13/8/2025

PSM has always cared about the public health system in our country.

In 2004, when the BN government announced the privatization of dispensaries in government hospitals, i.e., opening pharmacy shops in government hospitals (to give patients a “choice” to buy medicines), PSM organised a massive rally in front of the Ministry of Health in Putrajaya to protest the plan. The plan was withdrawn and has not been reintroduced to this day.

Later, PSM also led the formation of the Gabungan Membantah Penswastaan Perkhidmatan Kesihatan (GMPPK), a coalition of political parties and non-governmental organizations (NGOs) to oppose any attempts to privatize the public health system. This coalition has held many activities to raise public awareness about the BN government’s tendency to privatize the public health system. One of the actions carried out was a simultaneous protest at four hospitals identified for the implementation of the Full-Paying Patient Service Scheme. The scheme was delayed for several months due to the protests, but was quietly launched afterwards.

In September 2022, the People’s Health Forum, a coalition comprised of PSM and 4 NGOs, published a document titled “Master Plan for Health Reform in Malaysia” (Blueprint for Health Care Reform in Malaysia).

This 32-page document has analysed the weaknesses that exist in the public health system and put forward detailed proposals on how each identified weakness can be overcome. Among the recommendations brought forward in this Master Plan document are:

1. Stop the Full Paying Patient Service Scheme because it affects the access of ordinary patients (who do not pay) to specialist doctors in government hospitals. 
2. Imposing a moratorium on the construction of new private hospitals to slow the migration of specialist doctors from government hospitals to the private sector.
3. Establish a Special Service Commission for health workers so that better working terms can be offered to them.
4. Increase the Ministry of Health’s annual allocation to 5% of GDP.

This Master Plan was submitted to the then Minister of Health and the current Minister of Health. We also met with Datuk Seri Dr. Dzulkefly Ahmad and informed him of the reasons why we are highlighting the recommendations listed above. But unfortunately, it is clear that the MADANI Government has rejected all the recommendations put forward by the PSM, the People’s Health Forum and also several other NGOs. On the contrary, the MADANI Government is implementing programs that are in contrast to the recommendations we have put forward.

Therefore, PSM has decided to bring these issues to the attention of the general public. We want to explain to Malaysians how dangerous the programs promoted by the MADANI Government are. We hope that the people will put pressure on the government to stop the programs that will further undermine the public health system.

For this campaign PSM will focus on 4 main issues:

1. Put a stop to Rakan KKM scheme

Datuk Seri Dr. Dzulkefly himself has announced that patients with kidney stones have to wait 11 months for a surgery date and a waiting period of 21 months for children with perforated hearts. (The Star, 24/7/25) In this situation, it is not too difficult to predict what will happen if the Rakan KKM scheme is launched in all major hospitals. Of course, the waiting period for patients who cannot pay will increase drastically.

2. Moratorium on opening new private hospitals for the next five years

Whenever a new private hospital opens, the private hospital proprietor will lure specialist doctors from government hospitals. This is happening again at Sunway Medical Center which was recently launched in Ipoh. Sunway has recruited specialist doctors from the government sector with the promise of a monthly top-up of up to RM70,000 for the first year. This means that if the specialist doctor’s income does not reach RM70,000 for any month in the first year, the private hospital owner will add it to that amount. Sunway Medical Centre has successfully lured 15 government specialists with this offer. As long as the business approach is prioritized and more private hospitals are allowed to open, the problem of shortage of specialist doctors in government hospitals will not be addressed.

3. Increase the Ministry of Health’s annual allocation to 5% of GDP

Currently, the MOH allocation is only 2.3% of GDP. This is much lower than other countries. In 2024, the United Kingdom allocated 9.6% of GDP to the public health system in the country. Singapore allocated 3.74% of GDP to its public health system in 2024 and Thailand 3.97% of its GDP. Why can’t Malaysia do the same? If we take decisive steps to stop the leakage of funds of RM30 to 40 billion per year, we can also increase the MOH allocation.

4. Establish a ceiling on private hospital charges

Currently, while there is a ceiling on fees charged by private doctors, there is no ceiling at all on fees charged by private hospitals such as X-rays, CT and MRI scans, blood tests, use of operating theatres, medicines, medical devices and other services/supplies. Doctors’ charges constitute only 30% of the total private hospital bill. Private hospital management earns 70% of the amount paid by patients. These charges should be monitored and regulated. 

Finally, PSM plans to bring our analysis to the attention of the people nationwide through talks, pamphlets, press releases, messages on social media and so on. We hope that the general public will become aware of the harmful effects of the approach being taken by the government to “trade” in health, and the people will urge the government to stop programs that will cause more hardships to their lives. To date, the MADANI Government has rejected PSM’s recommendations. Perhaps with a louder voice from the people, the government will concede.