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Statement to Shareholders
Annual Report
2012
KPJ Healthcare Berhad
In May 2012, the KPJ Klang Specialist
Hospital in Selangor commenced operations.
By the second quarter of 2013, the KPJ Pasir
Gudang Specialist Hospital in Johor would
have opened its doors to the public, while
the KPJ Sabah Specialist Hospital in Kota
Kinabalu is set to commence operations in
the third quarter of 2013, and the KPJ Muar
Specialist Hospital, by the end of 2013. The
completion of the first phase of development
for the latter three hospitals will see another
200 beds in total being added to our current
capacity. By the end of 2013, KPJ’s capacity
will rise to 2,766 beds from 2,566 currently.
Come 2014, the KPJ Pahang Specialist
Hospital as well as the KPJ Bandar Dato’
Onn Specialist Hospital will be opened. This
will be followed by the KPJ Perlis Specialist
Hospital and KPJ Klang Bayu Emas Specialist
Hospital in 2015. Thereafter, the KPJ Miri
International Specialist Hospital is targeted
to commence operations in 2016. All these
eight developments will add another 1,450
beds to our total number of operating beds
by 2016.
Developments Abroad
In 2012, KPJ undertook several initiatives to
strengthen its international footprint. These
included the acquisition of an 80% equity
stake in PT Khidmat Perawatan Jasa Medika
which owns Rumah Sakit Medika Permata
Hijau in Indonesia; and a 23.4% equity stake
in the 263-bed Vejthani Public Company
Limited which own the Vejthani Hospital in
Thailand.The Indonesian acquisition will serve
to strengthen our position in that nation as
well as improve our operational efficiencies,
while our strategic stake in the Thai operation
bodes well for our medical tourism agenda
going forward. Over the longer term, KPJ will
also leverage on Vejthani’s proven medical
tourism strategy in Malaysia.
Medical Tourism Activities
Revenue from the medical tourism segment
accounts for 3% of KPJ’s revenue today and
we intent on growing this to 25% by 2020.
To capitalise on the wealth of opportunities
presented by the medical tourism market,
2012 saw KPJ continuing to undertake a host
of aggressive marketing and promotional
activities in existing and new target markets
throughout Asia, the Middle East and Australia.
Our participation in local and international
exhibitions, trade expositions, road shows
and health talks over 2012 did much to raise
awareness on Malaysia as an excellent and
cost-effective destination for medical care and
helped entrench the KPJ brand among target
audiences.
In 2012, our efforts resulted in a 6% increase
in the number of international patients with the
bulk of these coming from Indonesia as well as
other countries such asAustralia,NewZealand,
Somalia, Libya, Singapore, India, Iran, China
and the Middle East. This segment generated
approximately RM57.0 million in revenue
in 2012 and we anticipate medical tourist
numbers to increase on the back of aggressive
marketing and promotional activities targeted
at potential patients from China and the Middle
East, among other countries.
Aged Care Facility Services
Via our 51% equity stake in Jeta Gardens
Waterford Trust (JGWT), Brisbane, we are
involved in Australia’s first retirement and
aged care resort incorporating Eastern values.
Serving as our gateway to the retirement world,
JGWT enables KPJ to gain greater insights into
providing retirement care to the elderly which
we will optimise to create a new lifestyle for the
Golden Boomers in Malaysia. As our patients
move into their golden years, we will be in a
position to meet their needs through geriatric
health and nursing activities. By delivering
value to the elderly, we are ensuring the
Group’s long-term sustainability.
The year saw the Jeta Gardens venture
beginning to bear fruit even as another 10
of Jeta Gardens’ independent living villas
were completed in late 2012 bringing the
total to 33. Currently four of these new villas
have been contracted for sale. Beginning
June 2013, an additional 70 aged care
places (already approved by the Australian
Government) will be developed and operated
bringing the number of aged care beds
at Jeta Gardens to 180 beds. The Group
remains confident about its venture into
aged care facility services as there is much
potential for the business model to be
replicated in other countries in the region.
Education Business
Through KPJ Healthcare University College or
KPJUC (formerly known as KPJ International
University College of Nursing and Health
Sciences) we are fulfilling individuals’
academic ambitions and meeting the
KPJ Klang Specialist Hospital was opened in May 2012.
KPJ participating in the Arab Medical Expo 2012 in
Jeddah, Saudi Arabia.