(247079-M)

Advancing
Continuous
Caring

Annual Report 2009

2 KPJ Healthcare Berhad (Company No. 247079 M)

What drives KPJ?

The common needs of people to sustain
their health and well-being are the very
factors that drive KPJ to keep making
advancements in providing continuous
patient care, generating innovative measures
in its positioning and branding Groupwide.
 F
or the last 28 years, KPJ has touched the lives of many people by providing the best
of healthcare services. KPJ has cared for the first and second generations and wants
to care for the next generations for many more years to come. The relationship with
patients have been built on trust and this is the very essence for everything KPJ does. This is
well embedded in KPJ’s BUSINESS JIHAD philosophy:
• Integrity
• Uprightness
• Community spirit

KPJ’s spirit of Jihad, which is adherence to right conduct and ethics to achieve business
excellence, and always giving its best back to the community and society that have nurtured
it, has inspired trust and accountability. Being accountable involves obtaining deep insights
into the health concerns of people who put their trust in KPJ to provide effective healthcare
solutions. KPJ is also able to tap on its resources to deliver its services safely while fulfilling the
needs and expectations of its patients.

Additionally, KPJ’s actions are guided by its own CORE VALUES:

• Ensuring SAFETY
• Delivering service with COURTESY
• Performing duties with integrity
• Exercising professionalism at all times
• Striving for continuous improvement

These core values underpin KPJ’s CORPORATE MISSION:

“Delivering quality healthcare services to our customers”

With the firm commitment of its team that comprises professional managers, doctors, nurses,
support staff and stakeholders to carry out this key mission, KPJ is able to focus on achieving
its CORPORATE VISION of becoming…
“The preferred provider in healthcare services”

All KPJ hospitals have this similar commitment, and thus together the Group has contributed
towards the well-being of society by continuously embracing its culture of safety and quality as
well as advancing KPJ’s legacy of:
• Warmth and Caring
• Wellness and Healing

KPJ remains wholly committed to the values that have made it what it is today:
“A leader in healthcare management and services”

This is not mere rhetoric. The many major milestones, awards and accolades as well as
certifications and accreditation status KPJ has received over the years are testimony to its
success and leading position. A major breakthrough in 2009 was when KPJ made it for the
first time onto the list of MALAYSIA’S TOP 100 COMPANIES, based on its market capitalisation
reaching up to more than RM1.3 billion. The most defining recognition of all was when KPJ’s
Managing Director and CEO, Datin Paduka Siti Sa’diah Sheikh Bakir, was awarded Malaysia’s
CEO of the Year for 2009, which was presented by Malaysia’s Prime Minister, Dato’ Sri
Mohd Najib Tun Abdul Razak, at a ceremony on 12 March 2010.
4 KPJ Healthcare Berhad (Company No. 247079 M)

Contents
3 Vision/Mission/Core Values 62 Ensuring Trust and Accountability
63 Statement on Corporate Governance
5 Corporate Profile 73 Statement on Internal Control
78 Audit Committee
6 Corporate Information 82 Medical Advisory Committee
87 Announcements to Bursa Malaysia
7 Corporate Structure
90 Financial Statements
8 KPJ’s Network of Hospitals
154 Shareholdings Statistics
10 Key Performance Statistics
156 Warrantholdings Statistics
12 Achievements: Awards and Recognition
158 Compliance Information
14 Leadership for Excellence
14 Board of Directors 160 List of Properties
16 Directors’ Profile
162 Notice of Annual General Meeting
22 KPJ in the News
165 Statement Accompanying Notice of
24 Statement to Shareholders Annual General Meeting
36 A Strong Team of Leaders 167 Proxy Form
42 Ahead in the Healthcare Business 169 Publications
46 Delivery of Healthcare Services
Setting the Standards

50 Corporate Responsibility
Care for the Nation

56 Highlights in Pictures
56 Events and Activities
58 Corporate Responsibility
60 Learning Organisation

Advancing Continuous Caring

At KPJ, people matter, regardless of their age, status or creed.
KPJ’s team of personnel aims to bring smiles to patients’ faces and
happiness in their hearts with genuine care, concern and a desire
to give the best healthcare services. KPJ has touched the lives of
many who have entered its doors to seek treatment and medical
advice, ultimately enhancing their health and well-being. The culture
of trust, safety and quality that KPJ has built over the years extends
beyond the individual to reach the communities throughout the nation.
As the Group advances with its legacy of providing continuous care
from generation to generation, KPJ will be growing from strength to
strength, allowing it to make a difference with the KPJ BRAND OF
SERVICE EXCELLENCE, wherever it goes.
 Adva
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ng

Co
ntin
uous
Corporate Profile

Caring
Excellence is A Journey
KPJ Healthcare Berhad (KPJ), a healthcare result of its firm corporate philosophy of
division of Johor Corporation (JCorp), inspiring excellence, harnessing strategic
continues to strive towards service synergy and instilling high integrity and
excellence so as to maintain its position as a entrepreneurial spirit to be at the forefront
leader in Malaysia’s challenging healthcare of national and international healthcare
service industry. Since the establishment of delivery and development.
its first hospital in 1981, KPJ has grown to
be the country’s largest healthcare provider
This commitment is further strengthened
focusing on hospital management and
through its corporate mission, “Deliver
offering a comprehensive range of medical
services. Quality Healthcare Services to Our
Customers”, in line with its five core values:
As the first healthcare provider listed on the Safety, Courtesy, Integrity, Professionalism
Main Board of the then Kuala Lumpur Stock and Continuous Improvement.
Exchange in 1994, KPJ has progressed
rapidly, including achieving more than KPJ’s extensive network now includes 21
RM1.0 billion revenue since 2007, and being private specialist hospitals consisting of 19
among Malaysia’s Top 100 Companies with in Malaysia and 2 in Indonesia. It has 680
a market cap of more than RM1.3 billion as
medical consultants and a total of 6,978
at December 2009.
staff members (consisting of 4,396 nursing
and allied health personnel and 2,582
Standing firmly behind its corporate vision,
“The Preferred Provider in Healthcare support staff) who had served more than 2
Services”, KPJ continuously seeks to million patients in 2009 alone. KPJ has also
have presence in new territories and reached out to more than 500,000 needy
explore opportunities to stay ahead of patients through 12 charity clinics and 1
its competitors. KPJ’s achievements and charity hospital under the Waqaf An’Nur
commendable performance are largely the initiative.

5
Annual Report 2009
 6 KPJ Healthcare Berhad (Company No. 247079 M)

Corporate Information

REGISTERED OFFICE Auditor

Level 2, Persada Johor International Convention Centre, PRICEWATERHOUSECOOPERS
Jalan Abdullah Ibrahim, Level 10, 1 Sentral, Jalan Travers,
80000 Johor Bahru, Johor. Kuala Lumpur Sentral,
Tel: (607) 219 2692 P.O. Box 10192,
Fax: (607) 223 3175 50706 Kuala Lumpur,
Email: pdnjohor@jcorp.com.my Wilayah Persekutuan.

CORPORATE OFFICE Principal Bankers

7, Persiaran Titiwangsa 3, Malayan Banking Berhad
53200 Kuala Lumpur, 343, Jalan Pahang, Setapak,
Wilayah Persekutuan. 53300 Kuala Lumpur,
Tel: (603) 4022 6222 Wilayah Persekutuan.
Fax: (603) 4022 7237
Email: kpj@kpjhealth.com.my CIMB Bank Berhad
Ground Floor, No 338, Bangunan AMAL,
Company Secretaries Jalan Tuanku Abdul Rahman,
* Salmah Abd Wahab (LS 02140) 50100 Kuala Lumpur,
* Rohaya Jaafar (LS 08376) Wilayah Persekutuan.

HSBC Bank Malaysia Berhad

No. 2, Lebuh Ampang,
P.O.Box 10244,
50912 Kuala Lumpur,
Wilayah Persekutuan.

Stock Exchange Listing

Registrar BURSA MALAYSIA SECURITIES BERHAD
PRO CORPORATE MANAGEMENT Main Market
SERVICES SDN BHD (Since 29 November 1994)
Suite 2, 17th Floor, KOMTAR,
Jalan Wong Ah Fook,
80000 Johor Bahru, Johor.
Postal Address: KB No 735, 80990
Johor Bahru, Johor
Tel: (607) 222 5044 / 222 4044
Fax: (607) 222 3044
 Adva
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ng

Co
ntin
uous
Caring
Corporate Structure Johor Specialist
100% Hospital Sdn Bhd
(KPJ Johor Specialist Hospital)

RenalCare
100% Kumpulan Perubatan
Perubatan (Johor) 100%
(M) Sdn Bhd
Sdn Bhd

Puteri Specialist
100% Hospital Ampang Puteri Specialist
(Johor) Sdn Bhd Hospital Sdn Bhd
100%
(Puteri Specialist (KPJ Ampang Puteri
Hospital) Specialist Hospital)

100% Damansara Specialist Hospital Sdn Bhd

(KPJ Damansara Specialist Hospital)
Tawakal Holdings
100% Sdn Bhd

100% Sentosa Medical Centre Sdn Bhd

Pusat Pakar (Sentosa Medical Centre, Kuala Lumpur)
100% Tawakal Sdn Bhd
(Tawakal Hospital)
100% Renal-Link Sentosa Sdn Bhd

Ipoh Specialist
98% Hospital Sdn Bhd 100% Kajang Specialist Hospital Sdn Bhd
(KPJ Ipoh Specialist Hospital) (KPJ Kajang Specialist Hospital)

Selangor Specialist
60% Hospital Sdn Bhd
100%
Penang Specialist Hospital Sdn Bhd (KPJ Selangor
(KPJ Penang Specialist Hospital) Specialist Hospital)

51% Hospital Pusrawi

43% Al-'Aqar KPJ REIT SMC Sdn Bhd
100%
Seremban Specialist Hospital Sdn Bhd
(KPJ Seremban Specialist Hospital) Kedah Medical Centre Sdn Bhd
46%
(Kedah Medical Centre)

Taiping Medical Centre Sdn Bhd 30%

Hospital Penawar Sdn Bhd
100% (Hospital Penawar, Pasir Gudang)
(Taiping Medical Centre)

100%
Puteri Nursing College Sdn Bhd
Bandar Baru Klang (KPJ International College of Nursing and Health Sciences)
100% Specialist Hospital Sdn Bhd
(Bandar Baru Klang Specialist Hospital) 100% Pharmaserv Alliances Sdn Bhd

Pusat Pakar Kluang Utama Sdn Bhd 100% FP Marketing (S) Pte Ltd
100%
(Kluang Utama Specialist Hospital)

75% Medical Supplies (Sarawak) Sdn Bhd

97% Kota Kinabalu Specialist Hospital Sdn Bhd
(Damai Specialist Hospital) 100% Maharani Specialist Hospital Sdn Bhd

55% Bayan Baru Specialist Hospital Sdn Bhd

77%
Kuantan Specialist Hospital Sdn Bhd
(Kuantan Specialist Hospital)

100% PharmaCARE Sdn Bhd

PT Khasanah Putera Jakarta Medica
75% (Rumah Sakit Medika
Bumi Serpong Damai, Jakarta) 100% LabLink (M) Sdn Bhd

70%
Bukit Mertajam Specialist Hospital Sdn Bhd
(Bukit Mertajam Specialist Hospital) 65% Sterile Services Sdn Bhd

Kuching Specialist Hospital Sdn Bhd 30% Healthcare Technical Services Sdn Bhd
70% (Kuching Specialist Hospital)

90% FABRiCARE Laundry Sdn Bhd

61%
Perdana Specialist Hospital Sdn Bhd
(Perdana Specialist Hospital, Kota Bharu)
75% Teraju Farma Sdn Bhd
7
Annual Report 2009
8 KPJ Healthcare Berhad (Company No. 247079 M)

KPJ’s Network of Hospitals

MALAYSIA
HOSPITALS ACCREDITED BY MALAYSIAN SOCIETY FOR QUALITY IN HEALTH (MSQH)

KPJ JOHOR SPECIALIST HOSPITAL KPJ IPOH SPECIALIST HOSPITAL

Website: www.jsh.kpjhealth.com.my Website: www.ish.kpjhealth.com.my
Email: jsh@jsh.kpjhealth.com.my Email: ish@ish.kpjhealth.com.my

KPJ DAMANSARA SPECIALIST HOSPITAL KPJ AMPANG PUTERI SPECIALIST HOSPITAL

Website: www.dsh.kpjhealth.com.my Website: www.apsh.kpjhealth.com.my
Email: dsh@dsh.kpjhealth.com.my Email: apsh@apsh.kpjhealth.com.my

KPJ SEREMBAN SPECIALIST HOSPITAL KPJ SELANGOR Specialist Hospital

Website: www.ssh.kpjhealth.com.my Website: www. kpjselangor.kpjhealth.com.my
Email: ssh@ssh.kpjhealth.com.my Email: kpjselangor@kpjselangor.kpjhealth.com.my

HEALTHCARE RELATED COMPANIES INTRAPRENEUR COMPANIES

KPJ INTERNATIONAL COLLEGE OF PHARMASERV ALLIANCES SDN BHD TERAJU FARMA SDN BHD
NURSING AND HEALTH SCIENCES Email: pasb@pasb.kpjhealth.com.my Tel: (603) 7874 4212
Email: pnc@kpjic.edu.my Website: www.pasb.kpjhealth.com.my Fax: (603) 7874 4126
Website: www.kpjic.edu.my
FABRiCARE LAUNDRY SDN BHD
HEALTHCARE TECHNICAL SERVICES SDN BHD
LABLINK (M) SDN BHD Tel: (607) 232 7231/3
Email: htssb@tm.net.my
Email: lablink@lablink.com.my Fax: (607) 232 7235
Website: www.hts.kpjhealth.com.my
Website: www.lablink.com.my

Head Office
KPJ HEALTHCARE BERHAD (Company No: 247079 M)
7, Persiaran Titiwangsa 3, 53200 Kuala Lumpur.
Tel: (603) 4022 6222 Fax: (603) 4022 7237/4024 4812
Email: kpj@kpjhealth.com.my Website: www.kpjhealth.com.my
 Adva
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ng

Co
MOVING TOWARDS ACCREDITATION

ntin
uous
Caring
PERDANA SPECIALIST HOSPITAL KPJ KAJANG SPECIALIST HOSPITAL KPJ PENANG SPECIALIST HOSPITAL
Website: www.perdana.kpjhealth.com.my Website: www. kpjkajang.kpjhealth.com.my Website: www.kpjpenang. kpjhealth.com.my
Email: perdana@perdana.kpjhealth.com.my Email: kpjkajang@kpjkajang.kpjhealth.com.my Email: kpjpenang@kpjpenang.kpjhealth.com.my

KEDAH MEDICAL CENTRE TAWAKAL HOSPITAL PUTERI SPECIALIST HOSPITAL

Website: www.kmc.kpjhealth.com.my Website: www.tawakal.kpjhealth.com.my Website: www.psh.kpjhealth.com.my
Email: kmc@kedahmedical.com.my Email: tawakal@tawakal.kpjhealth.com.my Email: psh@psh.kpjhealth.com.my

KUANTAN SPECIALIST HOSPITAL TAIPING MEDICAL CENTRE DAMAI SPECIALIST HOSPITAL

Website: www.ksh.kpjhealth.com.my Website: www.tmc.kpjhealth.com.my Website: www.dsc.kpjhealth.com.my
Email: ksh@ksh.kpjhealth.com.my Email: tmc@tmc.kpjhealth.com.my Email: dsc@dsc.kpjhealth.com.my

KUCHING SPECIALIST HOSPITAL SENTOSA MEDICAL CENTRE KLUANG UTAMA SPECIALIST HOSPITAL
Website: www.kcsh.kpjhealth.com.my Website: www.sentosa.kpjhealth.com.my Email: utamaklu@streamyx.com
Email: kcsh@kcsh.kpjhealth.com.my Email: sentosa@sentosa.
kpjhealth.com.my
INDONESIA

Bukit mertajam Specialist Hospital

Website: www.bmsh.kpjhealth.com.my RS MEDIKA PERMATA HIJAU RS BUMI SERPONG DAMAI
Email: bmsh@bmsh.kpjhealth.com.my Website: www.rsmph.co.id Website: www.rs-medikabsd.co.id 9
Annual Report 2009
10 KPJ Healthcare Berhad (Company No. 247079 M)

Key Performance Statistics

2005 2006 2007 2008 2009

15 17 17 19 19

1,162,585 1,556,172 1,733,500 1,956,303 1,978,669

117,539 158,412 179,227 196,291 206,907

659,643 831,455 1,108,024 1,267,305 1,456,353

42,301 60,060 85,255 114,052 143,890

28,741 41,121 77,791 89,308 114,736

32,657 40,962 74,237 85,644 110,880

16.25 20.30 36.02 41.41 53.35

11 14 20 38 20

201,050 203,999 207,745 209,461 211,051

410,292 442,590 508,828 581,041 632,011

343,536 342,068 398,877 470,797 516,420

5.6 9.1 23.4 43.2 52.2

 Adva
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Caring
1,978,669
1,956,303
1,733,500
1,556,172

206,907
2,000,000
2,000,000 250,000
250,000 1,500,000
1,500,000

196,291
1,162,585

179,227
158,412
2,000,000
2,000,000 200,000
200,000 250,000
250,000 1,200,000
1,200,000 1,500,000
1,500
1,500,000
1,500,000

117,539
150,000
150,000 200,000
200,000 900,000
900,000 1,200,000
1,200
1,500,000
1,500,000
1,000,000
1,000,000
100,000
100,000 150,000
150,000 600,000
600,000 900,000
900

1,000,000
1,000,000
500,000
500,000
50,000
50,000 100,000
100,000 300,000
300,000 600,000
600

500,000
500,000
00 00 50,00050,000 00 300,000
300
20005

20 06

20 07

20 08

20 09

20005

20 06

20007

20 08

20 09

20005

20 06

20 07
05

06

07

08

09

05

06

07

08

09

05

06

07
20

20

20

20

20

20

20

20

20
2

2
Outpatients
0 0 Inpatients
0 0 0
05

078

089

05

078

089
0005

06

09

0005

06

09
200

200

200

200
20

20
220

20

20

20

20

220

20

20

20

20
150,000
150,000 120,000
120,000
1,456,353

143,890

114,736
1,267,305

100,000
100,000
1,500,000 120,000
120,000 150,000
150,000 120,000
120,000
1,108,024

114,052

89,308

80,000
80,000
90,000
90,000 100,000
100,000
77,791

1,200,000 120,000
120,000
831,455

85,255

60,000
60,000
80,00080,000
60,000
60,000
659,643

900,000 90,00090,000
60,060

40,000
40,000
41,121

60,00060,000
42,301

600,000 30,000
30,000 60,00060,000
28,741

20,000
20,000
40,00040,000

300,000 00 30,00030,000 00
20,00020,000
20005

20 06

20 07

20 08

20 09

20005

20 06

20007

20 08

20 09
05

06

07

08

09

05

06

07

08

09
20

20

20

20

20

20

20
2

0 0 0 0 0
05

078

089

05

078

089
0005

06

09

0005

06

09
9

05

06

07

08

09

200

200

200

200
00

20

20
220

20

20

20

20

220

20

20

20

20
20

20

20

20

20

TUrnover Profit Before Profit AFTER

(RM ‘000) Taxation (RM ‘000) Taxation (RM ‘000)

11
Annual Report 2009
 12 KPJ Healthcare Berhad (Company No. 247079 M)

Achievements: Awards & Recognition

A memorable moment for Datin Paduka Siti Sa’diah Sheikh

Bakir who was awarded Malaysia’s CEO of the Year 2009

ASEAN Business Award 2008/2009 for CSR category

KPJ Johor Specialist Hospital receiving CEO MSQH handing over the
NAfMA – Certificate of Merit (National Award its accreditation from MSQH for the Accreditation Certificate to KPJ Seremban
for Management Accounting 2009) third consecutive year Specialist Hospital
 Some of the awards and certificates received in 2009

Health Industry Recognition Asia Pacific Super Excellent Libur Best Medical Tourism
Award by Ministry of Health Brand Award 2009 Programme

Malaysia Independence MyBranded Service Award 2009 Malaysia HR Award for HR

Award 1957 Excellence Category (Bronze)
13
Annual Report 2009
14 KPJ Healthcare Berhad (Company No. 247079 M)

Leadership for Excellence

Chairman

10 8 5 3 7 11 9
1 Tan Sri Dato’ Muhammad Ali Hashim

1 2 6 Managing Director
4
2 Datin Paduka Siti Sa’diah Sheikh Bakir
 Board of Directors

Board Members
3 Zainah Mustafa 6 Tan Sri Dato’ Dr 9 Dr Yoong Fook Ngian
Independent Non-Executive Director Abu Bakar Suleiman Independent Non-Executive Director
Independent Non-Executive Director

Tan Sri Datuk Arshad Ayub 10 Dr Kok Chin Leong

4
7 Datuk Azzat Kamaludin Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director

Datuk Dr Hussein Awang 11 Rozan Mohd Sa’at

5 8 Ahamad Mohamad Non-Independent Non-Executive Director
Independent Non-Executive Director Non-Independent Non-Executive Director
16 KPJ Healthcare Berhad (Company No. 247079 M)

Tan Sri’s tenacity, business acumen and entrepreneurial

leadership has enabled JCorp to grow into one of
Malaysia’s leading conglomerates with more than 280
companies, 7 of which are listed on Bursa Malaysia
and another on the London Stock Exchange. Market
capitalisation of JCorp’s portion of PLC shares stood at
RM10.4 billion at the end of 2009. This highly diversified
Group offers meaningful career opportunities to more
than 50,000 employees.

As President and CEO of JCorp Group, Tan Sri has

also successfully steered the Group through extreme
business challenges, especially when the JCorp Group
was hit hard by the 1997 Asian Financial Crisis. In
2006 – 2007, JCorp, through Kulim (Malaysia) Berhad,
acquired two PLCs namely QSR Brands Bhd and
KFC Holdings (Malaysia) Bhd, overcoming a protracted
hostile challenge. This had led to the exercise becoming
one of Malaysia’s landmark corporate acquisitions.

JCorp has also successfully managed Malaysia’s one

and only ‘market-driven’ local authority, namely the Pasir
Gudang Local Authority now known as Pasir Gudang
Municipal Council (PGMC), with Tan Sri as President
with mayorial responsibilities from January 1982 to July
2008. JCorp was the single most important agency

Tan Sri Dato’ responsible for Pasir Gudang’s development into one
of Malaysia’s vibrant and dynamic industrial townships.
Muhammad Ali Hashim PGMC made history by becoming the first business-

A ged 63, Tan Sri Dato’ Muhammad Ali Hashim driven local authority in Malaysia to issue a Mudharabah
was appointed the Non-Independent Non-Executive Bond rated triple ‘A’ by Rating Agency Malaysia Berhad.
Chairman of KPJ Healthcare Berhad (KPJ) on 15 After 32 years, JCorp has since ceased to manage the
September 1993. Tan Sri is the President and CEO of Pasir Gudang township.
Johor Corporation (JCorp), the ultimate holding company
of KPJ, and has held that position since January 1982. Tan Sri is the Chairman of Kulim (Malaysia) Berhad, QSR
Brands Bhd, KFC Holdings (Malaysia) Bhd, Sindora
He graduated from the University of Malaya with a
Berhad and Damansara Realty Berhad, which are
Bachelor of Economics (Honours) Degree in 1969
JCorp’s subsidiaries listed on the Main Board of Bursa
and participated in the Senior Executive Programme,
Malaysia. Tan Sri is also active as a Council Member of
Stanford University, United States of America, in 1985.
the Malaysian Industrial Development Authority, President
Tan Sri was conferred the Honorary Doctorate of
of the Malaysian Kite Council, President of Malaysian
Management by Universiti Teknologi Malaysia on 19
Yachting Association, Vice-President of the Malaysian
August 2000; Honorary Doctorate in Entrepreneurship
by Universiti Teknologi MARA on 24 May 2007; and Islamic Chamber of Commerce (MICC), Chairman of the
Honorary Doctorate in Technology Management by MICC Corporate Bureau, and Chairman of Waqaf An-Nur
Universiti Tun Hussein Onn Malaysia on 2 September Corporation Berhad, an Islamic endowment institution
2007. Most recently in 2010, Tan Sri was accorded the that spearheads JCorp Group’s Corporate Responsibility
Honorary Doctorate (Entrepreneurship) by Universiti programmes, including the unique Corporate Waqaf
Utara Malaysia. Concept initiated by JCorp.
 Adva
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Directors’ Profile

Co
ntin
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Caring
Datin Paduka Siti Zainah Mustafa
Sa’diah Sheikh Bakir
A ged 57, Datin Paduka Siti Sa’diah Sheikh Bakir has
served as the Managing Director of KPJ Healthcare
Berhad (KPJ) since 1 March 1993. She graduated with
A ged 56, Zainah has served as a Director of KPJ since
21 February 1994 and is also a member of the KPJ
Audit Committee. She has been an Independent Non-
a Bachelor of Economics degree from the University Executive Director since 1 December 2004. She also sits
of Malaya in 1974 and holds an MBA from Henley on the board of four other companies in the JCorp Group
Management College, London, United Kingdom. of Companies namely Damansara Realty Berhad, Puteri
Hotels Sdn Bhd, Damansara REIT Managers Sdn Berhad
Datin Paduka began her career with Johor Corporation and Al-`Aqar Capital Sdn Bhd.
(JCorp) in 1974 and has been directly involved with
JCorp’s Healthcare Division since 1978. She held the
She started her career as an Assistant Senior Auditor in
post of Chief Executive of Kumpulan Perubatan (Johor)
Sdn Bhd from 1989 until the listing of KPJ in November Perbadanan Nasional Berhad in 1977 after graduating
1994. from Institut Teknologi MARA (now UiTM). She obtained
her accounting qualication from the Association of
She currently sits as the Chairman of various companies Chartered Certified Accountants United Kingdom in 1976.
and hospitals in the KPJ Group. She is also a Director of She joined JCorp in October 1978 and rose through the
Kulim (Malaysia) Berhad, KFC Holdings (Malaysia) Bhd, ranks to become the Group Chief Financial Officer before
QSR Brands Bhd, Puteri Hotels Sdn Bhd as well as a retiring on 31 October 2002.
Director of Waqaf An-Nur Corporation Berhad, a non-
governmental organisation dedicated to the provision of
healthcare services to the less fortunate.

Committed to promoting excellence in healthcare, Datin

Paduka is the President of the Malaysian Society for
Quality in Health, elected since its inception in 1997 todate.

Datin Paduka is also a Board member of MATRADE

since 1999, a member of the Malaysia Productivity
Council Consultative Panel on Healthcare since 2001,
and a member of the National Patient Safety Council,
Ministry of Health (MOH) since 2003.

Datin Paduka is an Independent Non-Executive Director

of Bursa Malaysia, elected since 2004. In 2009, Datin
Paduka was appointed as a member of the Malaysian
Healthcare Travel Council, under the MOH.

On 12 March 2010, Datin Paduka was named the CEO

of the Year 2009 by the New Straits Times Press and
American Express. The award was presented by YAB
Dato’ Sri Mohd Najib Tun Haji Abdul Razak, the Prime
Minister of Malaysia.
17
Annual Report 2009
18 KPJ Healthcare Berhad (Company No. 247079 M)

Tan Sri Datuk DATUK DR HUSSEIN AWANG

Arshad Ayub
A ged 82, Tan Sri Datuk Arshad Ayub was appointed
to the Board of KPJ on 1 September 1994. He is
currently an Independent Non-Executive Director and
A ged 70, Datuk Dr Hussein Awang was appointed
to the Board of KPJ on 21 February 1994 and
was appointed as a member of the Audit Committee on 12
Chairman of the Audit Committee of KPJ. December 2005.

Tan Sri graduated with a Diploma in Agriculture in He received his Bachelor of Medicine and Bachelor of
1954 from Serdang Agricultural College, Selangor, and Surgery (MBBS) in 1964 from University of Melbourne,
a Bachelor of Science (Honours) in Economics and
Australia. He was made a Fellow of the Australasian
Statistics in 1958 from University College of Wales
College of Surgeons in 1972. He was the Senior
Aberystwyth, United Kingdom. He graduated with a
Consultant Urological Surgeon and Head of Department
post-graduate Diploma in Business Administration
of Urology, General Hospital, Kuala Lumpur, from
from IMEDE, now IMD Lausanne, Switzerland.
1976 to 1984. He was also the Honorary Professor of
He has had a distinguished career in the Malaysian Surgery (Urology), Department of Surgery, Universiti
Civil Service, serving as Deputy Governor of Bank Kebangsaan Malaysia, Selangor, from 1978 to May
Negara Malaysia (1975 – 1977), Deputy Director 1984. Datuk is a Foundation Fellow of the Academy of
General in the Economics Planning Unit of the Prime Science Malaysia.
Minister’s Department (1977 – 1978) and as Secretary
General in the Ministry of Primary Industries (1978), He is currently the Consultant Urological Surgeon and
Ministry of Agriculture (1979 – 1981) and Ministry of Medical Director at Hospital Tawakal, a position he has
Land and Regional Development (1981 – 1983). held since May 1984.
He also holds directorships in Kulim (Malaysia) Berhad,
Sindora Berhad, LBI Capital Berhad, Tomypak Holdings His directorships in other public listed companies include
Berhad, Top Glove Corporation Berhad, and Malayan Hong Leong Islamic Bank Berhad and Hong Leong
Flour Mills Berhad. Tan Sri is the Chairman and/or Assurance Berhad.
director of several other non-listed companies including
Bata Sdn Bhd, CSR Building Materials Sdn Bhd,
Pelaburan Johor Berhad, Bistari Johor Berhad, PFM
Capital Holdings Sdn Bhd, AmanahRaya JMF Asset
Management Sdn Bhd, Land Rover (M) Sdn Bhd, Sato
Amoy Sdn Bhd, Johmewah Maju Paper Mills Sdn Bhd,
Nakagawa Rubber Industries Sdn Bhd and Zalaraz Sdn
Bhd.

He is currently the President of the Malaysian

Rubber Products Manufacturers Association. He is
the Chairman of the Board of Directors of University
of Malaya and PINTAR Board of Trustees, Governor
of Tuanku Jaafar College, member of Board of
Cooperative College of Malaysia, Tun Razak
Foundation, Pak Rashid Foundation, Lung Foundation
of Malaysia, Malaysian Malay Businessmen and
Industrialists Association, Pro Chancellor of UiTM and
Patron of Yayasan Arshad Ayub.
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TAN SRI DATO’ DR DATUK AZZAT KAMALUDIN
ABU BAKAR SULEIMAN
A g e d 6 6 , Ta n S r i D a t o ’ D r A b u B a k a r
Suleiman was appointed to the Board of
KPJ on 15 March 2001. He is currently an
A ged 64, Datuk Azzat Kamaludin was appointed to
the Board of Directors of KPJ on 1 September
1994. He is currently an Independent Non-Executive
Independent Non-Executive Director of KPJ. Director and also a member of the Audit Committee
He is also the Chairman of CCM Duopharma Biotech of KPJ.
Berhad and is on the Board of Chemical Corporation
of Malaysia Berhad.
A lawyer by training, he was admitted as an advocate
A medical practitioner by profession, he obtained and solicitor of the High Court in 1979 and has been
his Bachelor of Medicine and Bachelor of Surgery from in practice since then as partner of Azzat and Izzat, a
Monash University, Australia in 1968 and a Master law firm. Prior to that, from 1970 to 1979, he served
of Medicine from University of Singapore in 1974.
as an administrative and diplomatic officer with the
He is a member of the Royal Australasian College of
Ministry of Foreign Affairs. He currently serves as a
Physicians and an Honorary Fellow of the American
College of Physicians. director of several public-listed companies, namely,
Visdynamics Holdings Berhad, Affin Holdings Berhad,
He began his career as a Medical Officer with Pulai Springs Berhad, Boustead Holdings Berhad,
the Ministry of Health in 1969 and subsequently
BHIC Berhad and Axiata Group Berhad.
completed training in Internal Medicine before he
became a Consultant Physician with the Department
of Nephrology of Hospital Kuala Lumpur.
In 1975, he served as Visiting Fellow to the Division
of Nephrology of Georgetown University Hospital,
Washington DC as well as Prince Henry’s Hospital of
Melbourne, Australia. In 1976, he returned to be the
Consultant Nephrologist and Head of The Department
of Nephrology of Hospital Kuala Lumpur. In 1987, he
held the position of Director of Medical Services of
the Ministry of Health and became Deputy Director
General of Health in 1989 before rising to the rank of
Director General of Health of the Ministry in 1991 to
2001. He attended the advanced management course
in Harvard Business School in 1991. Upon his official
retirement, he was appointed the President of the
International Medical University.
Tan Sri is also currently the President of the Malaysian
Health Informatics Association, President of the National
Kidney Foundation, Chairman of the Consultative Panel
on Healthcare, Malaysia Productivity Corporation,
Chairman of the Ministry of Health Committee
on Living Unrelated Donor Transplantation, a
Member of the National Health Welfare Fund and
a Committee Member of the Malaysia-Indonesia
Business Council.
He is also currently the Chairman of the Medical 19
Advisory Committee of KPJ. Annual Report 2009
20 KPJ Healthcare Berhad (Company No. 247079 M)

AHAMAD MOHAMAD DR YOONG FOOK NGIAN

A ged 56, Ahamad Mohamad was appointed to the
Board of KPJ on 1 January 2005. He is currently
a Non-Independent and Non-Executive Director of
A ged 68, Dr Yoong Fook Ngian is a Director of
KPJ and was appointed to the Board of KPJ on
7 July 2005. He is an Independent Non-Executive
KPJ. Director of KPJ and a member of the Medical Advisory
Committee and Chairman of the Clinical Governance
He graduated with a Bachelor of Economics (Honours) Action Committee of KPJ.
degree in 1976 from the University of Malaya. He He received his Bachelor of Medicine and Bachelor
joined JCorp in 1976 as Company Secretary for of Surgery from the University of Sydney in 1966.
various companies within the JCorp Group. He has He obtained his post-graduate qualification in
been involved in many of JCorp’s projects, among Otolaryngology in 1972 and was conferred a Fellow
them, the early development of the Johor Specialist of the Royal College of Surgeons of Edinburgh. He is
Hospital, prefabricated housing project and the also a Fellow of the College of Surgeons of Malaysia
Kotaraya Complex in Johor Bahru. and a member of the Academy of Medicine of
Malaysia. He was employed by the Ministry of Health
At present, he is the Chief Executive of the Palm from 1966 to 1975. During this period, he worked
Oil Division of JCorp. He is currently the Managing as a Medical Officer in the field of Anaesthesiology,
Director of Kulim (Malaysia) Berhad, Deputy Accident and Emergency Medicine, General Surgery
Chairman of QSR Brands Bhd and KFC Holdings and as Registrar in Ear, Nose and Throat (ENT)
(Malaysia) Bhd, a director of New Britain Palm Oil Surgery. He left for Britain in 1970 for further training
Limited (Papua New Guinea) as well as several other in ENT Surgery.
companies within the JCorp Group. In 1972, he established the ENT Department in
Hospital Ipoh. His last posting with the Ministry of
Health was as Head of ENT Surgery in General
Hospital Kuala Lumpur before venturing into private
practice in 1975. In private practice, he was ENT
Consultant at Our Lady’s Hospital in Ipoh from 1975
to 1982. He has been Resident ENT Consultant in
KPJ Ipoh Specialist Hospital since 1983 and is one
of its founding-doctors. He had been the Medical
Director of KPJ Ipoh Specialist Hospital from 1994 until
December 2006.
He is a Life Member of the Malaysian Medical
Association and a Past-Chairman of its Perak branch.
He is also a Past-President of the Perak Medical
Practitioners’ Society.
He is an active member of the Rotary Club of
Greentown and a Past-President of the club. Dr Yoong
is a Trustee of the Hope Haemodialysis Society, an
NGO which provides subsidised haemodialysis for
poor patients.
In 1997, Dr Yoong was conferred the Perak State
Award of Darjah Paduka Mahkota Perak.
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DR KOK CHIN LEONG Rozan Mohd Sa’at
A ged 53, Dr Kok Chin Leong is a Director of KPJ
and was appointed to the Board of KPJ on 7 July
2005. He is an Independent Non-Executive Director
A ged 49, Rozan Mohd Sa’at is a Director of
KPJ and was appointed to the Board of KPJ
on 1 January 2009. He is a Non-Independent Non-
of KPJ, a member of the KPJ Clinical Governance Executive Director of KPJ. He is the Managing
Policy Committee since 2001, Chairman of the Director of Sindora Berhad.
Committee since 2005 and the Advisor for KPJ’s
Clinical Information System since January 2003. He holds a Bachelor of Economics (Honours) majoring
in Statistics from Universiti Kebangsaan Malaysia. He
He received his Bachelor of Medicine and Bachelor started his career in 1983 as an Administrative Officer
of Surgery in 1982 from University of Malaya and in the Planning and Research Department of JCorp
completed his post-graduate studies in Paediatrics before being seconded as Operations Manager in
(Master of Medicine Paediatrics) in 1990 from Universiti Sergam Berhad, a subsidiary of JCorp, in 1986.
Kebangsaan Malaysia. He was conferred a Fellow of
the Royal College of Physician of United Kingdom in From 1987 to 1988, he served in the Corporate
1990 and registered as a full medical practitioner with Communications Department, JCorp, as an
the Malaysian Medical Council in 1983. His medical Administrative Officer. From 1988 to 1993, he
career started in 1986 at the Kuala Lumpur General was the Executive Director of several subsidiaries
Hospital in Clinical Paediatrics, and he has worked in JCorp Group. In 1994, he was appointed the
as Senior House Officer/Registrar at Derby Children’s General Manager of JCorp’s Tourism Division before
Hospital, United Kingdom in 1990. He served as the assuming the post of Chief Executive of the same
Clinical Specialist in Paediatrics at Hospital Sultanah Division on 15 June 1996, a post which he held until
Aminah, Johor Bahru from 1991 to 1992 and was his appointment as the General Manager, Business
the Head of Department of Paediatrics at Batu Pahat Development, JCorp, beginning January 1999.
Hospital from 1991 to 1993 and Senior Consultant
Paediatrician at Hospital Sultanah Aminah, Johor Prior to his appointment as the Managing Director
Bahru from 1993 until 1994. of Sindora Berhad, he served as the Senior General
Manager, Business Development, of JCorp from 2000
He was the Project Co-ordinator/Chairman for the Batu until August 2002. He is also currently the Senior
Pahat Rotary Club Haemodialysis Centre from 1992 to Vice President, Intrapreneur Development, of JCorp
1993, the Southern Representative for the Malaysian and a Director of Kulim (Malaysia) Berhad and Waqaf
Paediatric Association from 2000 to 2004 and the An-Nur Corporation Berhad.
Southern Co-ordinator for Infant Touch Therapy. He
was elected Exco Member of the Malaysian Pediatrics
Association from 2009 till present, and Board Member Note:
Other than as disclosed, all directors do not have
of the Association of Private Hospitals Malaysia from
any family relationships with any director and/or
2008 till present. major shareholder of the Company. All directors have
He has been the Resident Consultant Paediatrician no personal interest in any business arrangements
involving KPJ. All directors have not been convicted for
at Puteri Specialist Hospital since 1994 and was
any offence and have attended all or the majority of
appointed the Medical Director from February 2000 the Board of Directors’ Meetings of the Company as
to June 2006. His main interests are delivering stipulated by the listing requirements for the financial
Healthcare via Information and Communication year ended 31 December 2009.
Technology (ICT), Patient Safety and Physicians’
21
Performance and Appraisal Assessment. Annual Report 2009
KPJ in the News
 23
Annual Report 2009
24 KPJ Healthcare Berhad (Company No. 247079 M)

Statement to Shareholders
KPJ Healthcare Berhad (KPJ) has an “amanah” (trust) to deliver its
services to its stakeholders to the best of its abilities, harnessing in
particular the latest information and technological developments to provide
quality healthcare. In so doing, KPJ strives to strengthen that amanah
by giving back to society through the talents and capabilities within
the organisation. It is with this central premise that KPJ is Advancing
Continuous Caring, the theme of the Group’s 2009 Annual Report.

Right: Tan Sri Dato’ Muhammad Ali Hashim (Chairman)

Left: Datin Paduka Siti Sa’diah Sheikh Bakir (Managing Director)
 Adva
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The year 2009 was globally one of consolidation
as economies around the world worked to put their
financial markets in order. Countries continued to
experience various degrees of economic contraction
during the year. The Malaysian Government was
zealous in maintaining confidence in the marketplace
through a number of measures, creating a climate
that enabled the business community to go forward
with cautious optimism.

It was within this environment that KPJ continued

to make further headway in its industry, not only
nationally but also regionally. On behalf of the
Board, we are pleased to present KPJ’s significant
A caring touch that bears the hallmark of KPJ healthcare
developments in this Annual Report and Financial
Statements for the year ended 31 December 2009.

KPJ’S AMANAH
For an organisation to have business longevity and The practice of Business Jihad within KPJ is
be valued by the communities it serves, it must be complemented by the Group’s key corporate
guided by principles that go beyond the bottom- governance principles: compliance with the law and
line. KPJ is mindful of its financial obligations to commercial legitimacy; fair treatment of employees and
its shareholders and has succeeded in meeting, if business partners; responsibility to the environment
not exceeding, their expectations through a strong and the community in which it operates; and probity,
adherence to the amanah it holds. This is a trust integrity and business ethics in operational practices.
placed upon KPJ to be sincere in its relationships With these forces motivating its initiatives, KPJ has
with all parties, maintain high integrity to keep its been able to continually deliver on its financial and
promises to its customers, and to accord mutual operational performance, enabling it to achieve major
respect in its relationships with others. It is with milestones from year to year. This has been evident
faith and trust that KPJ has been able to maintain even during challenging periods, including the year
its position of leadership in the healthcare industry 2009.
to this day.
The Malaysian economy in 2009
Serving through Business Jihad The impact of the 2008 global financial downturn
KPJ’s positive business performance is guided by continued to affect Malaysia in 2009. Globally,
the principles of Business Jihad, which underlie the decline was expected to be -1.1% for the year.
the vision set by its parent holding company, Johor Regional GDP growth, as forecasted by the Asian
Corporation (JCorp). Business Jihad, based on the Development Bank (ADB) was a positive 3.4%,
concept of a shared destiny, aims to serve customers underpinned by China’s robust economy. At the end of
in a way that enhances the community through 2009, Malaysia recorded a GDP contraction of -1.7%.
business and consequently benefit all levels of
society. It also implies undertaking business pursuits The Malaysian economy showed signs of a rebound in
by creating value on a sustainable, holistic basis, the manufacturing, construction and services sector in
taking into full account of the long-term interests 2009 and there are strong indicators pointing towards
of future generations. Thus, in KPJ, good ethics, a positive GDP growth of 4.5% to 5.5% in 2010
practices and conduct are of paramount importance according to the Bank Negara projection. Regionally,
in providing customers excellent care through the ADB has indicated a growth rate of 7.0% in 2010,
‘KPJ Experience’ – the ultimate in quality healthcare while globally, the International Monetary Fund is
services associated with the KPJ brand. anticipating an expansion of 4.1%.
25
Annual Report 2009
26 KPJ Healthcare Berhad (Company No. 247079 M)

Private healthcare in
Malaysia
In Malaysia, where the
Government is striving to
achieve developed economy
status by 2020, the services
sector is seen as the
main driver of growth. The
services sector is expected
to expand by 3.6% in 2010
and within this sector, the
Government has identified
healthcare travel as one of
the potential service sub-
sectors to generate national The Launching of KPJ Penang Specialist Hospital in November 2009 by
economic growth. TYT Yang Di Pertua Negeri, Tun Abdul Rahman Abbas

Towards this end, the Malaysia worldwide is on preventive care and provision of
Healthcare Travel Council (MHTC) was established to patient-centred outcomes while alternatives are
bring together the industry’s significant players, both being sought to deliver healthcare services beyond
in the public and private sectors, to drive growth to a the physicians’ offices and hospitals. Community
higher level. The Council is responsible for formulating health is increasingly becoming a social responsibility,
strategic plans to promote healthcare travel services especially with the outbreak of global epidemics such
and spearheading promotional activities for the as H1N1.
Malaysian healthcare travel industry. The Ministry
of Health has implemented various programmes to FINANCIAL PERFORMANCE IN 2009
help generate revenue from healthcare travel while KPJ continued its sterling financial performance in
measures, including tax incentives, are being offered year 2009, thereby strengthening the Group’s position
to boost health travel. Agencies are being set up for in the industry.
projects, advertising guidelines are being reviewed to
enable greater promotion of health travel, and steps This came on the back of such major milestones as
are being taken to enhance the capacity of private achieved in 2007, when the Group passed its first
hospitals and encourage their accreditation. KPJ billion ringgit benchmark, for the first time, with a
already has the capacity and quality needed to play a turnover of RM1.1 billion. The financial year 2008
large role in such national healthcare developments. had also been a significant one for KPJ as it crossed
the one-hundred-million ringgit profit-before-tax
Having fully established itself as a leader in the private benchmark with a figure of RM114.1 million. Such
healthcare industry in Malaysia, KPJ’s aspirations sterling performance continued into 2009 with a
have extended regionally over the past few years. profit-before-tax of RM143.9 million on a turnover of
The next step will be global recognition. KPJ is RM1.4 billion.
therefore attuned to international developments in
healthcare, such as increasing costs and the greater The growth in the number of outpatients being treated
utilisation of information and clinical technology, which in KPJ’s network of hospitals has been steady, with the
have brought technology and telecommunication number rising from 1,956,303 in 2008 to 1,978,669 in
companies into healthcare services. In terms of 2009. The number of inpatients also saw an increase
healthcare practices, KPJ observed that emphasis from 196,291 in 2008 to 206,907 in 2009.

KPJ made it onto the list of Malaysia’s Top 100 Companies through
the continuing increase of its share price resulting in enlarged market
capitalisation.
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(2008: 7 sen), totalling 42.1

Caring
million, which resulted in an
increase of 186%. For the year
2009, there was no dividend in
specie declared (2008: 31 sen).

Investor Relations
Being a leader in the Malaysian
private healthcare industry
listed on Bursa Malaysia, KPJ
is monitored by both local
and international investment
houses. KPJ strives to
maintain good rapport with
these houses and help them
The Signing Ceremony of Joint Venture Agreement between KPJ and
better understand the Group’s
Pasdec Corporation in July 2009
corporate role in the industry
through its Investor Relationship
KPJ created an Economic Value Added (EVA) of Programme. In addition, investors may
RM52.2 million for the financial year ended 2009, an learn more with regards to the Group’s corporate
increase of RM9.0 million or 20.8% over the RM43.2 developments through interviews of top management
million in 2008. featured in major business magazines and
newspapers, as well as postings on KPJ’s website.
Major milestone ~ Among the 100 Top Companies
in Malaysia
Al-’Aqar KPJ Real Estate Investment Trust (REIT)
Another major milestone was attained in KPJ’s
KPJ had already scored a number of ‘firsts’ in the
corporate development during the financial year
capital market with the launch of its Al-‘Aqar KPJ
2009. KPJ made it to the list of Malaysia’s Top 100
REIT in 2006. With the launch, the Group was the
Companies in Bursa Malaysia through the continuing
first healthcare organisation in Malaysia to set up a
increase of its share price and resulting in enlarged
REIT. Al-‘Aqar was the first healthcare REIT in Asia,
market capitalisation. As at 31 December 2009, the
the first global Islamic REIT and the first Islamic
Group was ranked 91st out of 100 companies, with
healthcare REIT.
a share price of RM6.51 and market capitalisation of
RM1.4 billion. At end-December 2008, KPJ had been able to
KPJ’s market position was further enhanced and unlock total assets worth RM651.1 million through
its shares were made more marketable with the two injection exercises, initially with six hospitals and
completion of its corporate exercise in January 2010 then five hospitals. The third injection was completed
involving the subdivision of one ordinary KPJ share in September 2009, which unlocked a further
into two shares, a 1-for-4 bonus issue and a 1-for- RM292.0 million worth of assets from nine properties
4 free warrant issue. This scheme has increased – Seremban Specialist Hospital, Taiping Medical
the number of shares of the company from 211 Centre, Damai Specialist Hospital in Kota Kinabalu,
million shares of RM1 each to 528 million shares of Bukit Mertajam Specialist Hospital, KPJ Penang
RM0.50 each, thus improving the liquidity of the KPJ Specialist Hospital, the current Tawakal Hospital and
counter. After the full conversion of warrants issued, the new KPJ Tawakkal Specialist Hospital.
the number of shares of the company will further
Plans are underway for a fourth exercise. This will
increase to 660 million shares of RM0.50 each. It had
comprise the Kluang Utama Specialist Hospital
also been designed to show the Group’s appreciation
building, Bandar Baru Klang Specialist Hospital
to the shareholders who had given their continuous
building, as well as the Rumah Sakit Bumi Serpong
support over the years.
Damai building in Jakarta, Indonesia.

Dividend The REIT was launched to enable the Group to

For the financial year ended 31 December 2009, KPJ capitalise on the assets’ value and use the proceeds
has declared a cash dividend of 20 (sen) in cash to reduce overall gearing. This key strategic

27
Annual Report 2009
28 KPJ Healthcare Berhad (Company No. 247079 M)

initiative also provides KPJ

with a distinct competitive
advantage, allowing it to
leverage upon investment
opportunities that may come
its way and upgrade current
facilities. For investors, the Al-
‘Aqar REIT gives them great
value due to the resilience of
the healthcare industry.

KPJ’S BUSINESS
KPJ leads the Malaysian
private healthcare industry
with a network of 19 hospitals
that span the length and
breadth of the country. These The launching of Kuching Specialist Hospital in March 2009 by
Chief Minister of Sarawak YAB Pehin Sri Haji Abdul Taib Mahmud
hospitals are supported by a
number of subsidiary companies
providing ancillary pharmaceutical, to extend KPJ’s services to other cities and towns,
laboratory and laundry services. Regionally, the namely Bandar Baru Klang in Selangor, Tanjung
Group continues to manage two hospitals in Jakarta, Lumpur in Pahang as well as Muar in Johor.
Indonesia. The Group is also actively involved in the
medical education sector through the KPJ International On 11 March 2009, Kuching Specialist Hospital held
College of Nursing and Health Sciences. its official opening ceremony, which was graced
by the Chief Minister of Sarawak, YAB Pehin Sri
In the context of greater global uncertainties and Haji Abdul Taib Mahmud. Also on 1 August 2009,
economic volatility, KPJ undertook a total review
the Group opened its new KPJ Penang Specialist
of its business interests and strategic positions in
Hospital in Bandar Perda, Bukit Mertajam, to serve
healthcare investments outside Malaysia. Taking
the northern region. Built at a cost of RM45.0 million
sovereign, currency and other risk factors into account
and with a built-up area of about 200,000 sq ft, the
as well as KPJ’s overall strategic corporate position, a
five-storey hospital has a total capacity of 236 beds
decision was taken to totally review KPJ investments
and 20 consultant suites, with the latest in equipment
and managerial commitments to hospitals in Saudi
and facilities. KPJ Penang Specialist Hospital was
Arabia and Bangladesh.
officially launched by TYT YDP of Penang, Tun Dato’
Seri Utama (Dr) Haji Abdul Rahman Haji Abbas on
To ensure that KPJ maintains its industry leadership
23 November 2009. At the regional level, KPJ held
position in the countries that it operates, initiatives are in
the soft launch of RS Medika Bumi Serpong Damai in
place to enhance the Group’s financial and operations
Jakarta on 7 December of the year.
management as well as the level of excellence and
innovativeness of its clinical services. Attention is also
accorded to risk management practices. At the same As new hospitals are planned, built and acquired,
time, strategic and cohesive marketing programmes those already in the KPJ network continue to be
are underway to create better understanding of the refurbished and expanded. At KPJ Johor Specialist
KPJ brand nationally and abroad. Hospital, a new block is under construction to meet
the growing demands of the local population as
Extending the hospital network well as international patients. The hospital will also
Always mindful of the amanah entrusted upon it as the be upgrading most of its existing wards to keep up
preferred provider in the industry, KPJ aims to make with the expectations of its discerning customers.
its healthcare services available to as many areas of Renovation and upgrading work also commenced at
the country as possible. During the year under review, Kedah Medical Centre for the benefit of the hospital’s
a number of new hospitals were being developed customers and patients.
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KPJ is therefore in a continual cycle
of development and improvement
in realising its commitment to
offer patients from Malaysia and
other parts of the world healthcare
services up to international
standards.

Managing KPJ’s human capital

For KPJ to deliver the best services
to all patients, the hospitals
need to be ably supported by
teams that include management,
administrative staff and other
support services. Relationships
between the various groups are
KPJ International College of Nursing and Health Sciences Convocation at PWTC
therefore continuously maintained
to strengthen the team spirit within the
Group. To ensure the consistently high service
levels, performance of individuals is evaluated based Thus, once individuals become team members, they
on key performance indicators and the balanced are provided with learning opportunities to improve
scorecard concept. Utmost attention is therefore themselves, their knowledge and competencies. In
given throughout KPJ to human capital management 2009, the Group spent a total of RM7.5 million in
and development. human capital development. A target has been set for
each staff member to receive a minimum of 30 hours
As at end-2009, KPJ has 680 medical consultants of training per year, which has been achieved on
offering a full range of medical and surgical services the average. Staff members undergo formal and on-
from all disciplines. A total of 6,978 staff members the-job training experiences, including participation
consisting of 4,396 nursing and allied health personnel in seminars and conferences organised within and
and 2,582 support staff ensure the delivery of efficient outside the Group, to enhance their potential and
and quality services to the Group’s customers. personal capabilities. In addition, a system is in place
to identify those who are particularly talented so that
Training and developing team members they may obtain additional academic qualifications
KPJ regards itself as a learning organisation that through professional programmes.
encourages continuous learning and personal
development. This strengthens the Group’s ability to To increase KPJ’s intellectual capital as well as to
sustain itself as a market leader. KPJ also embraces promote the Group’s healthcare expertise, medical
the values of Transformational Leadership, advocating consultants offer to share their knowledge through
that ‘leaders and followers must raise one another to speaking invitations at conferences and forums,
higher levels’ by creatively shaping members of its especially those aimed at international audiences.
Many also publish their analytical works in national
team from being ‘ordinary’ to ‘extraordinary’. To raise
and international medical journals. Within the Group,
the bar, enhancement of knowledge is vital as it will
the KPJ Healthcare Conference and Workshop is an
create value for the human capital of the company
annual event that is fast becoming a tradition that
and the country.
brings together the Group’s medical professionals
and managers to discuss and deliberate on pertinent
issues relating to clinical and customer excellence.
KPJ creatively shapes
members of its team from being A career within KPJ
‘ordinary’ to ‘extraordinary’ Recruiting capable individuals and training them
to their fullest potential are steps towards retaining

29
Annual Report 2009
30 KPJ Healthcare Berhad (Company No. 247079 M)

valuable expertise within the Group. There is a Pulau Pinang to complement the one that was opened
diverse range of career paths in KPJ and a talent in Johor Bahru, Johor. KPJIC will eventually be able
management programme has been developed to to train 10,000 nurses and allied health students,
identify staff members who will be mentored and possibly making it the region’s largest nursing and
coached for future leadership positions. health sciences educational centre.

The leadership paradigm in KPJ is that of Delivering excellence in customer service

transformation. Thus, management is geared towards Through the SEGAR initiative (Service Excellence (SE)
shaping the attitudes and aptitudes of staff towards – KPJ Way Group Alignment and Re-engineering),
achieving corporate goals, striving for cohesiveness KPJ propagates ‘Service Excellence – the KPJ Way’.
within the Group and creating ever higher standards Under SEGAR, Standard Operating Procedures are
of personal excellence. issued to provide guidelines, policies and procedures,
Standard People Practice and Quality Objectives
Nurses for the world with the purpose of developing Core Processes for
Nurses are the unsung heroes of the medical all services. SEGAR emphasises on having unit-
profession. They are there beside the doctors and based guidelines with a focused point of entry and the
alongside the patients. The nursing profession enhancement of the autonomy of staff in performing
has evolved into one that is highly skilled and their daily tasks. Nine core processes, mainly for
knowledgeable, and the demand for well-trained and finance services, have so far been developed, followed
experienced nurses is growing. next by the development of core processes for Allied
Health and Support Services. The development of
KPJ is a major provider of nursing and health all SEGAR core processes is steered by a working
personnel for its own hospitals as well as others committee consisting of Chief Executive Officers
through the KPJ International College of Nursing of six accredited hospitals – KPJ Ipoh Specialist
and Health Sciences (KPJIC), which was set up in Hospital, KPJ Ampang Puteri Specialist Hospital, KPJ
1991. It was the first nursing institution in Malaysia Damansara Specialist Hospital, KPJ Johor Specialist
to be named a ‘college’ and the first to provide the Hospital, KPJ Selangor Specialist Hospital and KPJ
Diploma in Nursing programme recognised by the Seremban Specialist Hospital, each of whom reports
Ministry of Health. Since its formation, the College to the KPJ Executive Committee.
has produced 3,200 nursing and other allied health
graduates. Nurses working in KPJ’s hospitals are With the SEGAR initiative, the Group is putting forth a
regularly assessed on theory and practice to ensure strong message on its commitment towards delivering
their continued competency. In August 2009, a healthcare services of high quality to its customers
Mentor-Mentee programme was implemented for that are on par with international standards. The KPJ
novice nurses to help them provide
better nursing care.

The College has moved on to offer

nursing degrees in collaboration with
overseas universities, including the
University of South Australia, as well as
Liverpool John Moores University and
the University of Hertfordshire in the
United Kingdom.

The success of these collaborative

efforts has motivated the College
to apply for university status. In
anticipation of increased enrolments
in the future, plans are underway to
expand the College’s campus in Kota
Seriemas, Nilai, Negeri Sembilan,
with the purchase of 6.8 hectares of
adjacent land. A branch will be set up in KPJIC contributing to Malaysia’s healthcare education and manpower
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Caring
As at December 2009,
six of KPJ’s hospitals
have been awarded
MSQH accreditation,
with 12 hospitals heading
towards accreditation.

name is being repositioned and promoted as

a brand that is synonymous with excellent
and innovative patient care.

As a corporate entity, KPJ needs to ensure

that it continues to be a profitable business
and it is successfully managing its customer KPJ Ampang Puteri Specialist Hospital in Selangor
relationships. To remain competitive in terms
of the services being offered, hospitals within
the Group’s network conduct regular surveys Fifty-seven government hospitals and twenty-three
of other hospitals for comparative analysis. Action is private hospitals have been accredited by MSQH.
taken to adapt to shifts in market trends and customer
preferences. As at December 2009, six of KPJ’s hospitals have
been awarded MSQH accreditation, with 12 hospitals
Establishing quality and maintaining standards heading towards accreditation. To amplify the
The Government’s serious attention accorded to Group’s commitment towards quality and excellence
healthcare is reflected in the Government’s Private standards, all KPJ hospitals have implemented the
Healthcare Facilities and Services Act 2006. KPJ is Seven Patient Safety Goals that were introduced by
continually reviewing and improving its Group policies the World Health Organisation to ensure patients’
and practices to be in line with current regulations and safety and health at all times.
schedules.
In 2009, accreditation was accorded under MSQH’s
As the Government pushes forward with its healthcare new third edition Hospital Accreditation Standards.
travel agenda, the Ministry of Health would like to KPJ Johor Specialist Hospital was awarded its second
ensure that healthcare services offered by hospitals in cycle of accreditation effective 29 July 2009, while
the country meet international standards. Towards this KPJ Seremban Specialist Hospital was accredited
end, the Ministry wants all hospitals to be accredited its first cycle with effect from 1 December 2009. KPJ
by the Malaysian Society for Quality in Health Ampang Puteri Specialist Hospital has the distinction
(MSQH), the national accreditation body for hospitals. of being the first hospital in Malaysia to achieve a full
three-year accreditation for four consecutive cycles
with effect from 15 October 2009.

Such accreditation is in addition to various other

quality achievements and benchmarks earned by
KPJ hospitals, such as MS ISO 9001:2000, ISO
14001, ISO/IEC Guide 62:1996, OHSAS 18001,
SIRIM Quality System, Hazard Analysis Critical
Control Points for Food Safety and the Integrated
Management System for quality, environmental safety
and health management. In this regard, Sentosa
Medical Centre became the first KPJ hospital to
undergo a comprehensive scope of total patient care
Service with a smile in KPJ hospitals

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Annual Report 2009
32 KPJ Healthcare Berhad (Company No. 247079 M)

under ISO 9001:2008, the

latest standards by Moody
International Certification
for ‘Provision of Healthcare
Services’. The hospital
achieved the status with full
compliance.

Receiving recognition
The Group’s commitment
to excellent healthcare
services has its reward in Managing Director, Datin Paduka Siti Sa’diah Sheikh Bakir receiving her Malaysia’s CEO of
the Year 2009 award from Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak
the diverse range of awards
presented to its hospitals from year
to year. Amongst these was the ASEAN Independence Awards 1957’ on 14 August 2009. The
Business Award 2008 under the Corporate Social awards acknowledged contributors to nation-building
Responsibility category won by KPJ Ampang Puteri and were given in conjunction with the 52nd year
Specialist Hospital. Presented on 27 February 2009 of Malaysia’s independence. The hospital was the
in Bangkok, Thailand, by the ASEAN Business winner of the Star Company category presented by the
Advisory Council, the award reaffirms that fulfilling Selangor Petaling Business and Industry Association.
a company’s responsibilities to society can lead to
sustainable profits. The Group’s achievement for the year culminated
with a major recognition awarded to KPJ’s Managing
The Asia Pacific Super Excellent Brand Awards Director whose leadership has seen KPJ become
are presented by the Asia Entrepreneur Alliance one of Malaysia’s leading home-grown healthcare
Worldwide to organisations that have produced group and whose contribution has helped put the
high quality services on a regional level. These nation on the world map as the preferred healthcare
organisations are assessed on criteria such as service destination. Datin Paduka Siti Sa’diah Sheikh
quality, value, trustworthiness, credible image, Bakir was named Malaysia’s CEO of the Year 2009.
customer satisfaction and brand management. During Chosen from a field of 118 nominees from 16 different
the year under review, two of the award recipients industries, she is the first woman to clinch the award
were KPJ Ampang Puteri Specialist Hospital and KPJ since it was established 15 years ago. The prestigious
Damansara Specialist Hospital. annual award, jointly organised by Business Times
and Malayan Banking Berhad with American Express,
KPJ Damansara Specialist Hospital had the honour was presented by Prime Minister Dato’ Sri Mohd Najib
of being a recipient of the first and only ‘Malaysia Tun Abdul Razak on 12 March 2010.
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Caring
towards getting more hospitals
within the Group accredited
by MSQH. At the same time,
processes and practices are
being reengineered for greater
efficiency and the expertise of
the Group’s medical consultants
and their services are being
promoted through, amongst
others, collaboration with other
parties as well as advertising
Health Minister, Datuk Liow Tiong Lai, at the KPJ booth during the Association of Private in publications that are placed
Hospital Malaysia International Healthcare Conference and Exhibition in more than 30,000 hotel rooms
in Kuala Lumpur. A proposal is
Information Technology being considered to set up Centres of
As KPJ advances continuous caring in realising its Excellence for Health Tourism in KPJ hospitals in
vision, the emphasis will be on encouraging innovation areas such as cardiology, oncology, and plastic and
and maximising technology. reconstructive surgery.

The Group is already a heavy user of information The Government’s active support of health travel is
technology in its hospitals with the implementation of certainly benefiting KPJ in the Group’s drive towards
various electronic systems. A notable development exporting its expertise and services, while also
is Picture Archiving and Communications System creating improved levels of care to the all important
(PACS), a paperless and filmless system that will set local market, which is the foundation of KPJ’s success
a new benchmark in the utilisation of technology for over the years.
greater efficiency in hospitals as well as in pushing
forward the ‘go green’ agenda for the environment. Giving back and caring for the community
An essential aspect of Business Jihad as practised
Attracting health travellers
within KPJ is the Group’s strong sense of corporate
In 2009, the Health Ministry identified 35 private
hospitals to promote healthcare travel and in the first responsibility. An organisation is part of the
half of the year, these hospitals recorded 165,095 community, derives its livelihood and earnings from
foreign patients. On 9 June 2009, the Ministry the community and therefore has an obligation to
recognised Tawakal Hospital, KPJ Selangor Specialist give back to the community that has helped to sustain
Hospital and Sentosa Medical Centre as Healthcare its very existence.
Facilities Promoting the Health Tourism Industry.
These hospitals join others in the KPJ network, which
include KPJ Johor Specialist Hospital, KPJ Ampang
Puteri Specialist Hospital, KPJ Damansara Specialist
Hospital, KPJ Ipoh Specialist Hospital, and Puteri
Specialist Hospital. At present, foreign patients in
KPJ’s hospitals come from Southeast Asia, Japan,
South Korea, Australia, the Middle East and the
United Kingdom.

KPJ, being a leader in its field in Malaysia and with

a presence regionally, is set to capitalise further on
this business opportunity through the positioning
and marketing of the KPJ brand to establish global One of KPJ’s community outreach programmes
competitiveness. In this respect, much effort is directed implemented in 2009

33
Annual Report 2009
34 KPJ Healthcare Berhad (Company No. 247079 M)

people suffering in the Gaza military conflict through

the Humanitarian Aid Fund for Palestine which was
launched at Kluang Utama Specialist Hospital.

The At-Tijarah television programme is a community

initiative to raise awareness about the role of
commerce in creating better relationships between
the public and business community. Already in
its fifth season, the programme is a collaborative
effort between JCorp and Jabatan Kemajuan Islam
Malaysia. KPJ’s participation is by sponsoring
medical treatment to needy patients throughout the
programme and contributing to the fund managed by
JCorp for such purposes.

KPJ staff at the Service Enhancement Challenge 2009

Other such JCorp programmes are Mutiara Mesra
Alam, Mawar community activities and Darul Hanan
charity initiatives. KPJ actively participates in these
KPJ offers its medical and professional support to the ongoing programmes in addition to other NGOs and
community primarily through the charity clinics under charity organisations’ activities.
JCorp’s Klinik Wakaf An-Nur (KWAN). Launched in
1998, KWAN’s clinics provide patients earning less Through actions such as these, KPJ is going beyond
than RM1,000 a month with medical care (including giving back and caring for the community. In so doing,
doctor consultation and medicine) at a rate of only it has increased the morale of its team members who
RM5.00. There are currently 12 clinics located in take pride and pleasure in helping the unfortunate
Johor, Negeri Sembilan, Selangor, Sarawak and and underprivileged.
Perak as well as one Hospital Waqaf (HWAN) under
the KWAN programme, which in total have to-date INTO THE FUTURE
treated more than half-a-million patients. From There will be challenges to face as KPJ moves
January to December 2009, the number of patients forward into the future. Customers will experience
for HWAN increased by 6% from 13,229 patients in the pressure of rising healthcare costs, which will
the first half of the year to 14,137 in the second half. likely result in increasing consumer activism. There
The opening of new clinics in Ampang (Selangor), will be greater emphasis on health, safety and the
Larkin Sentral (Johor), Gugusan Manjoi, Ipoh (Perak) environment to protect consumer and community
and Samariang (Sarawak) enable KPJ to reach out interests. In line with this, more governance
more to those in need. Four new locations, four in and compliance requirements, regulations and
benchmarks can be expected.
Johor, four in Penang, one in Negeri Sembilan and
one in Perak, have been approved for the setting up
of KWAN clinics, while a plan is afoot to establish one
clinic each in Kelantan and Penang. The expansion
will see KWAN reaching out to more people requiring
medical services which are rendered as part of KPJ’s
major community care programme especially to help
the very poor.

Community outreach programmes are another

channel by which KPJ gives back to society. The
The new KPJ Tawakkal Specialist Hospital building
programmes include medical camps, various health
campaigns, such as anti-dengue campaigns, H1N1
campaigns and wellness initiatives. Each hospital also
The healthcare industry will be contending with an
has special Health Days while the Group’s medical
increasing population growth rate coupled with an
consultants have set up the KPJ Consultants’ Charity
ageing population that will require hospitals to shift
Fund to finance projects beneficial to the community.
according to such demographic and epidemiological
During the year under review, assistance was given to
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changes. Old diseases appear to be on

Caring
the comeback and the borderless world
makes it ever more imperative that
hospitals are prepared for epidemics on
a large scale.

KPJ is well prepared to meet these

challenges. Its infrastructure is in place
and still growing. Its medical expertise
is available and increasing into more
and newer areas of specialisation. Its
reputation is second-to-none in the
provision of quality healthcare.

It has taken 26 years for KPJ to become a

company with a RM1.1 billion turnover in Radiologist reports and results are available online
and linked with clinics, wards, A&E and OT
2007. The objective now is for the Group to
achieve a turnover of RM2.0 billion by 2012.
KPJ to attain its vision of being the preferred provider
It aims to do so through prudent strategic measures
in healthcare services, as well as its shareholders for
to build capacity and expand the number of hospitals in
their trust in the company’s management and faith in
its network. KPJ will continue to be opportunity driven
its future.
and will not hesitate to capitalise on viable ventures
presented to it, if they meet investment criteria set Special appreciation is given to all members of the
and are aligned with the Group’s overall strategic Board of Directors, for their expertise and wisdom
direction. There will be greater attention to increasing that have helped to bring the Group to higher levels
the Group’s international visibility by expanding into of achievement.
new markets through healthcare travel and strategic
Particular mention needs to be made of the Audit
alliances.
Committee, chaired by Y Bhg Tan Sri Datuk Arshad
KPJ will further add value through creative, innovative Ayub, for ensuring that KPJ continues to comply with
ideas and initiatives. The Group will continuously regulatory frameworks, and of the Medical Advisory
utilise its resources to boost the competitiveness, Committee, led by Y Bhg Tan Sri Dato’ Dr Abu Bakar
productivity and efficiency of its hospitals. It will also Suleiman, and its sub-committees for safeguarding
develop niche service centres of excellence that are the hospitals’ high standards of clinical excellence.
capable of providing high margins, high volumes of
business and high quality of healthcare service. Appreciation also goes to the medical teams for
their professional contributions and to all colleagues,
SHOWING APPRECIATION managers, executives and employees of KPJ for
Gratitude is expressed to the various Ministries, their commitment and dedication towards delivering
government agencies and authorities for enabling KPJs brand of excellent customer care.
KPJ to conduct business to the best of its abilities.
Not to be forgotten are KPJ’s business partners and KPJ is grateful to all patients and customers who have
associates whose belief in the Group has brought walked through the doors of its hospitals. Their trust
everyone nearer to their goals. has helped KPJ to be where it is today. The Group
has extended care to its first and second generation
KPJ would like to thank each of the individuals and of customers and looks forward to caring for the third
parties whose significant contributions have enabled and subsequent generations.

Tan Sri Dato’ Muhammad Ali Hashim Datin Paduka Siti Sa’diah Sheikh Bakir
Chairman Managing Director

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Annual Report 2009
36 KPJ Healthcare Berhad (Company No. 247079 M)

A Strong Team of Leaders

left to right :
Aminudin Dawam, Amiruddin Abdul Satar,
Datin Paduka Siti Sa’diah Sheikh Bakir, Alvin Lee
Swee Hee, Jasimah Hassan, Norhaizam Mohammad,
Yusof Ismail, Mohd Sahir Rahmat, Abdol Wahab
Baba and Datin Sabariah Fauziah Jamaluddin
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Executive Committee

Caring
Chairman Jasimah Hassan Abdol Wahab Baba
Senior Group General Manager – Clinical Group General Manager – Risk Management
Datin Paduka Siti Sa’diah Sheikh Bakir & Professional Services
Managing Director Yusof Ismail
Aminudin Dawam General Manager – KPJ College
Alvin Lee Swee Hee Group General Manager – Business
Chief Financial Officer Development (International) & Marketing Datin Sabariah Fauziah Jamaluddin
Senior Corporate Manager –
Amiruddin Abdul Satar Mohd Sahir Rahmat Human Capital Management Services
Chief Operating Officer Group General Manager – Business
Development (Malaysia) & Intrapreneur Norhaizam Mohammad
Senior Finance Manager

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Annual Report 2009
38 KPJ Healthcare Berhad (Company No. 247079 M)

Divisional Committee

From left to right

Andrew William Burr Chairman Rafeah Ariffin

Corporate Manager – Group Marketing Datin Paduka Siti Sa’diah Senior Corporate Manager – Business
Sheikh Bakir Development & Corporate Communications
Khairol Badariah Basiron
Senior Corporate Manager – Internal Audit Managing Director Noreen Abdul Rashid
Mohd Sahir Rahmat Corporate Manager – Legal Services
Abdol Wahab Baba
Group General Manager – Risk Group General Manager – Business Hanida Mohd Hassan
Management Development (Malaysia) and Intrapreneur Deputy Manager – Customer Service
Amiruddin Abdul Satar Aminudin Dawam
Chief Operating Officer Group General Manager – Business
Development (International) & Marketing

From left to right

Zaharah Osman Datin Sabariah Fauziah Jamaluddin Yusof Ismail

Corporate Manager – Clinical & Senior Corporate Manager – Group CEO KPJ International College of
Professional Services Human Capital Management Services Nursing and Health Sciences
Dr. K V Anitha Norhaizam Mohammad Naziah Ismail
Corporate Manager – Clinical & Senior Finance Manager Senior Corporate Manager – KPJ
Professional Services International College of Nursing and Health
Alvin Lee Swee Hee Sciences
Marhalis Hasan Chief Financial Officer
Deputy Manager – Clinical & Professional Elman Mustafa El Bakri
Services Jasimah Hassan Corporate Manager – Biomedical
Senior Group General Manager – Engineering
Clinical & Professional Services
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Hospital Medical Directors

Caring
Sitting from left to right

Dato’ Dr Shahrudin Mohd Dun Tan Sri Dato’ Dr Abu Bakar Suleiman Dr Mohd Hafetz Ahmad
Medical Director – Chairman – Medical Advisory Committee Medical Director –
KPJ Selangor Specialist Hospital KPJ Johor Specialist Hospital
Datin Paduka Siti Sa’diah Sheikh Bakir
Dato’ Dr S Jenagaratnam Managing Director Dato’ Dr Azizi Hj Omar
Chairman – Medical Director –
Clinical Risk Management Committee Dr Kok Chin Leong KPJ Damansara Specialist Hospital
Chairman –
Dr Yoong Fook Ngian Clinical Governance Policy Committee Dato’ Dr Ngun Kok Weng
Chairman – Medical Director –
Clinical Governance Action Committee Kuantan Specialist Hospital

Standing from left to right

Dr Mahayidin Muhamad Dato’ Dr Hj Fadzli Cheah Dr Ewe Khay Guan

Medical Director – Medical Director – Medical Director –
Perdana Specialist Hospital KPJ Ipoh Specialist Hospital KPJ Penang Specialist Hospital
Dr Ab Razak Samsudin Dr Wan Hazmy Che Hon Dr Lim Keok Tang
Medical Director – Medical Director – Medical Director –
Puteri Specialist Hospital KPJ Seremban Specialist Hospital Damai Specialist Hospital
Dr David Ling Sheng Tee Datuk Dr Hussein Awang Dato’ Dr Mohd Rani Jusoh
Medical Director – Chairman – Hospital Medical Medical Director –
Kuching Specialist Hospital Directors’ Committee KPJ Ampang Puteri Specialist Hospital
Medical Director - Tawakal Hospital
Dr Balakrishnan Subramaniam Dr Neo Chee Beng
Medical Director – Dr Mohd Harris Lu Medical Director –
KPJ Kajang Specialist Hospital Medical Director – Kluang Utama Specialist Hospital
Sentosa Medical Centre
Dato’ Dr Ismail Yaacob Jasimah Hassan
Medical Director – Dr Ong Boon Teik @ Taik Senior Group General Manager –
Kedah Medical Centre Medical Director – Clinical & Professional Services
Taiping Medical Centre

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Annual Report 2009
40 KPJ Healthcare Berhad (Company No. 247079 M)

From left to right

Ahmad Nasirruddin Harun Chairman Mohd Nasir Mohamed

Director-in-Charge – Taiping Medical Centre Datin Paduka Siti Sa’diah Sheikh Bakir Chief Executive Officer – KPJ Ampang
Chief Executive Officer – KPJ Ipoh Managing Director Puteri Specialist Hospital
Specialist Hospital
Amiruddin Abdul Satar Abdul Aziz Abdul Rahman
Mohd Johar Ismail Chief Operating Officer Chief Executive Officer – KPJ Seremban
Chief Executive Officer – KPJ Selangor Specialist Hospital
Specialist Hospital Mohd Taufik Ismail
Chief Executive Officer – KPJ Damansara
Roslan Ahmad Specialist Hospital
Chief Executive Officer – KPJ Johor
Specialist Hospital

From left to right

Maisarah Omar Alvin Lee Swee Hee Mah Lai Heng

General Manager – KPJ Kajang Specialist Chief Financial Officer General Manager – KPJ Penang Specialist
Hospital Hospital
Norhaizam Mohammad
Asmadi Mohd Bakri Senior Finance Manager Dr. Munirah Khudri
General Manager – Perdana Specialist General Manager – Tawakal Hospital
Hospital Khairun Ahmad
General Manager – Kedah Medical Centre
Mohd Sahir Rahmat
Executive Director – KPJ Johor Specialist
Hospital, KPJ Ipoh Specialist Hospital,
Puteri Specialist Hospital and Kluang
Utama Specialist Hospital
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Hospital Management Committee

Caring
From left to right

Alice Liu Ghee Voon Jasimah Hassan Yasser Arafat Ishak

General Manager – Damai Specialist Director-in-Charge – Indonesia Hospitals General Manager – Kuching Specialist
Hospital Hospital
Yusof Ismail
Mahazan Khamis Executive Director – KPJ Kajang Specialist Gunavathy Kalee
General Manager – Taiping Medical Centre Hospital and KPJ Seremban Specialist General Manager – Sentosa Medical Centre
Hospital
Mohd Farid Salim
Chief Executive Officer – Puteri Specialist R Gunasingam
Hospital General Manager – Kuantan Specialist
Hospital

From left to right

Mohd Azhar Abdullah Aminudin Dawam Zabidi Abdul Razak

Chief Executive Officer – Sabah Medical Executive Director – KPJ Ampang Puteri General Manager – RS Selasih, Padang
Centre Specialist Hospital, KPJ Damansara Indonesia
Specialist Hospital and Tawakal Hospital
Zaiton Sulaiman Mohammad Badri Hussin
General Manager – Kluang Utama Abdol Wahab Baba General Manager – RS Bumi Serpong
Specialist Hospital Executive Director – KPJ Penang Specialist Damai
Hospital, Kuantan Specialist Hospital,
Datin Sabariah Fauziah Jamaluddin Perdana Specialist Hospital, Kuching Hazarul Azly Hamzah
Director-in-Charge – Sentosa Medical Specialist Hospital and Damai Specialist General Manager – RS Medika Permata
Centre Hospital Hijau
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Annual Report 2009
42 KPJ Healthcare Berhad (Company No. 247079 M)

Ahead in the
Healthcare Business
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Leading Malaysia’s healthcare industry
Through an expansion strategy of building new work. The five-storey hospital in Bandar Perda, Bukit
hospitals as well as acquiring existing ones, KPJ Mertajam, was built at a cost of RM45.0 million and
has grown to become the largest private healthcare has a built-up area of about 200,000 sq ft. It has a total
service provider in Malaysia with a network of 19 capacity of 236 beds with 20 consultant suites. As
hospitals that reaches out to almost every part of the much as RM25.0 million has been spent on equipping
country. These hospitals are staffed with the optimum the hospital with the latest facilities such as a 1.5 Tesla
level of medical consultants and equipped with the Magnetic Resonance Imaging (MRI) facility, 64-Slice
latest equipment to enable them to provide the best Computer Tomography Scanner, Catheterisation
medical care for their customers. This is further Laboratory and fully equipped operating rooms. Other
strengthened by adherence to standards which services include a 24-hour Accident and Emergency,
ensure that KPJ provides not only the best services haemodialysis and medical dietetics, while specialities
and facilities but also enables the Group to give available cover areas such as cardiology, urology and
assurance and build confidence among all patients. rheumatology.

Kuching Specialist Hospital was officially opened by On 20 July 2009, a joint venture agreement was
the Chief Minister of Sarawak, YAB Pehin Sri Haji signed with Pasdec Corporation Sdn Bhd to build a
Abdul Taib Mahmud, on 11 March 2009. Located new 180-bed hospital in Tanjung Lumpur in Kuantan,
within the Tabuan Stutong Commercial Centre, the Pahang. Upon completion, KPJ will lease the hospital
hospital is a one-stop medical centre offering a wide building from the joint venture company and manage
range of specialist disciplines and health screening the hospital operations. Another new hospital will
packages. It currently operates with a capacity of be coming up in Klang, Selangor, with the signing
73 beds, which will be increased to 100 beds in the of a conditional sale and purchase agreement on
near future, with a variety of rooms from VIP suites to 29 July 2009 to buy the partially completed building
three-bedded rooms. of Bandar Baru Klang Medical Centre for RM38.0
million. A further RM70.0 million will be spent on the
On 1 August 2009, the new KPJ Penang Specialist development of the hospital, which will be completed
Hospital was opened after two years of construction by 2011.

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44 KPJ Healthcare Berhad (Company No. 247079 M)

College of Nursing and Health Sciences. Since its

establishment in 1991, the College has produced over
3,200 nurses to meet its own needs and that of other
hospitals. Having been accredited by the National
Accreditation Board in 2003, the College has also
been training international students who come from
countries such as China, Nigeria, Indonesia and the
United Kingdom.

A team of dedicated medical professionals As Malaysia’s leading healthcare provider, KPJ

is conscious of the importance of research and
development (R&D) in moving the industry beyond the
mere provision of world-class facilities. A mechanism
As new hospitals are planned and developed, existing
is in place within the Group to encourage R&D. A
ones are upgrading their facilities and equipment to
significant number of its medical consultants serve and
meet the needs of their customers. During the year
teach in universities, contribute to medical research
under review, KPJ Selangor Specialist Hospital began
and present papers at international conferences.
operating its new 37-bed VIP Ward. The elegantly
KPJ also publishes the KPJ Medical Digest and
furnished rooms provide patients with optimum
KPJ Medical Journal to document research studies.
privacy, security and comfort. KPJ Damansara
The latter publication is an annual publication that is
Specialist Hospital opened its new Oncology Day Care
already in its fifth year.
Suite on 5 September 2009 with 11 treatment bays
as well as consultant’s clinics. Patients undergoing
KPJ will continue to leverage on its managerial and
chemotherapy sessions at the hospital are treated
clinical experience and expertise to seek opportunities
in private bays in an environment of comfort and
within Malaysia and abroad. The Group is already
relaxation. In October, Puteri Specialist Hospital
managing the operations of two hospitals in Indonesia
opened its Premier Ward that offers patients with
and it has been approached to extend its excellent
comfortable and specialised services. Renovation
brand of healthcare to countries throughout the
works are underway at Kedah Medical Centre and
world. With further expansion, KPJ seeks to attain
its equipment will also be upgraded, including the
economies of scale and achieve synergies for all the
installation of a new 1.5 Tesla MRI facility to replace
hospitals within its network.
the existing 0.5 Tesla machine.

In all its hospitals, KPJ has teams of dedicated

medical consultants, well-trained nurses and health
professionals to provide excellent healthcare to their
patients. There are currently a total of 680 medical
consultants, 4,396 nursing and allied health staff
engaged in serving KPJ’s customers across the
country. The majority of medical consultants have
obtained their qualifications and training from reputed
international institutions in the United Kingdom,
Ireland and Australia, amongst others.

KPJ’s nursing staff are mostly home-grown and locally

trained through its nursing college, KPJ International

State-of-the-art 64 slices CT scan at work

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Enhancing health tourism and

Caring
business processes
KPJ has been Yanggon in Myanmar and the Middle East. Currently
attracting health KPJ operates patient referral centres in Batam,
travellers from Tanjung Balai and Pontianak in Indonesia.
various parts
of the world In addition to the expansion of patient referral centres,
to its hospitals KPJ is actively enhancing its presence in online media
over the years. in order to reach new markets and support existing
Many of KPJ’s business partners through further content enrichment.
hospitals have been
recognised as Healthcare Growth in the health tourism business sector of KPJ
Facilities Promoting the Health has been very encouraging, with the number of
Tourism Industry by the Ministry of Health. With patients seeking treatment in KPJ’s hospitals in 2009
this recognition, these hospitals will be among the reaching more than 15,000.
select group identified by the Ministry of Health to be
promoted globally as they have achieved some high To tap this lucrative market, KPJ is actively positioning
level of quality care internationally. To help health its brand for greater recognition overseas and
tourism patients in its hospitals, KPJ Ampang Puteri employing a variety of strategies to market its hospitals
Specialist Hospital and KPJ Damansara Specialist to potential customers. These include getting all its
Hospital have specially engaged liaison officers and existing and new hospitals accredited and putting all
employees conversant in languages that include processes particularly those involving the Group’s
Japanese, Korean, Arabic and Mandarin. business re-engineering SEGAR programme in place
and properly implemented. Additionally, the Group
In 2009, the health tourism sector received a boost will ensure that its Seven Patient Safety Goals are
with the launching of the MHTC by the Prime Minister met successfully. With safety being the number one
of Malaysia. The Council is vital to galvanise collective core value of KPJ, it will leave no stone unturned
efforts to drive the growth of this industry further. to ensure patient safety, which is one of the key
When launching the establishment of the Council, factors that will render its health tourism initiative a
the Prime Minister commented that Malaysia’s success. This is supported by widespread creation
private healthcare industry is a hidden jewel that has of awareness through workshops for doctors and
a strong potential to compete successfully and to be nurses; implementation of an IT system that improves
a foreign exchange earner. efficiency and cost-effectiveness; and overall
adherence to safe and correct procedures. Another
In this respect, KPJ continued to undertake many initiative involves further human capital development
initiatives to expand its health tourism market with emphasis on training to be carried out at every
segment in 2009. KPJ took part in numerous level of staff totalling some 6,978 members. Training
international exhibitions and trade missions in the also extends to the 680 doctors within the Group. KPJ
effort to grow and strengthen the relationships with spent RM7.5 million on human capital development
international facilitators and overseas insurance alone, reflecting the Group’s commitment to service
providers. KPJ began evaluating various locations excellence.
for the introduction of patient referral centres. These
locations include Aceh and Jakarta in Indonesia, KPJ aspires to be the role model for other hospitals
to follow. Being already in the leading position in
the country, KPJ is strengthening its regional and
“Malaysia’s private healthcare industry world position by bringing experts into the country,
with the government opening doors for the entry of
is a hidden jewel that has a strong these foreign experts. KPJ international assets will be
potential to compete successfully and injected into its REIT for better resource management.
to be a foreign exchange earner.” It will also forge stronger working relations with
industry practitioners and players, including insurance
- Dato’ Sri Mohd Najib Tun Abdul Razak, companies, who are critical in providing healthcare
Prime Minister of Malaysia coverage, as well as with leaders of MHTC to help
make Malaysia a haven for healthcare.
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Annual Report 2009
46 KPJ Healthcare Berhad (Company No. 247079 M)

Delivery of Healthcare Services

Setting the Standards
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Establishing a high of care that they receive. In order to be accredited,
an organisation has to fulfil certain standards and
level of clinical criteria set by national and international professional

governance accreditation bodies.

KPJ has embarked upon many quality initiatives, both

To fulfil the amanah or trust placed upon KPJ by its
internally and externally, and has developed several
customers, the Group endeavours to achieve best
measures to continuously strive to improve the quality
operational practices with a focus that is always on
of healthcare services delivered to patients. Since the
patients satisfaction and safety. KPJ has established
first certification of a KPJ Healthcare hospital in 1996,
a clinical governance framework to ensure the
to-date, most of the hospitals within the Group have
provision of the highest standards of safety and
been certified with MS ISO 9001:2000.
appropriate patient care in all its hospitals. Specific
and stringent guidelines are put in place to manage
Accreditation Initiatives
clinical risks and build a culture of safety and quality.
The Group continues to emphasise in having its
hospitals accredited by the Malaysian Society for
Clinical governance in the KPJ network is based on
Quality in Health (MSQH), the national accreditation
the concepts and principles of clinical governance in
body for hospitals. Other than ensuring that KPJ’s
the National Health Service of the United Kingdom.
hospitals meet international accreditation standards,
To ensure that it is practised to the highest level,
the programme is in line with the Government’s health
KPJ has a system of introducing and formulating
tourism objective. Six of KPJ’s hospitals are MSQH-
operational clinical policies and procedures, proper
accredited as at December 2009 and 12 more are in
credentialing and privileging process, the setting up
the process. During the year, KPJ Seremban Specialist
of a broad framework for clinical audit, continuous
Hospital achieved its first full three-year accreditation
reviewing and monitoring, quality assurance activities
cycle and KPJ Johor Specialist Hospital was awarded
as well as the establishment of evidence-based best
its second full cycle of accreditation. KPJ Ampang
practices. The Medical Director of each hospital
Puteri Specialist Hospital has the distinction of being
oversees, guides, and leads the implementation of
the first hospital in Malaysia to achieve a full three-
clinical governance policies and procedures at the
year accreditation for four consecutive cycles.
hospital level.

As an organisation committed to quality, KPJ has

Central to these efforts within KPJ is the
received various awards and accolades for its
implementation of the Seven Patient Safety Goals
healthcare services as well as management and
advocated by the World Alliance for Patient Safety.
governing standards. KPJ Selangor Specialist
These goals are to improve the safety of using
Hospital was amongst the many in the Group that
medicine; identify patients properly; communicate
was recognised in a number of ways in 2009. It
effectively with patients; eliminate wrong site, wrong
received two industry recognition awards during the
patient and wrong procedure; reconcile medicine
year. One was the Asian Hospital Management Award
accurately and completely throughout the continuum
presented in Ho Chi Minh City, Vietnam, on 14 August
of care; improve hand hygiene to prevent healthcare-
2009 and the other was from the Ministry of Health for
associated infection; and reduce the risk of patient
Healthcare Facility Promoting the Health Industry and
harm from falls. Begun in 2008, the aim is to have
Providing Approved Services on 9 June 2009. The
these goals fully implemented in all KPJ hospitals by
hospital was also presented with the Most Entertaining
2010.
5-Star Service Award on 15 April 2009 from Focus
Learning, an organisational learning corporation. On
20 August 2009, the hospital was amongst the Best
Enhancing quality Ten at the National ICC/QCC Convention organised

standards by the Malaysian Productivity Centre and Ministry of

International Trade and Industry.

Healthcare and hospital accreditation is about

improving how care is given to patients and the quality

47
Annual Report 2009
48 KPJ Healthcare Berhad (Company No. 247079 M)

State-of-the-Art Facilities and Specialist Services

STATE-OF-THE-ART FACILITIES SPECIALIST SERVICES
• 24-hour Accident & • Anaesthesiology • Neurology (EEG & EMG)
Emergency Unit • Angiogram • Neurosurgery
• 24-hour Ambulance Services • Audiology • Neonatology
• 3-D / 4-D Ultrasound • Bariatric Surgery • Nephrology
• Bone Densitometer • Cancer & Chemotherapy • Occupational Health Services
• Coronary Intensive Care Unit Services • Orthopaedic & Trauma
(CICU) • Cardiology & Cardiothoracic Surgery
• Coronary Care Unit (CCU) Surgery • Ophthalmic (Eye) Laser
• Cardiothoracic Centre • Child Psychiatry • Ophthalmic (Eye) Surgery
• Convalescent Centre/Home • Clinic Pathology • Ophthalmology
Nursing • Cochlear Transplant Surgery • Orthodontic & Maxillofacial
• Diagnostic Imaging-MRI / • Colorectal Surgery Surgery
Mammogram/ Multi-slice CT • Cornea Transplant Surgery • Obstetrics & Gynaecology
Scan/ X-Ray • Diet Counselling (O&G)
• Diagnostic / Screening Centre • Dermatology (Skin) • Outpatient Treatment
• Dental X-Ray • Day Surgery • Paediatric Surgery/Urology
• Day Care Ward • Ear, Nose & Throat (ENT) • Plastic Surgery/Plastic &
• Haemodialysis Centre • Endochronology Reconstructive Surgery
• High Dependency Unit • Foetal Maternal Medicine • Physiotherapy, Rehabilitative
(HDU) / Neonatal HDU • General Surgery & Occupational Therapy
• Intensive Care Unit (ICU) / • General / Internal Medicine Services
Neonatal ICU • Gastroscopy / Colonoscopy / • Psychiatry
• Laboratory Endoscopy Services / ERCP • Pharmacy & Laboratory
• Haemotology Services
• Lithotripsy Centre
• Immunisation & Vaccination • Radiotherapy & Oncology
• Operation Theatre & Cardiac
Services • Reconstructive & Spinal
Operation Theatre
• Interventional Angioplasty Surgery
• Oncology & Radiotherapy Centre
• Interventional Chronic Pain • Respiratory Medicine Services
/ Linear Accelerator
Management Services / Centre • Restorative Dentistry &
• Ophthalmic Laser
• In-vitro Fertilisation (IVF) Endodontics
• Picture Archiving and
• Laparoscopic Surgery • Rheumatology
Communications System (PACS)
• Sleep Disorder Centre
• Pharmacy
• Sports Medicine
• Physiotherapy & Rehabilitative
• Spinal Surgery
Centre
• Stem Cell Therapy
• Private Delivery Rooms
• Urology
• Special Care Nursery
• Vascular Surgery
• Specialist Outpatient Clinics
• Treadmill Stress Test
• Women & Baby Centre
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Advancing continuous caring
With over 28 years experience in providing healthcare having all automated charges so as to achieve some
services to Malaysia, KPJ has grown in terms of form of paper-less clinical operation. The system will
healthcare quality and standards. Measuring itself encompass patient care by doctors, nurses and other
against global standards, KPJ has continually personnel.
extended its capacity, improved its physical
infrastructure, upgraded its facilities and equipment to K-CIS is now at the mature stage of implementation
be state-of-the-art and, just as importantly, developed and rollout to all KPJ hospitals to enable them to
the skills and knowledge of all levels of staff as well migrate towards IT automation and system integration.
as professionals in efforts to advance continuous
care for all patients. In advancing continuous care, Another progress under IT development is the
KPJ has also modernised its facilities so as to bring successful implementation of the Picture Archiving
greater comfort to patients. KPJ is also presently and Communications System (PACS) in the radiology
giving greater emphasis on maximising the use departments of all hospitals. PACS is a paper-less
of high technology instruments and information and film-less system of digital images, results and
technology (IT) to bring healthcare to the next level. reports, which contributes towards improving cost
and operational efficiency. KPJ Damansara Specialist
KPJ is on a group-wide programme to eliminate Hospital, KPJ Ampang Specialist Hospital and Puteri
obsolete and non-relevant systems, applications Specialist Hospital have implemented PACS with the
and practices as it increases the use of IT in hospital rest of the Group to follow.
management and patient care. All hospitals are
part of KPJ’s E-system and Corporate Network. A KPJ has gone another step further in its commitment to
human resource system, HRIS, is being employed IT with the acquisition of the CIS application database
across the Group while K-CIS, an integrated clinical and will have the distribution rights in Malaysia and
information system, is set to be implemented in six Indonesia.
hospitals in 2010. The system is aimed at meeting
operational needs and requirements that will place With all improvement and advancement measures in
high consideration on patient safety. It will ensure place, KPJ is set to create a greater presence in world
that all personnel and doctors deliver efficiency and healthcare, bringing the spotlight to Malaysia whose
quality services by leveraging on IT through the health services are comparable to some of the best
assistance of automation and system integration of in the world.
healthcare services.

Puteri Specialist Hospital, Johor Bahru, was chosen

as the pilot hospital for implementation of K-CIS
involving the development and customisation of
all the standard needs and requirements. In the
last five years, the project underwent various
stages of implementation, continuous programme
modifications, customisation, user training and
documentation before implementation and
deployment to other KPJ hospitals.

The implementation started with delivering basic

outpatient features and functionalities; making
diagnosis, on-line ordering (for laboratory, X-Ray
and physiotherapy requirements); digital imaging
and prescription, electronic reportings; and

49
Annual Report 2009
50 KPJ Healthcare Berhad (Company No. 247079 M)

Corporate Responsibility
Care for the Nation
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Healthcare – a major contributor to the
nation’s well-being
Malaysians are fortunate to have one of the The range of healthcare services also opens up
best healthcare systems in the region. Health employment opportunities from positions created
has continually been featured in the country’s in professional medical fields, such as nursing
development plans, and in the Ninth Malaysia and allied services. With employment comes the
Plan 2006-2010 (9MP), the Government aims to need for training, which by itself opens more job
consolidate healthcare services, enhance human opportunities for trainers and support staff. The KPJ
resource development and optimise resource International College of Nursing and Health Sciences,
utilisation. The Ministry of Health has developed the for example, has produced hundreds of graduates
Strategic Plan for Health 2006-2010 in line with the who are in continuous demand. Training strengthens
9MP, one that will help bring the country closer towards human capital development in nursing, an essential
realising Vision 2020. The Strategic Plan for Health component in healthcare industry.
will strive to make Malaysia “a nation of healthy
individuals, families and communities The Malaysian healthcare industry, which
through a health system that is includes products and equipment, is
equitable, affordable, efficient, valued at more than RM10.0 billion
technologically appropriate, and is still growing. One of
environmentally adaptable the sectors with high growth
and consumer-friendly, potential is health or medical
with emphasis on quality, tourism, with the potential to
innovation, health generate foreign exchange
promotion and respect and multiplier effects on
for human dignity and the local economy. The
which promotes individual global healthcare travel
responsibility and market has been projected
community participation to grow from US$20.0 billion
towards an enhanced quality in 2005 to between US$40.0 to
of life”. US$60.0 billion in 2010. Taking
into consideration global trends and
While the Strategic Plan for Health Malaysia’s domestic capacity, KPJ has
encompasses plans and actions to be identified health tourism as one of its sources
undertaken by the public health sector, the private of growth. This is also in line with the Malaysian
healthcare industry also has a responsibility to Government’s greater emphasis on the services
contribute to the better health of Malaysians through sector, including health tourism. The Third Industrial
its medical services as well as its community Master Plan launched in 2006 has identified health
programmes. KPJ as a private entity provides its tourism as one of the potential services sub-sectors to
healthcare services on the premise that health adds generate national economic growth. There is no doubt
value to human life. Health is an asset individuals Malaysia is fast-gaining recognition as a preferred
possess that enables them to achieve their full destination for healthcare travellers. The country,
potential during their lifetime. While being healthy has with its comparatively reasonable cost of living and
intrinsic value as a source of well-being, it also has an competitive medical care costs, currently ranks
instrumental value as health affects economic growth amongst the top three health tourism destinations in
through employee productivity. A healthy employee the region and is highly regarded for highly-trained
means an increase in productivity and a reduction and skilled medical professionals and personnel,
in production losses arising from worker illness. state-of-the-art medical equipment, modern facilities
The impact on productivity will extend to future and infrastructure, all of which are available at KPJ.
generations of workers and, when healthcare efforts The Group is very much a part of Malaysia’s private
are extended to the wider community, the effect on healthcare industry, which has a strong potential to
the nation at large is monumental. compete successfully and to be a significant earner

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Annual Report 2009
52 KPJ Healthcare Berhad (Company No. 247079 M)

KPJ staff taking part in Relay for Life in June 2009

of foreign exchange by attracting foreign medical These centres provide a soothing and supportive
tourists to the country. environment to help customers in managing their own
health through regular check-ups and tests. Among
Promoting healthy living for them are Wellness Centres in KPJ Ampang Puteri
the nation’s well-being Specialist Hospital and KPJ Damansara Specialist
The private healthcare industry in Malaysia Hospital, with plans to extend the programme to more
complements the Government’s efforts of promoting hospitals. Selected hospitals have also established
‘Healthcare for All’ by providing its services to a Obesity Centres to address obesity, a fast-growing
discerning public that is willing to pay for healthcare. medical condition in Malaysia, and its associated
There are 224 private hospitals in the country with problems. At KPJ Damansara Specialist Hospital, its
about 10,000 beds. These hospitals employ about Obesity Centre helped a 210-kg patient to lose 50 kg
18,000 doctors and 68,000 nurses. of weight in 14 weeks.

KPJ leads the industry with a network of 19 hospitals

Walking the talk, KPJ is also checking obesity within
located in major cities and towns nationwide. In
its own network. At KPJ Ampang Puteri Specialist
addition, the Group manages two hospitals in
Hospital, for example, a Healthy Living Programme
Jakarta, Indonesia. In 2009, KPJ has treated a total
with the tagline, ‘A Healthier Weight, A Healthier Me’,
of 1,978,669 outpatients and 206,907 inpatients
was launched on 24 February 2009. All employees,
at its various hospitals. While it is at the forefront
including management, joined in a mass five-day
in providing a wide range of specialised medical
weighing assessment and each employee was given
services to those with illnesses and other medical
a card to monitor his or her progress. Talks as well as
conditions, KPJ believes in taking a more proactive
after-work fitness sessions were held for employees
stance in healthcare by promoting healthy living thus
helping to ensure the well-being of the people. The twice a week over a ten-month period.
promotion of a healthy lifestyle will mean a more
productive population that can contribute towards Hospitals in the KPJ network regularly organise talks
national economic growth. for the public aimed at creating greater awareness on
health issues such as stress management, healthy
To promote a healthy lifestyle, the KPJ Wellness and eating and cancer. These talks are part of KPJ’s
Lifestyle Programme was initiated with the setting up ongoing public health education efforts to promote a
of Wellness Centres in some of the Group’s hospitals. better lifestyle amongst Malaysians.
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Responsibility to the Community and Country

Caring
As part of its Business Jihad philosophy, the Group During Ramadhan in the year under review, KPJ’s
believes in the importance of giving back to society hospitals held breaking-of-fast activities with orphans
in gratitude for the amanah or trust that the public and other less fortunate members of society,
has bestowed upon it. It is thanks to this amanah that
during which donations of food and cash were also
KPJ leads in Malaysia’s healthcare sector. Thus, KPJ
distributed. These activities, which are a regular
strives to uphold its corporate responsibility through
feature of KPJ’s corporate responsibility projects,
using the resources available to it. In the process,
provide opportunities for health education, with talks
KPJ’s brand, reputation and standing within the
community are further strengthened. given on simple topics such as proper hand-
washing. The major festivals are likewise
Promoting a healthy lifestyle for celebrated with the underprivileged.
the eventual economic good of
the country is just one of the A significant community project
ways that KPJ contributes during the month of Ramadhan
to the community. In 2009, was the At-Tijarah series of
KPJ continued to extend help television programmes aired
to special groups through during the fasting month by
its Community Outreach
Radio Television Malaysia. The
programmes. Medical
series showcased community
screening and nutritional
leaders and business personalities
counselling sessions were
in discussions on the contribution of
provided to Orang Asli communities,
the elderly and the physically challenged, trade and commerce to the prosperity
amongst others. KPJ also partnered with of individuals, families, communities and
external organisations in undertaking community nations. The series is part of At-Tijarah Ramadhan,
activities, holding medical camps and providing which is now in its fifth season. It is a collaborative
patient support services and medical assistance. In venture between KPJ’s parent company, Johor
October 2009, for example, KPJ provided medical Corporation (JCorp), and the Malaysian Islamic
assistance at the ‘Walk the Talk, Be the Movement’ Development Department (Jabatan Kemajuan Islam
charity walkathon organised by QSR Brands. The Malaysia or JAKIM). Designed to help the needy,
Chairman of KPJ, Tan Sri Dato’ Muhammad Ali
KPJ’s involvement is through sponsorship of medical
Hashim, who officiated at the event also participated
treatment and contribution to a fund managed by
in the walk together with other KPJ staff.
JCorp to assist patients requiring medical attention.

KPJ Ampang Puteri Specialist Hospital’s senior management team KPJ Kuantan Specialist Hospital’s
presenting a cheque to Pondok Penyayang Raudah, Gombak free health screening at Karnival Zakat

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Annual Report 2009
54 KPJ Healthcare Berhad (Company No. 247079 M)

Tawakal Hospital celebrating World Heart Day

At the various hospitals within the Group’s network, survival of humankind. As a healthcare leader, KPJ
health-related activities were organised for the public is conscious of the importance of conservation and
in 2009, particularly on designated Health Days endeavours to incorporate ‘green’ principles into its
such as World Health Day, World Heart Day and policies, processes and practices at its hospitals as far
World Breastfeeding Day. There were displays of as possible. At the basic level, this has meant raising
information and booths providing free services that staff awareness on issues such as waste reduction
included blood test and blood pressure screening. and the need to recycle as well as encouraging
The Health Days were also occasions to assist the them to help save the environment through personal
national blood bank through blood donation drives. actions. On a wider scale, KPJ is utilising information
Other activities included the ‘Back to Basic’ seminar technology with the implementation of systems that
organised by the School of Physiotherapy of the cut down on paperwork while increasing efficiency
KPJ International College of Nursing and Healthcare and effectiveness. One of these systems is PACS, a
Sciences. Residents from the Nilai neighbourhood paperless and filmless system that takes KPJ further
and nearby residential areas participated in talks forward in going ‘green’.
and discussions on proper back care. While the
event brought students closer to the community,
they also gained in enhancing their interaction and
communication skills with the public.

KPJ’s medical consultants are themselves very

involved in helping the community. They participate
as speakers in health-related events organised
by public bodies as well as private companies and
accept invitations to talk on health issues on television
and radio talk shows. A major ongoing initiative is the
Consultants’ Charity Fund that seeks to contribute
to needy cases. The consultants have also been at
the forefront in raising funds for humanitarian causes
such as the Palestinian Humanitarian Fund.

Care for the environment is part of caring for life.

Humans have a symbiotic relationship with their
natural surroundings and a deteriorating environment
will eventually have a disastrous impact on the Caring, warm and friendly – KPJ Healthcare nurses with a patient
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KWAN – healthcare for the needy

Caring
It is generally agreed that income levels affect
health, that is, poverty is associated with poor health.
The underprivileged are more likely to suffer from
illnesses than the more affluent for reasons such as
less access to safe housing, inadequate nutrition and
problems obtaining appropriate healthcare.

KPJ’s main corporate responsibility initiative is its

involvement in JCorp’s Klinik Waqaf An-Nur (KWAN)
programme, which aims to help the underprivileged
obtain medical care that would normally be beyond
their reach. KWAN provides medical assistance to
patients earning less than RM1,000 a month at a flat
rate of just RM5.00.

Begun in 1998, KWAN’s network of 12 clinics (six in

Johor, one in Negeri Sembilan, three in Selangor, one
in Kuala Lumpur and one in Sarawak) was increased
to 13 when the Klinik Waqaf An-Nur Samariang
at Jalan Tengah, Kuching, Sarawak, became
operational in October 2009. KWAN operates one
hospital in Pasir Gudang, Johor, which was set up
in December 1999. Since its inception, KWAN has
helped more than half-a-million needy patients.

KPJ’s main corporate responsibility

initiative is its involvement in
JCorp’s Klinik Waqaf An-Nur
(KWAN) programme, which aims
to help the underprivileged obtain
medical care that would normally
be beyond their reach.

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Annual Report 2009