LIAM backs government subsidy to lower SME employee medical insurance costs

The Life Insurance Association of Malaysia (LIAM) has expressed approval for the MediAsas Plan, which will launch in January 2027 with a government subsidy of RM200 per employee for eligible SMEs, limited to 50 staff per company. LIAM chief executive Mark O'Dell highlighted that the aid could increase medical protection for workers while reducing costs for smaller firms. The program provides two products—MediAsas Teras and MediAsas Fleksi—covering individuals up to age 85 who are uninsured or facing rising premiums.

Premiums are designed to be affordable, with hospital payments linked to diagnosis and treatment. EPF members under 55 may pay using Akaun Sejahtera savings. LIAM plans to collaborate with Bank Negara Malaysia and insurers to promote the scheme and inform the public about its benefits and eligibility.