Kuala lumpur: The Life Insurance Association of Malaysia (LIAM) is calling for higher combined tax relief for education, medical, and health insurance, raising the limit from RM4,000 to RM6,000 under the upcoming Budget 2026. In a statement today, its chief executive, Mark O’Dell, said that taxpayers currently enjoy a maximum of RM4,000 tax relief on premiums paid for medical and education insurance combined.

According to BERNAMA News Agency, the statement was issued in conjunction with the tabling of Budget 2026 by the Prime Minister and Minister of Finance, Datuk Seri Anwar Ibrahim, scheduled for Friday, Oct 10, 2025. O’Dell emphasized that the current amount is insufficient for many families, as medical insurance for an average family of two adults and three children costs more than RM3,000 per annum at the lower end. This leaves little room for savings on education policy premiums for children.

O’Dell highlighted the importance of increasing tax relief for health insurance plans to RM6,000 to help ease the financial burden of rising medical costs on families and to encourage taxpayers to invest in long-term healthcare planning. He also proposed a waiver of the eight per cent service tax on group employee insurance schemes to encourage more employers to provide group insurance benefits, especially for employees who cannot purchase personal coverage.

The chief executive noted that this initiative would help reduce business operating costs, particularly for small and medium-sized enterprises, incentivizing them to maintain employee insurance coverage. It would also ease pressure on the public healthcare system, as insured employees often seek treatment in private healthcare facilities.

O’Dell stated that the proposed tax exemption would greatly benefit workers, employers, and the national economy, contributing to increased insurance coverage rates among Malaysians. He argued that adopting these proposals under Budget 2026 would enhance financial inclusion, improve penetration rates, and contribute to a more sustainable and resilient economy for Malaysia.

He concluded that the proposals aim to strengthen financial inclusion and raise awareness of the importance of financial protection among Malaysians, focusing on enhancing healthcare coverage and well-being, encouraging proactive financial planning, and expanding insurance protection for the general public and employees across the country.