KUALA LUMPUR (March 3): Bayan Baru member of Parliament Sim Tze Tzin has urged the government to consider banning private hospitals from going public to curb profit-driven healthcare.

He also suggested that Malaysia’s sovereign wealth fund Khazanah Nasional Bhd and the Employee’s Provident Fund (EPF) consider delisting the private hospitals that they have stakes in on Bursa Malaysia, to make them fully government-owned.

Citing South Korea’s ban on hospital operators from going public as an example, Sim argued that hospitals should prioritise “saving lives”, rather than pursuing higher profits.

“Listed private hospitals are required to disclose their financial performance every three months, which pressures them to maximise profits. This is an unhealthy situation,” Sim said during the Supplementary Supply (2024) Bill debate in Dewan Rakyat on Monday.

Khazanah currently holds a 25.92% indirect stake in IHH Healthcare Bhd (KL:IHH), which operates several hospital brands in Malaysia, including Pantai, Gleneagles, and Prince Court. Meanwhile, EPF owns a 10.19% direct stake in IHH.

EPF also owns 11.87% in KPJ Healthcare Bhd (KL:KPJ), whose largest shareholder is Johor's state investment arm, Johor Corp, with 35.86%.

“Why not delist these private hospitals and keep them private, so they are not pressured by shareholders demanding higher profits?” Sim questioned.

Sim, who has been vocal about rising medical costs in the country, also urged the Ministry of Domestic Trade and Cost of Living to investigate private hospitals for engaging in “clearly excessive profiteering”.

He highlighted alleged overcharging, citing the example of a disparity in pricing between medical gloves at private hospitals, which are going for RM20 a pair, and the market price for a box at RM10.

“Malaysia is one of the world’s largest glove producers, so why are private hospitals charging RM20 for a single pair? This is absolutely ridiculous,” he said.

For more Parliament stories, click here.