KPJ Healthcare Berhad - Annual Report 2018

44 KPJ HEALTHCARE BERHAD 05 MATERIAL MATTERS KPJ CONSIDERS ANY MATTERS WHICH BEAR A DIRECT OR INDIRECT IMPACT ON OUR ABILITY TO CREATE, PRESERVE AND GROW OUR FINANCIAL, ECONOMIC, ENVIRONMENTAL AND SOCIAL VALUE AS MATERIAL. IN IDENTIFYING OUR MATERIAL MATTERS, WE TAKE INTO CONSIDERATION A RANGE OF INTERNAL AND EXTERNAL FACTORS WHICH INFLUENCE OUR LONG-TERM VALUE CREATION ABILITY. THESE INCLUDE OUR EXTERNAL OPERATING ENVIRONMENT, STRATEGIES, STAKEHOLDER EXPECTATIONS AND KEY RISKS AND OPPORTUNITIES IDENTIFIED. FOR MORE INFORMATION ON OUR BUSINESS ENVIRONMENT, PLEASE REFER TO PAGES 32 TO 35. MORE DETAILS OF OUR GROUP STRATEGY CAN BE FOUND ON PAGES 28 TO 29, WHILE DETAILS OF OUR STAKEHOLDERS CAN BE FOUND ON PAGES 36 TO 43 AND OUR KEY RISKS AND OPPORTUNITIES ON PAGES 46 TO 51. THE FOLLOWING MATTERS HAVE BEEN IDENTIFIED AS MATERIAL TO THE KPJ GROUP FOR THE YEAR 2018. MATERIAL MATTERS FACTORS AFFECTED STAKEHOLDER GROUPS LINK TO STRATEGIC THRUSTS LINK TO KEY RISK & OPPORTUNITY Cost of Healthcare Services • Exchange rate uncertainties of Ringgit Malaysia affect cost of imported imported items like drugs, surgical items and medical equipment • Staff costs inflation due to shortages of experienced specialised healthcare professionals and competition from other operators • Efficient and vigorous cost optimisation measures to manage direct costs and operating overheads; procurement policies designed to obtain from the best sources at lowest prices possible; investing in energy efficient appliances to optimise energy consumption. • Since private healthcare services are priced based on “cost plus” model, optimal cost management will promote an efficient and competitive pricing framework • Patients, Intermediaries, Government & Regulators, Accreditation Bodies & Industry Associations, Investors & Shareholders • Ensuring availability of key medical staff & consultants • Clinical care Managing and Retaining Talent • Shortage of experienced specialised nurses and specialist consultants due to competition from other hospital operators • Competitive remuneration packages and benefits to attract and retain the right talent • Conducive working environment and culture to promote healthy work life balance • Employees & Consultants, Investors & Shareholders • Ensuring availability of key medical staff 07 02 05 06 06