KUALA LUMPUR (June 10): Selected takaful operators are on track for the pilot implementation of the medical and health insurance and takaful (MHIT) base plan on July 1, despite a tight implementation timeline, said the Malaysian Takaful Association (MTA).

The “invited and selected” players are committed towards the roll-out of the initiative, which aims to provide Malaysians with more accessible and appropriate healthcare protection products, said MTA interim chairman Borhanudin Samsudin.

“Although the timeline is very stiff, the industry is working hard to ensure this national agenda is delivered,” Borhanudin said during a media briefing on Wednesday after releasing the MTA’s earnings performance. “We have to be ready by then.”

Borhanudin declined to identify the participating operators as he disclosed that the selection process falls under the purview of Bank Negara Malaysia (BNM). According to him, all insurance and takaful operators were invited to submit expressions of interest to participate in the pilot programme.

The pilot programme forms part of the central bank’s broader RESET initiative, which seeks to improve the long-term sustainability and affordability of private medical and health insurance and takaful products amid rising healthcare costs and medical inflation.

The MHIT reform comes at a time when insurers and takaful operators are grappling with rising medical claims costs and healthcare inflation, which have led to significant premium and contribution adjustments across the industry over the past two years.

BNM is expected to provide further guidance during an industry town hall session scheduled for next week, including clarification on how the pilot phase will be conducted between July and December before the nationwide roll-out early next year, according to MTA chief executive officer Mohd Radzuan Mohamed. 

According to Mohd Radzuan, public perception of the initiative remains limited due to the lack of detailed information available. “Any perception formed now may not be accurate because information is still limited, both for the public and for the industry. Only those directly involved in the discussions with BNM have visibility on the details,” he said.

The persistent increases in both medical insurance and takaful premiums would not be healthy for the industry in the long run, he added. “The industry needs volume and broader participation, not just higher contributions from individual policyholders,” he said.

He said the association will continue to work closely with regulators and other stakeholders to support the long-term sustainability and affordability of private medical and health coverage.

“This is a complex issue that requires concerted action across the entire healthcare ecosystem,” Borhanudin said. He noted that while interim measures have already been introduced to curb the medical hikes, lasting improvements will require broader structural reforms to address the underlying drivers of medical inflation.

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