Azrul Khalib, CEO of Galen Centre for Health and Social Policy, said the scheme could be modelled after Singapore’s Central Provident Fund in the early 1980s, where contributors allocated 8% to 10.5% of their income to the MediSave account.

“This proposal would not use people’s existing retirement savings. Instead, it proposes an increase in the level of contributions by both worker and employer, which would then be earmarked for national health and social insurance.

“These funds would complement and not replace the existing annual allocation under the federal budget, potentially bringing in new and sustainable funding,” he said in a statement today.

Azrul said the proposed scheme would provide access to both public and private healthcare, with no exclusions for pre-existing conditions, no costly deductibles, and only minimal co-payments where necessary.

He added that the fund could be used to upgrade public hospital services and improve access to lifesaving medication and treatment currently out of reach for many Malaysians.

Health minister Dzulkefly Ahmad previously proposed that EPF allow contributors to use funds in their Account 2 to pay for medical insurance premiums.

EPF members are currently able to access their Account 2 funds to meet some of their education, healthcare, and housing needs. They are also allowed to make a partial withdrawal at the age of 50.

Noting that only 18% of EPF members currently have sufficient savings, Azrul said diverting savings to pay insurance premiums risked making the situation worse.

“Implying that they won’t notice the withdrawal as it is automatic and coming from the Sejahtera account is dangerous, encourages financial illiteracy, and is disconnected from the rakyat’s everyday realities,” he said.