Reset Strategy

Towards More Accessible Private Healthcare

Rising healthcare cost is a major concern for Malaysians. Addressing this challenge requires commitment to work with all stakeholders to shape a private healthcare system that is sustainable, transparent, and delivers real value. At its core, this is about protecting the well-being of Malaysians and strengthening the resilience of our nation.

RESET

RESET is a whole-of-nation effort to advance reforms aimed at addressing the root causes of medical inflation. RESET emphasises value-based healthcare, focusing on overall patient outcomes, optimising cost-effective healthcare services and enhancing access to quality care.

The effort brings together key players and stakeholders which include the Ministry of Health (MOH), Ministry of Finance (MOF), Bank Negara Malaysia, insurers and takaful operators (ITOs), private hospitals and clinics, doctors, consumer groups and other stakeholders to implement various initiatives across five strategic thrusts.

Revamp MHIT

1 Develop base MHIT plan to support value-based healthcare services
2 Improve aids and tools for consumers to determine health insurance needs and options

Enhance price transparency

3 Display of retail drug prices
4 Establish a mechanism to consistently produce, monitor and publish key medical inflation measures
5 Legislative and regulatory review to strengthen oversight over private hospitals, support price transparency and DRG payments
6 Publication of price ranges for common healthcare services
7 Establish standards and mechanisms for data collection on private healthcare cost

Strengthen digital health system

8 Enhance the interoperability of Electronic Medical Records (EMR) to reduce duplication of diagnostic tests and procedures

Expand cost-effective options

9 Implementation and scaling up of Rakan KKM “Premium Economy” services
10 Incentivising expansion of affordable private healthcare providers including charitable programmes and services offered by providers

Transform provider payment mechanisms

11 Phased implementation of Diagnosis-Related Groups (DRG) to replace existing fee-for-service (FFS) provider payment mechanism

The RESET Strategy reflects a commitment to a whole-of nation response required to deal with the multi-faceted issues involved to deliver better health for all Malaysians. Initiatives under the RESET Strategy work in tandem with other reforms to reform and strengthen healthcare in Malaysia. These include the health reforms spelled out in the Ministry of Health’s Health White Paper for Malaysia.

The Joint Ministerial Committee on Private Healthcare Costs (JBMKKS)

Recognising that addressing rising private healthcare costs and medical inflation requires a whole-of-nation approach, an inter-agency committee has been established to drive RESET initiatives.

This collaborative effort is led by the Joint Ministerial Committee on Private Healthcare Costs (Jawatankuasa Bersama Peringkat Menteri Mengenai Kos Penjagaan Kesihatan Swasta, JBMKKS), formed in June 2025. It comprises representatives from the MOF, MOH and BNM. The Committee is co-chaired by the Minister of Finance II, YB Senator Datuk Seri Amir Hamzah Azizan, and the Minister of Health, YB Datuk Seri Dr. Haji Dzulkefly Ahmad.

YB Senator Datuk Seri Amir Hamzah Azizan
Minister of Finance II

YB Senator Datuk Seri Amir Hamzah Azizan
Minister of Finance II

YB Datuk Seri Dr. Haji Dzulkefly bin Ahmad
Minister of Health

YB Datuk Seri Dr. Haji Dzulkefly bin Ahmad
Minister of Health

To support its mandate, the JBMKKS is assisted by a Steering Committee and a Consultative Council. The Steering Committee is made up of representatives from MOF, MOH and BNM to coordinate policy direction and implementation, while the Consultative Council brings together key stakeholders, including private hospitals, medical professionals, insurers and takaful operators, consumer groups and academia to provide technical input and feedback.

Consultative Council represented by:

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