Health PSSC Moots Expansion Of Insurance Coverage For Mental Health Services

The Health PSSC recommends expanding insurance coverage for mental health services, warning that limited coverage is pushing patients to pay out of pocket and straining public hospitals. Preventive care remains largely excluded from insurance.

KUALA LUMPUR, Mar 3 — The Health Parliamentary Special Select Committee (PSSC) has proposed expanding insurance and social protection coverage for mental health services, amid gaps in access, workforce shortages, and rising pressure on the public health system.

In its 208-page report tabled in the Dewan Rakyat on February 23, the Health PSSC, chaired by Suhaizan Kaiat (PH-Pulai), urged the Ministry of Health (MOH), Ministry of Finance, and Bank Negara Malaysia to review the expansion of social insurance for mental health care, while calling for stronger legal protections against discrimination.

During the Health PSSC’s proceedings on November 20, 2025, the National Coalition for Mental Wellbeing (NCMW) said expanding insurance coverage to include services by psychiatrists, clinical psychologists, and registered counsellors is critical to easing pressure on the public system.

NSCM said without broader coverage, patients continue to rely on government facilities, which places additional strain on already limited psychiatric and counselling services.

Preventive Care Gap In Mental Health Coverage

Prof Dr Mansor Abu Talib, director at the Wellbeing Research Centre, UCSI University, told the Health PSSC that insurance coverage should be expanded to include services by registered psychologists and counsellors, alongside workplace policies that allow employees to access mental health care when needed.

“Insurance companies, for example, do not cover preventive care. They only cover curative treatment,” Mansor said, according to the Hansard published in the PSSC’s report.

“This is where the difficulty lies, because prevention includes intervention. If someone has suicidal intent – they may not have attempted suicide yet, but the intention is there – intervention is needed to bring them back to who they are. That is the situation,” he said.

The lack of coverage for preventive and early intervention services risks delaying care until conditions worsen, increasing reliance on hospital-based services.

The Health PSSC also heard calls for stronger workplace support, including insurance coverage for psychological and counselling services, as well as provisions for employees to take time off to seek care.

“We are advocating for insurance coverage for workers who seek psychological and counselling services from registered providers, and for employees to be given time off when they need to see a counsellor or medical practitioner,” Mansor said, adding that 67 per cent of workers are experiencing burnout due to work.

“Work becomes difficult to manage. What needs attention is how individuals are supported to cope, including being taught coping skills to reduce that burden. These interventions should not only take place in the community, but also in the workplace.

“In Malaysia, almost all ministries now have counsellors, and we hope this will be followed by industry, starting with government-linked companies (GLCs),” he said.

Malaysia ranks among the lowest in Southeast Asia for work-life balance, with only 48 per cent of companies providing adequate support such as counselling, Mansor said.

“We need to show that society, leaders, and companies care about their workers. Whether they seek help or not is secondary. But the perception that they are cared for will greatly improve their mental well-being.

“Mental health has high potential for prevention because many people can play a role. Counsellors are mainly for intervention, but prevention can be done by many, including community leaders. That is our opportunity. I don’t think we need to spend billions on prevention,” he added.

Gaps In Oversight, Call For Mental Health Commission

Beyond financing, NCMW representatives also raised concerns about gaps in oversight and governance, including reports of abuse in private psychiatric facilities and inadequate mental health services in prisons, lock-ups, and immigration detention centres.

Nigel Roshan Miranda, a youth member of the Malaysian Mental Health Association (MMHA), representing NCMW, said monitoring mechanisms remain weak, particularly in private facilities.

“There is a lot of abuse that we need to look into, which is often overlooked due to the lack of clear monitoring. There is also a lack of appropriate services for prisoners and individuals involved in forensic cases within the judicial system, including those in lock-ups and immigration detention centres,” Nigel told the committee.

He added that the Human Rights Commission of Malaysia (Suhakam) currently lacks a clear ombudsman pathway for mental health-related grievances, in the absence of a dedicated mental health commission, raising further human rights concerns.

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