Legal Issues Preventing mySalam Coverage For Middle Class: Deputy Minister

By CodeBlue | Posted on

For now, mySalam only applies to the B40 group and it will be expanded to them, says Deputy Finance Minister Abdul Rahim Bakri.

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KUALA LUMPUR, August 18 — The government has failed to implement its plan for mySalam coverage of the middle 40 per cent (M40) of income earners due to legal issues.

Deputy Finance Minister Abdul Rahim Bakri told the Dewan Rakyat during Question Time today that clause 2.1 from the mySalam agreement states that funds from the government health protection scheme can only be used for insurance coverage for hospitalisation and critical illness for individuals from the bottom 40 per cent (B40) income group.

“Under clause 11.2 of the agreement, it states that no amendment can be made on clause 2.1, hence mySalam is restricted for the B40 group,” Abdul Rahim told Kota Melaka MP Khoo Poay Tiong.

Then-Finance Minister Lim Guan Eng previously said as of February 11 this year, M40 Malaysians with gross annual incomes of up to RM100,000 could register for mySalam. Those eligible were supposed to get RM4,000 cash if diagnosed with a critical illness.

Khoo asked the deputy finance minister to state the implementation status of the mySalam scheme for those under the M40 category and also if the government has a date on when it can be started.

“This is related to legal issues involving trustees that have previously signed. However in regards to the M40 issue, the government is looking from a legal point of view and methods that it can still be carried out following those terms,” replied Abdul Rahim, who is also Kudat MP.

“For now, it only applies to the B40 group and will be expanded to the B40 group.”

The mySalam scheme — funded by Singapore-based insurance company Great Eastern and introduced by the-then Pakatan Harapan administration — provides B40 beneficiaries RM8,000 lump sum cash for a critical illness diagnosis, as well as RM700 per annum for 14 days’ hospitalisation for any condition. The insurance company is meant to contribute RM2 billion to the mySalam fund for five years, or RM400 million a year.

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