Bank Negara Malaysia plans to set up an independent governance framework to continuously review the affordability and design of MediAsas, the country’s new base medical and health insurance and takaful product, as healthcare costs continue to rise. The announcement came from BNM Deputy Governor Aznan Abdul Aziz during a panel session at the Sasana Symposium 2026, days after MediAsas entered its pilot phase in the Klang Valley.
Key Facts At A Glance
- MediAsas is the brand name for Malaysia’s Base Medical and Health Insurance and Takaful (MHIT) Plan
- The pilot phase launched in the Klang Valley at the end of July 2026 and runs through October
- Nationwide public launch is scheduled for January 2027
- Basic plan premiums are expected to start around RM65 per month
- The product will offer coverage for individuals up to age 85
- An independent board with representatives across the healthcare and insurance ecosystem will oversee ongoing reviews of features and affordability
- MediAsas falls under the RESET framework led by the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS)
- The pilot tests enrolment, underwriting, claims, guarantee letter issuance, and appointment booking
A Response To Rising Medical Inflation
MediAsas was designed to address mounting pressure on private medical insurance and takaful premiums in Malaysia, where healthcare costs have climbed steadily in recent years. Aznan said the product cannot remain static once it launches, noting that medical inflation will keep evolving and the plan will need to adapt alongside it. To manage this, BNM intends to formalise a governance structure that reviews MediAsas on an ongoing basis rather than treating its initial design as final.
The proposed board will draw representatives from across the healthcare and insurance ecosystem, including regulators, insurers, takaful operators, and healthcare providers, so that multiple stakeholder perspectives inform future adjustments to the product. This follows earlier commitments from the Ministry of Finance and JBMKKS, which first flagged plans for an independent oversight body when MediAsas was unveiled in July.
Product Design Prioritises Essential Coverage
MediAsas was built around three principles: affordability, meaningful coverage, and long-term sustainability. Rather than offering high coverage limits that few policyholders use, the product is structured to provide essential protection while containing premium costs. Officials have pointed to this trimmed-down design as a deliberate contrast to some existing private medical plans that carry higher coverage ceilings and correspondingly higher premiums.
The pilot phase, which began in the Klang Valley at the end of July, is testing core operational functions including enrolment, underwriting, claims processing, guarantee letter issuance, and appointment booking. Results from the pilot are expected to inform refinements ahead of the planned nationwide rollout in January 2027.
Part Of A Broader Healthcare Reform Push
MediAsas sits within the RESET framework, a joint initiative involving the Ministry of Finance, the Ministry of Health, and Bank Negara Malaysia aimed at addressing medical cost inflation. The framework also includes efforts around price transparency in private healthcare billing, digital health record interoperability, and a review of private healthcare licensing rules. The governance board planned for MediAsas is intended to operate alongside these parallel reforms rather than as a standalone measure.