PUTRAJAYA (Jan 6): The Rakan KKM “premium economy” model will start at Hospital Cyberjaya in the first quarter of this year, with no further delays, Health Minister Datuk Seri Dr Dzulkefly Ahmad said. The programme, originally planned for late 2025, was delayed due to regulatory and operational issues.

Under this model, patients can pay extra for services like personalised care, choosing their specialist and better ward privacy. It also allows healthcare professionals to earn additional income and helps generate revenue that can be reinvested into public hospitals.

Dzulkefly said previous delays were largely linked to the need to comply with the Private Healthcare Facilities and Services Act 1998 (Act 586), which governs private healthcare operations and the management of government assets, as well as the alignment of licensing and contractual documentation between the ministry and Rakan KKM Sdn Bhd (RKSB).

“We are hoping for it (Rakan KKM) to happen as soon as possible, in the first quarter, by February or at the latest March. As conveyed by the RKSB CEO (Dr Mohamed Ali Abu Bakar), we are almost there. There has been no delay or pause from this point onwards,” he told reporters after delivering his New Year Address at the ministry. 

The Rakan KKM programme will first be implemented at Hospital Cyberjaya, starting with orthopaedic and internal medicine services, before being expanded to other hospitals currently under assessment, he said.

First announced by Prime Minister Datuk Seri Anwar Ibrahim in the Budget 2025 speech, Rakan KKM allows selected public hospitals to offer “premium economy” services to non-emergency patients.

The programme has drawn criticism from some quarters, including NGOs, medical groups and lawmakers, who have warned that it could lead to a two-tier public healthcare system and raise concerns over privatisation.

Rakan KKM is among the ministry’s key healthcare reform levers.

Dzulkefly reiterated that the implementation of the Diagnosis-related group (DRG) based payment mechanism to standardise treatment costs, together with reforms to medical and health insurance/takaful (MHIT) amid rising medical inflation, will take place in 2027.

As part of broader structural reforms, the ministry will step up the digitalisation of public healthcare services this year. Dzulkefly said the Total Hospital Information System (THIS) will be expanded to 16 hospitals, while the Cloud-Based Clinic Management System (CCMS) will be rolled out to 2,489 primary healthcare facilities, alongside the extension of the Dental Information System to 157 dental clinics. The initiative is aimed at ensuring patient data moves seamlessly with patients across the healthcare system.

In addition, the ministry will operationalise a centralised “control tower” or integrated dashboard to monitor healthcare facilities in real time, enabling more data-driven decision-making rather than reliance on assumptions or anecdotal evidence, he said.

To address long-standing system fragmentation, he said the ministry will also begin moving towards the establishment of a National Health Interoperability Platform (NHIP) as a long-term goal to ensure Malaysians have an integrated, online health record.

“Health is the foundation of national productivity. Health is not merely a cost centre; it is a critical investment in our nation’s economic resilience. We now stand at the threshold of a new phase. If previous years were about ‘planning’, now is the year of implementation. We can no longer move incrementally. The time has come for decisive structural reforms to ensure that our healthcare system is truly future-ready, future-focused and future-proof,” Dzulkefly added in his keynote address earlier.

A full ban on vaping, beginning with open-system devices, is among the Ministry of Health’s key priorities this year, Dzulkefly said.

Vape products are currently regulated under the Control of Smoking Products for Public Health Act 2024 (Act 852), which focuses on control rather than outright prohibition. However, the ministry is now considering a nationwide ban, potentially by mid-year.

“On the issue of cigarettes and vaping, my position remains unchanged — no compromise,” Dzulkefly said.

 “Full enforcement of Act 852 is our moral responsibility to protect future generations from the threat of non-communicable diseases (NCDs) and popcorn lung,” he added.