Rakan KKM a govt-led initiative, not a move towards privatisation: Dzulkefly
In a post on his official X account last night, Dzulkefly clarified that Rakan KKM is 100 per cent owned by the Minister of Finance Incorporated.
"For those who have tagged me with their concerns that Rakan KKM is privatisation, I hope the following clarification resolves this conclusively," he said, acknowledging the public's concerns.
He explained that Rakan KKM Sdn Bhd is currently 100 per cent owned by the Minister of Finance Incorporated, and should a government-linked investment company (GLIC) later invest in the entity, ownership would remain within government control.
"When a GLIC investor comes in, the GLIC may take an equity stake in Rakan KKM Sdn Bhd. Ownership of Rakan KKM remains with the government, directly or through GLICs, throughout its operations."
He said the Health Ministry will function as the regulatory authority, responsible for critical decisions over the management of the company.
He added that initial funding of RM25 million had been allocated through the federal budget, with additional funding to be sourced from GLICs in the second phase.
These funds, he said, will be repaid through revenue generated by Rakan KKM, maintaining financial independence while keeping funding strictly government-linked.
Profits from Rakan KKM would be returned to the shareholders, including the Minister of Finance Incorporated and the GLICs.
Dzulkelfy said Rakan KKM was developed to achieve five public-interest objectives, among which were offering value-based "premium economy" healthcare services in response to rising medical costs; using excess revenue to cross-subsidise public healthcare services and improving retention of the ministry's health workers by creating opportunities to increase their incomes considerably.
The initiative also aims to serve as a price benchmark, including for services provided by private hospitals, moderate medical price inflation for all, including patients who do not directly use Rakan KKM services and deliver appropriate returns for its GLIC shareholders.
Dzulkefly said these goals demonstrate that Rakan KKM is grounded in public service, not profit maximisation.
On why Rakan KKM is licensed under the Private Healthcare Facilities and Services Act 1998 (Act 586), he clarified that the Act includes provisions for government-incorporated bodies.
He said the experts who drafted the Act had anticipated the possibility of the government offering healthcare through corporate bodies.
"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 also cited Section 2 of Act 586, which differentiates between privatised healthcare facilities and those incorporated but still government-owned.
On July 7, Dr Dzulkefly said that the initiative is not a form of privatisation , but a transformative effort by the ministry to improve access to elective procedures in public healthcare facilities.
He said with the initiative, the ministry would be able to utilise its pool of specialists and the available capacity within its health facilities to offer patients the option of receiving elective treatments more quickly.
The programme offers 'premium economy' services at selected public hospitals for elective outpatient, daycare, and inpatient services, including personalised care, specialist choice and enhanced privacy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
2 hours ago
- Malaysiakini
National Debt Under Control Amid Reforms, Say Economists
Malaysia's sizable national debt does not pose a threat to the country's long-term prosperity, thanks to its strong economic fundamentals and prudent fiscal management, according to economists. Dr. Goh Lim Thye, senior lecturer at Universiti Malaya's Faculty of Business and Economics, said the national debt — recorded at RM1.22 trillion or 63% of GDP as of April 2024 — needs careful oversight but does not inherently pose a risk. 'In assessing debt sustainability, the focus isn't on the absolute size of debt, but rather on the country's ability to service it without hampering economic growth or triggering instability,' Goh told FMT. He noted that Malaysia maintains a diversified economy, solid fiscal capacity, and consistent access to both local and global capital markets. Moreover, international confidence in the country's financial stability remains high. 'All three major credit rating agencies — S&P, Moody's, and Fitch — reaffirmed Malaysia's investment-grade ratings in 2024,' said Goh, who also serves as deputy dean of development at the faculty. 'These affirmations reflect investor confidence that Malaysia is managing its fiscal position responsibly and advancing key reforms.' IMF Endorses Reform Measures Malaysia's reform efforts have also received praise from the International Monetary Fund (IMF), which welcomed the government's fiscal consolidation agenda and the enactment of the Public Finance and Fiscal Responsibility Act (FRA) in its March report. The IMF noted that current policies are aimed at rebuilding fiscal buffers, supporting economic growth, and enhancing social protection, while maintaining macroeconomic and financial stability. The FRA, passed in 2023, is seen as a cornerstone for improving fiscal governance and long-term sustainability. The IMF also highlighted that Malaysia's economic conditions provide a strategic opportunity to advance structural reforms. Under the Madani Economy framework, the government has laid out policy objectives focused on income growth, digitalisation, climate change mitigation, and good governance. Reforms Strengthening Fiscal Outlook MIDF Amanah Investment Bank's head of research, Imran Yusof, echoed the positive sentiment, stating that the government's fiscal and structural reforms are creating a stronger foundation to manage debt effectively. 'We believe the government is moving in the right direction — aiming for higher surpluses and reduced deficits,' he said. The unity government's consolidation measures are already showing results. The fiscal deficit narrowed from 5% of GDP in 2023 to 4.1% in 2024, outperforming its 4.3% target. The 2025 deficit is projected to decline further to 3.8%. Malaysia has also reduced new borrowings — RM75 billion in 2024, down from RM93 billion in 2023 and RM100 billion in 2022. Imran said the focus should be on the debt-to-GDP ratio rather than the total debt amount. Since the deficit stems primarily from development spending, which is considered long-term investment, it can be justified if GDP continues to grow. 'As long as Malaysia maintains a balanced operating budget and nominal GDP keeps rising, the national debt remains manageable,' he said. A Legacy of Crisis and Mismanagement Goh emphasised that the current debt level is largely inherited and not a result of the current administration's policies. 'The elevated debt stems from legacy issues and extraordinary crisis-related spending,' he explained, pointing to massive outlays during the Covid-19 pandemic and the long shadow of the 1MDB scandal. Between 2020 and 2022, the Perikatan Nasional-led government rolled out over RM530 billion in stimulus measures, including over RM100 billion in direct fiscal injections. While these moves helped preserve jobs and prevent economic collapse, they significantly increased public debt. The 1MDB scandal also saddled the government with long-term obligations and dented investor trust, said Goh. 'While some of these liabilities have been addressed, the broader fiscal impact and opportunity costs remain,' he said. 'The challenge now is to rebuild resilience — and encouragingly, the government appears to be taking solid steps in that direction.' Source: FMT The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini. Interested in having your press releases, exclusive interviews, or branded content articles on Malaysiakini? For more information, contact [email protected] or [email protected]
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Govt to fast-track filling of 4,352 healthcare positions, says Anwar
On July 12, health minister Dzulkefly Ahmad said his ministry was committed to resolving issues with healthcare workers' welfare, following reports of recruitment drives by Singapore-based talent agencies. PETALING JAYA : The government will expedite the filling of 4,352 positions at healthcare facilities this year, including contract appointments for doctors, says Prime Minister Anwar Ibrahim. In a special announcement broadcast on major television channels and social media platforms today, he said the move would address the urgent needs of the healthcare sector. 'There have been complaints about critical vacancies, particularly involving doctors. 'We've decided that while services must improve, there is also a clear need to bring in new and contract doctors,' he said. On July 12, health minister Dzulkefly Ahmad said his ministry was committed to resolving issues with healthcare workers' welfare, following reports of recruitment drives by Singapore-based talent agencies. He defended the decision to cancel the placements for doctors in February because of technical issues in the ePlacement system. He also said the system had been improved, and that through it, 2,248 medical officers had since been offered permanent appointments.
Sinar Daily
6 hours ago
- Sinar Daily
Subsidies, aid and toll freeze – Key takeaways from PM Anwar's big announcement
Among the key measures: a one-off RM100 cash aid for adults, the doubling of Rahmah sales allocation, postponed toll hikes, targeted RON95 petrol subsidies and lower electricity bills. Malaysians can expect financial relief and cost-of-living support in 2025 following Prime Minister Datuk Seri Anwar Ibrahim's sweeping announcement earlier today. Photo for illustrative purposes only - Pixabay SHAH ALAM - Malaysians can expect financial relief and cost-of-living support in 2025 following Prime Minister Datuk Seri Anwar Ibrahim's sweeping announcement earlier today. Among the key measures: a one-off RM100 cash aid for adults, the doubling of Rahmah sales allocation, postponed toll hikes, targeted RON95 petrol subsidies, lower electricity bills and increased minimum wages. The government also pledged to eradicate hardcore poverty, improve healthcare staffing and declared Sept 15 as an additional public holiday to mark Malaysia Day. Prime Minister Datuk Seri Anwar Ibrahim. Bernama FILE PIX Here are the key takeaway from Anwar's announcement: Financial Assistance: A one-off RM100 payment through MyKad for every adult citizen aged 18 and above under the Sumbangan Asas Rahmah (SARA) program, starting Aug 31, 2025. This can be spent on basic necessities at over 4,100 stores until Dec 31, 2025. This assistance is per individual, meaning a household with multiple adults can receive more (e.g: RM400 for a couple with two adult children). Increased overall allocation for Sumbangan Tunai Rahmah (STR) and SARA to RM15 billion for 2025, the highest in history. Increased cash assistance under the Department of Social Welfare (JKM) to RM2.9 billion, which includes higher monthly welfare aid for the elderly and children from poor families. Cost of Living Relief: Minimum Wage Increase: The minimum wage increased to RM1,700 from RM1,500, effective Feb 1, 2025 and fully enforced by Aug 1, 2025. Living Wage for GLIC/GLC Employees: Companies linked to the government (GLIC and GLC) ensure 153,000 workers receive a living wage of at least RM3,100 per month. Paddy Farmers' Support: The purchase floor price for paddy increased to RM1,500 (2025) and the Paddy Price Subsidy Scheme increased to RM500 (2023). Rubber Smallholders' Support: The Rubber Production Incentive (IPG) increased to RM3.00 (2024). Expanded Rahmah Madani Sales: The allocation for "Jualan Rahmah Madani 2025" has doubled to RM600 million, allowing for more frequent sales, wider coverage (all 600 state constituencies) and a greater variety of goods for citizens. Toll Rate Freeze: The government will bear over RM500 million to postpone scheduled toll rate increases for 10 highways this year, allowing citizens to continue paying the same toll rates. Reduced RON95 Petrol Price: Once the targeted RON95 petrol subsidy is implemented, Malaysian citizens will enjoy a lower price of RM1.99 per liter, benefiting approximately 18 million car drivers and motorcyclists. Foreigners will pay the market price. Lower Electricity Bills: 85 per cent of domestic electricity consumers experienced a decrease in their electricity bills for July 2025 usage compared to the first half of 2025, with reductions of up to 14 per cent. Employment and Healthcare: Unemployment has decreased to 3.0 per cent (May 2025), the lowest in over a decade. Over 250,000 new jobs were created in 2023 and 2024. The Health Ministry will expedite efforts to fill over 4,352 contract doctor positions in health facilities nationwide by the end of 2025, aiming to provide better healthcare services. Poverty Eradication: Nearly 150,000 hardcore poor households from 2023 have moved out of the hardcore poor category by the end of 2024. The "Sejahtera Madani" initiative will be launched to continue assisting hardcore poor and poor groups through government and corporate sector collaboration. Community Development and Education: "Sejati Madani" has channelled up to RM100,000 to communities for income-generating economic activities, leading to over 8,600 community economic activities in villages. The "Kampung Angkat Madani" (Adopted Village Madani) programme has expanded from 40 to 200 villages this year, benefiting community-level citizens. The "Sekolah Angkat Madani" (Adopted School Madani) initiative aims to have 1,000 adopted schools by the end of the year, ensuring the best education for children. Public Holiday: Sept 15, 2025 (Monday), has been declared an additional public holiday in conjunction with Malaysia Day celebrations, to foster unity and encourage family time and domestic tourism.
