Health

Putrajaya speeds up 'RESET' strategy to make private healthcare more affordable

Ministerial Committee reaffirms its commitment to accelerate reforms under the RESET strategy aimed at making private healthcare more affordable, transparent and sustainable

Updated 3 months ago · Published on 26 Jun 2026 5:36PM

Putrajaya speeds up 'RESET' strategy to make private healthcare more affordable
The Government accelerates private healthcare reform under a new strategy following PAC findings on rising medical costs - June 26, 2026

THE Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) has acknowledged the findings of the Public Accounts Committee (PAC) on rising private hospital charges and medical insurance premiums, while reaffirming its commitment to accelerate structural reforms under the national RESET healthcare strategy.

The committee, co-chaired by Minister of Finance II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, said the PAC’s recommendations are broadly aligned with the direction of the RESET framework and underscore the urgency of implementing ongoing reforms.

The committee said it recognises the significance of rising healthcare costs to the long-term sustainability of Malaysia’s health system and will carefully review all recommendations made by the PAC to strengthen and expedite reform measures already underway.

In a statement released by the Finance Ministry (MOF) on Friday, the committee said coordinated efforts have been undertaken across the MOF, Ministry of Health (MOH), Bank Negara Malaysia and key stakeholders in the healthcare and insurance ecosystem to address both short-term and structural drivers of medical inflation.

“These initiatives reflect a strong commitment and close collaboration between policymakers, regulators, payers and healthcare providers in advancing national healthcare reform.”

A key development includes the launch of the Malaysia Health Insurance and Takaful (MHIT) base plan which is expected to enter a pilot implementation phase by the end of July.

It also noted ongoing phased implementation of several major reforms, including the adoption of Diagnosis-Related Group (DRG) systems for provider payments, improved transparency in pricing and medical inflation drivers, strengthened data standards and enhanced dispute resolution mechanisms.

JBMKKS said these measures are intended to ensure Malaysians continue to have access to high-quality private healthcare services that are both affordable and sustainable.

The committee reiterated its commitment to ensuring the RESET strategy remains on track and delivers tangible outcomes for the public, adding that progress will be closely monitored and updated following its next scheduled meeting in July.

“The ultimate goal of these efforts is to make private healthcare more transparent, affordable and sustainable for the benefit of all Malaysians,” it said.

The ministerial committee was established on June 25, 2025, by the MOF and MOH to address rising private healthcare costs and medical inflation.

The committee is supported by a consultative council comprising stakeholders from private hospitals, insurance and takaful operators, medical practitioners, consumer groups and academics, ensuring a broad-based approach to healthcare reform. - June 26, 2026

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