Malaysia to launch MediAsas medical insurance in January 2027

Prime Minister Anwar Ibrahim has announced the launch of MediAsas, a government-designed basic medical insurance and takaful plan, scheduled for January 2027. Under Budget 2027, the government will provide RM200 in first-year premium subsidies for up to 200,000 workers employed by small and medium enterprises (SMEs) with fewer than 75 employees. This subsidy is capped at 50 workers per company.

The MediAsas plan aims to make medical costs more predictable by utilizing a diagnosis-related groups (DRG) system, which standardizes hospital charges based on diagnosis and treatment types. To facilitate payments, Employees Provident Fund (EPF) contributors under the age of 55 will be permitted to use their Sejahtera Account savings to cover premiums.

In addition to the insurance rollout, the government plans to expand electronic medical record systems under a ‘one individual, one record’ principle to increase transparency in private medical services. Furthermore, the Medical Assistance Fund allocation is set to increase from RM40 million to RM60 million to support underprivileged citizens.