The Life Insurance Association of Malaysia (LIAM) has welcomed the government's plan to subsidise the first-year MediAsas premium by MYR200 ($49) per employee at eligible small and medium-sized enterprises (SME).
The proposal being considered under the Budget for 2027, will apply to SMEs with fewer than 75 employees, capped at 50 employees per company. The initiative is expected to benefit up to 200,000 workers and the initiative could widen access to basic healthcare.
LIAM CEO Mark O’Dell said the subsidy could help ease the financial burden on smaller businesses while encouraging wider access to medical coverage.
“We welcome the government’s initiative to introduce MediAsas as part of its efforts to improve access to affordable basic medical protection.
“The provision of a first-year premium subsidy for eligible SME employees is particularly encouraging, as it could help more workers obtain medical coverage and provide greater peace of mind for themselves and their families,” Mr O’Dell said in a statement.
He said access to medical protection is an important part of financial preparedness. “Initiatives such as MediAsas can help more Malaysians take their first step towards managing the financial risks associated with hospitalisation and medical treatment.”
The government will launch MediAsas in January 2027 as part of efforts to make basic medical protection more affordable and improve cost predictability in private healthcare. Under the plan, hospital charges will be based on diagnosis and treatment categories to help control costs.