KUALA LUMPUR, Dec 20 — The government, ITOs, and private hospitals will jointly contribute RM60 million to accelerate health reforms aimed at curbing Malaysia’s soaring medical costs, said Bank Negara Malaysia.

In a statement today, the central bank said the fund will support initiatives such as the implementation of a Diagnosis-Related Group (DRG) payment model and the publication of costs for common medical procedures, enhancing pricing transparency across the healthcare sector.

A portion of the fund will also be allocated to developing a base medical and health insurance/takaful (MHIT) product designed to cover essential healthcare needs.

This product aims to facilitate a smoother transition for policyholders aged 60 and above who may wish to switch to a more affordable plan.

BNM Governor Datuk Seri Abdul Rasheed Ghaffour called for collaborative efforts among stakeholders to address the root causes of medical cost inflation.

"Containing rising healthcare costs requires transparency, digitalisation, and strategic purchasing by both public and private sectors,” he said.

Other ongoing reforms include the push for transparency in drug pricing and the advancement of digital systems, such as shared electronic medical records, which aim to reduce redundant tests and overall costs.

BNM said it will periodically review the progress of these reforms to ensure they achieve the desired outcomes, paving the way for a sustainable and affordable healthcare ecosystem in Malaysia.