As the cost of living continues to climb, Malaysians are becoming more conscious about managing daily expenses while planning for long-term financial stability.
Recent studies show that inflation is influencing household spending across the country. The Sun Life Asia Financial Resilience Index 2025 revealed that 43% of Malaysians reported adjusting their monthly expenses due to inflationary pressures. Despite these challenges, awareness of financial protection products such as insurance and takaful is improving, rising from 28% in 2023 to 35% in 2024, according to the Sun Life Insurance Literacy Survey 2025.
However, only 15% of respondents have taken steps to plan for a financial legacy. Among those who have, the majority do so through insurance and takaful (71%), with smaller numbers using trust funds (44%) or wills (37%).
Medical Costs on the Rise
Rising costs are not limited to daily spending. Access to healthcare has become increasingly challenging as medical inflation continues to outpace general living costs. Bank Negara Malaysia reports that medical inflation has climbed steadily, reaching approximately 12.6% in 2023 and 15% in 2024. Contributing factors include the adoption of advanced medical technologies, reliance on imported supplies, and the growing prevalence of non-communicable diseases.
In response, regulators have set temporary limits on annual premium and contribution increases, capping them at 10% for most policyholders and certificate holders until the end of 2026.
Partnerships Strengthening Financial Security
In light of these economic pressures, financial institutions are stepping up to support Malaysians in managing both immediate and long-term financial needs. A notable example is the long-standing collaboration between CIMB Bank and Sun Life Malaysia, which has adapted over the years to address evolving financial challenges.
Over more than a decade, this partnership has delivered accessible, tailored insurance and takaful solutions via CIMB’s distribution network, leveraging Sun Life’s expertise in protection and financial planning. What began as a single product offering in branches has grown into a comprehensive suite covering legacy planning, protection, savings, education, investment, and health solutions. Popular offerings include Sun Enrich Extra-i, Sun Legacy Shield, SunInvest-i, and Sun Istismar Extra. By 2024, the combined client base reached 2.1 million, reflecting the growing demand for practical financial protection.
These products are designed for all stages of life—from first-time earners and young families to retirees—and are delivered through both trusted advisors and digital channels, simplifying long-term financial planning while promoting resilience.
“As living costs and medical expenses rise, our partnership ensures Malaysians have access to affordable and comprehensive coverage to safeguard their future and that of their families,” said the chief executive of CIMB Islamic. He added that leveraging technology and data-driven insights allows for simpler, faster, and more personalised insurance and takaful solutions, supporting the goal of wider financial inclusion.
Sun Life Malaysia echoed these sentiments, highlighting that medical inflation is outpacing general inflation, which makes access to healthcare a growing concern. The company emphasises innovation in coverage that cushions financial pressures and supports overall well-being across every stage of life.
Promoting Financial Literacy and Ethical Solutions
Beyond product offerings, the collaboration reflects a commitment to promoting financial literacy and resilience among Malaysian households. Shariah-compliant takaful solutions are guided by principles of purification, preservation, and fair risk-sharing, providing transparent and ethical financial protection.
This milestone demonstrates how partnerships between financial institutions can empower Malaysians with innovative solutions that meet evolving needs, helping them secure their finances, plan for the future, and build lasting financial legacies.
