Kuala Lumpur: Bank Negara Malaysia (BNM) and the government are working on implementing the RESET initiative to address the high medical inflation in Malaysia. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the initiative is a joint commitment undertaken with the Ministry of Health and the Ministry of Finance (MOF) aimed at revamping medical and health insurance and takaful.

According to BERNAMA News Agency, the RESET initiative would also serve to enhance price transparency, strengthen digital health systems, expand cost-effective care options, and transform provider payment mechanisms. Abdul Rasheed emphasized the importance of involving all stakeholders for building a more accessible and resilient healthcare system.

Abdul Rasheed added that more details on RESET and broader healthcare reforms will be discussed in the panel session entitled ‘Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation’, scheduled for tomorrow. The session will include Abdul Rasheed, Health Minister Datuk Seri Dr Dzulkefli Ahmad, Treasury secretary-general Datuk Johan Mahmood Merican, and World Bank senior economist Aakash Mohpal.

Furthermore, Abdul Rasheed highlighted the need for a whole-of-nation approach to structural reforms, particularly in healthcare, where coordinated efforts are required to manage rising medical inflation. He noted that open discourse is crucial for gathering ideas to help Malaysia respond effectively to economic uncertainties while continuing structural reforms.

The central bank governor also mentioned that Malaysia is approaching the current economic environment from a position of strength, with indicators such as the manufacturing industrial production index (IPI), services, exports, and wages pointing towards resilient economic growth.