SAPP: GLC should not be competing with the private sector

KOTA KINABALU, 16 May 2009: The State government should put all its mind, heart and resources in improving the public healthcare system in the state, instead of going all out to compete with the private sector, said Sabah Progressive Party (SAPP).

Stressing this was its Information Chief, Chong Pit Fah in a statement issued here today, in response to the Chief Minister,Datuk Seri Musa Hj Aman's announcement that Wisma Khidmat will be turned into a private hospital and that it would be operated by either the Sabah Credit Corporation (SCC) who is the owner of the building itself, or a subsidiary.

Musa who is also the State Finance Minister announced this during his visit to the SCC headquarters in Penampang on Friday, adding that SCC is now in the process of finalizing it and would leave it to the SCC to decide on the matter.

The project to establish the private hospital was expected to cost RM100 million, Chief Minister Datuk Seri Musa Aman announced Friday during a visit to the SCC headquarters in Penampang, near here.

According to Musa, the proposed new private hospital which was estimated to cost RM100 million, is to provide an alternative to the people of Sabah, especially those residing in the state capital, who preferred to seek medical care at private hospitals.

However, Chong questioned the State Government the justification and the real motive behind such an endeavour.

"These are the questions that are currently being asked by the public," he said.

He argued that SCC, being a government linked company (GLC) established long time ago with the chief aim of assisting the small and medium enterprises should not divert from its original aim.

Chong who is also SAPP Kepayan CLC Chairman stressed that SCC should better focus on its core business rather than taking a high risk to venture into a field which it completely lacks the experience and expertise.

He cited the sale of the Sabah Medical Centre (SMC) in Likas (now known as the Likas Hospital) which was originally owned by the Sabah Economic Development Corporation (SEDCO), also a GLC, to the private sector who later sold it to the Ministry of Health, as a glaring example.

Chong thus cautioned the State government not to repeat the same mistake, adding that Wisma Khidmat building is not suitable for a hospital because it was built for commercial purposes and not for a hospital.