KPJ Healthcare Berhad - Annual Report 2018

58 KPJ HEALTHCARE BERHAD PRESIDENT & MANAGING DIRECTOR’S REVIEW The Group operated within a complex and shifting external environment in 2018, marked by shifts in geopolitical and macroeconomic factors, health regulations and evolving trends, within an increasingly competitive private healthcare sector. In our primary home market of Malaysia, the economy grew at a moderate rate of 4.7%, and this sluggish growth impacted demand for private healthcare services with many corporate employers downsizing and reducing their employees’ medical benefits. At the same time, the new Government in Putrajaya unveiled a more healthcare centric Budget 2019, with Government allocations aimed at reforming the healthcare sector in the country. DE AR SHAR E HO L DE RS , I AM PLEASED TO SHARE WI TH YOU KPJ ’S F IRST INTEGRATED REPORT ( IR) , WHICH HAS BEEN PREPARED BASED ON S I X CAP I TALS FOR THE F INANCI AL YEAR ENDED 2018 ( FY2018 ) , AS GUIDED BY OUR STRATEGIC DIRECT ION. Local healthcare trends saw an increase in healthcare expenditure driven by an ageing population, as well as the rising trend of non- communicable diseases. New technologies and lifestyle changes are triggering and impacting patient demands and expectations. Competition increased significantly amongst private healthcare providers, with both large networks and smaller private clinics competing for top of mind recall in stakeholders’ minds. The increasing number of private hospitals and clinics has also led to difficulties in hiring and retaining talent in the medical fraternity. EBITDA (RM MIL) 5 YEARS REVENUE (RM BIL) 503.0 (2018) 2018 2017 2016 2015 2014 427.9 (2017) 2.6 2.9 3.0 3.2 3.3 266.5 (2018) 233.3 (2017) PBZT (RM MIL) 189.9 (2018) 173.3 (2017) PAT (RM MIL) KEY HIGHLIGHTS +7.9% +4.3% +7.1% +4.0%