LIAM welcomes the first-year subsidy for eligible SME employees under Budget 2027.
Malaysia will subsidise the first-year MediAsas medical insurance premiums of eligible small- and medium-sized enterprise (SME) employees by $49 (RM200) each, with the initiative expected to benefit up to 200,000 workers under Budget 2027.
The subsidy will cover up to 50 employees per eligible SME ahead of MediAsas’ planned nationwide launch in January 2027, easing the financial burden on smaller businesses whilst encouraging wider access to medical protection.
“Access to medical protection is an important part of financial preparedness,” said Mark O’Dell, chief executive officer of the Life Insurance Association of Malaysia (LIAM). “Initiatives such as MediAsas can help more Malaysians take their first step towards managing the financial risks associated with hospitalisation and medical treatment.”
MediAsas is designed for individuals without medical insurance or takaful coverage for major medical expenses who can afford basic private healthcare protection.
It also targets those seeking a more affordable alternative as their existing medical and health insurance/takaful premiums increase with age.
The standalone medical insurance and takaful product will offer two options: MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan.
Both will provide coverage for individuals up to 85 years old. Hospital payments will be based on diagnosis and treatment to improve cost control and predictability.
Eligible Employees Provident Fund members below 55 years old can also pay MediAsas premiums through Akaun Sejahtera, providing an additional payment option for those seeking basic medical coverage.
LIAM said it would work with Bank Negara Malaysia, relevant government agencies and participating insurers to support the plan’s introduction and raise public awareness of its benefits, coverage, eligibility requirements, and limitations.
(US$1 = RM4.08)