What drove Malaysia health inflation to three per cent in 2025?

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Malaysia health inflation hit three per cent in 2025 mainly due to higher health service costs, especially insurance spending
Health inflation in Malaysia rose to three per cent in 2025 from 1.4 per cent in 2024, driven by rising healthcare service costs. The Health Services category recorded the biggest increase at 4.4 per cent, up from 0.9 per cent in 2024, and this jump was mainly linked to a nine per cent rise in insurance expenditure.
Health Services posted the largest jump in 2025
The Malaysia Health Price Index (IHK) 2025 showed the Health Services category increasing by 4.4 per cent in 2025. This compares with a 0.9 per cent increase in 2024, making Health Services the main contributor to the overall rise.
Insurance expenditure rose by nine per cent, lifting service costs
The increase in Health Services was mainly driven by a nine per cent rise in insurance expenditure. This factor was cited as the key reason behind the higher healthcare service costs reflected in the IHK.
Medicines and health equipment also increased, but less than services
Inflation for medicines rose to 2.7 per cent in 2025 from 2.2 per cent in 2024. Health equipment also increased to 1.2 per cent from 0.6 per cent, adding to the broader inflation picture alongside the stronger Health Services growth.
The Medicines category is the largest IHK weighting component
Within the IHK weighting, the Medicines category accounts for 38.9 per cent. Even with its rise to 2.7 per cent, the overall acceleration to three per cent was still characterised as being driven primarily by higher Health Services costs tied to insurance expenditure.

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What drove Malaysia health inflation to three per cent in 2025?

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