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PMD's Message

Dear Stakeholders,
As we move into the new year of 2022, we are
saddened to see the impact from the recent floods which have been the most
severe in Malaysia for a number of years.
With numerous states affected, including a number of our own staff, we
are working to provide assistance where we can to our personnel and local
communities that have been impacted by this event.
Many had expected 2021 to be a turnaround year for
the pandemic situation which had hampered the year prior, but what eventually came
was another year marked by significant disruption. 2021 witnessed the imposition
of the Movement Control Order (“MCO”) multiple times which had a significant
impact on the Malaysian economy as well as the performance of our
hospitals.
Whilst the external environment had dictated to a
large extent our overall performance in 2021, KPJ has been able to progress on
a number of initiatives, especially in regards to our “Re-energising KPJ”
transformation programme. Being the largest hospital group in Malaysia in
existence for more than 40 years, the transformation plan which we launched in
August 2020 aims to rejuvenate the brand and develop a culture of excellence
that will emphasise the delivery of a 5-star patient experience, propelling KPJ
to be the number one Healthcare brand in Malaysia and one of the most respected
throughout the region.
With our response to the pandemic being an immediate
concern in 2020, we had separated our transformation plan into two phases. Phase 1 of the transformation, or
“transforming the base,” has now been completed as of the end of 2021, which
has seen us complete major foundational and organisation changes across the
company. This has included, amongst
others, a major restructuring of our hospitals, introducing a new
organisational structure, revamping of our management team hiring for key
positions and completion of numerous projects related to business and
operational excellence. Phase 1 also addresses disruptions in the healthcare trends
accelerated by pandemic and the mitigation plans; digital transformation plan and
lower cost healthcare setup. The second phase of our transformation, commencing
in 2022 until the end of 2025, is our growth phase, where we expect to be able to
evolve and achieve significant growth.
Another key achievement for KPJ in 2021 has been the
development of our public private partnerships, including our work with
government on the National Immunisation Programme. As part of this initiative, KPJ
was one of largest participants to the scheme, contributing to the current 80% vaccination
rate in the country and putting Malaysia amongst the top 20 countries in the
world in terms of vaccination rate. We
have also put significant effort into decanting non COVID-19 patients from
government hospitals, which has had the synergistic effect of relieving
pressure from the public healthcare system whilst also enabling us to improve
our utilisation rate in a time of weak demand.
KPJ
Healthcare Outlook 2022
Currently, while utilisation rates at KPJ and other
private hospitals in Malaysia remain below historic levels, moving this
trajectory towards our achievements in the pre-pandemic period will be one of
our key focus areas for 2022. In
addition to greater relaxation of restrictions and better economic conditions,
we are also anticipating a pick-up in healthcare demand at our facilities from
pent up demand which has been accumulating over time. Due to the numerous MCOs,
we have seen the deferment of elective healthcare treatments over the past 2
years with patients choosing to stay at home.
With the pandemic situation more under control, we are beginning to see
the return of demand for non-urgent but necessary procedures in our
system.
We also aim to continue to expand our public-private
partnership with government that has picked up considerably since the middle of
2021, where there had been an urgent need for decanting of non-COVID-19 patients.
With a large backlog of patients still remaining within the public system
currently, this collaboration is expected to continue further into 2022. We believe that collaboration between the
public and private sector in Malaysia will be essential to getting back to some
form of normalcy for the healthcare sector.
Building
KPJs Digitalisation Ecosystem
The emerging trend of digitalisation in healthcare will
be one of the most significant drivers for our industry over the next few
years. At KPJ, we have placed building our own digital ecosystem as one of the
key pillars of our transformation programme as we aim to increase efficiencies
across our operations and benefit from the changing dynamics of the healthcare
market. While we have previously begun work on certain digital initiatives such
as telemedicine, our new digital transformation plan has been formulated in a
way that will put the patient experience right at the heart of our business and
generate significant business opportunities for the company over the medium and
long term.
A key milestone in our digital roadmap will be the
opening of our brand-new hospital KPJ Damansara Specialist Hospital 2 (“DSH2”),
which is on target to launch by the middle of 2022. This new hospital, which
will house state of the art healthcare technologies and systems, will act as
our proof of concept for an enhanced digitalised operating environment. Following the example set at DSH2, we will
look to implement these technologies across our entire hospital network. With DSH2, we will have a greater sense of the
new capabilities afforded by new smart hospital technologies in comparison to
our current traditional systems, enabling us to work on enhancing our services
and deliver more cost-effective healthcare to our patients.
Diversification
& Ancillary Business
We have seen that the cost of healthcare provision
has become increasingly important for consumers as healthcare costs have
gradually continued to rise as a result inflationary pressure from input
costs. With cost effectiveness becoming
more of a concern for patients, it is KPJs goal to find methods of meeting
demand for healthcare for both new and existing patients in accordance with their
needs and requirements. To this end, KPJ
ACC Kinrara is our first purpose-built ACC aimed at providing convenient local
access to healthcare services based on an outpatient setup. This new model
provides patients with a wide range of rapid, high quality healthcare services
without the need to be admitted overnight, greatly reducing the cost of
healthcare treatments available in Malaysia. This new ACC concept opens up a
new market segment to KPJ and will act as a complement to our existing network
of hospitals.
Strategically located in the township of Bandar
Kinrara, Puchong, the new centre that was just opened in December will focus on
providing comprehensive and continuous primary care by a team of dedicated
family medicine specialists (“FMS”), ophthalmologists, Ear, Nose & Throat (“ENT”)
physicians, dental surgeons, gastroenterologists and supported by certified
medical officers. In addition, ACC Kinara will also host visiting specialists
who will come in to assist and run certain specialist clinics. Moving forward, we
hope to take our experience and lessons learned from ACC Kinara and replicate the
model in other suitable locations across Malaysia where there is demand.
Moving Forward
With the first phase of our transformation plan
completed in 2021, we have put in place major foundational and organisation
changes across KPJ. This has put us in a good position moving into the 2022 as
the global pandemic is expected to enter an endemic phase, bringing about an
improvement in economic conditions and a healthier operating environment with
less restrictions on movement. While there remain risks such as Omicron or
other variants that may appear over time, we are positive that high vaccination
rates, booster programmes and greater experience in managing the pandemic will
lead to reduced risk disruption over the coming year.
With the second growth phase of our transformation
agenda, we are aiming to capitalise on a return to a more positive business
environment, building on the foundations that we have built. Codenamed “#STAR25”,
our 3-year plan key focus area of 2022 being business recovery and building
back towards the trajectory and performance we had recorded before the pandemic
hit. We look forward to updating you
further on our plans and initiatives as we move forward.
Sincerely,
Ahmad Shahizam