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Yahoo
5 days ago
- Health
- Yahoo
Two-tier healthcare or public lifeline? Unpacking the debate over Rakan KKM
KUALA LUMPUR, July 15 — The Ministry of Health's (MOH) plan to launch its 'Rakan KKM' programme has ignited a fierce public debate. On one side, detractors warn it would create a two-tiered healthcare system that favours wealthier patients using public facilities. On the other, supporters argue the programme could help alleviate the financial strain on government hospitals and clinics while retaining specialist talent. What is Rakan KKM? The programme is a paid-for service envisioned by the MOH to offer 'premium economy' healthcare, encompassing elective procedures and personalised care. According to Health Minister Datuk Seri Dr Dzulkefly Ahmad, Rakan KKM will operate within the public healthcare ecosystem but provide services evocative of yet cheaper than commercial hospitals. The ministry aims to launch Rakan KKM by the third quarter of this year at four pilot locations: Hospital Cyberjaya, Hospital Putrajaya, Hospital Sultan Idris Shah Serdang, and the National Cancer Institute (IKN). Why the controversy? Criticism primarily centres on the argument that Rakan KKM amounts to a 'backdoor privatisation' of healthcare facilities and services funded by taxpayer money. Critics argue this will create a two-tiered system, allowing those with money to 'skip the line' for access to public healthcare services and bypass the long waiting lists that currently plague government hospitals under severe cost and manpower strains. They have also homed in on the salaries offered by Rakan KKM, with many top posts advertised with five-figure pay. Detractors have used this to question the MOH's stated inability to absorb thousands of contract health workers into permanent positions. Rakan KKM has so far received an allocation of RM25 million under Budget 2025, with a second phase of funding expected to come from government-linked investment companies (GLICs). The ministry's defence: Public interest, not profit Responding to the backlash, Dzulkefly has stressed that Rakan KKM's conception is underpinned by public interest. He rejected claims of privatisation by highlighting that Rakan KKM Sdn Bhd will remain fully owned by the Ministry of Finance Incorporated, which would keep the entity aligned with government objectives. '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,' the minister said on the social media platform X on Sunday. He then urged the public to look at the programme's key objectives, which he outlined as: Making healthcare more affordable than fully private options. Using any profits to cross-subsidise regular public healthcare services. Providing better income opportunities for specialists to retain them in the public service. Dzulkefly argues that these goals demonstrate that Rakan KKM is rooted in public service, not profit maximisation. Recommended read:Dzulkefly explains government ownership of 'premium economy' Rakan KKM scheme amid privatisation fears
Malaysiakini
5 days ago
- Business
- Malaysiakini
Rakan KKM public or private initiative?
MP SPEAKS | Strictly, the question of whether an initiative or entity is public or private comes down to questions on ownership, control, sources of funding, distribution of profits, and purpose. Rakan KKM Sdn Bhd is 100 percent owned by the Minister of Finance Incorporated (MOF Inc). When a government-linked investment company (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. As for control, the Health Ministry is the "kementerian kawal selia" responsible for critical decisions over the management of the company. Seed funding of RM25 million from the Finance Ministry was announced in the budget. Additional scale-up funding from GLICs will be explored in Phase 2, which will be repaid through the revenues/profits of Rakan KKM operations. In all cases, sources of financing remain government or government-linked. Profit distribution is to the shareholders/owners of Rakan KKM - ie MOF Inc or GLICs. Rakan KKM's purpose As a public initiative, Rakan KKM serves five key objectives which are in the public interest: (a) In the environment of high medical price inflation, Rakan KKM provides premium economy value-based healthcare services to raise the ceiling, (b) Excess revenue from Rakan KKM will be used to cross-subsidise the services for all public patients, thus raising the floor, (c) Support the retention of ministry health workers by providing opportunities to increase their income considerably, (d) Serve as a price benchmark, including for services provided by private hospitals, to moderate medical price inflation for all, including patients who do not directly use Rakan KKM services, and (e) Provide appropriate returns for our GLIC shareholders and their members. Act 586 But why is Rakan KKM licensed under the Private Healthcare Facilities and Services Act 1998 (Act 586)? Does that make it a private initiative? The experts who drafted Act 586 had the foresight to anticipate the possibility that the government would provide health services through a corporate body. 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. The Act clearly states that a government corporate body should be regulated under this Act. DZULKEFLY AHMAD is Kuala Selangor MP and health minister. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
Malaysiakini
15-07-2025
- Business
- Malaysiakini
Rakan KKM public or private initiative?
MP SPEAKS | Strictly, the question of whether an initiative or entity is public or private comes down to questions on ownership, control, sources of funding, distribution of profits, and purpose. Rakan KKM Sdn Bhd is 100 percent owned by the Minister of Finance Incorporated (MOF Inc). When a government-linked investment company (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. As for control, the Health Ministry is the "kementerian kawal selia" responsible for critical decisions over the management of the company. Seed funding of RM25 million from the Finance Ministry was announced in the budget. Additional scale-up funding from GLICs will be explored in Phase 2, which will be repaid through the revenues/profits of Rakan KKM operations. In all cases, sources of financing remain government or government-linked. Profit distribution is to the shareholders/owners of Rakan KKM - ie MOF Inc or GLICs. Rakan KKM's purpose As a public initiative, Rakan KKM serves five key objectives which are in the public interest: (a) In the environment of high medical price inflation, Rakan KKM provides premium economy value-based healthcare services to raise the ceiling, (b) Excess revenue from Rakan KKM will be used to cross-subsidise the services for all public patients, thus raising the floor, (c) Support the retention of ministry health workers by providing opportunities to increase their income considerably, (d) Serve as a price benchmark, including for services provided by private hospitals, to moderate medical price inflation for all, including patients who do not directly use Rakan KKM services, and (e) Provide appropriate returns for our GLIC shareholders and their members. Act 586 But why is Rakan KKM licensed under the Private Healthcare Facilities and Services Act 1998 (Act 586)? Does that make it a private initiative? The experts who drafted Act 586 had the foresight to anticipate the possibility that the government would provide health services through a corporate body. 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. The Act clearly states that a government corporate body should be regulated under this Act. DZULKEFLY AHMAD is Kuala Selangor MP and health minister. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
New Straits Times
14-07-2025
- Business
- New Straits Times
Rakan KKM a govt-led initiative, not a move towards privatisation: Dzulkefly
KUALA LUMPUR: Health Minister Datuk Seri Dr Dzulkefly Ahmad has sought to allay public concerns over the Rakan KKM initiative, stressing that the programme is is a government-led initiative, fully owned and regulated by public institutions. 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.
New Straits Times
30-06-2025
- Business
- New Straits Times
KWAP shortlists 12 global partners under RM6bil Dana Pemacu initiative
KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) [KWAP] has shortlisted 12 global general partners (GPs) with an allocation of RM6 billion across both conventional and Syariah-compliant funds under the Dana Pemacu initiative. The funds will be channelled into three key asset classes, which are private equity, infrastructure and real estate. KWAP said in a statement that this initiative focuses on key economic sectors such as food security, education, the silver economy and healthcare, energy transition, the digital economy, financial inclusion, and other critical priorities aligned with the Ekonomi Madani framework. Launched in May 2024, Dana Pemacu by KWAP plays a pivotal role in advancing Malaysia's economic transformation through the strategic deployment of diversified and commercially viable investments to enhance the value and impact of government-linked investment company (GLIC) investments. By prioritising efficiency in resource allocation, this initiative focuses on driving carefully tailored investments that align with national priorities into high-growth Malaysian companies and critical sectors. This will also support the government's reforms under the GEAR-uP initiative to "Raise the Ceiling", as part of the broader Ekonomi Madani framework. By adopting a co-general partner (co-GP) model, which pairs global investment managers with local talent, Dana Pemacu strengthens Malaysia's private market ecosystem, driving sustainable growth, enhances domestic capacity and brings global expertise to the local market while fostering economic resilience across key sectors. For private equity, the selected GPs are Investcorp, Navis Capital Partners, Nexus Point and The Vistria Group. For infrastructure, the mandate is allocated to Climate Fund Managers, DigitalBridge, I Squared Capital and Seraya Partners. Under the real estate mandate, the GPs are Castleforge Partners Limited, Lendlease Investment Management Pte Ltd, Savills Investment Management, and TrustCapital Advisors Investment Management Pte Ltd. As part of the Co-GP model under Dana Pemacu, all global GPs have also finalised the selection of local partners pursuant to their thorough assessment process and are currently undergoing the necessary regulatory approvals. KWAP chief executive officer Datuk Nik Amlizan Mohamed said the agency received positive interest from global GPs since the launch of Dana Pemacu, with more than 40 submissions obtained. "Following rigorous evaluation and due diligence processes, we have shortlisted these 12 global GPs that would further contribute meaningfully to Malaysia's private market ecosystem. "KWAP recognises the strengths of the selected global GPs, as they have a proven track record and experience in managing investments and driving performance," she said. Aligned with KWAP's objective to support the domestic economy, the majority of KWAP's total investment under Dana Pemacu will be deployed in Malaysia and in Syariah-compliant opportunities. As part of the diversification strategy, the remainder will be invested across international markets to generate sustainable, long-term, risk-adjusted returns.
