeted subsidies under a progressive and equitable framework,' he said. In March, deputy prime minister Ahmad Zahid Hamidi said the finance ministry, Bank Negara Malaysia, and the EPF would develop MHIT products in view of the rising medical costs. He said the initiative was part of the national health sector reform effort to ensure access to more sustainable medical treatment. Dzulkefly said the DRG pricing system – which standardises the costs for certain groups of patients according to their ailments and encourages cost containment initiatives – would be a key driver for value-based healthcare, with fairer rules for those with pre-existing conditions in the context of an ageing nation where the prevalence of non-communicable diseases is high. Advertisement 'Diagnosis-related groups incentivise efficiency. 'We expect this to drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate strong cost-effectiveness in improving health outcomes and reducing total costs,' he said. Dzulkefly said the system is expected to be rolled out before the end of 2025. 'We will start with simpler groups under DRG that are easier to manage. From there, we will build momentum and move on to more complex groups. 'With the cooperation of APHM, the finance ministry and other stakeholders, I am confident we can implement the initial phase by the end of this year and continue building from there,' he told reporters later. Separately, he said a joint ministerial committee would coordinate health-focused initiatives under GEAR-uP, which will see six GLICs invest RM120 billion in 'high growth, high value' industries over five years to stimulate domestic economic growth. 'This is expected to drive further investments into the health sector, particularly in the spectrum of healthcare providers, not limited to large multi-speciality tertiary hospitals,' he said. Dzulkefly also said that 78 health clinics had adopted the cloud-based clinic management system, with another 90 set to come on board later this year. He said the clinics saw more than 70% of patients receiving treatment in under 30 minutes, 20% attended to within 30 to 60 minutes, and 10% attended to within 90 minutes. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malaysian Reserve
a day ago
- Health
- Malaysian Reserve
Govt rolls out MHIT to boost health financing options
by AKMAR ANNUAR MALAYSIA'S move toward a diagnosis-related group (DRG) pricing model in private healthcare has begun with the rollout of a new Medical and Health Insurance and Takaful (MHIT) product, said Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said the initiative, developed in collaboration with the Ministry of Finance, Bank Negara Malaysia and the Employees Provident Fund (EPF), aims to widen private sector financing avenues and strengthen the foundation for value-based healthcare in the country. 'This marks a crucial step in establishing fairer rules for individuals with pre-existing conditions,' he said at the opening of the APHM International Healthcare Conference & Exhibition 2025 in Kuala Lumpur recently. The MHIT product is part of broader national health reforms addressing long-standing challenges of affordability and sustainability in private healthcare, particularly against the backdrop of Malaysia's ageing population and rising burden of non-communicable diseases (NCDs). Dr Dzulkefly explained that the DRG pricing framework—designed to reimburse healthcare providers based on the diagnosis and treatment provided rather than the volume of services—will promote more efficient, cost-effective care delivery. Additionally, he said the diagnosis-related group (DRG) system encourages efficiency by rewarding healthcare providers based on the quality and appropriateness of care rather than the volume of services provided. Plus this approach, he added, is expected to stimulate innovation in outpatient and day-case surgical procedures, while also promoting the adoption of cost-effective medical technologies that can improve patient outcomes and lower overall healthcare expenditure. Beyond insurance reform, the government is also re-evaluating the country's health financing ecosystem to make it more inclusive and resilient. This includes integrating tax-based funding, social health contributions, employer-backed schemes and targeted subsidies into a more progressive structure. In line with this, the government has introduced the Generative Economy Action Roadmap for Upward Progress (GEAR-uP), which brings together six government-linked investment companies (GLICs) to invest RM120 billion in high-growth, high-value sectors over five years. Dr Dzulkefly said a joint ministerial committee will oversee GEAR-uP's health-focused investments, which are expected to stimulate growth beyond traditional tertiary care providers. 'This is expected to drive further investments into the health sector, particularly in the spectrum of healthcare providers, not limited to large multi-specialty tertiary hospitals,' he said. Meanwhile, progress has also been made in digitalising public primary care facilities. To date, 78 health clinics have adopted a cloud-based clinic management system, with an additional 90 set to implement the platform by year-end. The digital shift has already shown measurable impact: Over 70% of patients are now receiving treatment within 30 minutes, while only 10% face wait times of more than 90 minutes. The introduction of MHIT and the gradual shift toward DRG-based pricing underscore the government's intent to reshape Malaysia's healthcare delivery and financing landscape — aiming to make it more equitable, efficient and responsive to emerging health challenges.
The Star
a day ago
- Health
- The Star
Health Ministry aims to introduce DRG by end of 2025
KUALA LUMPUR: The Health Ministry hopes to implement the diagnosis-related group (DRG) payment model by the end of the year, says Minister Datuk Seri Dr Dzulkefly Ahmad. Dr Dzulkefly stated that the proposed DRG scheme could start with a simple mechanism in its initial phase. "Start with something simple, and after momentum is developed, move to a more complex system. "I am confident we can start this," said Dr Dzulkefly after attending the opening ceremony of the 31st Association of Private Hospitals Malaysia (APHM) conference at the KL Convention Centre on Monday (June 9). Dr Dzulkefly noted that Malaysia, particularly the APHM and the Finance Ministry, has experience in implementing the DRG. "I am confident we will implement this by year's end," he added. Dr Dzulkefly was responding to reports that the government postponed the DRG systems for private hospitals. DRG is a payment system involving a predetermined amount decided by the group's payment model rather than paying for each service received. Countries like Sweden, Canada, and Australia have implemented this system. He responded to reports claiming the government's plans for the DRG system at private hospitals are on hold. It was reported that the DRG would focus on simpler medical cases initially. Earlier, during his opening speech, Dr Dzulkefly said introducing DRGs to pay for healthcare services, starting with base medical and health insurance/takaful (MHIT) products, will drive value-based healthcare. "DRGs incentivise efficiency, which we expect will drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate strong cost-effectiveness in improving health outcomes while reducing total costs." Meanwhile, Dr Dzulkefly said the Finance Ministry's GEAR-uP initiative will drive further investments in the health sector. "These initiatives will be coordinated by a Joint Ministerial Committee, which will be announced shortly. "I believe many in this room are well aware of this upcoming initiative," added Dr Dzulkefly.
The Star
7 days ago
- Business
- The Star
EPF registers investment income of RM18.31bil in 1Q
KUALA LUMPUR: The Employees Provident Fund (EPF) recorded an investment income of RM18.31bil in the first quarter ended March 31, 2025 (1Q25), a weaker performance from a year ago as equities contribution fell amid softer global equity markets. The pension fund said its quarterly income - which was 13% lower than RM20.99bil in the corresponding period in 2024 - was cushioned by its diversified global portfolio. It added that its portfolio remained on course for long-term value creation. "In a more challenging and uncertain market environment, the EPF maintains a dynamic and well-diversified portfolio to help safeguard value and manage downside risks. "We continue to actively explore investment opportunities across both domestic and international markets to strengthen our portfolio and support long-term, sustainable returns for our members,' said CEO Ahmad Zulqarnain Onn. Moving forward, the EPF expects global economic conditions to remain challenging amid persistent geopolitical tensions and the risk of high tariff and non-tariff barriers between major economies, particularly the US and China. "While some central banks have begun to ease monetary policy, concerns over global political instability, fiscal imbalances, and regional conflicts continue to dampen market sentiment and undermine investor confidence." The EPF's total investment assets stood at RM1.26 trillion as at March 2025. Of these, 38% was invested internationally. As for domestic investments, the EPF said they accounted for 62% of total assets, providing long-term income stability through dividends, interests and profits from sukuk. "The EPF remains committed to supporting Malaysia's economic growth by continuing to invest over 70% of its annual allocation in the domestic market. "This reflects its role as a long-term investor and aligns with the Government's Ekonomi MADANI framework," it said. It added that it is focused on building investment opportunities in the healthcare sector via the GEAR-uP initiative, which aims to capture long-term growth, address critical system gaps and support healthier retirement for Malaysians. By asset class, equities - the highest contributor to the EPF's income - fell 23% year-on-year (y-o-y) in 1QFY25 to RM10.81bil due to weaker performance across global equity markets and a challenging investment climate. However, fixed income continued to anchor capital preservation with a RM5.99bil contribution, representing 33% of total investment income. "Fixed income, comprising Malaysian Government Securities and Equivalents, Loans and Bonds, continues to fulfil its dual mandate of delivering stable returns and as a counterbalance to equity market fluctuations. This underscores its strategic importance in safeguarding members' savings across market cycles," said the EPF. The real estate and infrastructure segment recorded an income of RM1.08bil during the quarter under review, while money market instruments generated RM430mil, in line with return expectations. Of the total investment income, RM15.87 bil was generated for Simpanan Konvensional, and RM2.44bil for Simpanan Shariah.
The Star
02-05-2025
- Business
- The Star
GLICs roll out living wage policy for M'sian staff
KUALA LUMPUR: Government-linked investment companies (GLICs) have collectively implemented a living wage policy, which ensures that all permanent Malaysian employees now earn above the monthly living wage threshold. The GLICs that have met this commitment include Khazanah Nasional Bhd, Permodalan Nasional Bhd, the Employees Provident Fund, Kumpulan Wang Persaraan (Diperbadankan), Lembaga Tabung Angkatan Tentera and Lembaga Tabung Haji. In a joint statement issued by the six GLICs yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan (pic) said the collective move by the GLICs to implement a living wage was an important step to 'raise the floor', ensuring that growth was both inclusive and firmly rooted in the well-being of Malaysians. 'The living wage implementation forms part of the GEAR-uP initiative led by the Finance Ministry that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia, with the dual objectives of 'raising the ceiling' and 'raising the floor'. 'The benchmark living wage has been set at about RM3,100 monthly, which is higher than the RM1,700 monthly minimum wage announced in Budget 2025 and implemented on Feb 1, 2025,' according to the statement, Bernama reported. It said this figure is based on a comparative analysis of industry wages and cost of living standards as outlined in the Belanjawanku 2024/2025 Expenditure Guide. 'The Belanjawanku Expenditure Guide, which was jointly developed by EPF and the Social Wellbeing Research Centre, Universiti Malaya, provides estimates of minimum monthly expenses needed for a good standard of living,' the statement said. 'The living wage approach empowers employers to offer total compensation that goes beyond base salary, encompassing a range of benefits that enhance an individual's quality of life, including healthcare, retirement plans and savings mechanisms.'
