Latest news with #RakanKKMSdnBhd
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.
The Star
14-07-2025
- Business
- The Star
Rakan KKM not privatisation, says Health Minister
KUALA LUMPUR: The recently announced Rakan KKM initiative is not a form of healthcare privatisation, says Health Minister Datuk Seri Dr Dzulkefly Ahmad. 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.
