As we step deeper into 2025, one alarming reality is surfacing across Asia — healthcare costs are rising faster than our salaries.
A recent study by Mercer Marsh Benefits reveals a sobering truth: 1 in 5 employees in Asia fears they can’t afford proper healthcare for themselves or their families. And for those in lower income brackets, it gets worse — 1 in 3 are worried about how they’ll pay for medical treatment when the time comes.
Medical Inflation Outpacing Pay Raises
While average medical trend rates in Asia have jumped to 13%, salary growth has been lagging far behind, especially in developing markets like Malaysia, Indonesia, the Philippines, and India. This imbalance is creating a dangerous gap between healthcare affordability and employee income.
For many Malaysians, this means out-of-pocket expenses are on the rise — and skipping care is becoming more common.
Limited Insurance Coverage = Delayed Care
Despite growing demand, basic health benefits like prescription drugs and routine doctor visits are still not widely covered by employers. Critical illness plans and personal accident insurance are also less common among lower-wage workers.
As a result, many employees — particularly younger Malaysians — are delaying or avoiding necessary medical attention simply because they can’t afford it. Unfortunately, this short-term decision may lead to more serious and costly treatments down the line, not to mention a loss in productivity at work.
What About Mental Health?
Mental health is another area where benefits fall short. While 38% of male employees in Asia say mental health screenings are important, only 1 in 4 currently have access to such benefits through their jobs. In Malaysia, mental wellness is still a taboo topic in many workplaces, further limiting support for those who need it most.
What Can Be Done?
This is a wake-up call for both employers and insurers. To bridge the gap, companies should consider:
- Expanding outpatient coverage for general practitioner visits and medications
- Providing critical illness protection and accident plans tailored to different income levels
- Including mental health benefits as part of standard group plans
- Offering preventive screenings to catch health issues early
- Introducing climate-related health risk protection, as extreme weather impacts health in Malaysia too
With rising costs and shrinking coverage, employers have a growing responsibility — not just to attract talent, but to safeguard the wellbeing of their teams.
Final Thoughts from Fincrew
As Malaysia continues to grow and evolve economically, health protection can no longer be considered a luxury — it’s a necessity. Whether you’re an employee evaluating your personal policy or an employer designing a group plan, choosing the right insurance can make all the difference.
