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Statement to Shareholders
Annual Report
2012
KPJ Healthcare Berhad
We began this initiative in 1998 together with
parent company Johor Corporation starting off
with one small clinic in Johor Bahru. Today,
the KWAN initiative spans a network of 18
clinics throughout Malaysia and one hospital
in Johor. 2012 marked a year of expansion
and development for the KWAN initiative
with a number of clinics being developed
or refurbished in several states across the
nation. On top of the established Waqaf An-
Nur Hospital, 18 clinics (including four KWAN
cabins and eight dialysis centres), 2012 saw
the addition of three new KWAN clinics and the
launch of a mobile clinic to enhance KWAN’s
reach. Currently another four new clinics are
under construction.
Under KWAN, KPJ has had the opportunity to
be of service to more than 850,000 patients.
The Group continues to provide clinical
resources as well as medication to patients via
KWAN as well as contributes more than RM2
million annually to support KWAN activities.
We are also supporting the Ministry of
Women, Family and Community Development
in their efforts to rescue unwanted new born
babies by building baby hatches at our
hospitals. As at 31 December 2012, 10 baby
hatches have been built at our hospitals in
various locations. It is hoped that this facility
which allows mothers to leave their babies
anonymously would protect new born babies.
investments to strengthen this segment. This
is evidenced by the eight hospital projects
and the expansion programmes we have
committed to for the next five years. The
opening of new hospitals will help us grow
our revenue once their initial gestation period
is over. Our plan to roll out two new hospitals
per annum too augurs well for us and will
ensure a steady stream of revenue as well
as strengthen our market leadership position.
The Group will also focus its efforts on
growing our international footprint within the
region in a slow but sure manner, mainly by
leveraging on strategic alliances with third
parties. We will also ramp up our efforts on
the medical tourism front in line with our
efforts to grow the revenue contributions from
this business segment to 25% by 2020.
In 2012, the Group provided medical
services to more than 2.7 million patients
and in line with our capacity building and
service expansion initiatives we expect
patient numbers from both the domestic
and international markets to rise in the years
ahead.
While there will be challenges going forward,
we are confident that we can overcome these
challenges with the support of our dedicated
management team, employees and medical
consultants. We commit to providing our
people the necessary tools as well as to
developing a harmonious workplace so
that our employees can give their undivided
attention to the needs of their patients and get
down to the business of Caring for Life. By
working cohesively as a team, staying close
to our Core Values and bringing to the fore our
priorities of patient safety and quality medical
care, we are confident of gaining patient
confidence and reinforcing our reputation as
a serious contender in the healthcare sector.
Given the Group’s position of strength and
our plans going forward, we are confident
that KPJ will continue to deliver a good
performance in the year ahead while creating
good value for our shareholders.
PROSPECTS AND STRATEGIES
GOING FORWARD
The Malaysian economy is expected to
remain on a steady growth path in 2013 and
register GDP growth of between 5% and 6%.
Economic activity will be anchored by the
continued resilience of domestic demand,
and supported by gradual improvements in
the external sector.
The outlook for the Malaysian domestic
private healthcare industry too is expected
to be positive on the back of various industry
dynamics. The private healthcare sector is
expected to register healthy demand growth
of between 8% and 10% per annum on the
back of growing awareness of healthcare
standards and an overloaded public
healthcare system. Favourable demographic
changes in Malaysia such as an ageing
population and strong population growth, too
bode well for private healthcare. Moreover,
the proliferation of medical insurance, is
expected to drive patients to hospitals that
target the mid to high income population.
All these developments augur well for KPJ
and we will focus our efforts on puffing the
necessary building blocks in place to deliver
sustainable growth.
To ensure our long term-growth, the Group is
bringing into play a mixture of greenfield and
brownfield projects as well as acquisitions.
Our Malaysian operations will remain the
mainstay of our business going forward and
we will continue to make the necessary
Demonstration of the baby hatch process by Dato’ Dr. Hj. Fadzli Cheah Abdullah, Medical Director of KPJ Ipoh
Specialist Hospital together with Deputy Minister of Ministry of Women, Family and Community Development,
YB Datuk Heng Seai Kie.