Kuala lumpur: Bank Negara Malaysia’s (BNM) proposed basic medical and health insurance/takaful (MHIT) product is nearing completion and is set to enter a pilot phase next year. This initiative is part of a broader strategy to mitigate the impact of medical inflation and escalating insurance premiums.

According to BERNAMA News Agency, BNM’s RESET strategy, which stands for Revamp, Enhance, Strengthen, Expand, and Transform, aims to tackle the rising costs of medical care and reform Malaysia’s private healthcare system. BNM governor Datuk Seri Abdul Rasheed Ghaffour Abdul Rasheed announced that the central bank has implemented interim measures for MHIT products. These measures include a cap on annual premium adjustments, limiting them to less than 10 percent for most policyholders through the end of next year.

Datuk Seri Abdul Rasheed emphasized the effectiveness of the current measures, stating, “So far, we have seen this working very well. And this repricing cap of 10 percent has covered 90 percent of insurance premiums.” He made these remarks during a joint press conference coinciding with the announcement of the third-quarter Gross Domestic Product (3Q2025).

The RESET strategy is focused on revamping MHIT products, enhancing transparency within the sector, reinforcing the e-commerce system, expanding affordable options, and transforming Malaysia’s payment mechanisms.

According to MBSB Research, medical inflation is projected to surge by 16 percent next year, attributed to the ongoing brain drain of healthcare professionals and the rising costs of pharmaceuticals. Malaysia is experiencing a significant outflow of doctors, nurses, and specialists seeking better pay in overseas markets.