KUALA LUMPUR, Oct 18 — Prime Minister Anwar Ibrahim has announced the launch of the Rakan KKM programme in five Ministry of Health (MOH) hospitals, including Cyberjaya Hospital, as part of Budget 2025.
The programme, backed by RM25 million in funding, aims to provide paid health care services at “reasonable” rates through partnerships with government-linked investment companies (GLICs).
“The public health care system needs to be strengthened to be more resilient, sustainable, and self-reliant. Therefore, the Rakan KKM initiative will be introduced in collaboration with GLICs. This is a public-private partnership (PPP) involving the private sector, the people, and the government. It will start in five hospitals for now and will be expanded,” Anwar said during his Budget 2025 speech.
However, Anwar did not describe Rakan KKM as a “private wing” initiative, a term used by Health Minister Dzulkefly Ahmad, who had earlier mentioned that the programme would be implemented via a special-purpose vehicle (SPV).
The details of Rakan KKM, including whether an SPV will be created, remain unclear. Dzulkefly has previously stated that the programme would avoid the “mistakes” of the Full Paying Patient (FPP) scheme, which has been discontinued in at least three of the 10 hospitals that had provided FPP services since the Covid-19 pandemic.
Anwar also announced that the government would increase collaboration with 91 private hospitals to outsource MOH patients requiring cardiology, radiology, and nephrology services to ease pressure on public health facilities.
He added that the government will implement an offtake policy to procure pharmaceutical products and critical medical devices from companies making new domestic investments.
“This approach not only ensures a secure local supply of medicines but can also reduce costs in the medium term,” Anwar said. “We will encourage investment in halal vaccine production, and we congratulate Pharmaniaga Bhd for its success in this field.”
