Health Insurance in Malaysia for Expats: What You Need to Know in 2023

With an up-to-date infrastructure, the healthcare system in Malaysia stands out from other countries in the region as almost every doctor, and most healthcare staff, are fluent in English.

However, health insurance is not usually what people consider first when moving to Malaysia.

But you should consider it one of your top priorities as it gives you peace of mind when it comes to the healthcare needs of you and your loved ones.

If you don’t want to read this entire guide but want to know which insurance plan to get, check out our quick comparison of expat health insurance.

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Do I Need Health Insurance in Malaysia?

Treatment for foreigners costs more than what Malaysians pay. But it’s cheaper than the costs of similar treatments in the West.

In general, healthcare in Malaysia is cheap enough that you can pay out of pocket and forgo health insurance in most cases.

However, medical care can get expensive. Having insurance protects yourself from costly medical care.

In 2009, a friend living in a small city in Sarawak contracted Leptospirosis. It wasn’t diagnosed until he was in the later stages of infection. And by then he was in critical condition.

Doctors flew him to Mount Elizabeth, a hospital in Singapore. They had better facilities and medicine to further treat him.

The emergency airlift out of Malaysia and the cost of getting treated in Singapore could’ve caused a dent in his bank account if he was uninsured. Fortunately, his insurance company paid for it.

Having insurance offers the peace of mind that you’re covered in emergencies.

Can I Use Insurance from Back Home?

Most of my expat friends who moved to Malaysia are already covered by an insurance plan from their home country.

A friend from Australia and her husband have coverage, which includes dental and medical evacuation as part of their insurance. But their policy is expensive.

The annual premium is $8726.50 AUS and only covers medical costs “while on authorized business travel and any associated holiday travel.”

My friend and her husband are 55 and 57 years old, respectively. And they won’t be covered after the age of 70. If they retire in Malaysia, they have to find another insurance plan.

Another friend has health insurance from Germany. It was cheap but only valid a few years after he moved out of Germany.

You can get health insurance from your home country if you’re under 50 years old. But some companies may charge more to cover you abroad.

Types of Health Insurance

Common ways to get insured in Malaysia are through:

• International insurance
• Local insurance
• Travel Insurance
• Malaysia Social Security
• Foreign Workers Hospitalization and Surgical Scheme
• Takaful Insurance
• Group insurance

Let’s look at each one a bit closer.

Expat Insurance

Expat insurance is a popular option for expats who live in Malaysia. It comes with good coverage and without many limitations.

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They are policies designed for expats, some which are underwritten by global insurance companies.

Unlike Social Security, you won’t be limited to only health coverage at work. You can also visit any hospital that you want, not just government hospitals.

If you buy expat health insurance, you can also choose to include medical coverage Malaysia and the rest of the world.

If local hospitals aren’t enough, then your policy should cover the cost of repatriation and/or changing hospitals.

A lot of international insurance companies have expat insurance. Each plan comes with different coverage, exclusion, and price.

Cigna Global is one of the biggest insurance companies in the world, providing good insurance plans for expats in Malaysia. 

Depending which level you choose, the plans cover hospitalization, routine medical expenses, and even optical, dental, and maternity.

You can also pick repatriation coverage, medical transportation, and family civil liability, which includes physical injury and material or consequential loss.

In addition to Cigna, there are plenty of insurance plans available to expats in Malaysia including Geoblue, William Russell, Aetna, Allianz, and more. 

You can check our expat insurance comparison page to look at all popular international insurance providers for expats with side-by-side comparison. 

Before you buy insurance from an international company, you should be aware that legal disputes are taken up in the country where the insurer is licensed, and Bank Negara can’t intervene on your behalf.

Disputes are often costly and problematic and could leave you uncompensated.

You won’t be dealing in Ringgit Malaysia, and if you enjoy walk-in client support, your insurer might not have a local office for that.

Most companies don’t have direct billing with local hospitals, so you have to cover the bills first and get reimbursed later. The exception is you contact an insurance company first and get prior authorization. 

If you work for a Malaysian company, look into expatriate insurance policies.

You can find many of them throughout Malaysia since insurance companies are branching out into the country.

It’s best to look into expat insurance alongside your employment package as your employer might only offer limited group medical insurance coverage.

All the plans I asked about excluded coverage for the USA. This is because choosing a plan that includes the USA on top of worldwide coverage means an increase in premiums.

I don’t spend any time in the USA so it wasn’t necessary for me. If you do, be aware of the much higher costs of coverage.

In case you need USA coverage, GeoBlue is generally recommended because of their wide range coverage in the United States. 

Local Insurance

Local insurance plans from companies in Malaysia may work differently from your insurance plans back home. For example, many local plans have lifetime limits. This means they cover you for a certain amount over the course of your life. 

If you go over that limit, the insurance plan won’t cover you anymore. 

These plans also cap how much they cover for hospital stays, usually MYR200 per day. The annual limit is also much lower than what’s offered through expat health insurance plans. 

Instead of US$1,000,000, the annual limit could be as low as US$280,000 (MYR1.3 million). Most of the plans only cover health expenses accrued in Malaysia. 

There are many insurance companies in the local market including:

• AIA
• Allianz
• Great Eastern Life
• Hong Leong Assurance
• Prudential Assurance

When I lived in Malaysia, I was covered under Prudential Assurance. The Prudential medical card removes annual limits and lifetime limits and replaces them with a Med Value Points system.

You can opt for a stipulated amount of Med Value Points if you choose Prudential. You gain bonus points by staying healthy.

If you don’t make many claims, your insurance company awards you extra points.

If your total claims paid exceed your Med Value Points plus any accumulated point bonuses, Prudential still pays 80 percent of the total cost of the benefits.

You can also customize Prudential’s plans to your needs. You can pick your room and board rates and Med Value Points.

But unlike Allianz, it has no co-payment clause. It’s also a little bit pricier than many of the choices on the market.

If you compare the Med Value Points with the annual limits of other policies, though, it’s on par with most of them.

The lifetime limit is the only major downside to this plan. PruValueMed only covers 80 percent of the benefits exceeding Med Value Points.

If you’re looking for a plan without lifetime limits, you might want to check out Allianz. Allianz stands out in terms of annual limits, which can be as high as MYR5,000,000 (US$1,000,000). It offers great value with basic plans for as low as MYR480 a month, before taxes.

If you want a less comprehensive and lower-priced plan, Allianz also offers both mid-ranged and lower-end plans. What I like most about Allianz is its extensive cancer coverage and deductible options. 

It’s best to do your research as each plan has its pros and cons.

Always choose a company that’s a best fit with your pre-existing conditions and lifestyle, and that gives you the insurance plan you need.

Travel Insurance

Some insurance companies offer short-term coverage that ranges from a few weeks to a few years, called travel insurance.

I know someone who doesn’t have long-term medical insurance. He applies for travel insurance whenever he travels from his home country to Malaysia.

He’s in his twenties, in good health, and alternates between living in his country and Malaysia every three months, so travel insurance works for him.

When he broke his leg in Nepal and was airlifted out, he had to pay US$1,200. He was reimbursed less than two months later by his travel insurance.

Most travel insurance only reimburses you after you submit your claim.

While they ask you to pay first, getting reimbursed is easier and faster than many other travel insurances in the market.

You usually have to apply for travel insurance from your home country. Travel insurance plans tend to be inexpensive, way less than what you’d have to pay for long-term coverage.

I didn’t mind buying it along with my existing health insurance because it was cheap, and the claims I’ve submitted in the past were processed quickly.

There are some issues you have to be aware of if you buy travel insurance.

For example, these policies don’t cover expensive long-term care.

They won’t cover many medical conditions that women might suffer from such as breast cancer, cervical cancer, osteoporosis, or pregnancy.

Aside from covering the costs of canceled flights or natural disasters, travel insurance covers you if you get sick or injured during your travels.

Travel insurance can be a good idea for short-term vacations in Malaysia.

If you stay in Malaysia for over three months, it would be wiser to get long-term health insurance in case of severe medical issues.

Some people buy travel insurance when their current policy doesn’t cover all the destinations they’re traveling to.

Some people buy travel insurance to protect themselves against out-of-pocket expenses from emergencies on their trips.

Malaysian Social Security

Malaysia’s social security system is called SOCSO, or Social Security Organization.

It’s also known as PERKESO, or Pertubuhan Keselamatan Sosial, which is the same as SOCSO in the Malay language.

I’ll stick with PERKESO for the rest of this guide.

As with social security in other countries, PERKESO helps people who are unemployed, sick, or who die.

You and your employer contribute to PERKESO based on how much you earn.

Starting January 1, 2019, foreign workers, including expats, must register under PERKESO and contribute to the Employment Injury Scheme.

The Employment Injury Scheme “protects employees against accidents or occupational diseases arising out of and in the course of employment.”

It covers you for industrial and commuting accidents, accidents that happen during work, and occupational diseases.

Aside from the coverage, PERKESO also offers a free Health Screening Program.

If you’re 40 years old or above, you can get free checkups at registered panel clinics.

The HSP tests you for cardiovascular diseases, diabetes, and cervical and breast cancer.

There are some cases in which you don’t have to contribute to PERKESO. Here are three:

• If you’re self-employed
• If you own a business
• If you work for the government

Limits of Coverage

Of course, PERKESO has its shortcomings. You may only claim it 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.

There are no child and family social schemes. And the self-employed are also excluded from PERKESO.

But if you work for a Malaysian company, you can contribute to the Foreign Workers Hospitalization and Surgical Scheme.

Submitting a Claim

You can submit a PERKESO claim yourself. But your company’s human resource department usually helps. Talk to your company first to get more details.

You can make a claim if you get sick or injured at work or during your commute to or from work. If you know the claims process, you have a better chance of getting reimbursed.

I’ll walk you through the important steps to help you increase your chances of getting a PERKESO claim.

Applying for Medical Benefits

To apply for medical benefits, you need these documents:

• Accident Report (Form 21) OR Occupational Disease Report (Form PKS68 or PKS69)
• Claims form (Form 10)
• Employer’s identification letter
• Work attendance record
• Medical leave certificate
• A copy of your identification documents
• A police report and a sketch map of your route at the time of the accident (for injuries that happen during your workplace commute)

Once you apply you can get free treatment at PERKESO panel clinics or government hospitals and clinics.

To get reimbursed for non-PERKESO panel treatment you need extra documents. These documents are not under PERKESO panel clinics or public hospitals and clinics.

You must fill out and send them to your local PERKESO office. PERKESO determines how much you’re reimbursed.

These extra documents are:

• Reimbursement Travel Claims Form (Form PKS (P) 24)
• Reimbursement Payment Claim Report (General) (Form PKS (P) 26)
• Original receipt of treatment
• Copy of your appointment card
• Copy of your medical report(s), if any

When a doctor certifies that you’re unfit to work for at least four days, including the day of the workplace accident, you get temporary disablement benefits and pay for the days you can’t work.

Let’s look at this program next.

Foreign Workers Hospitalization and Surgical Scheme (FWHS)

In 2011, the Malaysian government created the Foreign Worker Hospitalization and Surgical Insurance Scheme, also known as:

• FWHS
• SKHPPA
• SPIKPA

But only those between 18 and 59 years old can get it.

For an annual premium of MYR120 — not including 6 percent sales and service tax or the MYR10 stamp duty—the policy covers you for up to MYR20,000 if you’re admitted to a Malaysia government hospital.

Many insurance companies offer this scheme. Chubb is an insurance company appointed and approved by Malaysia’s Ministry of Health to give foreign workers this insurance.

All foreign workers in Malaysia must be insured under FWHS, but the benefits of this scheme for long-term expats is limited.

If you’re legally employed in Malaysia, you can get health insurance through your employer, usually under a group medical insurance plan.

Malaysian employers usually offer health insurance to their employees along with social security. But you might want to buy your own extra health insurance to get better coverage.

What if you’re retired or retiring, or not employed by a Malaysian company and can’t get FWHS or PERKESO? What other choices do you have?

Takaful Insurance

An obvious choice for private insurance in Malaysia is local insurance. You can buy either conventional insurance or takaful insurance.

Takaful is a type of Islamic insurance offered as an alternative to conventional insurance.

Takaful differs from conventional insurance in its intent. You contribute to a fund that can help others in takaful in an emergency.

But you buy conventional insurance as personal financial security, with the insurance company being the risk-bearer.

Each takaful fund participant contributes based on their required coverage and circumstances.

A takaful contract states the nature of the risk and period of coverage. A takaful operator who charges a fee manages the fund.

Participants make claims which are paid out of the takaful fund. Remaining surpluses—after making provisions for future claims—belong to the participants in the fund.

Conventional insurance differs in this aspect. The extra money and profits belong to the insurance company shareholders.

Takaful is not religion-exclusive. You can buy it from many companies in Malaysia even if you’re not Muslim.

But takaful comes with certain shortcomings:

• Emphasizes too much on profit distribution
• Models used by operators in Malaysia aren’t strictly regulated
• The profit-sharing with operators is often unclear

Given the mixed reviews on takaful, I won’t recommend it in this article.

Group Insurance

Insurance benefits workers. By offering your employees coverage, you give them incentive to work harder for you.

Malaysian companies are legally required to sign all foreign employees for the Foreign Worker Hospitalization Scheme, which is a form of group insurance.

But only foreign workers between 18 and 60 years old can get FWHS. The coverage offered is limited, and the plans can’t be customized to suit each company’s needs.

Most companies buy extra group insurance for their employees instead.

Group insurance provides coverage for your employees and is often given at a discount.

Most companies buy extra group insurance for their employees instead.

Many companies in Malaysia offer employee group insurance. Major names in the market include:

• Great Eastern
• AIA
• Allianz
• AIG

Group insurance plans are flexible as every company’s needs and circumstances differ.

Sometimes different levels of coverage are even required within the same group.

If you only want to cover your employees’ outpatient treatments, there are packages for that.

For example, Allianz has a Group Outpatient Clinical plan which covers outpatient doctor care, with cashless facilities to panel clinics and outpatient specialists.

To compare policies and get an in-depth explanation for all plans, talk to a broker or an insurance advisor.

COVID-19 Coverage

Most health insurance plans come with COVID-19 coverage as long as you are not COVID-19 positive at the time of purchase. 

Otherwise, it will be considered a pre-existing condition. 

This includes both expat insurance and local insurance. 

If you don’t have health insurance and rely solely on social security, you will be covered for COVID-19 under the employment injury scheme only if your job requires you to regularly go out. 

Best Insurance for Expats in Malaysia

There’s no one-size-fits-all insurance plan for expats in Malaysia. Pick one that’s a good fit for your lifestyle and needs.

Once you know how much coverage you need, look at the excesses, deductibles, and co-payments, and figure out what works best for you.

While your chosen plan should fit your budget, don’t pay based on the lowest prices out there.

Remember that local insurance might offer coverage that differs from expat insurance in these areas:

• Amount covered
• Your age
• Exclusions

With that said, let’s look at local insurance versus expat insurance.

Local Health Insurance Versus Expat Health Insurance 

If you buy local health insurance, you’re unlikely to exceed its coverage limits. Insurance companies make sure that the costs at local hospitals are within most of their plans’ limits.

The Malaysian central bank, Bank Negara, regulates and monitors local insurance costs.

However, local insurances have different plans available and might not cover your health expenses in full. 

Expat insurance, on the other hand, has higher coverage limits. It also covers you outside of Malaysia, and you can carry the same plan if you move out of the country. 

Local insurance plans are cheaper than expat health insurance plans. These policies often include life, health, and retirement all in one plan.

Once you sign up for an insurance plan with a local company, you’ll get a medical card.

Getting into a hospital and making claims with a medical card speeds up the claims process and takes less paperwork.

However, you need to go to a hospital within a local insurance company’s network, called a panel hospital.

Using Local Health Insurance at Malaysian Panel Hospitals

To get admitted to a Malaysian panel hospital, present your medical card and get the doctor’s consent. You don’t have to deal with piles of paperwork.

Your insurer updates the list of panel hospitals every year. You can find this info in your insurance brochure or policy.

The advantage of local insurance is that you won’t have to pay your medical bills upfront. In fact, most policies allow for cashless admission.

Most times, hospitals submit medical bills directly to your insurer and let them take care of your claim.

Using Local Health Insurance at Malaysian Non-Panel Hospitals

If you’re admitted into a Malaysian non-panel hospital, tell your insurance agent right away. Often, they will still reimburse you for medical bills. But you have to pay out of pocket before you can file a claim.

Remember to keep all original copies of medical bills, medical reports, and letters from doctors for your claim.

Even with a medical card, you might have to pay for part of the care you receive, perhaps for medicine or a doctor’s appointment.

This may happen if you have opted for a co-payment. This means you and your insurer share the costs of your medical treatment.

Other Considerations

Always read about the exclusions, renewable clauses, and deductibles under your health insurance plan carefully.

I have friends who found out after the fact that their plans let the insurer deny renewal the next year if they had any health issues.

Also, if you’ll be traveling, make sure your health insurance plan covers you.

The overseas residence clause can apply if you’re studying or working abroad for an extended period of time. This clause lets most insurance policies reject your claim if you’ve been overseas for 90 days.

On the flip side, there is also another clause called Reasonable and Customary Charges.

This lets you get compensated for treatment you get abroad. But you only get reimbursed for the amount you would’ve paid if you had gotten the surgery in Malaysia.

If you get treatment in a country where medical costs are much higher than Malaysia’s, you might only be covered for a fraction of the amount.

So, get a plan that gives you all the coverage that you need, even if it’s not the cheapest insurance policy out there.

Comb through the fine print carefully, look up customer reviews, and talk to a broker before you commit to an insurance policy.

Insurance Brokers

There are many insurance broker companies in Malaysia. You pay the same for your insurance as you would getting it directly from the insurance company itself. They also accept credit cards.

I like using a broker because they can offer you a wider range of plans from various insurers.

They can also walk you through your choices based on your needs.

You want an unbiased broker who cares about your best interests. Brokers have a vested interest in you as they gain sales commissions every year you stay with them.

This commission is otherwise kept by the insurance company if you buy directly from them instead. This means brokers want to find you plans you’re happy with and keep you as a client.

Be aware that brokers can only offer you limited help with claims or disputes.

You can also change brokers without changing your insurance plan if you’re ever unhappy with the services provided by your broker.

If you want to buy health insurance through a broker, check out International Citizens Insurance.

Comparison Sites

Comparison sites let you search many insurance plans all on one website, saving you time and possibly money.

There are quite a few sites that review insurance plans in Malaysia and lay out their pros and cons.

This is a list of sites I used when researching Malaysian health insurance plans.

• Bbazaar
• Compare Hero
• GoBear
• iBanding
• Ringgit Plus

The main drawback of the comparison websites is that they mainly focus on the number of coverage limits and premiums without showing what you really get from the insurance.

In the end, it’s still a good idea to read insurance policies carefully and talk to a reliable broker or insurance representative before making a purchase.

Frequently Asked Questions

Let’s take a look at some of the popular questions frequently asked about health insurance in Malaysia.

Can Foreigners Buy Health Insurance in Malaysia?

When it comes to private insurance, you can buy any plan you want. However, you should study the plan well before buying. 

You can buy local insurance in Malaysia as long as you are in the country for work or business or if you’re a resident.

You need an employment or business visa or proof of resident status to buy coverage from a local insurer.

These are standard questions. You may have to answer more specific foreigner-targeted questions such as, “Why do you need a Malaysia class policy?”

If you’re an international student, you must buy local health insurance. Through your school, you can buy medical insurance offered by Education Malaysia Global Services.

EMGS works with three medical insurance companies:

• AIA
• AXA
• Hong Leong MSIG Takaful

All these insurance packages meet the coverage requirements set out by Malaysia’s Ministry of Education.

If you’re not a student, you can look into other plans. 

Malaysia also doesn’t have a voluntary public health insurance system like Mexico. The closest thing is social security, which is run by a government agency. The only way to get it is by working for a company in Malaysia. 

How Much Does Health Insurance in Malaysia Cost?

This depends on your plan and coverage needs. If you want to get a comprehensive international health insurance plan, you can expect to pay at least US$1,000 to US$2,000 per year. 

You can also pay less than US$500, but the coverage will be much lower. The plan might come with an overall limit of RM150,000 per year (US$35,000).

On the other hand, the lifetime limit with a comprehensive plan gives you at least US$1,000,000 without any lifetime limits. 

There are also many additional factors that have an impact on the price, such as:

• Age: the older you are, the more expensive it’s going to be
• Deductibles: the higher the deductible, the cheaper the price
• Co-pays: if the co-pay is high, then your plan is going to be less expensive
• Lifestyle: if you live an adventurous lifestyle or have a risky job, your plan could be more expensive

Considering all of this, the only way to get an exact quote is to speak to an insurance broker or insurance company. 

What is the Best Health Insurance Company in Malaysia? 

There’s no single best health insurance company in Malaysia since each has different pros and cons. 

A reputable insurance company with a comprehensive health insurance plan and easy claims process may cost more than other companies. So, it’s great in terms of service and coverage but might not be great in terms of pricing. 

On the other hand, one insurance company may be affordable, but it might not give you coverage for private hospitals.

There are also insurance companies that offer cheap insurance plans, but they may come with high deductibles, which makes them valuable only on certain occasions. 

So, when it comes to choosing the right insurance company, it comes down to two important points:

• You need to study the policy well to understand what coverage you get, what coverage you don’t get, and how much you have to pay
• The insurance company should be well-established in Malaysia 

If you’re not sure about which company to choose, you can talk to a broker and ask for a recommendation. 

Insurance Guide in Other Countries

We also have our health insurance guide in other countries including:

• Health Insurance in Thailand: What You Need to Know as an Expat
• How to Pick the Best Travel Insurance for Canada
• Health Insurance for Expats in China: What You Need to Know
• Health Insurance in Germany: What You Need to Know as an Expat
• Health Insurance in Malaysia for Expats: What You Need to Know
• Health Insurance in Vietnam: What You Need to Know as an Expat

Now, on to You

Consider this. How often will you need to use your plan? How much coverage will you need?

Even if it’s just for peace of mind against unexpected expenses, health insurance is something every expat in Malaysia should have. If you still aren’t sure which insurance to get, you can start by comparing quotes from different international insurance plans, and then decide what to do next.