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Annual Report 2013
KPJ HEALTHCARE BERHAD
36
Three dimensions were required to be enhanced,
namely Infrastructure, Measurement, Research
and Assessment and Ethics, Training and
Education. There are plans in the offing to make
improvements to these three areas to attain a
higher integrity benchmark.
These developments will bring about a new
vitality to KPJ’s operations, strengthen the
governance of the Group and enable its
businesses to grow in a sustainable manner.
The details of these governance measures and
risk management practices are spelt out in the
relevant sections of this Annual Report.
Corporate Responsibility
As a conscientious corporate citizen, KPJ
is committed to making good progress on
the nancial and operational fronts while
undertaking
responsible
practices
that
underscore its commitment to “Care for Life”.
The year in review saw the Group demonstrating
its commitment to pro ting in a responsible
manner as it implemented tangible corporate
responsibility (CR) initiatives in the areas of
the Community, Workplace, Marketplace and
Environment.
While KPJ’s overall CR efforts to date are
highlighted in the Corporate Responsibility
section of this Annual Report, we want to touch
upon the effective work the Group is doing
on the Community front, particularly by way
of its agship CR initiative, the Klinik Waqaf
An-Nur (KWAN). The KWAN initiative aims to
help the impoverished and underprivileged in
communities by providing them access to a
chain of charity clinics. Through these clinics,
patients are able to take advantage of basic
medical care for a nominal fee of only RM5 for
normal outpatient care and around RM90 for
dialysis services so they can lead healthier lives.
The KWAN initiative has its roots in 1998, when
together with JCorp, KPJ kick-started the
project with one small clinic in Johor Bahru.
Today, the KWAN initiative spans 1 hospital in
Johor, 19 clinics (including 5 site clinics and 6
dialysis centres) throughout Malaysia, as well
as 2 mobile clinics in Johor and Selangor. From
KWAN’s inception until the end of 2013, KPJ has
had the opportunity to be of service to more than
961,000 patients. The Group also continues to
provide clinical resources as well as medication
to patients via KWAN, and is investing more than
RM2 million annually to support KWAN activities.
PROSPECTS AND STRATEGIES GOING
FORWARD
The Malaysian economy is expected to remain
on a steady growth path in 2014, expanding by
4.5%-5.5%. Domestic demandwill remain the key
driver of growth, albeit at a more moderate pace.
Where in 2013, it was evident that the demand
for healthcare services increased in line with
strong population growth, better life expectancy,
a rapidly ageing population and a rising middle
income group, these market dynamics are
expected to continue driving the demand for
healthcare in 2014. The strong double digit
growth enjoyed by the medical tourism segment
in 2013 too, is expected to be replicated in 2014.
Going forward, the private healthcare sector
is expected to register continuous growth as a
result of the abovementioned market dynamics,
the growing awareness of healthcare standards
and an overloaded public healthcare system.
All these developments bode well for KPJ and
the Group will continue to put the necessary
elements in place to deliver sustainable, long-
term growth.
To fully leverage on the many opportunities
before it, the Group is setting its sights on a
bold agenda. This agenda calls for KPJ to focus
its efforts on continuous strategic growth that
is primarily centred on the expansion of the
Group’s hospital business, both at home and
abroad. KPJ’s Malaysian operations will remain
the mainstay of its business going forward and
the Group will continue to make the necessary
investments to strengthen this segment. We
anticipate that revenue will continue to grow in
2014 as KPJ undertakes expansion programmes
at existing hospitals, makes enhancements to
its service offering and undertakes continued
growth of existing green eld hospitals.
While we are excited about the opening of the
new KPJ Sabah Specialist Hospital and KPJ
Rawang Specialist Hospital as well as the up-
comingKPJBandarMaharani SpecialistHospital
and Sheikh Fazilatunnessa Mujib Memorial KPJ
Specialized Hospital & Nursing College, these
new hospitals will only truly help the Group grow
its revenue once their initial gestation period
(between three to ve years) is over. The plan
to roll out two new hospitals per annum augurs
well for KPJ and will ensure a steady stream of
revenue while reinforcing its market leadership
position.
The Group will also continue to undertake a
strategy of growing its international footprint
within the region, mainly by leveraging on
strategic alliances with third parties. Rest
Statement to
Shareholders
KPJ’s President & Managing Director receiving a mock key of the Mobile Clinic from
Lembaga Zakat Selangor Board of Trustee, Dato’ Siti Maslamah Osman.