Malaysian operations remain at the
center of the Group’s solid fundamentals,
where KPJ’s 25 hospitals contributed a
total of RM2.71 billion during the year
under review, up 7.5% from the previous
year.
The 4 hospitals abroad also turned in
encouraging results, driven by the
Group’s Indonesian operations which
registered a 30.9% increase in revenue
to RM52 million from RM39.7 million in
2014.
KPJ was also able to once again deliver
value to its shareholders. For the year in
review, the Group paid out four interim
dividends to a total of 7.85 sen per
RM0.50 ordinary share. This amounted
to a total shareholder payout of
RM81.41 million, a 63% increase
compared to the RM49.84 million paid
out in 2014.
These milestones were achieved despite
various market conditions weighing
down the global economy. Among major
concerns were the slower growth of
China’s GDP, a gradual tightening of
USA’s monetary policy, as well as a
sharp decline in oil and commodity
prices. This contributed to higher
pressure on emerging markets and
developing economies, including
Malaysia which saw the Ringgit
depreciating against the US Dollar.
The rising cost of living had also affected
consumer spending across the board.
Further to that, Malaysia’s healthcare
sector was also experiencing first-year
implementation of the Goods and
Services Tax (“GST”), which was
introduced in April 2015.
A further transformative change was
Malaysia’s signing of the Trans-Pacific
Partnership Agreement (“TPPA”) in early
2016. With the goal of promoting
economic integration and liberalising
trade and investment, TPPA targets to
further expand markets, reduce tariffs,
and p r omo t e f r ee r t r ade . Mos t
importantly, this Agreement has the
likelihood of changing the Malaysian
economic landscape on a broad scale.
Although the market is undergoing a
challenging phase today, the overall
healthcare industry is still expected to
sustain its long term growth potential.
Research indicates that the nation’s
healthcare expenditure is expected to
rise as high as USD20 billion by year
2020, propelled by greater consumer
awareness and rising numbers of chronic
non-communicable diseases (NCDs).
Dato’ Kamaruzzaman Abu Kassim
Chairman
KPJ Healthcare Berhad
Total shareholder payout of
RM81.41 million,
a 63% increase
compared to the RM49.84 million paid out in 2014
9
KPJ Healthcare Berhad
Annual Report
2015
