The government will strengthen its social safety measures through the People’s Welfare Insurance Scheme, or Skim Insurans Kebajikan Rakyat (SIKR) 3.0. Prime Minister Datuk Seri Anwar Ibrahim announced that the next phase of the scheme will offer enhanced takaful coverage to better support households facing financial vulnerability.

SIKR 3.0 has been approved by the Ministry of Finance with an initial allocation of RM20 million. The scheme will operate from 1 October 2025 to 30 September 2026, marking a full year of protection for eligible participants.

Higher Coverage Limits Across Key Events

The upcoming cycle introduces increased benefits across natural death, accidental death, and accident-related permanent disability. These categories are central to household financial stability, as unexpected events often burden families with immediate costs.

The insured amounts under SIKR 3.0 will be set at RM13,500 for natural death, RM26,500 for accidental death, and RM13,500 for permanent disability due to accidents. These revised limits represent an increase over SIKR 2.0 and aim to provide more meaningful support during critical times.

The Prime Minister also shared that the Implementation Coordination Unit of the Prime Minister’s Department will formalise the scheme through a memorandum of understanding with Prudential BSN Takaful Berhad, the appointed operator for the programme.

Who Qualifies For SIKR Coverage

SIKR is designed as a fully sponsored, syariah-compliant group term takaful plan that requires no contribution from participants. The scheme targets a specific segment of the Malaysian population: heads of households listed in the national eKasih database under the hardcore poor and poor categories.

The objective is to reduce the financial vulnerability of low-income families by providing immediate relief in the event of death or disability. This early assistance helps beneficiaries manage unforeseen costs while allowing surviving family members to stabilise their household finances.

SIKR’s Growth Since 2022

The scheme’s structure has expanded steadily since its introduction in 2022. During its first phase, the government allocated RM13.4 million in contributions, covering 268,887 household heads. This early rollout provided the foundation for a wider social protection network.

SIKR 2.0 enhanced several aspects of the coverage, offering RM10,500 for natural death, RM25,500 for accidental death, and RM10,500 for accident-related permanent disability. With SIKR 3.0, the government continues this incremental approach by raising benefit values and refining programme delivery.

Strengthening Malaysia’s Social Protection Framework

The introduction of SIKR 3.0 is consistent with broader national efforts to expand targeted assistance programmes. By integrating a takaful-based model, the scheme supports financial resilience while aligning with syariah requirements.

The updated benefits ensure that families from the lowest-income groups have access to a structured form of protection during emergencies. As the rollout period has already been set through the government’s approval process, implementation is expected to begin on schedule from October 2025.

The current environment, where more households are adjusting or cancelling private coverage due to rising premiums, highlights the role of targeted government schemes in maintaining a basic level of protection for vulnerable groups. As private medical insurance and takaful plans become harder for some households to maintain, programmes such as SIKR provide a complementary layer of protection for groups that may otherwise remain uninsured.

Rising Insurance Cancellations Highlight Financial Strain

The wider insurance landscape provides important context for SIKR 3.0, as many households continue to face financial pressure in maintaining private health coverage. 

Malaysia has experienced a sharp rise in health insurance and takaful cancellations following recent premium increases. According to industry representatives, the trend began in late 2024 and has continued into 2025. Many policyholders reported that higher premiums are no longer affordable as their income growth remains limited.

The situation has also affected insurance and takaful agencies, which rely on active policies for their earnings.

Follow us on our official WhatsApp channel for the latest money tips and updates.