KUALA LUMPUR: The Ministry of Finance is in the process of negotiations with relevant parties regarding the increase in medical insurance premiums by between 40 and 70 per cent next year.
Deputy Finance Minister Lim Hui Ying said that Bank Negara Malaysia (BNM) had also recently issued a statement on the matter.
"This is under BNM and involves many parties, such as insurance companies, private hospitals, and others.
"We are in the process of negotiating how to address this issue," Lim said during the winding-up session of the 2024 Finance Bill in the Dewan Rakyat yesterday.
Earlier, several members of parliament raised concerns about the insurance premium increases, which were deemed unreasonable and a burden on the public.
On Nov 28, BNM instructed insurance companies and takaful operators (ITOs) to review their pricing strategies for medical and health insurance (MHIT) to ensure they are more reasonable.
This includes managing premium or contribution increases while considering the impact on takaful policyholders.
Meanwhile, the 2024 Finance Bill was passed in the Dewan Rakyat after receiving the majority support of Members of Parliament.
The Bill aims to amend the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Petroleum (Income Tax) Act 1967, the Financial Act 2012, and the Financial Act (No 2) 2023.
Lim said the amendments were intended to improve policies and amendments related to tax measures announced in the 2025 Budget, including the introduction of a Dividend Tax, improvements to Capital Gains Tax and Global Minimum Tax, a review and extension of the individual tax relief period, setting a mechanism for the implementation of the Self-Assessment System for Real Property Gains Tax, and a review of stamp duty rates.