KUALA LUMPUR, Nov 12 — Health Minister Dzulkefly Ahmad today revealed that the Employees Provident Fund (EPF) is among the investors in the government’s Rakan KKM initiative, which aims to establish “premium economy” facilities in public hospitals.
During his policy-level wind-up speech on Budget 2025 in the Dewan Rakyat, Dzulkefly clarified that Rakan KKM is not a privatisation effort, as funding will come from government-linked investment companies (GLICs) such as EPF, rather than from privately owned companies.
Dzulkefly explained that this funding model marks a shift away from relying on taxpayer-funded government resources.
“Let me simplify it: this is not a private wing or full-paying patient system like those already implemented by MOH or MOHE,” Dzulkefly said in response to questions from Bandar Kuching MP Dr Kelvin Yii.
“It is a partnership in three or four components. First is MOH itself. This means MOH specialists, this is why it’s very specialist-driven and health care worker (HCW)-driven, staff-driven. That’s one. The second is MOH itself as a ministry. The third is the investor which is the government-linked investment companies.
“This is different from private wings that use funds from the government’s consolidated fund, derived from taxpayer money. We have gained the confidence of EPF, which will be making this investment,” said Dzulkefly.
“Thanks to their confidence, we can implement this with the collaboration of our specialists and health care teams, without using taxpayer money to develop a facility considered premium economy, specifically for those who can afford to pay.”
Dzulkefly was responding to queries raised by Dr Yii, who asked about the implementation mechanism of Rakan KKM and how it differs from the existing FPP model in several hospitals across the country. Dr Yii had also raised concerns about issues such as misuse of power, doctors’ time, and whether government resources should be used to generate income for others.
The Bandar Kuching MP expressed his support for the initiative, calling it a potential “game changer” if implemented properly. However, he voiced concerns about GLICs needing to answer to their boards, investors, and fund managers, and the potential “element for privatisation” if the initiative is not executed well.
Dzulkefly alluded to a meeting between the MOH, the MOF, and Second Finance Minister Amir Hamzah Azizan, who met last week at Cyberjaya Hospital – one of five hospitals being considered for Rakan KKM – to discuss the mechanisms for implementing this initiative.
“We have discussed this in great detail. And from the pricing perspective, this gives us the opportunity to truly advance what is termed a ‘value-based health care system,’” Dzulkefly said.
Dzulkefly added that the revenue generated through Rakan KKM will help retain specialists by offering them higher pay, and it will also provide funds to cross-subsidise services in MOH hospitals.
“Our specialists are ready. We have surveyed them, and 95 per cent are willing to work in Rakan KKM,” Dzulkefly said.
