Dzulkefly reiterated that the proposed scheme would be not be mandatory, Bernama reported.

“Through this approach, the government hopes to expand access to faster, higher-quality private healthcare without increasing the financial burden on the people.

“It doesn’t come out of their pockets. Only about 1% of their EPF Account 2 would be used to pay for insurance. This is the best way,” he was quoted as saying.

Yesterday, Dzulkefly said Putrajaya was considering the proposal which would benefit 16 million EPF members.

He said 32% of the total healthcare costs in Malaysia were paid out-of-pocket by patients without insurance protection.

Funds saved in EPF Account 2 are accessible for education, healthcare, housing, and a partial withdrawal at age 50.

For health withdrawals, they are limited to treatment costs for illnesses approved by EPF, the purchase of healthcare equipment, and fertility treatments.

Bank Negara Malaysia previously called on insurers and takaful operators to review their repricing strategies for more “reasonable implementation” after reports of a 40% to 70% hike in medical insurance premiums this year.

Insurers and takaful providers said the increased premiums were “unavoidable” in light of rising claims and medical inflation.