Malaysia's MediAsas basic health cover launches in January 2027; final premiums not yet announced

A basic health plan launches in January 2027, but its final premiums are still to be announced. In a statement on the 2027 Budget (Belanjawan 2027) on 9 October 2026, Bank Negara Malaysia (BNM) said MediAsas will be rolled out to the public in January 2027.

BNM said MediAsas covers voluntary medical and health insurance/takaful (MHIT) plans, and placed the measures under its RESET strategy, which aims to improve the public's financial preparedness for healthcare costs. The statement does not give any specific premium amounts.

Four arrangements announced so far

• Launch: BNM's statement says MediAsas will be rolled out to the public in January 2027.
• Payment: According to the national news agency Bernama, as carried by The Star, Employees Provident Fund (EPF) members under 55 can use savings in their Akaun Sejahtera account to pay premiums. BNM's statement does not mention this arrangement.
• Tax: BNM says premiums or contributions for voluntary MHIT plans qualify for personal income tax relief, covering protection bought for the individual and immediate family members. The cap on the relief and its conditions are not set out in the available material.
• SMEs: BNM has allocated RM40 million for MediAsas vouchers aimed at employees of small and medium-sized enterprises (SMEs) with fewer than 75 staff, targeting people with limited or no medical cover. Bernama separately reports that the government will subsidise RM200 of the first-year premium for each employee of such firms, capped at 50 employees per company, and expects up to 200,000 people to benefit. The available sources do not say whether the two are the same scheme.

Two options, cover extending to age 85

According to The Star, citing Bernama, MediAsas is a standalone medical insurance and takaful product with two options, MediAsas Teras (standard) and MediAsas Fleksi (enhanced standard), with cover extending to age 85.

Bernama also reports that the plan's hospital charges will be set by diagnosis and treatment category, and that private hospital bills will use standardised, transparent charge categories from 2027.

The Life Insurance Association of Malaysia (LIAM) said it welcomed the RM200 subsidy. Its chief executive, Mark O'Dell, said MediAsas can help more Malaysians take a first step towards managing the financial risk of hospitalisation and treatment. LIAM said it will work with BNM, government agencies and participating insurers on implementation and outreach.

Premiums remain the biggest unknown

The financial website RinggitPlus said that, at the time of its report, MediAsas premium amounts had not been announced.

The Star reported on 10 October 2026 that the think-tank Insap said MediAsas premiums are currently only indicative. It called on the authorities to announce final premiums, and transitional arrangements for existing policyholders, by 31 December. Insap also argued that paying premiums from the EPF should remain voluntary and be capped, because it would shift healthcare costs onto retirement savings.

Insap also noted that a transitional measure requiring insurers to spread medical premium increases over at least three years expires on 31 December, and that the 2027 Budget does not say what happens afterwards.

Analysis: what it means for recruiting teams

The following is editorial analysis and contains no new facts.

Product positioning: MediAsas is called "basic", comes in standard and enhanced standard tiers, and has both insurance and takaful versions. For advisers, it is more likely to be an entry-level cover for many clients than a replacement for more comprehensive medical plans. Teams should first work out how to explain the difference to clients, so that the conversation does not turn into a price comparison.

Client communication: Final premiums are not set, the EPF payment arrangement appears only in media reports, and the details of the tax relief are not specified. Before January 2027, the safest approach when discussing MediAsas is to cite only what has been officially announced, and to give no quotes and make no promises. Clients with existing medical policies may ask whether they should switch; with transitional arrangements still to be announced, advisers should not make that judgement for them.

SME market: The subsidy targets firms with fewer than 75 employees, which is worth watching for teams that serve group clients. However, eligibility rules and application procedures are not in the available sources, so for now it is better to build a prospect list and follow up once the details are published.

Training new recruits: Teams can build MediAsas's basic structure, the MHIT tax relief and private hospital charge categories into their courses, and train new recruits to keep "announced" and "yet to be announced" clearly apart. The real test will come on the day premiums are published; until then, advisers who can set out clearly what is known and what is not are the most likely to win client trust.

Compiled by the F50 Editorial Team from public sources, for general reference only and not professional advice. Details are correct as of the publication date and may change.