Education Malaysia Global Services (EMGS) Sdn Bhd, a government-owned company that processes student visas, has refuted claims that its insurance scheme imposed on foreign students had violated anti-monopoly laws.

In a press release yesterday, EMGS CEO Yazid Hamid said the appointment of AXA Affin General Insurance as the sole provider of health insurance for students, was done through competitive bidding process.

"EMGS had invited 13 insurers to quote on the provision of insurance and official responses were obtained individually and as well as through consortium proposals from AXA Affin General Insurance, AIA, Allianz General Insurance, Hong Leong Assurance, Etiqa Insurance, AmAssurance and Great Eastern Life.

NONE "AXA Affin was chosen because they were able to meet the level of cover set for the best price - this process was therefore, without question, a competitive process.

"In addition the premium with AXA has been fixed for four years so whilst health insurance costs will continue to rise annually - foreign students are protected from this increase until 2017," he said.

On why the majority of panel clinics for health screening were from one company - Qualitas Health Care Group Sdn Bhd - Yazid said the company was chosen based on its ability to maintain high standards.

Centralised monitoring

He said any clinic that are able to demonstrate that they can meet EMGS' requirements for turnaround times, quality control and standard operating procedures are able to join EMGS' panel.

"Qualitas was chosen since it maintains high standards and allows EMGS external control and the right and ability to audit and inspect, and the fees charged reflect the cost of administering and managing this system," said Yazid.

He said that between Feb 1, 2013 and Aug 30, 2013 Qualitas had found 140 students who tested positive for Hepatitis B and C, 93 students tested positive for prohibited drugs, three students with active tuberculosis while four students tested positive for HIV.

Yazid claimed that these tested needed to be managed centrally within Malaysia and it would a "monumental administrative task" had the tests been conducted by thousands of individual clinics.

NONE He added that the prices charged by the panel clinics and insurer were globally competitive and rubbished claims that the fees imposed would deter foreign students.

On Aug 20, Serdang MP Ong Kian Ming ( right ) had urged Putrajaya to abolish EMGS on grounds that it had breached the Competition Act 2010 and urged the Malaysian Competition Commission (MyCC) to probe the company.

He also accused the company of charging too high a fee which would discourage foreign students. He pointed out that the insurance premium for foreign students had went up by 80 percent since 2008.