This article is written taking into account the Ministry of Health’s (MOH) carrion call for transparency and competency in the private health care ecosystem.
This urgent carrion call should also apply to the public health care ecosystem, which is propped by taxpayers’ money.
In a time when the MOH is striving toward transparency, competition, and economic efficiency, monopolies, especially in critical sectors like health care must be abolished.
One such monopoly is FOMEMA Sdn Bhd, the sole entity authorised to manage mandatory medical check-ups for foreign workers in Malaysia for the last 30 years or so.
What started as a well-intentioned system in 1997 has now evolved into a bureaucratic monopoly, creating ethical concerns, economic inefficiencies and a single entity reaping off a huge ugly profit at the expense of the rakyat
Let me explain why FOMEMA should not retain monopoly status over this crucial process.
Monopolies Kill Innovation
No competition means no urgency to improve. Clinics and labs are forced to follow rigid protocols that may be outdated or impractical on the ground (clinics and labs are held at gunpoint to accept whatever prices FOMEMA dictates).
High Costs, No Transparency
Employers face unclear billing structures and hidden administrative fees. With no pricing competition, costs can continue to rise without justification.
Conflict Of Interest
FOMEMA profits from every screening it processes, and it is also the executor and gatekeeper of this system, but is this acceptable?
Doctors Are Treated Like Vendors
Clinics are made to upgrade systems and follow strict SOPs, often at their own cost. A single dispute with FOMEMA can result in blacklisting.
Data Privacy Risks
FOMEMA controls millions of personal medical records with limited transparency on data protection. Centralised systems are highly vulnerable to data breach and abuses.
Is there a third-party audit in place?
According to FOMEMA records, they collect an average of RM200 from employers per foreign worker. The cost breakdown is alleged to be as follows:
Doctors: RM80 (medical checkup RM45 + X-Ray RM35)
Labs: RM45 (according to labs interviewed)
FOMEMA: RM75
According to sources, FOMEMA conservatively does more than two million foreign workers checkups per year.
Estimated Revenue Generated By FOMEMA, A Monopoly Entity
FOMEMA generates a multi-million-ringgit revenue yearly, unfairly at the expense of general practitioner clinics and labs. Wouldn’t the MOH consider monopolies as one of the causes for inflation in our medical landscape?
The MOH Must Move On
After close to 30 years on a single monopoly entity, it is high time that the MOH rethink its policy and bring in multiple players into this arena. This is to ensure a more level playing field which will eventually benefit the rakyat
This is not about attacking any single entity.. It’s about ensuring our system works fairly, ethically, and efficiently for everyone to assist bring down inflation at our current medical ecosystem.
Let’s work together to build a better Malaysia.
Fun Fact: FOMEMA Sdn Bhd, the entity responsible for managing medical examinations of foreign workers in Malaysia, reported a significant financial performance in 2023.
According to data from EMIS, the company experienced a 63.44 per cent increase in net sales revenue and a 57.75 per cent rise in net profit for that year.
While the exact revenue figures are not publicly disclosed, these substantial growth percentages indicate a robust financial position.(Citation: EMIS NEXT)
Dr James Jeremiah is past president and founding president of Association of Private Practitioners Sabah (APPS).
- This is the personal opinion of the writer or publication and does not necessarily represent the views of CodeBlue.
