KUALA LUMPUR (Oct 10, 2025) – Bank Negara Malaysia (BNM) has announced a one-year delay in the launch of the basic Medical and Health Takaful insurance product, which is now scheduled for rollout in 2027 instead of 2026. This insurance product is designed to support the country’s fixed-fee, diagnosis-based hospital payment system known as Diagnosis-Related Groups (DRG). BNM confirmed that the product’s design is expected to be completed by the end of 2025.
This announcement comes after Deputy Health Minister Lukanisman Awang Sauni stated in August 2025 that the product would be introduced in 2026. However, both the insurance scheme and the DRG system have now been rescheduled to launch together in 2027.
Originally, the DRG system was expected to be rolled out by mid-2025. The delay provides additional time to build the necessary systems, finalise cost models, integrate hospital data, and conduct comprehensive pilot testing to ensure a smooth and effective implementation.
To support these health reforms, the government and industry stakeholders have allocated RM60 million. This funding will go towards the development and implementation of DRG and the associated takaful product, both seen as key steps in improving the accessibility and sustainability of healthcare in Malaysia.
In a related announcement, BNM also revealed an additional RM35 million in matching grants for the iTEKAD social finance programme. The enhanced programme will now place a stronger focus on creating employment opportunities for vulnerable groups, helping them achieve greater financial stability. The matching funds will be supported through donations, zakat, and cash waqf, with more detailed information to be announced in the coming months.
These initiatives highlight BNM’s continued commitment to driving inclusive economic development through innovative financial and social programmes that support national reform efforts.