Basic HTML Version
Annual Report 2013
KPJ HEALTHCARE BERHAD
31
its customers and serve them with compassion
and an undivided attention to patient safety, so
that KPJ’s philosophy “Care for Life” was truly
re ected throughout the Group’s operations.
Collaborative Ventures
To grow KPJ’s business and extend its footprint,
the Group continued to look for new areas of
opportunity. The year in review saw the Group
entering into joint venture agreements and
hospital management agreements.
On 27 September 2013, KPJ signed a joint
venture agreement (JVA) with UTM Holdings
Berhad (UTM) for the purpose of developing and
operating a private hospital in Kulaijaya in the
state of Johor. This proposed JVA will operate
through a joint venture company of which KPJ
will hold 60% equity interest while UTMwill hold
the remainder. The 500-bed capacity KPJ-UTM
hospital will offer multi-disciplined services with
the rst phase of 150 beds expected to cost some
RM128.0 million. Under the agreement, KPJ will
provide RM17.97 million in cash while UTM will
provide the land for the hospital.
On 18 November 2013, KPJ signed an agreement
with the Sheikh Mujibur Rahman Memorial Trust
to lease and operate the Sheikh Fazilatunnessa
Mujib Memorial KPJ Specialized Hospital &
Nursing College, in Dhaka, Bangladesh. This
hospital will be a multi-disciplined and focused
hospital encompassing centres of excellences
in the areas of cardiac, orthopaedic, geriatrics,
paediatric as well as obstetrics and gynaecology
(O&G) services. A quali ed and experienced
team of hospital managers, comprising a Chief
Executive Officer, Chief Finance Officer and
Chief Nursing Of cer will be stationed in Dhaka
to operate the hospital. The hospital is expected
to receive its rst patients by the second quarter
of 2014.
Hospital Developments inMalaysia
KPJ continues to make signi cant investments
in hospital projects on the domestic and
international fronts to create long-term value for
shareholders. InMalaysia, the year 2013 saw the
Group completing the acquisition of one hospital,
adding two new purpose-built hospitals to its
existing network of 22 hospitals, and gearing up
for further growth.
The Group completed the acquisition of a 100%
stake in its 22nd hospital, Sri Manjung Specialist
Centre Sdn Bhd (Sri Manjung) in May 2013. Sri
Manjung, which presently has a total capacity
of 30 beds, is strategically positioned for
long-term growth with an additional 90 beds to
be added on through future expansion on an
adjacent piece of land. The hospital has been in
operation since 2004 and is a pro table venture.
Following the completion of the acquisition, the
Sri Manjung operation is expected to contribute
fully to KPJ’s earnings going forward.
The KPJ Pasir Gudang Specialist Hospital,
opened to the public in the same month,
making it the 23rd operating hospital for the
Group in Malaysia. While this hospital has
a total capacity of 120 beds, only the rst
phase comprising 25 beds is currently open.
Located strategically within the residential
area adjacent to the Pasir Gudang, industrial
area, we expect this hospital to receive good
response from the surrounding community
due to the sizeable working population in the
area, plus the expatriate community within the
vicinity. The hospital is expected to undergo a
gestation period of two to three years before
turning pro table.
The year also saw KPJ Sabah Specialist
Hospital successfully completing its relocation
with an expanded range of services. This
hospital offers general and specialist services,
boasts 86 consultants in total and has a total
capacity of 282 beds. Its specialist offerings
include medical, surgery, orthopaedic, O&G,
paediatric, ophthalmology, anaesthesiology,
radiology as well as ear, nose and throat
services. The RM200 million hospital began
operating in December 2013.
The Prime Minister of
Malaysia of ciating
the launching of
Sheikh Fazilatunnessa
Mujib Memorial KPJ
Specialized Hospital
& Nursing College.
Statement to
Shareholders
More recently, the KPJ Rawang Specialist
Hospital began operations in March 2014, while
the KPJ Bandar Maharani Specialist Hospital
in Muar, Johor is set to commence operations
in 2014. These two hospitals will add another 96
beds in total to KPJ’s current capacity and by
the end of 2014, KPJ’s capacity will have risen to
3,229 beds from 2,720 currently.
Going forward, KPJ will take on 9 new
development projects over 4 years. The plan is
to roll out a minimum of two new hospitals per
annum to meet high market demand and we
expect this plan to evolve in tandem with market
demand.
Come 2015, KPJ Perlis Specialist Hospital and
the Pahang Specialist Hospital (a 70:30 joint
venture between KPJ and PASDEC Corp, a
subsidiary of the Pahang State Government),
will open. This will be followed by the opening of
the Bandar Dato Onn Specialist Hospital in 2016
and the opening of our new JV hospital in Johor,
KPJ-UTM, in the same year. By 2017, the KPJ
Miri International Specialist Hospital, KPJ Klang
Bayuemas Specialist Hospital and another
facility in Nilai are targeted to commence
operations. Plans are in the of ng to construct
one hospital facility in Port Dickson and another
inMelaka by 2018. All in all, these 9 developments
will add another 1,373 beds to KPJ’s total number
of operating beds.