Malaysia plans to launch a basic Medical and Health Insurance/Takaful (MHIT) product by end-2026, ensuring affordability and long-term sustainability. Buying will be voluntary, with EPF Account 2 savings likely allowed via the i-Lindung facility once the policy design is finalised.
The Malaysian government is working on developing a basic Medical and Health Insurance/Takaful (MHIT) product, targeted for completion by December 2025 and implementation by the end of 2026. According to the Ministry of Finance (MoF), the product’s structure and design are still being finalized, with ongoing stakeholder consultations to ensure affordability and long-term sustainability remain core principles.
The clarification came in response to a parliamentary question from Rtd. Navy Commander Nordin Ahmad Ismail (PN-Lumut), who asked whether the government would allow the public to use their Employees Provident Fund (EPF) Account 2 savings to finance health insurance, as well as how such a move could ease medical expenses.
The MoF explained that the government, together with Bank Negara Malaysia and the Ministry of Health, has introduced the RESET strategy, a framework designed to address rising medical costs and challenges in private insurance. One of RESET’s key pillars is the development of the basic MHIT product, aimed at providing more sustainable and stable long-term premiums for Malaysians.
The ministry stressed that purchasing the product will be voluntary. Once the MHIT design is finalized, the EPF may enhance its i-Lindung facility to allow Account 2 withdrawals for purchasing the product in the future.
