
Rakan KKM not privatisation, says Health Minister
He said that it is a government-owned and controlled public initiative designed to support and complement the existing healthcare system.
In a post on X (formerly known as Twitter) on Monday (July 14), Dzulkefly addressed concerns from various quarters that feared that the incorporation of Rakan KKM Sdn Bhd signalled a move towards the privatisation of public health services.
'For those who have tagged me with their concerns, I hope the following clarification resolves this conclusively although I have my anxieties or doubts, especially at a time when many are only keen to read headlines,' he said.
He explained that Rakan KKM Sdn Bhd is 100% owned by the Minister of Finance Incorporated (MoF Inc).
'Ownership of Rakan KKM remains with the government, directly or through GLICs, throughout its operations,' said Dzulkefly.
He said that ownership would still remain within the government's framework even when government-linked investment companies (GLICs) become involved later through equity stakes.
Dzulkefly added that the Health Ministry is the regulatory authority overseeing critical decisions related to Rakan KKM.
He then said that its funding is entirely from public sources, with RM25mil seed funding provided by the Finance Ministry, and potential scale-up funding from GLICs in Phase 2.
As for profit distribution, Dzulkefly said that it would go back to the government or GLICs and not private individuals and added that any excess revenue would be used to cross-subsidise services for all public patients.
He said that Rakan KKM was established to achieve five key public-interest goals; to provide value-based, premium economy healthcare in response to rising medical costs, to subsidise care for public patients using excess revenue, and to support ministry healthcare workers by offering them additional income opportunities.
It also aims to serve as a benchmark for healthcare pricing to moderate inflation, and to offer returns to government-linked shareholders, ensuring the initiative's long-term sustainability.
Dzulkefly also addressed questions regarding why Rakan KKM is licensed under the Private Healthcare Facilities and Services Act 1998 (Act 586), often associated with private entities.
He explained that the law was designed to accommodate government corporate bodies providing healthcare services, ensuring a level playing field when they operate alongside private hospitals.
'This is important to ensure a level playing field with the private sector, especially if Rakan KKM is to play a role as a price benchmark,' he said.
He added that the Act clearly distinguishes incorporated government healthcare providers from privatised ones.
Dzulkefly also acknowledged the complexity of the subject and pledged to explain it further through infographics in the near future to ensure better public understanding.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Malaysiakini
2 hours ago
- Malaysiakini
Vape bans: Slippery slope for legal governance
LETTER | In July 2024, the High Court ruled that the Kedah state government's move to ban gaming licences, effectively shutting down Sports Toto operations in the state, was unconstitutional. The court found that state authorities had overstepped their powers by refusing to renew licences issued under federal law, thereby infringing on the rights of a legally licensed business and violating the Federal Constitution. This landmark ruling is more than just a win for the gaming industry; it underscores a critical principle: state governments cannot override federal law at will. Yet just months later, we are seeing the same pattern emerge again, this time with the vape industry. Kedah has announced it will no longer renew licences for vape-related businesses, with the goal of a complete ban by 2026. Other states such as Pahang, Terengganu and Perlis are following suit. This trend raises urgent questions about the balance of power in our federal system. What started with gaming licences is now extending to vape. Tomorrow, will it be food and beverages? Or wellness and lifestyle services? If states are allowed to selectively shut down federally regulated sectors, Malaysia risks descending into legal fragmentation, where trade and commerce depend more on local politics than national law. Act 852: A necessary legal anchor Rather than allowing states to adopt unilateral bans, the federal government must focus on fully enforcing Control of Smoking Products for Public Health Act 2024 (Act 852) across the country. Act 852 was passed after years of consultation and debate. It represents a balanced and structured approach to regulating smoking and vaping products, protecting youth, ensuring product safety, and reducing public health risks while allowing regulated access to adults. Its successful enforcement is not just a health issue; it is a legal imperative. If states are allowed to disregard it through political or moralistic motivations, the Act's legitimacy will be compromised. From a legal standpoint, only a consistent, centralised framework can ensure that public health regulations are enforced uniformly, fairly, and in accordance with constitutional principles. Legal uncertainty hurts rule of law, public confidence One of the hallmarks of a sound legal system is predictability. Businesses, consumers, and civil society should be able to rely on a stable set of laws and policies. When that stability is undermined by states choosing to selectively ban certain industries, it weakens the rule of law and opens the door for selective enforcement, politicisation of trade, and judicial overload from legal disputes. This also affects the very communities the bans claim to protect. Instead of driving behaviour change, bans often push products into illicit channels, where there is no age restriction, no safety oversight, and no taxation. This undermines the public health objectives of Act 852 and increases enforcement burdens. The way forward: Uphold the law, not politicise it The lesson from the Sports Toto ruling is clear: state governments do not have the authority to override federal laws with blanket bans. Vape should not be the next legal battleground. The federal government must assert the supremacy of laws passed by Parliament and ensure that public health policies are governed by national interest, not fragmented by state agendas. Act 852 provides the legal tools to regulate the vape industry effectively. What's needed now is not more bans but better enforcement. Malaysia must decide whether it wants to be governed by clear laws or discretionary bans. The answer will determine whether our legal system continues to uphold constitutional order or gives way to a patchwork of conflicting state policies. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.


The Star
2 hours ago
- The Star
Responsible waste disposal
LAST month, a pink discharge was detected in the sewerage system following an underground blast near a sewer line operated by the national sewage company, Indah Water Konsortium (IWK) Sdn Bhd, in Bukit Minyak, Bukit Mertajam. Investigations by IWK revealed that a toxic gaseous substance had entered the sewer network, indicating illegal chemical dumping. Improper disposal of toxic waste — such as pouring chemicals into drains or flushing hazardous materials down the toilet — not only damages the sewerage system but also endangers public health and the environment. Toxic, pink-coloured gas discovered in the sewer system. These incidents are far from isolated, as similar cases have occurred in the past. In November 2020, illegal discharge of wastewater into the sewage treatment plant was reported in Taman Velox, Rawang. Immediate actions were taken to enhance the biological treatment process, including removal of contaminants, diversion of polluted wastewater into isolated tanks and 24-hour plant monitoring. The environmental consequences would have been severe had these harmful chemicals bypassed the treatment process entirely – threatening ecosystems, water sources and public health. In late 2019, IWK conducted clean-up operations after glycerine waste was illegally dumped into a public sewer manhole in the Kamunting Industrial Area, Bukit Sentosa. IWK personnel found the manhole cover vandalised and sewage overflowing onto Jalan Kamunting 2B. Immediate intervention works were carried out to contain the situation and prevent contamination of nearby water sources. Media reports at the time believed that the illegal dumping of glycerine waste polluted the main drainage near Masjid As-Salam, Bukit Sentosa, Rawang. IWK's sewage treatment plants are designed to treat only domestic wastewater. Illegal dumping can have costly repairs, cause operational disruptions and potential environmental damage. 'These illegal discharges not only disrupt the treatment process but also place a significant financial burden on the company. 'On average, we spend up to RM500,000 depending on severity to rectify any incident,' said IWK chief operating officer Mohd Taufik Salleh. 'This is money that could be better invested in improving infrastructure, expanding service coverage, and driving innovations that better serve our communities and protect the environment,' he added. Discharging waste into manholes is a serious offence under Section 122 of the Water Services Industry Act 2006 (Act 655), which expressly prohibits the disposal of any substance into manholes. Offenders now face significantly increased penalties – fines of up to RM1mil and/or imprisonment for up to 10 years. Likewise, the discharge of prohibited effluent or noxious substances into public sewers or sewage treatment facilities constitutes an offence under Section 61. Upon conviction, offenders may be fined up to RM100,000, imprisoned for a term not exceeding one year, or both. Disposal habits matter But these risks aren't limited to industrial waste. Everyday habits contribute too. Whether at home or in business, using proper disposal methods can make a meaningful difference. IWK encourages all customers to dispose of waste properly, as seemingly harmless items like wet wipes, diapers, sanitary pads – even clothing – can clog sewer pipelines, leading to serious blockages. These obstructions can damage pipelines, cause sewer overflows, flood streets and rivers, and disrupt entire communities. Proper waste disposal is also crucial to keep our sewerage network functioning efficiently. When waste is managed correctly, it travels safely through the sewerage system to IWK's treatment plants, where it undergoes regulated, thorough treatment before being safely discharged back into waterways. This process protects public health, preserves the environment and ensures a sustainable future for generations to come. IWK remains committed to managing Malaysia's sewerage system, but everyone plays a vital role in safeguarding our environment and ensuring the smooth operation of our nation's sewerage infrastructure with responsible waste habits.
![[UPDATED] Health Ministry seeks ban on vaping and vape product sales](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2FHQ120623AA01734_1753672916.jpg&w=3840&q=100)
![[UPDATED] Health Ministry seeks ban on vaping and vape product sales](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75)
New Straits Times
2 hours ago
- New Straits Times
[UPDATED] Health Ministry seeks ban on vaping and vape product sales
KUALA LUMPUR: The Health Ministry is moving towards a full ban on the use and sale of electronic cigarettes and vape products. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the move requires consideration of several factors, including legal implications, enforcement, and public health. "The Health Ministry is heading towards a total ban on the use and sale of vapes to contain the problem effectively and wholly. "The implementation of this ban must be done carefully and take into account various aspects," the minister said during Minister's Question Time in the Dewan Rakyat today. In response to a question by Datuk Ahmad Saad @ Yahaya (PN-Pokok Sena), Dzulkefly said that the government had formed an expert committee to study the matter and provide policy recommendations. He said the committee advised a comprehensive review of industrial, regulatory, economic and licensing aspects before implementing a government-level ban. "The Health Ministry is also planning detailed discussions with the Finance Ministry, Domestic Trade and Cost of Living Ministry, Investment, Trade and Industry Ministry, and the Attorney-General's Chambers," he said. Dzulkefly added that the ministry is currently enforcing the Control of Smoking Products for Public Health Act 2024, which regulates product registration, advertising, promotion, sponsorship and other aspects. In a press conference later, the minister said that the expert committee will review current enforcement mechanisms under the Act and recommend further steps towards a complete ban. As of June this year, about 70 per cent of 58 police investigation papers found vapes laced with illegal drugs, while 80 per cent of 64 investigations in 2024 showed similar findings.