Budget 2025's Higher Tax Relief To Ease Malaysians' Access To Essential Coverage

KUALA LUMPUR, Oct 21 (Bernama) -- The government’s decision to raise individual income tax relief for education and medical insurance premiums to RM4,000, along with expanding medical expense relief to RM10,000, will significantly reduce financial barriers for many Malaysians seeking essential coverage.

“This will not only foster a culture of preparedness but also empower individuals to prioritise their health and financial stability,” said co-founder and chief executive officer insureKU Shadhana Sekara in a statement.

She noted that the recent budget announcement serves as a significant milestone in the collective efforts to enhance financial security and access for all citizens.

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Furthermore, Shadhana said the continuation of the Perlindungan Tenang Voucher Programme, set to benefit up to two million Rahmah Cash Contribution (STR) recipients, underscores the government’s proactive approach to social welfare.

By providing RM30 vouchers to assist these individuals in purchasing insurance products, the government demonstrates its awareness of Malaysian's diverse needs.

Shadhana said for insurance technology companies like InsureKU, this presents an opportunity to provide innovative insurance solutions that resonate with underserved communities, ensuring that critical coverage is both accessible and tailored to address specific risks.

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In addition to these measures, the newly introduced stamp duty guidelines to facilitate the gifting of insurance and takaful protection will significantly enhance the accessibility of these products.

“By reducing the costs associated with assigning life insurance policies and family takaful certificates as gifts, the government encourages families to protect their loved ones.

“The progressive stamp duty, ranging from RM10 to RM1,000 based on the value of the transfer, is a thoughtful approach to fostering a culture of financial security among family members,” she said.

Shadhana added that by improving access to insurance and promoting a culture of preparedness, these budgetary measures have the potential to significantly increase coverage rates, providing greater security for all Malaysians.

Launched in April, insureKU is the first all-digital platform in Malaysia to integrate insurance and takaful solutions from start to finish.

-- BERNAMA