Deputy Prime Minister Tan Sri Muhyiddin Yassin said this was necessary as the country was still facing a shortage of doctors and medical specialists.
He said while the World Health Organisation (WHO) had set the ratio of one doctor for every 600 patients, Malaysia's ratio was one doctor to every 900 patients.
"This means the country needs more doctors and medical specialists to fufil the standard set at the international level to provide higher quality service to the people.
"I welcome the contribution of private institutions in producing more quality graduates in the medical field in the country," he said when launching Allianze University College of Medical Sciences' (AUCMS) Medical Education Fund valued at RM50 million here Thursday.
Muhyiddin said the effort was in line with the objective of the government to generate new national wealth in the knowledge-based new economic era for the country to achieve high income and developed nation status by 2020.
He said medical science was one of the fields which could propel the nation in that direction.
"On this, I am of the opinion that AUCMCS has an important role in ensuring our country continues to have highly skilled human resources in medical sciences.
"From my observation, this university with its network of joint ventures with reputable international and local universities in medicine can produce the best medical graduates and contribute to the supply of highly skilled human resources in the field," he said.
On the fund, Muhyiddin, who is also Minister of Education, said the initiative was much much welcomed.
Such a fund would enable more students to take up medical studies as there was no need to solely depend on government sources, he said.
Meanwhile, AUCMS president Prof Datuk Dr Zainuddin Wazir told reporters that the fund could benefit 200 students.
He said the fund was only given as a scholarship to outstanding students from poor families.
He said AUCMS was also discussing with the Bandung Institute of Technology (ITB) to set up an ITB-AUCMS campus in Pagoh which would offer a pharmacy degree programme.
AUCMS has 3,000 students undergoing eight medical courses at its three campuses, in Kepala Batas, Penang; Kangar, Perlis and Kulim, Kedah.
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