Joint Ministerial Committee Welcomes PAC Report and Reaffirms Coordinated RESET Strategy Efforts For More Affordable and Sustainable Private Healthcare

The Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan and Health Minister YB Datuk Seri Dr Haji Dzulkefly Ahmad, welcomes the report released by the Public Accounts Committee (PAC) on Health on tackling the recent rise in insurance premiums and private hospital charges, and recognises the importance of these issues to the broader healthcare system. The PAC's recommendations are broadly aligned with the direction of RESET Strategy and reinforce its call to accelerate reform. JBMKKS will give them careful consideration as it continues to expedite the reforms already underway.

Since the launch of the RESET Strategy, JBMKKS has sustained strong, coordinated efforts across the Ministry of Finance, Ministry of Health, Bank Negara Malaysia and key stakeholders in the healthcare and insurance ecosystem, addressing both the immediate and structural drivers of healthcare cost inflation while ensuring continued access to quality healthcare for Malaysians.

Significant progress has been made across the RESET initiatives of reforms, with the base MHIT plan set to enter its pilot implementation phase by the end of July. Other key initiatives include the phased adoption of Diagnosis-Related Group (DRG) as a provider payment mechanism, greater transparency around the prices and drivers of medical inflation, stronger data standards, and strengthened dispute resolution channels, reflecting a whole-of-nation collaboration among policymakers, regulators, payors and providers.

All parties remain committed to the timely and sustained implementation of RESET Strategy, to deliver meaningful outcomes for consumers and more affordable, sustainable private healthcare for all Malaysians. JBMKKS continues to closely monitor implementation and will provide further updates at its next meeting in July.

Ministry of Finance
Putrajaya
26 June 2026

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About RESET

RESET is a collaborative effort by the Ministry of Finance, Ministry of Health, Bank Negara Malaysia, and key stakeholders to address medical inflation and strengthen Malaysia's healthcare system for greater accessibility and sustainability, with a greater focus on value-based healthcare in improving patient outcomes, optimising cost-effective healthcare services and enhancing access to quality care. It encapsulates five strategic thrusts to address challenges in Malaysia's private healthcare system through 11 initiatives. The five strategic thrusts are:

• Revamp the medical and health insurance/takaful (MHIT)
• Enhance price transparency
• Strengthen digital health systems
• Expand cost-effective options
• Transform provider payment mechanism

About JBMKKS

The Joint Ministerial Committee on Private Healthcare Costs (Jawatankuasa Bersama Peringkat Menteri Mengenai Kos Penjagaan Kesihatan Swasta, JBMKKS) was established on 25 June 2025 by the Ministry of Finance and Ministry of Health to address rising private healthcare costs and medical inflation. Co-chaired by Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan and Health Minister YB Datuk Seri Dr Haji Dzulkefly Ahmad, the Committee includes representatives from the Ministry of Finance, the Ministry of Health, and Bank Negara Malaysia.

JBMKKS plays a central role in driving and monitoring initiatives under the RESET framework through continuous engagement and collaboration. To ensure comprehensive support, the Committee is guided by a Consultative Council whose members comprise key stakeholders from private hospitals, insurers and takaful operators, medical doctors, consumer groups and academia.