Malaysia
Insurance for Expats in Malaysia. Discover the comprehensive guide to insurance in Malaysia, covering health, travel, corporate, and life insurance. Learn about the insurance market, regulatory environment, major providers, and practical advice for expats.
Overview
Welcome to the comprehensive country guide for Malaysia, tailored for expats seeking essential information about living or moving to this vibrant Southeast Asian nation. This guide covers all you need to know about health insurance in Malaysia, best hospitals in Malaysia, travel insurance, and life insurance to ensure you’re well-prepared for your stay.
In this guide, you’ll find:
- Expat Life in Malaysia
- Health Insurance in Malaysia
- Healthcare System in Malaysia
- Medical Tourism Malaysia
- Travel Insurance in Malaysia
- Life Insurance in Malaysia
Each section is packed with practical advice, detailed information, and essential tips to help you make informed decisions. Navigate life in Malaysia confidently with our expert insights and recommendations.
Expat Life in Malaysia
Malaysia is an ideal destination for expats considering moving to Asia. The country consists of two different geographical regions separated by the South China Sea – mainland Peninsula Malaysia and East Malaysia (the Sarawak and Sabah region of Borneo Island and 13 diverse states). With a vast mix of cultures and nationalities, Malaysia offers expats a lifestyle replete with first-world comforts and conveniences, while still allowing for a sense of adventure through its easily-accessible jungles and island getaways. It is a melting pot of cultures and offers expats an energetic lifestyle.
With a population of over 32 million people, Malaysia offers a blend of modern urban living and traditional heritage. The capital city, Kuala Lumpur, is a bustling metropolis with a thriving expat community, while other cities like Penang and Johor Bahru also attract many expatriates due to their unique charm and growing economies.
The Department of Statistics Malaysia (DOSM) said in a statement that the total population of Malaysia in 2023 is estimated at 33.4 million as compared to 32.7 million in 2022, said Xinhua. According to the DOSM, the increase in population growth rate is due to the higher number of non-citizens which is likely to increase from 2.5 million in 2022 to 3 million in 2023. The top expatriate communities come from Indonesia, Bangladesh, Nepal, India, and Myanmar.
Expats in Malaysia enjoy a high standard of living, with access to modern amenities, international schools, and a wide range of recreational activities. The country is also known for its excellent infrastructure, including efficient public transportation and reliable internet connectivity. Many multinational companies have regional offices in Malaysia, providing ample job opportunities for skilled professionals.
Health Insurance in Malaysia
Understanding the healthcare system and health insurance options is crucial for expats planning to live or move to Malaysia. The country boasts a dual healthcare system, comprising both public and private sectors. Health insurance is crucial for expats in Malaysia to ensure access to quality medical care without financial strain. Comprehensive health insurance plans cover a wide range of medical services, including inpatient and outpatient treatments, emergency services, and preventive care.
There are a few options in regard to health insurance plans you can opt for:
1. Private International Health Insurance Malaysia
Private international health insurance plans are a preferred choice among expatriates in Malaysia due to their extensive coverage, flexibility, and premium medical care options. These plans cater to the unique needs of expats, offering peace of mind and ensuring access to high-quality healthcare both within Malaysia and globally. These plans typically offer:
- Global Coverage: Access to comprehensive medical care not only in Malaysia but also in other countries, which is beneficial for frequent travelers. This is particularly beneficial for frequent travelers, expatriates with multiple residences, or those who prefer receiving medical treatment in their home country.
- Comprehensive Benefits: Coverage often includes hospitalization, inpatient care, outpatient care, dental care, maternity care, and emergency evacuation. Most providers also offer preventive care services such as vaccinations, health screenings, and wellness programs to promote overall health and early detection of diseases.
- Premium Medical Care: Access to top-tier hospitals and specialists, ensuring high-quality treatment. Flexibility to choose healthcare providers, hospitals, and specialists, allowing for personalized and tailored medical care. Furthermore, many international health insurance plans offer direct billing arrangements with hospitals and clinics, eliminating the need for upfront payments and reimbursement processes.
Some well-known private health insurance providers in Malaysia include:
- Cigna Global: Cigna Global offers highly customizable plans with a wide range of benefits, including comprehensive medical, dental, and vision coverage. Policyholders can tailor their plan to include specific benefits such as mental health support and wellness programs.
- April: Known for its global expertise, April International offers a variety of health insurance plans with extensive coverage. The plans are designed to meet the needs of expatriates, with benefits including medical evacuation, repatriation, and comprehensive medical care. April also provides innovative services such as telemedicine consultations, which allow policyholders to consult doctors remote
- AXA: AXA provides flexible health insurance plans tailored to the specific needs of expatriates. Coverage includes medical, dental, vision, and emergency evacuation services. AXA’s plans are known for their high coverage limits, ensuring policyholders are well-protected against significant medical expenses. They also have access to a global network of hospitals and healthcare providers, facilitating seamless medical care across different countries.
2. Local Health Insurance
Local health insurance is another viable option for expats. These plans are typically more affordable than international ones and are designed to cater to the healthcare system in Malaysia. Key features include:
- Hospitalization and Outpatient Care: Coverage for hospital stays, surgeries, and outpatient treatments.
- Specialist Consultations: Access to specialists without the need for a referral.
- Additional Benefits: Some plans offer dental care, maternity coverage, and wellness programs.
Popular local providers include:
- Great Eastern: Offers a variety of health insurance plans with extensive coverage.
- ETIQA: Known for its comprehensive health insurance products and customer service
3. Malaysian Social Security (PERKESO)
In Malaysia, our social security system goes by SOCSO, or Social Security Organization. You might also hear it called PERKESO, which is the Malay way of saying it (Pertubuhan Keselamatan Sosial). This is only available to those who are working with a Malaysian company.
Similar to social security systems in other places, PERKESO is there to help you deal with unemployment, sickness or loss.
Since January 1, 2019, all foreign employees, including expatriates, are required to register with PERKESO and make contributions to the “Employment Injury Scheme”. This scheme serves as a protective measure, offering “protection against accidents or occupational diseases that occur during employment.” It encompasses workplace accidents, industrial incidents, commuting mishaps, and occupational diseases.
However, PERKESO offers more than just financial assistance—it also includes a complimentary Health Screening Program.
If you are aged 40 or above, you are eligible for free health checkups at designated panel clinics. The Health Screening Program monitors your cardiac health, tests for diabetes, and conducts screenings for cervical and breast cancer. It’s an additional layer of care for your health, demonstrating that PERKESO is not solely about financial concerns.
There are certain scenarios where you are exempt from contributing to PERKESO. Here are three examples:
- If you are self-employed
- If you are a business owner
- If you are a government employee
You may only claim PERKESO for injuries at work or during your work commute. It also only covers contributions up to the age of 55. After that, you have to rely on your pension or other funds you have to cover the cost of treatment.
4. The Foreign Workers Hospitalization and Surgical Scheme (FWHS)
The Foreign Workers Hospitalization and Surgical Scheme (FWHS), also known as SKHPPA, is a mandatory insurance scheme in Malaysia designed to cover the medical expenses of foreign workers. Here are some key points about the scheme:
Coverage: The scheme covers hospitalization and surgical costs for foreign workers in non-corporatized Malaysian government hospitals. This includes:
- Daily hospital room and board (up to 30 days)
- Intensive Care Unit (ICU) fees (up to 15 days)
- Operating theatre fees
- Surgical fees (excluding organ transplants)
- Anesthetist fees
- In-hospital physician and specialist consultation visits (up to 30 days)
- Ambulance fees and medical report fees.
Annual Limit: The maximum annual coverage limit is RM20,000 per worker.
Premium: The annual premium for this insurance is RM120 per worker.
Objective: The primary goal of the FWHS is to reduce the financial burden on employers in the event of their foreign workers needing hospitalization due to accidents or illnesses.
This scheme ensures that foreign workers have access to necessary medical care without imposing significant financial strain on their employers. By providing coverage for critical medical expenses, the FWHS helps foreign workers receive timely and necessary treatment, reducing stress and promoting better health outcomes. Additionally, it offers peace of mind, knowing that in the event of an accident or illness, they are protected and can focus on their recovery without worrying about the financial implications.
The Healthcare System in Malaysia
Takaful: Sharia-friendly Insurance
In Malaysia, alongside conventional insurance, takaful or Islamic insurance is widely embraced, particularly by the country’s majority Muslim population. Takaful operates in accordance with Sharia law, which prohibits elements of uncertainty (gharar) and gambling (maisir). Traditional insurance practices often involve uncertainties and risk-based premiums, which are considered inconsistent with Sharia principles.
Takaful, however, aligns with Islamic tenets by promoting mutual assistance and shared responsibility. Instead of paying premiums, participants contribute to a collective fund used to support members in need. Claims are paid out from this pooled fund, ensuring that the risk is shared among all participants, fostering a sense of community and cooperation.
Malaysia is a significant player in the global takaful market. In 2021, the country ranked third in the world in terms of the value of takaful assets, reflecting the high demand for Sharia-compliant financial services among Malaysian Muslims. Moreover, the takaful sector maintained its market share at 32% of the Malaysian insurance market in first half of 2023. This strong preference underscores the importance of offering financial products that adhere to Islamic principles, catering to the ethical and religious considerations of the Muslim community.
Medical Tourism Malaysia
Medical tourism in Malaysia has shown a strong comeback in 2023 after being affected by the Covid-19 pandemic. It is now being propelled by the Malaysia Healthcare Travel Industry Blueprint 2021-2025.
Malaysia has built a strong reputation as a safe and trusted global destination for healthcare over the past 10 years, with visitors from across the world coming for a range of treatments. The focus continues to be on treatment services such as in vitro fertilisation (IVF), cardiology, oncology, orthopaedic, neurology, dental, aesthetics and general health screening.
The Malaysia Healthcare Travel Council (MHTC) has placed more emphasis on the healthcare travel ecosystem during the recovery phase. They aim to provide a seamless end-to-end experience for all healthcare travellers. The three key pillars of their strategy are the Healthcare Travel Ecosystem, Malaysia Healthcare Brand, and Markets.
In terms of revenue, medical tourism rebounded with $286 million in revenues in 2022, surpassing the MHTC’s target of $170 million. In 2023, this momentum continued with $190 million revenues recorded in the first half of 2023. The industry is on track to equal or exceed its 2019 record. In terms of arrivals, Malaysia recorded more than one million health tourist arrivals in 2023, which is an increase of more than 15% compared to the total arrivals in 2022 of more than 850,000 people.
Currently, Malaysia is ranked among the top medical tourism destinations in Asia, alongside India, Thailand, Singapore and South Korea. It is particularly popular among Indonesian patients due to close geographical proximity, language and cultural similarities.
Best Health Insurance Providers in Malaysia
| Type of Insurance | Description | Price | Providers |
|---|---|---|---|
| Local Health Insurance | Malaysian companies with offices and claims processing in Malaysia, eligibility rules require you to live in Malaysia for the majority of the policy year. | $ | Etiqa, Prudential Malaysia, AXA Affin, Great Eastern, Manulife, and more |
| International Private Insurance | International companies that probably don’t have an office in Malaysia, geared toward globally mobile expats, eligibility rules vary. | $$$ | Allianz, AXA, Bupa Global, Cigna Global, Aetna International, Now Health International, and more |
Local vs. International Health Insurance Plans
When choosing health insurance in Malaysia, it’s important to understand the differences between local and international plans. Local plans are usually more affordable and cater to those living in Malaysia for an extended period. They often cover a wide range of treatments but may have limitations on international coverage.
International plans, while more expensive, offer extensive coverage that includes healthcare services both within Malaysia and globally. These plans are ideal for expats who travel frequently or prefer to have the flexibility of receiving medical treatment in different countries.
Travel Insurance Malaysia
Malaysia is now a popular holiday destination for many people all over the world. Known primarily for its famous beaches and resorts like Langkawi, Penang and Sabah and as a major business destination in the capital Kuala Lumpur. This, along with some of the most incredible Buddhist architecture, fantastic cuisine and budget prices make Malaysia one of the most popular holiday destinations in the world. Wherever your trip to Malaysia takes you, having a great travel insurance policy can give you the peace of mind to enjoy yourself without thinking of the ‘what ifs’. With i-Brokers, you have the opportunity to choose your own policy which fits your needs and budget, allowing you to tailor your travel insurance to your budget.
Travel insurance is crucial for mitigating the risks associated with travel. It covers unexpected events that can disrupt your plans or result in significant financial costs, such as:
- Medical Emergencies: Coverage for medical treatment and hospitalization due to illness or injury while traveling.
- Trip Cancellations and Interruptions: Reimbursement for non-refundable expenses if your trip is canceled or interrupted due to covered reasons like illness, natural disasters, or other emergencies.
- Lost or Delayed Baggage: Compensation for lost, stolen, or delayed luggage and personal belongings.
- Travel Delays: Coverage for additional expenses incurred due to travel delays, such as accommodation and meals.
- Emergency Evacuation: Coverage for emergency medical evacuation and repatriation in case of severe medical emergencies.
Top Travel Insurance Providers in Malaysia
Here are some of the leading travel insurance providers in Malaysia:
| Provider | Description | Coverage Options |
|---|---|---|
| AIG Malaysia | Offers comprehensive travel insurance plans with extensive coverage and 24/7 emergency assistance. | Single-Trip, Annual Multi-Trip, Family, Group |
| Etiqa | Provides a range of travel insurance plans with benefits such as medical coverage, trip cancellations, and baggage protection. | Single-Trip, Annual Multi-Trip, Family |
| AXA | Known for its flexible travel insurance options and high coverage limits for medical emergencies and travel inconveniences. | Single-Trip, Annual Multi-Trip, Family, Student |
| Allianz Malaysia | Offers travel insurance with a focus on emergency medical coverage, trip disruptions, and personal liability. | Single-Trip, Annual Multi-Trip, Family |
| Zurich Malaysia | Provides travel insurance plans with a wide range of benefits, including emergency evacuation and travel delays. | Single-Trip, Annual Multi-Trip, Family |
Life Insurance Malaysia
Life insurance in Malaysia is an essential component of financial planning, offering peace of mind and financial security for you and your loved ones. Expat life insurance Malaysia is something that everyone with a young family should look at. It is often the case that the main income generator for expat families in Malaysia is one person so the impact on the family should a death occur to this person is potentially catastrophic.
Life insurance in Malaysia can allow you to cherish your years more easily without the stress brought on worrying about what will happen to your loved ones after your death. Life Insurance in Malaysia will bring additional peace of mind as you take on a new life with new challenges to face. In Malaysia, both local and international life insurance providers offer a variety of policies tailored to meet the diverse needs of residents and expatriates.
Life insurance provides financial protection to your beneficiaries in the event of your untimely death. It ensures that your loved ones are financially supported, covering expenses such as:
- Funeral Costs: Helping to cover the cost of funeral and burial services.
- Debt Repayment: Ensuring outstanding debts like mortgages, personal loans, and credit cards are paid off.
- Living Expenses: Providing ongoing financial support to cover daily living expenses, education costs, and other essential needs.
- Estate Planning: Facilitating the transfer of wealth and minimizing the tax burden on your heirs.
As of 2023, only around half of Malaysians surveyed owned life insurance and medical insurance policies.
Types of Life Insurance Plans
In Malaysia, life insurance plans can be broadly categorized into several types, each offering different levels of coverage and benefits:
Term Life Insurance:
- Coverage: Provides coverage for a specified term (e.g., 10, 20, or 30 years).
- Benefits: Pays a death benefit if the insured passes away during the term.
- Cost: Generally more affordable with lower premiums compared to permanent life insurance.
- Ideal For: Individuals seeking temporary coverage, such as during working years or while paying off a mortgage.
Whole Life Insurance:
- Coverage: Offers lifelong coverage, with a death benefit payable upon the insured’s death.
- Benefits: Accumulates cash value over time, which can be borrowed against or withdrawn.
- Cost: Higher premiums compared to term life insurance, but fixed and level throughout the policy’s duration.
- Ideal For: Individuals looking for permanent coverage and a savings component.
Universal Life Insurance:
- Coverage: Provides lifelong coverage with flexible premiums and death benefits.
- Benefits: Combines insurance with a savings element that earns interest, offering investment options.
- Cost: More flexible but generally higher premiums, with the ability to adjust coverage and payments.
- Ideal For: Those who want flexibility in their policy and the potential for cash value growth.
