Good news may be on the horizon for Malaysians! The government is currently studying a proposal that would allow EPF members to use their Account 2 savings to pay for monthly health insurance premiums, according to Health Minister Datuk Seri Dr Dzulkefly Ahmad.
If this becomes a reality, up to 16 million EPF members could soon have improved access to private healthcare, helping to reduce Malaysia’s current reliance on out-of-pocket healthcare spending (currently a significant 32% of costs).
How would this work?
A small percentage from your EPF Account 2 could be allocated for health insurance premiums. Since this would not come directly from your monthly cash flow, it would be a seamless way to maintain insurance coverage — without feeling the pinch. Participation would be entirely voluntary, allowing flexibility for those who prefer different or more comprehensive plans from the market.
This would also complement (but not replace) the existing i-Lindung initiative, which currently offers life, disability, and critical illness coverage.
Why is this important?
With medical inflation rising yearly, maintaining private health insurance is becoming more challenging for many, especially middle- and lower-income earners. Using EPF savings would ease this burden and promote better long-term financial planning.
More Healthcare Initiatives Coming Soon
The government is also rolling out the Rakan KKM programme, which aims to make better use of underutilized public hospital capacities and improve efficiency across the healthcare system — a move that should help reduce congestion in government facilities while improving healthcare options for all income groups.
At Fincrew, we always remind our readers: health insurance isn’t just for the unexpected — it’s a key pillar of sound financial planning. If this EPF-linked option is introduced, it could be a great way to secure your future medical needs without stressing your wallet.
