The Rakan KKM initiative, planned by the Malaysian government and expected to be unveiled in Budget 2025, is to create self-sustaining private health care services independent of state funding.
Although the concept is valid, the complexities of operating a private enterprise in the health care industry present considerable difficulties. The recent price escalation at the National Heart Institute (IJN), a government-established institution backed by the Ministry of Finance, illustrates these challenges.
Despite direct support, the IJN’s difficulty in sustaining inexpensive health care exemplifies the overarching challenge of sustainability in health care expenditures. This scenario underscores the intricacies of reconciling quality, accessibility, and financial sustainability within the health care system.
It is essential to prioritise health care for the B40 in government budgets, as programmes necessitating out-of-pocket expenses or insurance may exacerbate the disadvantages faced by this vulnerable demographic.
Although programmes such as Rakan KKM may assist in retaining specialists and nurses within the public sector, individuals in the B40 demographic may continue to have obstacles in obtaining appropriate health care.
Guaranteeing that health care services are completely free and accessible is crucial for enhancing health outcomes among low-income households. Comprehensive policies must be enacted to eradicate financial obstacles and ensure fair access to vital health care services, guaranteeing that no one is excluded in the quest for improved health.
The establishment of private wings within public hospitals may aid in talent retention and revenue generation; yet, it creates issues of equity and accessibility. The utilisation of doctors and nurses from the same overextended public resources poses a significant risk of exacerbating the disparity between individuals who can afford private health care and those who cannot within the public health care system.
Although insurers and payers may gain advantages from this decision, the impact on the public dependent only on public care remains uncertain.
The public will pose significant enquiries: How will physicians determine which patient to prioritise – the one who is paying or the one subsidised by the government? In the operating theatre, which surgery will be prioritised – the one for a private patient or a public patient?
Will public hospitals progressively depend on medical officers and house officers while specialists concentrate on the private sector? This is significant as the pool of public health care human capital will be the same.
These concerns necessitate the establishment of explicit protections to protect the public interest. The government must implement transparent measures to guarantee that public patients do not face extended waiting periods or diminished access to expert care.
In the absence of adequate restrictions, we jeopardise the principle of equal health care within the publicly funded health care system supported by taxpayers.
The primary objective must be to guarantee that reforms enhance care for all Malaysians –not solely for those who can afford it – while preserving trust in the public health care system.
Private hospitals in Malaysia might significantly enhance the government’s health care system by outsourcing treatments and efficiently administering public health care. Private hospitals conglomerates, some of which are GLCs (government-linked companies), could alleviate the load on government resources by establishing cooperative ventures with public hospitals, therefore utilising their knowledge and expertise in cost-effective treatment using government allotted funds.
Malaysia’s private health care sector, with a 50-year history, features internationally recognised brands such as IHH and KPJ, which offer the expertise and experience to assist the government in providing comprehensive health care services.
This collaboration has the potential to enhance accessibility and quality of care across all social strata, fostering a more cohesive and efficient health care system for the nation instead attempting a whole new concept of private health care within a public system.
Dr Kuljit Singh is the president of the Association of Private Hospitals Malaysia (APHM).
- This is the personal opinion of the writer or publication and does not necessarily represent the views of CodeBlue.

