Joint Ministerial Committee On Private Healthcare Costs Endorses Key Initiatives To Widen Healthcare Access And Choice

The Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan and Health Minister YB Datuk Seri Dr Haji Dzulkefly Ahmad, today endorsed four key initiatives to manage rising private healthcare costs.

The initiatives announced today are part of the RESET strategy, a collaborative effort by the Ministry of Finance, Ministry of Health, Bank Negara Malaysia, academia and key stakeholders from the private sector to address medical claims inflation and strengthen Malaysia's healthcare system for wider access, choice, and sustainability.

YB Datuk Seri Dr Haji Dzulkefly Ahmad stated, "RESET represents a milestone in our whole-of-nation approach. By prioritising value-based healthcare, these efforts ensure that strong health outcomes remain central to our efforts to reduce inflation and safeguard affordability. These private sector initiatives complement our public healthcare system, ensuring that quality care remains accessible to all Malaysians, regardless of setting, for the long term."

YB Senator Datuk Seri Amir Hamzah Azizan added, "The base MHIT plan is a pivotal step towards widening access to sustainable protection. However, the RESET strategy recognises that addressing medical claims inflation requires elevating the entire ecosystem—addressing protection while modernising delivery. By working together, we can make lasting change that better protects individuals and strengthens the Malaysian healthcare system."

These four initiatives include:

1. Publication of a white paper on the Base Medical and Health Insurance/Takaful (MHIT) plan: This is a standardised, affordable plan (base MHIT plan) that aims to provide meaningful coverage for individuals who desire private healthcare coverage and individuals seeking additional options due to the repricing or changes in their existing plans. It is also expected to drive improvements towards more sustainable MHIT offerings by insurers and takaful operators (ITOs) by providing a common and accessible baseline for coverage and premium pricing, as well as underwriting and claims practice;
   
   
2. Launch of consumer decision aids: To empower individuals in planning their healthcare finances, new tools are being introduced, including the MHIT Made Simple Guide and the Hospitalisation and Surgical Insurance/Takaful (HSIT) Preparedness Calculator for assessing insurance needs, navigating claims and planning personal budgets;
   
   
3. Publication of medical treatment costs: To improve market transparency, benchmark cost ranges for common medical procedures at private hospitals have been published to provide a clear reference point for treatment expenses; and
   
   
4. Tax incentives for private hospital welfare funds: Private hospitals are now eligible to apply for tax incentives to establish Welfare Funds, a move designed to encourage and fund charitable healthcare services for underprivileged patients.

The JBMKKS also expressed support for measures being taken by the Healthcare Partners Protocol & Solutions Committee (HPPSC) (formerly known as the Grievance Mechanism Committee) to establish clear claims protocols that will address disputes. Additionally, the Committee noted the progress of a World Bank study on medical inflation, scheduled for publication in February 2026.

Looking to 2026, JBMKKS is continuing measures to streamline licensing for affordable care models, revamp hospital billing for better transparency, and drive Electronic Medical Records (EMR) interoperability.

For more information about RESET and JBMKKS, visit mof.gov.my/en/reset or hq.moh.gov.my/reset_moh.

Ministry of Finance
Putrajaya
22 January 2026

Downloads:

• JBMKKS Press Release - MHIT RESET.pdf
• APPENDIX 1. INITIATIVE DETAILS.pdf

About RESET

RESET is a collaborative effort by the Ministry of Finance, Ministry of Health, Bank Negara Malaysia, and key stakeholders to address medical inflation and strengthen Malaysia's healthcare system for greater accessibility and sustainability, with a greater focus on value-based healthcare in improving patient outcomes, optimising cost-effective healthcare services and enhancing access to quality care. It encapsulates five strategic thrusts to address challenges in Malaysia's private healthcare system through 11 initiatives. The five strategic thrusts are:

• Revamp the medical and health insurance/takaful (MHIT)
• Enhance price transparency
• Strengthen digital health systems
• Expand cost-effective options
• Transform provider payment mechanism

About JBMKKS

The Joint Ministerial Committee on Private Healthcare Costs (Jawatankuasa Bersama Peringkat Menteri Mengenai Kos Penjagaan Kesihatan Swasta, JBMKKS) was established on 25 June 2025 by the Ministry of Finance (MOF) and Ministry of Health (MOH) to address rising private healthcare costs and medical inflation. Co-chaired by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan and Health Minister YB Datuk Seri Dr Haji Dzulkefly Ahmad, the Committee includes representatives from the Ministry of Finance, the Ministry of Health, and Bank Negara Malaysia. JBMKKS plays a central role in driving and monitoring initiatives under the RESET framework through continuous engagement and collaboration. To ensure comprehensive support, the Committee is guided by a Consultative Council whose members comprise key stakeholders from private hospitals, insurers and takaful operators, medical doctors, consumer groups and academia.