KUALA LUMPUR, August 15 — Government-linked investment companies (GLICs) may take an equity stake in Rakan KKM Sdn Bhd in the second phase of the programme, according to Dzulkefly Ahmad.
The health minister told Bandar Kuching MP Dr Kelvin Yii in a written parliamentary reply last Tuesday that Rakan KKM is currently fully owned by the Minister of Finance Incorporated (MOF Inc.).
“Equity participation by government-linked investment companies (GLICs) will be considered later during Phase Two of expansion of this initiative,” said Dzulkefly in his Dewan Rakyat reply.
“As an initiative that was planned to be financially sustainable without reliance on subsidies from the government budget, the expansion of Rakan KKM should not rely on the government’s budget. Instead, the government’s budget can be focused on other initiatives.
“To finance the expansion of Rakan KKM, GLIC involvement will be considered for Phase Two. Appropriate returns on investment from Rakan KKM revenue can be used to repay GLIC investments.”
CodeBlue previously reported that according to Rakan KKM Sdn Bhd’s company profile on the Companies Commission of Malaysia (SSM), the company’s nature of business is to provide “private health care services within the Malaysian Ministry of Health’s (MOH) public health care system.”
Employees’ Provident Fund (EPF) CEO Ahmad Zulqarnain Che On sits on Rakan KKM’s board of directors.
EPF is a major shareholder in private hospital groups like IHH Healthcare Berhad with an 11.41 per cent stake, as well as KPJ Healthcare Berhad with a 14.97 per cent stake.
IHH Healthcare also counts Kumpulan Wang Amanah Persaraan (KWAP), Lembaga Tabung Haji (TH), and Permodalan Nasional Bhd (PNB) as among its top 30 shareholders, while KPJ Healthcare includes KWAP among its substantial shareholders.
Dzulkefly’s parliamentary reply to Dr Yii did not provide details on Rakan KKM’s business model, how much profit or revenue the service is expected to generate, or even a list of services that Rakan KKM will provide in its first phase.
The health minister, the MOH, and Rakan KKM CEO Dr Mohamed Ali Abu Bakar have yet to hold a media briefing on Rakan KKM, even as the programme is supposed to be launched in four select government hospitals by the end of September.
Dzulkefly described Rakan KKM as an “improvement” of the full-paying patient (FPP) scheme in the MOH.
“Finally, allow me to clarify the widespread debate regarding compromises in service to the people. The Rakan KKM initiative is an enhancement of existing programmes, specially structured with cross-subsidies so that capacity can be optimised at MOH facilities for the benefit of all patients,” said the health minister.
“Retaining health care personnel is also essential to ensure the best health care services for everyone. As the Minister of Health, my commitment to the people will always remain a priority.”
Parti Sosialis Malaysia (PSM) has launched a national campaign to cancel Rakan KKM, besides calling for a five-year moratorium on new private hospitals, a cap on all private hospital charges, and raising MOH’s budget to 5 per cent of the country’s gross domestic product (GDP) in five years.
