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THE Ministry of Finance (MOF) and the Ministry of Health (MOH) have jointly established the Ministerial Joint Committee on Private Healthcare Costs (Jawatankuasa Bersama Peringkat Menteri Kos Penjagaan Kesihatan Swasta, or JBMKKS) to address the growing burden of private medical expenses and rising medical inflation in Malaysia.
In a joint statement, both ministries announced that the newly formed JBMKKS convened its inaugural meeting on Wednesday.
The committee will coordinate a whole-of-government and stakeholder approach to healthcare cost reform, anchored in principles of value-based healthcare.
The committee is co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, with membership comprising representatives from MOF, MOH and Bank Negara Malaysia (BNM).
It will be supported by a dedicated Consultative Council comprising key stakeholders from the private healthcare ecosystem, including private hospitals, medical professionals, insurers and takaful operators, consumer advocacy groups, and academia.
“The rising cost of healthcare is a pressing concern for all Malaysians—and the MADANI Government is taking proactive steps to address it,” said Senator Datuk Seri Amir Hamzah.
“This joint committee reflects our commitment to work with all stakeholders to shape a private healthcare system that is sustainable, transparent, and truly value-driven. At its core, this is about safeguarding the well-being of Malaysians and strengthening national resilience.”
JBMKKS builds on prior measures such as BNM’s implementation of medical insurance co-payment requirements, interim steps to ease the impact of premium adjustments for policyholders from 2024 to 2026, and the strategic RESET framework to manage medical inflation.
RESET, endorsed by MOF, MOH, BNM, and industry stakeholders, comprises five strategic pillars: restructuring Medical and Health Insurance/Takaful (MHIT), enhancing price transparency, strengthening the digital health ecosystem, expanding cost-effective care options, and reforming provider payment mechanisms.
Looking ahead, JBMKKS will serve as the central platform for guiding and monitoring the implementation of RESET initiatives.
Priority workstreams are already under way, including the development of a basic MHIT product that balances affordability and sustainability, phased implementation of a Diagnosis-Related Group (DRG)-based payment model, and efforts to enhance price transparency.
For existing policyholders, these initiatives are designed to ensure greater clarity on healthcare costs and to offer more affordable options. The committee will also continue efforts to expand access to private healthcare through strengthened primary care and continuity of care, building upon earlier measures such as the KKM Partnership Initiative.
“This jointly developed RESET framework also supports MOH’s ongoing and upcoming efforts to strengthen Malaysia’s healthcare system for all,” said Datuk Seri Dr Dzulkefly.
“The framework reflects a broad commitment to implement value-based care that prioritises health outcomes, including phased DRG implementation and expanding affordable care options for the people. Such initiatives will bring tangible benefits to all Malaysians by easing congestion in public hospitals and clinics,” he added.
The success of RESET will depend heavily on multi-stakeholder collaboration, the committee acknowledged.
As such, the Consultative Council plays a vital role in reinforcing the MADANI Government’s commitment to creating a platform where key industry players can collaborate and contribute their expertise towards the shared goal of accessible, affordable and sustainable private healthcare for all Malaysians. - June 25, 2025
