CHANGE FOR

SUSTAINABILITY

Cover Rationale
Inspired by its passion to deliver quality services, KPJ Healthcare Berhad has been continuously
serving the community with undivided compassion and medical care.
KPJ has made great strides over the past three decades in terms of performance, delivery of
care, and community service, and while doing so, has remained steadfast in its dedication to
provide quality and compassionate care.
KPJs future direction for growth is shaped by many factors and it is now a time of change a
time for making changes that matter to the community and the business, a time of Change
for Sustainability.
The cover reflects 2011 as a year of change where KPJ has transformed itself from within to
achieve greater unity among its team members and to further improve all aspects of its business
while keeping the needs of its customers close to its heart. THE 19TH
In celebrating its 30th anniversary, KPJ continues to work towards greater engagement between
caregivers and patients and with an unending fervor to care for the communitys most essential ANNUAL
needs their health.
This implementation of change has and continues to improve the quality of services
GENERAL MEETING
provided to all who walk through the doors of KPJ hospitals, as KPJ continues its unending will be held at
journey to Care for Life. Permata Ballroom,
Level B2, The Puteri Pacific Hotel,
Jalan Abdullah Ibrahim,
80000 Johor Bahru,
Johor

on Monday,
25 June 2012 at 12.00 pm
 Corporate Directory CONTENTS
03 Vision, Mission and Core Values
05 Corporate Information
06 Corporate Profile
07 Corporate Structure
09 Network of KPJ Hospitals and Companies
11 Financial and Operational Hightlights
12 Summary of Financial Statements
Statements of Comprehensive Income
Statements of Financial Position
13 Corporate History
19 Awards and Achievements
21 Media Spotlight
23 Statement to Shareholders
32 Board and Management
Board of Directors
Directors Profile
Executive Committee
Hospital Medical Directors
Hospital Management Committee
Divisional Committee
50 Corporate Governance
Statement on Corporate Governance
Statement on Internal Control
Audit Committee Report
Medical Advisory Committee Report
82 Business Review
Hospital Operations
Medical Tourism
New Developments - Hospitals
New Development - Aged Care and Retirement Village
EduKATE - KPJ University College
Ancillary Services
Corporate Responsibility
122 Financial Statements
Directors Report
Statement By Directors
Independent Auditors Report
Statement of Comprehensive Income
Statement of Financial Position
Consolidated Statement of Changes in Equity
Company Statement of Changes in Equity
Statement of Cashflows
Notes to the Financial Statements
186 Statistics and Notice of Annual General Meeting
Shareholdings Statistics
Warrantholdings Statistics
Compliance Information
Listing of Properties
Notice of Annual General Meeting
Statement Accompanying Notice of Annual General Meeting
Form of Proxy
200 Publications

01 ANNUAL REPORT 2011

Our core values define our highest priorities
and we are who we are because of what we
believe in. The core values that we embrace
are our guiding principles in ensuring the
delivery of distinct work excellence and
our best effort to serve our customers with
compassionate care.

Vision, Mission and Core Values

KPJ values life through caring for people and this philosophy forms the core of its commitment to
serve all customers with compassion and undivided attention to patient safety.

As a healthcare provider of choice, KPJ continues to transform its approach to meet the changing
demands of customers and adopts new systems and techniques to enhance its services and
quality of patient care while remaining steadfast in its commitment to CARE FOR LIFE.

The celebration of its 30th anniversary further strengthens its commitment to provide customers
with services of the highest standards and treatment through harmonized teamwork and unity
between the Medical Consultants and the clinical as well as non-clinical staff, to ensure the best
possible outcome.

There are no bounds in KPJs care for the community and this unending commitment to provide
extraordinary services to those in need rests on its CORE VALUES of:
Ensuring SAFETY
Delivering service with COURTESY
Performing duties with INTEGRITY
Exercising PROFESSIONALISM at all times
Striving for CONTINUOUS IMPROVEMENT

KPJs mission to DELIVER QUALITY HEALTHCARE SERVICES serves to provide coordinated

medical services to all customers across a continuum of care.

In living its vision to become THE PREFERRED HEALTHCARE PROVIDER, KPJ aspires to be the
lifelong companion of its customers healthcare journey sharing their experiences and joys of life,
treating them with compassion and care, and sympathizing with their loss while helping them every
inch of the way in their healthcare needs.

As a LEADING HEALTHCARE MANAGEMENT AND SERVICE PROVIDER, KPJs commitment

to Care for Life also spans the length and breadth of all stakeholders and the environment in
which it operates.

This is reflected in its focus on community care and well-being, supporting and fostering the spirit
of giving to the indigent as well as caring for the environment.

Patient safety remains, at all times, of utmost importance and is exemplified through adherence to
best practices and internationally-accepted standards.

By remaining true to its calling to deliver quality healthcare services, KPJ continues to gain the trust
and confidence of its customers and, by abiding always to its core values, the Group will continue
to grow from strength to strength, thus returning its best to shareholders.
Corporate Information Corporate Profile

KPJ Healthcare Berhad (KPJ) is the leading healthcare service provider in Malaysia, operating the countrys largest
network of 20 private specialist hospitals, and it also has a presence in the Indonesian Archipelago with two hospitals
REGISTERED OFFICE in Jakarta.
KPJ Healthcare Berhad
Suite 12B, Level 12, As the healthcare arm of Johor Corporation, the Johor state-owned development corporation, KPJ has now served the
Menara Ansar, community for three decades since the opening of its first hospital in Johor Bahru in 1981.
AUDITOR
65 Jalan Trus, Ernst & Young Today, KPJ has more than 2,600 operating beds at its network of hospitals and serves more than two million patients
80000 Johor Bahru, Level 23A, Menara Milenium, annually. In 2011 alone, KPJ hospitals treated about 2.4 million outpatients and over 240,000 inpatients, and delivered
Johor. Jalan Damanlela, more than 16,000 babies.
T (607) 226 7692 Pusat Bandar Damansara,
F (607) 222 3044 50490 Kuala Lumpur, Its staff strength stands at 8,992 employees, who support the medical services provided by 860 Medical Consultants
Wilayah Persekutuan. specializing in various disciplines including Cardiology, Oncology, Orthopaedic, Plastic and Reconstructive Surgery,
among others.
CORPORATE OFFICE
KPJ Healthcare Berhad Driven by innovation and technological advancement, KPJ continues to invest in the latest equipment with state-
PRINCIPAL BANKERS
No 1 Jalan Pahang Barat, of-the-art medical technology in its effort to provide positive patient experience as well as to enhance medical and
Malayan Banking Berhad
53000 Kuala Lumpur, surgical outcomes.
343, Jalan Pahang,
Wilayah Persekutuan. Setapak, Its commitment to quality and compassionate care has attracted many local and foreign patients from all over the globe,
T (603) 4022 6222 53300 Kuala Lumpur, further aided by aggressive business strategies to enhance its position as a major healthcare service provider.
F (603) 4022 7237 Wilayah Persekutuan.
E kpj@kpjhealth.com.my Customers trust and confidence in KPJ has steered the Group to greater achievements in both financial and operational
CIMB Bank Berhad performance as well as quality initiatives.
Ground Floor, No 338,
KPJ earned its first annual billion-ringgit turnover in fiscal 2007, with revenue totalling RM1.11 billion that year, and
COMPANY SECRETARIES Bangunan AMAL,
continued to achieve new records in subsequent years, rising to RM1.27 billion, RM1.46 billion and RM1.65 billion in 2008,
Jalan Tuanku Abdul Rahman,
2009 and 2010, respectively.
50100 Kuala Lumpur,
Wilayah Persekutuan. KPJ achieved a new record high in 2011, ending the year with total revenue of RM1.91 billion and pre-tax profit of
RM204.60 million.
HSBC Bank Malaysia Berhad
No. 2, Lebuh Ampang, Investors confidence propelled KPJ into the ranks of the Top 100 Companies on Bursa Malaysia by market capitalization
P.O. Box 10244, when its share price soared to a historic high of RM6.51 at end-2009, scoring the 91st spot with a market capitalization
50912 Kuala Lumpur, of RM1.37 billion.
Wilayah Persekutuan. KPJ has since climbed up by several notches, standing on the 85th spot in the subsequent year and 75th placing at end-
2011, with its market capitalization doubling over these two years to RM2.74 billion.
Salmah Abd Wahab
STOCK EXCHANGE LISTING This accomplishment also won KPJ recognition from The Edge Billion Ringgit Club, which named KPJ as the Best Performing
(LS 0002140)
Bursa Malaysia Securities Berhad Stock - Highest Returns to Shareholders Over 3 Years (Trading/Services) in July 2011. KPJ was also dubbed The Most
Main Market Outstanding Healthcare Provider in Asia 2011 by The Globals Over 50s Housing Healthcare, London, in November.
(Since 29 November 1994)
Meanwhile, quality initiatives continued to remain in focus, with more KPJ hospitals undergoing the accreditation
survey by the Malaysian Society for Quality in Health (MSQH) in 2011 as well as certification by other international
bodies such as TUV Rheinland for Integrated Management System (IMS) that integrates and emphasizes on Quality
Management System (MS ISO 9001:2000), Environment (MS ISO 14001:2004) and Occupational Safety and Health
(OSHAS 18001:1999).

To date, 11 KPJ hospitals have been accredited by MSQH, with KPJ Tawakkal Specialist Hospital being the latest recipient
of the first cycle of the MSQH Accreditation for a three-year period beginning 17 November 2011.

For KPJ, the strategy for sustainability depends on values that support the growth of the organization as well as the
Rohaya Jaafar support from the community, and this can be achieved through good business sense alongside true commitment to care
(LS 0008376) for the community and the environment.

REGISTRAR To this end, KPJ inspires its staff members to observe good ethics and best practices and empowers them through
Pro Corporate Management various learning opportunities.
Services Sdn Bhd
They are also encouraged to preserve the environment for future generations and to care for the indigent by offering their
Suite 12B, Level 12,
assistance in various ways and through many charitable events conducted by the Group.
Menara Ansar,
65 Jalan Trus, As a responsible corporate citizen, KPJ also reaches out to the community through public health screening, health talks
80000 Johor Bahru, and other events.
Johor.
T (607) 226 7692 It has touched the lives of many others through the Klinik Waqaf An-Nur (KWAN) initiative, where it has served more than
F (607) 222 3044 760,000 patients since the inception of the first of 15 charity clinics throughout Malaysia. It also operates Hospital Waqaf
Pasir Gudang in Johor.

05 ANNUAL REPORT 2011 ANNUAL REPORT 2011 06

Corporate Structure

07 ANNUAL REPORT 2011 ANNUAL REPORT 2011 08

 Network of KPJ Hospitals and Companies
HOSPITALS ACCREDITED BY MALAYSIAN SOCIETY FOR QUALITY IN HEALTH (MSQH)

KPJ JOHOR SPECIALIST HOSPITAL KPJ IPOH SPECIALIST HOSPITAL KPJ AMPANG PUTERI SPECIALIST HOSPITAL KPJ DAMANSARA SPECIALIST HOSPITAL KPJ SELANGOR SPECIALIST HOSPITAL KPJ SEREMBAN SPECIALIST HOSPITAL
T (607) 225 3000 F (607) 224 8213 T (605) 240 8777 F (605) 254 1388 T (603) 4270 2500 F (603) 4270 2443 T (603) 7722 2692 F (603) 7722 2617 T (603) 5543 1111 F (603) 5543 2222 T (606) 767 7800 F (606) 767 5900
E jsh@jsh.kpjhealth.com.my E ish@ish.kpjhealth.com.my E apsh@apsh.kpjhealth.com.my E dsh@dsh.kpjhealth.com.my E kpjselangor@kpjselangor.kpjhealth.com.my E ssh@ssh.kpjhealth.com.my
W www.jsh.kpjhealth.com.my W www.ish.kpjhealth.com.my W www.apsh.kpjhealth.com.my W www.dsh.kpjhealth.com.my W www.kpjselangor.kpjhealth.com.my W www.ssh.kpjhealth.com.my

HEAD OFFICE
KPJ HEALTHCARE BERHAD
(Company No: 247079 M)
No.1 Jalan Pahang Barat,
53000 Kuala Lumpur,
Wilayah Persekutuan.
T (603) 4022 6222
F (603) 4022 7237
E kpj@kpjhealth.com.my
W www.kpjhealth.com.my
KPJ PERDANA SPECIALIST HOSPITAL KPJ KAJANG SPECIALIST HOSPITAL KPJ PENANG SPECIALIST HOSPITAL KEDAH MEDICAL CENTRE KPJ TAWAKKAL SPECIALIST HOSPITAL
T (609) 745 8000 F (609) 747 2877 T (603) 8769 2999 F (603) 8769 2808 T (604) 548 6688 F (604) 5486700 T (604) 730 8878 F (604) 733 2869 T (603) 4026 7777 F (603) 4021 0635
E perdana@perdana.kpjhealth.com.my E kpjkajang@kpjkajang.kpjhealth.com.my E kpjpenang@kpjpenang.kpjhealth.com.my E kmc@kedahmedical.com.my E tawakal@tawakal.kpjhealth.com.my
W www.perdana.kpjhealth.com.my W www.kpjkajang.kpjhealth.com.my W www.kpjpenang.kpjhealth.com.my W www.kmc.kpjhealth.com.my W www.tawakal.kpjhealth.com.my

MOVING TOWARDS ACCREDITATION

PUTERI SPECIALIST HOSPITAL KUANTAN SPECIALIST HOSPITAL KUCHING SPECIALIST HOSPITAL SENTOSA MEDICAL CENTRE DAMAI SPECIALIST HOSPITAL KLUANG UTAMA TAIPING MEDICAL CENTRE SABAH MEDICAL CENTRE
T (607) 225 3222 F (607) 223 8833 T (609) 567 8588 F (609) 567 8098 T (6082) 365 777 F (6082) 364 666 T (603) 4043 7166 F (603) 4043 7761 T (6088) 222 922 F (6088) 243 540 SPECIALIST HOSPITAL T (605) 807 1049 F (605) 806 3713 T (6088) 211 333 F (6088) 272 622
E psh@psh.kpjhealth.com.my E ksh@ksh.kpjhealth.com.my E kcsh@kcsh.kpjhealth.com.my E sentosa@sentosa.kpjhealth.com.my E dsc@dsc.kpjhealth.com.my T (607) 771 8999 F (607) 772 8999 E tmc@tmc.kpjhealth.com.my E prsmckk@smckk.kpjhealth.com.my
W www.psh.kpjhealth.com.my W www.ksh.kpjhealth.com.my W www.kcsh.kpjhealth.com.my W www.sentosa.kpjhealth.com.my W www.dsc.kpjhealth.com.my E kush@kush.kpjhealth.com.my W www.tmc.kpjhealth.com.my W www.sabahmedicalcentre.com.my
W www.kush.kpjhealth.com.my

INDONESIA HEALTH CARE RELATED COMPANIES INTRAPRENEUR COMPANIES

KPJ INTERNATIONAL UNIVERSITY COLLEGE PUSAT PAKAR MATA CENTRE FOR SIGHT TERAJU FARMA SDN BHD
OF NURSING AND HEALTH SCIENCES T (603) 7804 4051 F (603) 7804 6052 T (603) 7874 4212 F (603) 7874 4126
T (606) 794 2692 F (606) 794 2662 E info@centreforsight.com.my
E info@kpjic.edu.my W www.centreforsight.com.my FABRICARE LAUNDRY SDN BHD
W www.kpjic.edu.my T (607) 232 7231/3 F (607) 232 723
STERILE SERVICES SDN BHD
PHARMASERV ALLIANCES SDN BHD SKOP YAKIN (M) SDN BHD
T (603) 6092 2692 F (603) 6091 6200
T (603) 7876 2692 F (603) 7874 4151 T (609) 773 2692 F (609) 774 2692
E sssb2010@streamyx.com
E pasb@pasb.kpjhealth.com.my HEALTHCARE IT SOLUTIONS SDN BHD
W www.pasb.kpjhealth.com.my HEALTHCARE TECHNICAL SERVICES
T (603) 4024 1111 F (603) 4023 5555
SDN BHD
LABLINK (M) SDN BHD E hits@hitsb.com
T (603) 4021 2331 F (603) 4021 2337
SIBU SPECIALIST RS MEDIKA PERMATA HIJAU, RS MEDIKA BUMI SERPONG DAMAI, T (603) 4023 4588 F (603) 4023 4298 W www.hitssb.com
E hts@hts.kpjhealth.com.my
MEDICAL CENTRE JAKARTA JAKARTA E lablink@lablink.com.my W www.hts.kpjhealth.com.my
T (6084) 218 800 F (6084) 219 900 T (6221) 534 7411 F (6221) 530 5291 T (6221) 537 8263 F (6221) 537 8131 W www.lablink.com.my
E care@sibuspecialist.com E rsmph@rad.net.id W www.rs-medikabsd.co.id
W www.ssmc.kpjhealth.com.my W www.rsmph.co.id

09 ANNUAL REPORT 2011 ANNUAL REPORT 2011 10

Financial and Operational Highlights Summary of Financial Statements

Statements of Comprehensive Income

For the Financial Year Ended 31 December 2007 - 2011

YEAR 2011 2010 2009 2008 2007

GROUP (RM,000)
Revenue 1,908,993 1,654,611 1,456,353 1,267,305 1,108,024
Gross profit 601,857 503,895 419,089 368,355 327,389
Profit from operations 159,165 144,019 140,467 114,218 90,291
Finance income 10,295 7,157 2,651 6,122 2,809
Finance costs (19,688) (13,597) (16,721) (18,533) (20,206)
Share of results from associates 54,825 23,919 18,888 18,705 12,361
Others - 6,460 - (6,460) -
Profit before zakat and tax 204,597 167,958 145,285 114,052 85,255
Zakat (1,300) (1,269) (1,395) - -
Profit before taxation 203,297 166,689 143,890 114,052 85,255
Taxation (49,038) (40,468) (29,154) (24,744) 7,464
Net profit for year 154,259 126,221 114,736 89,308 77,791
Profit attributable to:
Equity holders of company 143,670 118,894 110,880 85,644 74,237
Minority interest 10,589 7,327 3,856 3,664 3,554
154,259 126,221 114,736 89,308 77,791

Statements of Financial Position

As at 31 December 2007 - 2011

YEAR 2011 2010 2009 2008 2007

GROUP (RM,000)
Non-current assets 1,252,530 1,024,563 842,246 689,499 771,592
Current assets 612,443 549,502 426,111 342,475 309,817
Non-current assets held for sale 94,291 105,974 103,765 246,478 123,249
Current liabilities (456,743) (362,242) (290,332) (251,506) (231,358)
Non-current liabilities (62,198) (54,986) (35,556) (29,930) (24,800)
Borrowings (443,471) (399,423) (368,796) (368,443) (393,930)
TOTAL 996,852 863,388 677,438 628,573 554,570

Share capital 292,492 279,954 211,051 209,461 207,745

Reserve 600,485 488,716 420,960 373,466 301,083
Less: Treasury shares (23) (23) - (1,886) -
Shareholders funds 892,954 768,647 632,011 581,041 508,828
Minority interest 103,898 94,741 45,427 47,532 45,742
TOTAL 996,852 863,388 677,438 628,573 554,570

11 ANNUAL REPORT 2011 ANNUAL REPORT 2011 12

Corporate History

20 Feb 10 May 10 Oct 27 Jul

1979 1981 1981 1990

The construction of the first private hospital in Johor, KPJ Johor Official opening of KPJ Johor Specialist Hospital. Official opening of KPJ Ipoh Specialist Hospital. YAB Tan Sri Muhyiddin Yassin, then Chief Minister of Johor,
Specialist Hospital. launching KPJ Johor Specialist Hospitals Lithotripsy Centre.

09 Jan 30 Aug 18 Mar 13 May

1992 1994 1995 2000

YB Tan Sri Lee Kim Sai, then Minister of Health, launching Puteri Listing of KPJ Healthcare Berhad on Main Board of Kuala Duli Yang Maha Mulia Paduka Seri Sultan Azlan Muhibbuddin Shah KPJ Ampang Puteri Specialist Hospital, the first hospital in
Nursing College. Lumpur Stock Exchange. ibni Almarhum Sultan Yussuf Izzuddin Shah Ghafarullahu-Lah, Malaysia to receive a full 3-year accreditation from the Malaysian
Sultan of Perak, officially launching KPJ Ipoh Specialist Hospitals Society for Quality in Health, accepting the certificate from
MRI Centre. YB Dato Chua Jui Meng, then Minister of Health.

13 ANNUAL REPORT 2011 ANNUAL REPORT 2011 14

 20 Jan 28 Dec 28 Jul 26 Jun
2001 2001 2003 2004

KPJ Healthcare Berhad holding its first Medical Conference. YAB Dato Abdul Ghani Othman, Chief Minister of Johor, at Duli Yang Maha Mulia Tuanku Ismail Petra ibni Sultan Yahya Duli Yang Maha Mulia Tuanku Alhaj Abdul Halim Muadzam
the official opening of KPJ Johor Specialist Hospitals new Petra, Sultan of Kelantan, officially opening KPJ Perdana Shah Ibni Almarhum Sultan Badlishah, Sultan of Kedah,
Physician Consulting Block. Specialist Hospital. launching Kedah Medical Centres new 10-storey building.

26 Nov 21 Apr 19 Jun 24 Jul

2005 2006 2006 2006

Duli Yang Maha Mulia Almarhum Tuanku Jaafar ibni Almarhum Duli Yang Maha Mulia Sultan Ibrahim Ibni Almarhum Sultan Iskandar, YAB Dato Abdul Ghani Othman, Chief Minister of Johor, and YB Tan Sri Nor Mohamed Yakcop, then Minister of Finance II,
Tuanku Abdul Rahman, Yang Di-Pertuan Besar Negeri Sembilan, Sultan of Johor, opening the first Hospital Waqaf An-Nur in Pasir Board of Directors of KPJ Healthcare Berhad (KPJ), KPJ launching the prospectus of Al-`Aqar Healthcare REIT (formely
officially launching KPJ Seremban Specialist Hospital. Gudang, Johor, when he was the Crown Prince of Johor. Johor Specialist Hospital and KPJ Ipoh Specialist Hospital known as Al-`Aqar KPJ REIT), the first Islamic healthcare REIT
celebrating KPJs 25th anniversary. in the region. He was acompanied by Datin Paduka Siti Sadiah
Sheikh Bakir and Tan Sri Dato Azman Hashim, Chairman of
AmBank Group Berhad.

15 ANNUAL REPORT 2011 ANNUAL REPORT 2011 16

 17 Nov 07 Oct 27 Nov 11 Mar
2006 2008 2008 2009

Duli Yang Maha Mulia Raja Zarith Sofiah binti Almarhum Sultan Duli Yang Maha Mulia Paduka Seri Sultan Azlan Muhibbuddin KPJ Damansara Specialist Hospital successfully conducted its YAB Pehin Seri Abdul Taib Mahmud, Chief Minister of Sarawak,
Idris Shah, the consort of Duli Yang Maha Mulia Sultan Ibrahim Shah ibni Almarhum Sultan Yussuf Izzuddin Shah Ghafarullahu- first live bariatric surgery. opening KPJ Kuching Specialist Hospital.
Ibni Almarhum Sultan Iskandar (now Sultan of Johor), officiating Lah, Sultan of Perak, officially opened KPJ Ipoh Specialist
at the 2006 National Healthcare Conference. Hospitals new 5-storey building.

30 Jun 25 Jul 10 Nov 20 Nov

2011 2011 2011 2011

YAB Dato Sri Diraja Adnan Yaakob, Chief Minister of Pahang, YB Datuk Seri Mohamed Khaled Nordin, Minister of Higher YAB Dato Sri Mohd Najib Tun Abdul Razak, Prime Minister YAB Dato Seri Dr Md Isa Sabu, Chief Minister of Perlis,
officiating the ground-breaking ceremony of KPJ Pahang Education, awarding University College status to KPJ of Malaysia, announcing the Economic Transformation officiating KPJ Perlis Specialist Hospitals ground-breaking
Specialist Hospital. International University College of Nursing and Health Sciences. Programme (ETP) projects, including five of KPJ Healthcare ceremony.
Berhads new hospitals.

17 ANNUAL REPORT 2011 ANNUAL REPORT 2011 18

 Awards and Achievements

1 2

8 9

3 5 7 10 11 12

1. The Edge 100 Billion Club KPJ Healthcare Berhad - Best Performing Stock - Highest Return To Shareholders Over 3 Years (Trading 8. Frost & Sullivan KPJ Healthcare Berhad - Healthcare Service Provider of The Year 9. Malaysian Institute of Directors KPJ
and Services) 2. Malaysian Business Leadership Award Datin Paduka Siti Sadiah Sheikh Bakir - Global Leadership Award Healthcare Berhad - Innovative Leadership in Globalization (Healthcare) 10. Malaysia HR Award 2011 KPJ Healthcare Berhad - Gold
- Masterclass Women CEO of The Year 3. The Asia Pacific Brands Foundation Datin Paduka Siti Sadiah Sheikh Bakir - The Award Employer of Choice Category 11. The EU Analysis Alliance KPJ Penang Specialist Hospital - lnternational Standard Quality
BrandLaureate Transformational - Corporate Leader Brand ICON Leadership Award 2011 4. Lumesse Inspiring Talent Management Award - Quality Beauty and Healthcare Category 12. The EU Analysis Alliance KPJ Johor Specialist Hospital - International Standard
KPJ Healthcare Berhad - 2011 E-Recruitment Award and Symposium 5. The Asia Pacific Brands Foundation KPJ Selangor Specialist Quality Award
Hospital - The Brand Laureate Award - Best Brands Category (Healthcare Hospital) 6. Markplus KPJ Ampang Puteri Specialist Hospital
- Malaysia Service to Care 7. Asia Pacific Excellence Entrepreneur Alliance KPJ Johor Specialist Hospital - Asia Pacific International
Entrepreneur Excellence Award 2011

19 ANNUAL REPORT 2011 ANNUAL REPORT 2011 20

Media Spotlight

21 ANNUAL REPORT 2011 ANNUAL REPORT 2011 22

 For three long decades, KPJ Statement to Shareholders
has provided compassionate
care to patients and today, we
Dear Shareholders, Newer hospitals also performed well during the year and
remain steadfast in our objective contributed to the improved Group earnings for fiscal 2011.
At KPJ Healthcare Berhad (KPJ) the dynamic
to Care for Life and to increase partnerships and shared vision to build a healthier Revenue contributions from supporting services such as
shareholder value by providing community has enabled us to touch the lives of many over
the past three decades, since the first KPJ hospital was
marketing and distribution of pharmaceutical, medical and
surgical products, and pathology and laboratory services
quality healthcare services through established in 1981. also showed marked improvement with a 31.1% increase
to RM636.03 million.
continuous improvement in patient For three long decades, KPJ has provided compassionate
care and outcomes care to patients and today, we remain steadfast in our
objective to Care for Life and to increase shareholder
For financial year ended 31 December 2011, KPJ
continued to create positive Economic Value Added (EVA)
value by providing quality healthcare services through of RM77.84 million, an increase of RM9.19 million or 13.4%
continuous improvement in patient care and outcomes. over the RM68.65 million created in 2010.

The unceasing efforts have translated into a growing list of Healthy Dividends
achievements, ranging from realization of financial goals to In concluding fiscal 2011, we are pleased to be able to
enhanced patient care programmes, and quality certifications declare a fourth interim dividend of 4.7 sen per share of
towards higher clinical standards and patient safety. RM0.50 each, bringing the years total dividends to 12.1
sen per share.
KPJs robust growth demonstrates our ability to capitalize
on new opportunities through continuous physical growth Investor Relations
and expansion, prioritizing human capital and transforming Significant emphasis was placed on corporate disclosure
through innovation. as KPJ continued to enhance engagement with the
investing community and build investors confidence
We are therefore pleased to share with you KPJ Groups through transparency and accountability to shareholders.
key developments, the remarkable results scored for the This has also helped put KPJ under the coverage of more
financial year ended 31 December 2011 and how KPJ research houses.
plans to further strengthen the system in order to create
sustainable value for all stakeholders. During the year, the management and investor relations
team met with analysts and fund managers from more
than 40 investment and stockbroking companies and
Delivering Outstanding Results participated in some 20 roadshows and international
Throughout the year, we focused on making a bigger conferences as a platform for open discussion with over
difference to those whose lives we touch by enhancing 100 different fund managers.
engagement and serving with genuine dedication.
Each year, we communicate our ideas and hold healthy
Despite challenges of heightened competition amidst discussions with our shareholders on the Groups
healthcare sector liberalization and uncertainty in global developments during the Annual General Meeting and on
financial markets, KPJ brought home to shareholders the other occasions, dialogues are also held with shareholders
highest ever earnings performance and bagged a number and others such as the Minority Shareholders Watchdog
of awards in fiscal 2011. Group (MSWG).
Financial Performance The Group also ensures timely and equitable dissemination
During the year 2011, revenue growth outpaced costs with of information to all stakeholders through public
a double-digit 15.3% expansion to RM1.91 billion as a announcements and the website in accordance with good
result of organic growth and acquisitions, translating into its disclosure practices.
best performance yet in 30 years, while profit before zakat
and tax surged 21.8% year-on-year to RM204.60 million. Share Price Performance
KPJ also scored a 20.8% rise in net profit attributable to Indeed, 2011 was a historic year in many ways.
shareholders to RM143.67 million in fiscal 2011 while its
liquidity position remained strong with a cash balance of KPJ wrapped up its third decade in the healthcare business
RM252.08 million. with both financial and business growth, accompanied by
a number of noteworthy accolades.
The Malaysian operations continued to dominate,
accounting for 90% of the Groups income for the year, with A major milestone was KPJs remarkable performance on
revenue rising 12.1% on-year to RM1.72 billion in financial the Malaysian stock exchange, Bursa Malaysia, which
year 2011 as all KPJ hospitals in the country continued to translated into significant returns to shareholders.
record positive earnings growth amid capacity expansion
and new services. KPJ shares opened at RM3.72 on 3 January 2011 and
continued to climb over the subsequent eight months to its
highest level at the time at RM4.69.

right Kamaruzzaman Abu Kassim Chairman

ANNUAL REPORT 2011 24
left Datin Paduka Siti Sadiah Sheikh Bakir Managing Director
However, economic uncertainties put a damper on During the year, independent non-executive director and
investors confidence in the equities market and bellwether current Audit Committee member, Zainah Mustafa, was
FBM KLCI shed 13% from its all-time high of 1,594.74 on appointed as the Chairman of the Audit Committee on 16
July 8 to end September at 1,387.13. June 2011 to take over the responsibility from Tan Sri Dato
Seri Arshad Ayub, who retired after contributing to and
ensuring good corporate governance and accountability
KPJ shares also succumbed to profit-taking that took it
for the past 17 years as a Director as well as Chairman of
to its lowest level in 26 weeks of RM3.84 that month, but
the Audit Committee.
quickly regained ground and rose 17.5% over the final
three months of the year to end 2011 at a record closing
The appointment of Dr Yoong Fook Ngian, who is also an
price of RM4.70 and gave shareholders a 26% capital
Independent Non-Executive Director, as Chairman of the
appreciation that year.
Group Medical Advisory Committee on 1 January 2011
has brought significant change and provided excellent
With a market capitalization of RM2.74 billion, KPJ also
leadership to the clinical committees.
notched up to 75th placing among the top 100 companies
by market capitalization on Bursa Malaysia at end-2011, up
Our investment in a leadership and succession plan enabled
from the 85th spot at end-2010, with a market capitalization
us to execute a seamless leadership transition, as the Group
of RM2.08 billion.
witnessed the board changes over the year just past.
Awards
On 4 July 2011, Amiruddin Abdul Satar was appointed as
Our conscious effort to build up shareholders confidence,
Executive Director while also retaining the portfolio of KPJs
alongside the Groups sterling performance over the past
Chief Operating Officer, and Abd Razak Haron was named
years, helped us bag the title of Best Performing Stock
as Non-Independent and Non-Executive Director.
Highest Return to Shareholder Over 3 Years (Trading/
Services) from The Edge 100 Billion Club on 13 July 2011.
We believe that the appointment of the new Board members
will further strengthen the Group and as Chairman and Prime Minister, YAB Dato Sri Mohd Najib Tun Abdul Razak, announcing the five new KPJ hospitals under ETP
This came on the heels of KPJ being named Healthcare
Managing Director, we will continue to give our best to this
Service Provider of the Year by Frost and Sullivan on 13
organization and work closely with the Board and Executive New Developments Among the five, KPJ Klang Specialist Hospital in Selangor,
April 2011 and securing the Innovative Leadership in
Committee members to help achieve KPJs objectives. To ensure sustainable value for all stakeholders in the KPJ Pasir Gudang Specialist Hospital in Johor and Sabah
Globalisation (Healthcare) award from the Malaysian
evolving healthcare industry, KPJ continues to grow its Medical Centre in Kota Kinabalu, Sabah, are expected to
Institute of Directors on 4 May 2011.
Business Strategy Review network and capacity at existing hospitals, taking on seven complete the first phase of their development in 2012.
KPJs transformation continued with the review and new development projects over the next eight years and
2011 Year of Change reappraisal of business strategies to enhance efficiency KPJ Pahang Specialist Hospital had its ground-breaking
expanding its existing hospitals over the next few years.
The year 2011 proved our ability to adapt to and embrace of resources, empower people and embrace new skills, ceremony officiated on 30 June 2011 by the Chief Minister
changes, and to transform ourselves to meet the challenges processes and technologies, with the ultimate aim of Five of the seven new developments have been named by of Pahang, YAB Dato Sri DiRaja Adnan Yaakob.
of the new age. improving services rendered to customers. the Malaysian Prime Minister YAB Dato Sri Mohd Najib Tun
Abdul Razak on 10 November 2011 as new projects under KPJ Specialist Hospital Bandar Dato Onn, Johor, will serve
Boardroom Changes Overall, KPJ Group continued to gain the trust of the the countrys Economic Transformation Programme (ETP), as a one-stop centre featuring state-of-the-art facilities in six
On 12 January 2011, KPJ appointed a new Chairman, community, attending to more than 2.6 million patients with a key focus on medical tourism. centres of excellence, namely Heart, Geriatric, Oncology,
Kamaruzzaman Abu Kassim, who brought a new sense of in 2011 and is expected to provide quality care to more Women and Child, Cosmetic & Reconstructive, as well as
direction on growth and development for the Group and took customers in the coming year. When completed, they will generate gross national income Orthopedic and Related Surgery Centres.
KPJ smoothly through changes in the Board during that year.
(GNI) of almost RM1.3 billion and more than 3,000 new
jobs, and it will also give KPJ the capacity to serve more
international patients.

Pahang Chief Minister at KPJ Pahang Specialist Hospitals Perlis Chief Minister and Datin Paduka Siti Sadiah viewing the Perlis
One-year share price trend Five-year share price trend groundbreaking ceremony Specialist Hospital model

25 ANNUAL REPORT 2011 ANNUAL REPORT 2011 26

 Employee retention is also enhanced through the
development of a shared passion for excellence as well
as good work ethics, which are defined by KPJs core
values of Safety, Courtesy, Integrity, Professionalism and
Continuous Improvement.

KPJs core values are guiding principles for both employees

and Medical Consultants, and this seamless coordination
and cooperation among our team of caregivers will ensure
that patient safety and customers needs are given the
highest priority.

Jeta Gardens Retirement Village Unity and teamwork, employee engagement, as well as
opportunities for learning and improvement are among
The Way Forward the key pillars to creating a sustainable workplace and to
The way forward rests on several key strategies, namely, further hone the necessary skills of KPJs employees to
broadening KPJs growth via organic expansion or serve patients to the best of their abilities.
acquisitions, prioritizing human capital, supporting
community affairs, and transforming through innovation As much as RM7 million is spent annually to finance
while also ensuring good corporate governance. employees further education, on-the-job training and other
skill enhancement programmes, as well as to equip them
Broadening KPJs Network with the necessary knowledge and skills for any emergency
KPJ continues to broaden its network and the strategy to through annual disaster and fire drills.
add one to two hospitals to the Group each year remains
on track with the new developments outlined above.
Kamaruzzaman, other KPJ Board Members viewing the model of the new KPJ Specialist Hospital Bandar Dato Onn during the 18th AGM
HIGHER EDUCATION PROGRAMMES
Al-`Aqar Healthcare REIT will continue to play a key role Master of Business Administration,
in facilitating KPJs expansion. By monetizing the assets, Henley School of Business, University of Reading
Two other hospitals to be opened are KPJ Muar Specialist It was a positive change and a step in the direction that
Hospital in Johor and KPJ Perlis Specialist Hospital in would soon open up more opportunities for KPJ and could KPJ can unlock value and free up cashflow for further Masters in Nursing, UNISA
Kangar, Perlis. On 20 November 2011, YAB Dato Seri potentially pave the way for the Group to lead in the aged development, trim borrowings and reduce interest costs. MBA in Healthcare Management, IBS, UTM
Dr. Md Isa Bin Sabu, the Chief Minister of Perlis state, care segment in Malaysia with a model that epitomizes Master of Business Administration,
formalized the ground-breaking ceremony of KPJ Perlis modern living for Baby Boomers who are now approaching Since the launch of the real estate investment trust (REIT),
University of East London
Specialist Hospital in Pengkalan Asam, Mukim Seriab in their golden years. KPJ has injected more than RM1 billion worth of assets into
the REIT. Other MBA programmes e.g. MBA UiTM, MBA
Kangar, the state capital of Perlis.
UNIMAS
Expanding Education
Medical Tourism A landmark achievement for KPJ International University Excellent Team Members Executive Master of Business Administration,
Meanwhile, efforts to grow KPJs medical tourism segment College of Nursing and Health Sciences in 2011 was the The Group finds its strength in its team of dedicated IBS, UTM
included more aggressive marketing and promotions University College status, which was bestowed by the employees and the professionalism of 860 Medical Bachelor of International Nursing,
abroad and greater participation in international Ministry of Higher Education (MOHE) in July, along with the Consultants specializing in various medical disciplines. Hertfordshire University
exhibitions, which paid off with a 40% increase in the approval to set up a Medical School that would see KPJ
Nursing Post Basic Certificates
number of international patients. leveraging on the strength of 860 Medical Consultants who The Medical Consultants continuously enhance their
are practicing within the Group. skills and knowledge by participating in conferences and
attend seminars to keep abreast of the latest medical Our employees are empowered with the confidence
The medical tourism industry is poised for further growth
KPJ University College held its First Convocation Ceremony developments in the world. and skills to lead and guide others and we aim to
and KPJ is targeting to raise the revenue contribution from
on 5 December 2011, during which the Chancellor and transform ordinary individuals into extraordinary high
this segment to as high as 25% by 2020. In 2011, this
Pro-Chancellor were also appointed. They also share their knowledge with others in the healthcare performers through transformational leadership.
segment generated revenue of about RM45 million, with
patients mainly from Indonesia as well as other countries industry through speaking opportunities at conferences and
We were honoured to have Tan Sri Dato Seri Arshad Ayub seminars, both locally and internationally, and participate Capable individuals with high potential are identified for
such as Australia, New Zealand, Somalia, Singapore, accepting the position as Chancellor of KPJ University actively in KPJs medical workshops. management positions within the Group under the Talent
India, UK and US and the Middle East. College, while Datin Paduka Siti Sadiah Sheikh Bakir, Management programme, which forms part of KPJs
Managing Director of KPJ Healthcare Berhad, was appointed Succession Development Plan, to ensure management
Potential growth markets include China and Middle East, For KPJ, significant emphasis continues to be placed on
as the first Pro-Chancellor of the university college. continuity.
which shares similar culture and values with Malaysia. the development of employees through transformational
A very distinguished academician, Professor Dato Dr Lokman leadership, motivation, and training.
As an Equal Opportunity Employer, KPJs workforce of
Aged Care Saim, who was appointed as President and Dean of School
KPJ recognises the essential importance of the employees, 8,992 employees of whom about 400 are managers and
KPJs quest to ensure sustainable growth also took us to of Medicine of KPJ University College effective 1 February
which is a fundamental driving force of the Groups half are executives in charge of various services at KPJ
distant shores of Australia, where the Group invested in 2012, spearheads the development of the Medical School
with a new approach and the introduction of innovative ideas success, and continue to emphasize on human capital hospitals are presented with various opportunities to better
retirement village Jeta Gardens in Brisbane as a viable
to spur the growth of this university college. development within the company through efforts themselves and vie for positions of higher responsibilities
aged care business with immense growth potential.
to create a sustainable workplace and to strengthen the based on ability and performance.
workforce in tandem with rapid expansions.

27 ANNUAL REPORT 2011 ANNUAL REPORT 2011 28

 Transformation through Innovation
Continuous improvement is crucial in maintaining KPJs
position as the countrys largest private healthcare provider
that is dynamic and flexible in adapting to changes and is in
tuned with the changing demands of customers.

Continued innovation and transformation are critical to the

Groups future, and this calls for process efficiency through
lean management, investments in the latest medical
technologies as well as rollout of integrated clinical
information systems.

To enhance medical and surgical outcomes, the Group will

be investing more than RM90 million in 2012 to purchase
and install the latest medical equipment featuring state-of-
KPJ hospitality reflects the principles of SEGAR and SPP
the-art technologies.

In 2011, the Group committed about RM70 million worth of Stakeholder engagement will continue to include open
investments in new equipment for KPJ hospitals throughout dialogues and timely disclosure of information.
the country, and notable among them is the countrys first
digital operation theatre with a dedicated knee navigation Clinical conduct is governed by KPJs clinical policies
system. Wards were also upgraded to enhance ambience and procedures and monitored by the Medical Advisory
and comfort. Committee and other clinical committees at both the
Group and at the hospitals to ensure strict compliance
Adoption of health information technology (IT) at KPJ to all regulations as well as best practices according to
hospitals has helped to enhance patient safety by internationally-accepted standards.
dramatically reducing errors and improving coordination
and efficiency, and this strategy will be rigorously pursued KPJ also abides by the policies and practices outlined in
to place KPJ as a key healthcare player with a reputable the Private Healthcare Facilities and Services Act 1998
Datin Paduka Siti Sadiah receiving the University College certificate from Minister of Higher Education of Malaysia, YB Dato Seri Mohamed Khaled Nordin and other regulations laid out by the Ministry of Health.
name in the region.

The IT infrastructure was further refined and tailored As the Groups network of hospitals expands its range
These initiatives collectively grow KPJs talent pool and, KPJ also extols the spirit of giving and like us, our employees
towards a more seamless integration of the healthcare of facilities and services, we are also cognizant of the
using measurable processes and achievements such as are also convinced that we can brighten the lives of the
information systems and user capabilities. increasing importance to enhance patient experience at
Staff Performance Appraisal Review (SPAR), the Group indigent through small acts of kindness and by helping the
the hospitals.
identifies and promotes competent employees and community in any way, be it big or small.
enhances capability of others through more targeted We leverage on the capabilities of the existing Hospital
Information Technology System (HITS), which has been We believe this can be achieved through our genuine
training programmes. This includes providing free basic health screening, commitment to delivering compassionate care alongside
lending a helping hand to the needy such as orphanages implemented at all 20 KPJ hospitals in Malaysia, and
integrate it with the newer systems of Enterprise Information the adoption of core procedures and processes at KPJ
This ability to attract and retain quality employees within the and home for the aged, raising funds for those living hospitals that will minimize risks to patients, thus giving
Group, enrich the talent pool through continuous training in poverty and hardship, as well as through zakat System (EIS), KPJ Clinical Information System (KCIS) and
Picture Archiving Communication System (PACS), as we utmost priority to patient safety and customers needs.
and up-skilling programmes as well as high employee contributions and donations.
engagement, won KPJ the Employer of Choice Award 2011 head towards a paperless environment.
Our hospitality will reflect who we are and the way we
from the Malaysian Institute of Human Resource Management. KPJs core corporate social responsibility (CSR) initiative conduct ourselves is in line with the principles of the
The overall result of this initiative are better health outcomes,
to help the community, particularly the indigent and Service Excellence KPJ Way Group Alignment and Re-
lower risk of errors, improvement in patient engagement as
KPJ also bagged the Lumesse e-Recruitment Award underprivileged, is through the chain of charity clinics Engineering (SEGAR) initiative as well as the Standard
well as waiting time, while preserving the environment by
2011, beating 30 others in the country to win the medal under Klinik Waqaf An-Nur (KWAN) programme, where the People Practice (SPP).
reducing waste and use of chemicals.
at The Business Impact of New Talent Acquisition 2011 needy are provided basic medical care at a nominal fee of
e-Recruitment Awards & Symposium. only RM5.00. To continuously improve the hospital IT technology, KPJ KPJs ultimate goal remains to provide our customers with
has also committed to invest in R&D to develop information safe care and excellent services.
To further enhance employee engagement, KPJ will The objective is to provide them with basic medical care to systems that can better serve the complex healthcare
continue to hold annual assemblies, or Pedoman, and enable them to lead a healthier life. The commitment to providing safe care is reflected in KPJs
ecosystem that has intricate relationships and differing
more frequent dialogues with staff members and partners efforts to have the hospitals recognized by accreditation
specific requirements.
as well as promote team spirit through various events and KPJ and its parent company Johor Corporation began this bodies such as Malaysian Society of Quality in Health
sporting activities, including the annual sports carnival. initiative began in 1998 with one clinic in Johor Bahru and Accountability to All Stakeholders (MSQH) and Joint Commission International (JCI), and to
today, KWAN has a network of 15 clinics throughout the KPJ will continue to put significant emphasis on obtain other certifications like Integrated Management
Supporting Community Affairs country and one hospital in Johor and to date, has treated transparency, accountability and good corporate System (IMS), ISO, and SIRIM.
Emphasis is placed on patient safety and complementing more than 760,000 patients. governance to ensure long-term sustainability.
To date, 11 KPJ hospitals have been accredited by
quality compassionate care with adherence to
This includes strict compliance with Bursa Malaysias MSQH, with KPJ Tawakkal Specialist Hospital being the
internationally-accepted standards of best practices. KPJ provides the clinical resources as well as medication
listing and disclosure requirements and close monitoring latest one to receive the certification in 2011, and two are
and also contributes more than RM2 million annually in
by the Audit Committee as well as efforts to strengthen slated to undergo the survey in 2012. MSQH-accredited
financial aid to support KWANs activities.
processes through the Award Tender Committee and hospitals KPJ Ampang Puteri Specialist Hospital and KPJ
Building Committee. Seremban Specialist Hospital are also undertaking the JCI
accreditation survey in 2012.

29 ANNUAL REPORT 2011 ANNUAL REPORT 2011 30

 CONTENTS
We believe that KPJ remains well positioned to deliver 33 Board of Directors
strong results in the year ahead and the initiatives we have 35 Directors Profiles
outlined here will bring positive returns to the Group. This,
41 Executive Committee
in turn, will generate further value for shareholders.
43 Hospital Medical Directors
Acknowledgements 45 Hospital Management Committee
We would like to take this opportunity to thank all Medical
47 Divisional Committee
Consultants within the KPJ Group who have worked tireless
to provide patients with the highest quality of care.

To the management team and staff, who have exemplified

professionalism in every aspect of their service and care
for customers, we offer our gratefulness.
KPJ Tawakkal Specialist Hospital receiving its MSQH Certificate
Thank you to all customers for placing their trust and
Prospects confidence in KPJ and for their continuing support.
Looking ahead, prospects for 2012 are bright as the Group
continues to show positive growth amid expansion of new Our deepest gratitude is also directed to the community at
and existing hospitals.

The healthcare industry will face many challenges and

large for supporting the Groups initiatives and encouraging
us to continue championing our corporate responsibility
activities, which has also helped bring positive change to
BOARD AND
opportunities ahead and we are confident that KPJ
will continue to advance with the support of its team of
committed employees and Medical Consultants.
all of us at KPJ.

We also offer our appreciation to the shareholders for

MANAGEMENT
their continued confidence in us, to the Government and
It is also anticipated that the Group will remain strong by authorities for their support and guidance, and to KPJs
working cohesively as a team, staying close to our guiding business partners for their cooperation.
principles and keeping our ultimate objectives in mind,
which is prioritizing patient safety and providing quality Our sincere gratitude to our colleagues on the Board as
medical care to our customers. well as the Executive, Audit and Clinical committees, who
have worked alongside us to make these achievements
In 2011, the Group provided medical services to more possible, and we thank them for their input and strong
than 2.6 million patients and following capacity expansion support in the implementation of various projects and their
and widening of services, we expect the hospitals to company in making KPJs journey a success.
receive more patients this year from both the domestic and
international markets. To all who have helped KPJ achieve this successful year
and continue to share our vision to Care for Life, we are
We will continue to gain customer confidence through deeply indebted.
continuous efforts to enhance quality and safety while also
promoting a harmonious workplace so that employees can
give their undivided attention to the needs of patients and
care for the community.

KAMARUZZAMAN ABU KASSIM DATIN PADUKA SITI SADIAH SHEIKH BAKIR

CHAIRMAN MANAGING DIRECTOR

31 ANNUAL REPORT 2011

Board of Directors

5 6 7 8 9 10 11 Chairman Board Members 5. Dr Kok Chin Leong 7. Ahamad Mohamad 9. Datuk Azzat Kamaludin
1. Kamaruzzaman Abu Kassim 3. Zainah Mustafa Independent Non-Independent Independent
Independent Non-Executive Director Non-Executive Director Non-Executive Director
Managing Director Non-Executive Director
4 1 2 3 2. Datin Paduka Siti Sadiah 6. Abd Razak Haron 8. Datuk Dr Hussein Awang 11. Rozan Mohd Saat
Sheikh Bakir 4. Dr Yoong Fook Ngian Non-Independent Independent Non-Independent
Independent Non-Executive Director Non-Executive Director Non-Executive Director
Executive Director Non-Executive Director
10. Amiruddin Abdul Satar
Directors Profile
Datin Paduka Siti Sadiah Sheikh Bakir
Managing Director

Datin Paduka Siti Sadiah Sheikh Bakir, She is a member of the Malaysia
aged 59, is the Managing Director of KPJ Productivity Council (MPC) Consultative
Healthcare Berhad (KPJ) since 1 March Panel on Healthcare since 2001 and a
1993. She graduated with a Bachelor of member of the National Patient Safety
Economics from University of Malaya and Council, Ministry of Health since 2003. In
holds an MBA from Henley Management 2009, she was appointed as a member of
College, University Reading, London. the Malaysian Healthcare Travel Council,
Ministry of Health.
Her career with Johor Corporation (JCorp)
commenced in 1974 and she is directly Datin Paduka was a Board member of
involved with JCorps Healthcare Division MATRADE from 1999 to 2010 and was an
since 1978. Datin Paduka was appointed as Independent Non-Executive Director of
the Chief Executive of Kumpulan Perubatan Bursa Malaysia from 2004 to April 2012.
(Johor) Sdn Bhd (KPJSB) from 1989 until the
listing of KPJ in November 1994. In 2010, Datin Paduka was named the
CEO of The Year 2009 by The New
Datin Paduka is the Chairman of various Straits Times Press and the American
hospitals and companies in the KPJ Express. In 2011, Datin Paduka achieved
Kamaruzzaman Abu Kassim three more awards, namely the Asia
Group, as well as MIT Insurance Brokers
Chairman Leading Woman CEO of The Year at the
Sdn Bhd. She is a Non-Independent,
Non-Executive Director of Kulim (Malaysia) Women in Leadership (WIL) Forum Asia,
Kamaruzzaman Abu Kassim, aged 47, was appointed as a Non- the Masterclass Woman CEO of The
Bhd, KFC Holdings (Malaysia) Bhd,
Independent Non-Executive Director of KPJ Healthcare Berhad Year by the Global Leadership Awards
QSR Brands Bhd and Damansara REIT
(KPJ) on 3 January 2011 and subsequently as Chairman of KPJ on and the BrandLaureate Transformational
Managers Sdn Bhd. Datin Paduka is also
12 January 2011. He is currently the President & Chief Executive Corporate Leader Brand ICON
a Director of Waqaf An-Nur Corporation
Officer of Johor Corporation (JCorp). Leadership Awards 2011 from The Asia
Bhd, a non-governmental organisation
dedicated to the provision of healthcare Pacific Brands Foundation.
He graduated with a Bachelor of Commerce majoring in
services to the less fortunate.
Accountancy from the University of Wollongong, New South
Wales, Australia in 1987. He embarked his career as an Audit
Committed to promoting excellence in
Assistant with Messrs K.E Chen & Associates in May 1988
healthcare, Datin Paduka is the President
and later joined Coopers & Lybrand (currently known as
of the Malaysian Society for Quality in
PricewaterhouseCoopers) in Johor Bahru.
Health (MSQH), elected since its inception
in 1997 to date.
In December 1992, he left the firm to join JCorp as Deputy
Manager, Corporate Finance Department. He was later promoted
to become the Executive Director at Damansara Realty Berhad
(a company of which JCorp is the majority shareholder) in 1999
until September 2006.

He was appointed as the Chief Operating Officer of JCorp on

1 August 2006 and was later appointed as the Senior Vice
Amiruddin Abdul Satar
President of JCorp on 1 January 2009.
Executive Director
He was appointed as the President & Chief Executive Officer of His overall contribution to KPJ,
Amiruddin Abdul Satar, aged 47, is the
JCorp on 1 December 2010. spanning more than 15 years, has been
Chief Operating Officer of KPJ Healthcare
Berhad (KPJ) and has been appointed as immeasurable particularly in the areas of
He is also the Chairman of Damansara Realty Berhad, Kulim hospital operations, finance and senior
the Executive Director of the Group since
(Malaysia) Berhad, Sindora Berhad and Director of Waqaf An- management functions such as strategic
July 2011.
Nur Corporation Berhad. He also sits as Chairman and Director planning and investment decisions.
of several other JCorp Group of Companies.
An accountant by profession, Amiruddin
is a member of the Association of He also sits on the Board of several KPJ
Chartered Certified Accountants (ACCA) hospitals as Chairman or Executive
and also obtained a Masters in Business Director of these hospitals.
Administration (MBA) from Henley Business
School, University of Reading, United Kingdom. With almost two decades of experience
in the healthcare industry, Amiruddin also
He gained significant experience in the shares his experience and contributes
fields of finance and management through to the development of the Malaysian
his capacity as Accountant and Finance healthcare sector through his active
Manager at several large and reputable involvement in the Association of Private
organisations in the country before joining Hospitals of Malaysia (APHM), where he
KPJ in 1993. sits as a Board member, a position he has
held since 1996.
As the Chief Operations Officer, and since
July 2011 as Executive Director, Amiruddin He also continues to participate actively
has played a vital role in monitoring the in charity and other meaningful events
Groups performance and steering the that aim to bring about the development
operations to greater heights. of a healthier society.

35 ANNUAL REPORT 2011 ANNUAL REPORT 2011 36

 Zainah Mustafa Ahamad Mohamad
Independent Non-Independent
Non-Executive Director Non-Executive Director

Zainah Mustafa, aged 57, has served as a She started her career as an Assistant Ahamad Mohamad, aged 57, was At present, he is the Chief Executive of
Director of KPJ Healthcare Berhad (KPJ) Senior Auditor in Perbadanan Nasional appointed to the Board of KPJ Healthcare Palm Oil Division of JCorp. He is currently
since 21 February 1994 and is also a Berhad in 1977 after graduating from Berhad (KPJ) on 1 January 2005. He is the Managing Director of Kulim (Malaysia)
member of the KPJ Audit Committee. She Institut Teknologi MARA (presently currently a Non-Independent and Non- Berhad, Deputy Chairman of QSR Brands
has been an Independent Non-Executive UiTM). She obtained her Association Executive Director of KPJ. Bhd and KFC Holdings (Malaysia) Bhd and
Director since 1 December 2004. of Chartered Certified Accountants a director of New Britain Palm Oil Limited
(ACCA) United Kingdom in 1976. She is He graduated with a Bachelor of (Papua New Guinea) as well as several
She also sits on the board of four now a Fellow of Association of Certified Economics (Honours) degree in 1976 from other companies within the JCorp Group.
other companies in the JCorp Group Chartered Accountant (FCCA). the University of Malaya. He joined JCorp
of Companies namely Damansara in 1976 as a Company Secretary for various
Realty Berhad, Puteri Hotels Sdn Bhd, She joined JCorp in October 1978 and companies within the JCorp Group. He has
Damansara REIT Managers Sdn Berhad rose through the ranks to the Group Chief been involved in many of JCorps projects
and Al-`Aqar Capital Sdn Bhd. Financial Officer before retiring on 31 among them, the early development of the
October 2002. Johor Specialist Hospital, prefabricated
housing project and the Kotaraya Complex
in Johor Bahru.

Dr Yoong Fook Ng Dr Kok Chin Leong

Independent Independent
Non-Executive Director Non-Executive Director

Dr Yoong Fook Ngian, aged 70, is a In 1972, he established the ENT Dr Kok Chin Leong, aged 54, is a Director His medical career started in 1986 at
Director of KPJ Healthcare Berhad (KPJ) Department in Hospital Ipoh. His last of KPJ and was appointed to the Board of Kuala Lumpur General Hospital in Clinical
and was appointed to the Board of KPJ on posting with the Ministry of Health was as KPJ Healthcare Berhad (KPJ) on 7 July Paediatrics, worked as Senior House Officer/
7 July 2005. He is an Independent Non- Head of ENT Surgery in General Hospital 2005. He is an Independent Non-Executive Registrar at Derby Childrens Hospital, United
Executive Director of KPJ and the Chairman Kuala Lumpur before venturing into private Director of KPJ and a member of the KPJ Kingdom in 1990.
of the Medical Advisory Committee and practice in 1975. Clinical Governance Policy committee
Chairman of KPJ Building Committee. since 2001 and presently the Chairman for He served as the Clinical Specialist in
In private practice, he was ENT Consultant the Committee since 2005 and the Advisor Paediatrics at Hospital Sultanah Aminah,
He received his Bachelor of Medicine at Our Ladys Hospital in Ipoh from 1975 for KPJs Clinical Information System since Johor Bahru from 1991 to 1992 and was the
and Bachelor of Surgery (MBBS) from to 1982. He has been Resident ENT January 2003. Head of Department of Paediatrics at Batu
the University of Sydney in 1966. He Consultant in Ipoh Specialist Hospital Pahat Hospital from 1991 to 1993 and Senior
obtained his post-graduate qualification in since 1983 and is one of its founding- He is also the Executive Board Member Consultant Paediatrician at Hospital Sultanah
Otolaryngology in 1972 and was conferred doctors. He has been the Medical Director for Malaysian Society for Quality in Health Aminah, Johor Bahru from 1993 until 1994.
a Fellow of the Royal College of Surgeons of Ipoh Specialist Hospital since 1994 until (MSQH) and Asian Society for Quality in
of Edinburgh. December 2006. Healthcare (ASQua). He presently also sits He was the Project Coordinator/Chairman for
in the Executive committee of the Malaysian the Batu Pahat Rotary Club Haemodialysis
He is also a Fellow of the College of He is a Life Member of the Malaysian Paediatric Association (MPA) since 2009, Center from 1992 to 1993 and was the
Surgeons of Malaysia and a member of the Medical Association and a Past- and is the President Elect 2013-2015 of Southern Representative for Malaysian
Academy of Medicine of Malaysia. He was Chairman of the Perak branch. He is also the Association. Paediatric Association from 2000 to 2004
employed by the Ministry of Health from a Past-President of the Perak Medical and the Southern Coordinator for Infant
1966 to 1975. Practitioners Society. He received his Bachelor of Medicine and Touch Therapy. He was a Board Member
Bachelor of Surgery (MBBS) in 1982 from in Association of Private Hospital Malaysia
University of Malaya and completed his post- (APHM) from 2008 to 2010.
graduate studies in Paediatrics (Master of
Medicine Paediatrics) in 1990 from Universiti He has been the Resident Consultant
Kebangsaan Malaysia. Paediatrician at Puteri Specialist Hospital
since 1994 and was appointed as the
He was conferred a Fellow of the Royal Medical Director in February 2000 until
College of Physician of United Kingdom June 2006. His main interests are in Health
in 1990 and registered as full medical Informatics, Patient Safety in Healthcare
practitioner with the Malaysian Medical Delivery, Clinical Governance, and Clinician
Council in 1983. Performance & Appraisal Assessment.

37 ANNUAL REPORT 2011 ANNUAL REPORT 2011 38

 Datuk Azzat Kamaludin Datuk Dr Hussein Awang
Independent Independent
Non-Executive Director Non-Executive Director

Datuk Azzat Kamaludin, aged 66, was Datuk Dr Hussein Awang, aged 71, was He was also the Honorary Professor of
appointed to the Board of Directors of KPJ appointed to the Board of KPJ Healthcare Surgery (Urology) Department of Surgery,
Healthcare Berhad (KPJ) on 1 September Berhad (KPJ) on 21 February 1994 and Universiti Kebangsaan Malaysia, Selangor,
1994. He is currently an Independent Non- was appointed as a member of the Audit from 1978 to May 1984. Datuk Dr Hussein
Executive Director and is also a member of Committee on 12 December 2005. is a Foundation Fellow of the Academy of
the Audit Committee of KPJ. Science Malaysia.
He received his Bachelor of Medicine and
A lawyer by training, he was admitted as an Bachelor of Surgery (MBBS) in 1964 from He is presently the Consultant
advocate and solicitor of the High Court in University of Melbourne, Australia. Urological Surgeon at Hospital
1979 and has been in practice since then Tawakal, a position he has held
as partner of Azzat and Izzat, a law firm. He was made a Fellow of the Australasian since May 1984.
College of Surgeons in 1972. He was the Senior
Prior to that, from 1970 to 1979, he served Consultant Urological Surgeon and Head of
as an administrative and diplomatic officer Department of Urology, General Hospital, Kuala
with the Ministry of Foreign Affairs. Lumpur from 1976 to May 1984.

He currently serves as Director of

several public-listed companies, namely,
Visdynamics Holdings Berhad, Pulai Springs
Berhad, Boustead Holdings Berhad, BHIC
Berhad and Axiata Group Berhad.

Rozan Mohd Saat Abd Razak Haron

Non-Independent Non-Independent
Non-Executive Director Non-Executive Director

Rozan Mohd Saat, aged 52, is a Director In 1994, he was appointed as the General Abd Razak Haron, aged 48, was appointed He sat on the International Academic
of KPJ Healthcare Berhad (KPJ) and Manager of JCorps Tourism Division as the Non-Independent Non- Executive Relations Committee of the IIA Inc
was appointed to the Board of KPJ on before assuming the post of Chief Director of KPJ Healthcare Berhad (KPJ) (1997/2000) and participated in the setting
1 January 2009. He is a Non-Independent Executive of the same Division on 15 on 1 July 2011. up of the Asian Confederation of the
Non-Executive Director of KPJ. He is the June 1996, a post which he held until his Institute of Internal Auditors (IIA) ACIIA
Managing Director of Sindora Berhad. appointment as the General Manager, Abd Razak is currently the Executive Vice through forums in Hong Kong, Bangkok,
He is also the Chief Executive Officer of Business Development, JCorp beginning President (Compliance) overseeing the Singapore and Philippines and also sat on
Hospitality Division of JCorp. January 1999. Johor Corporation (JCorp)s Group Internal the Professional Issues Committee of IIA
Audit and the Enterprise Risk Management Global from 2008 to 2010.
He holds a Bachelor of Economics Prior to his appointment as the Managing Unit. He joined the Group in 1994 as the
(Honours) majoring in Statistics from Director of Sindora Berhad, he served as Group Internal Audit Manager in one of the Abd Razak has more than 20 years
Universiti Kebangsaan Malaysia. the Senior General Manager, Business listed subsidiary of the Group and became internal auditing experience in various
He started his career in 1983 as an Development of JCorp from 2000 until the Group Chief Auditor in 1997. industries including energy, secondary
Administrative Officer in Planning & August 2002. He is also a Director of mortgage market, property, timber,
Research Department of JCorp before being Kulim (Malaysia) Berhad and Waqaf An- He graduated with Honors in Accounting stock broking, unit trusts management,
seconded as Operations Manager in Sergam Nur Corporation Berhad. and Finance from University of East London plantation and healthcare services.
Berhad, a subsidiary of JCorp in 1986. in 1986. He is a Certified Internal Auditor
(CIA) (1998) and a Fellow Chartered He was a member of the Taskforce on
From 1987 to 1988, he served in the Member of the Institute of Internal Auditors Guidelines on Internal Audit Function
Corporate Communications Department, Malaysia (CFIIA). He also holds an of Bursa Malaysia. He had delivered
JCorp as an Administrative Officer. Executive Certificate in Management from various presentations/seminars in
Henley Management College, UK (2006). Internal Auditing, Risk Management and
From 1988 to 1993, he was the Executive Corporate Governance including the
Director of several subsidiaries in At the national level, he was a member of Capital Market Workshop of the Securities
JCorp Group. the Board of Governor of the Institute of Commission, Mandatory Accreditation
Internal Auditors Malaysia from 1996 to Programmes of the Bursa Malaysia and
2011 and was the Past President from 2002 Directors Programmes of the Companies
until 2004. Commission of Malaysia (CCM).

39 ANNUAL REPORT 2011 ANNUAL REPORT 2011 40

EXECUTIVE COMMITTEE

11 Committee Chairman 4. Jasimah Hassan 7. Mohd Johar Ismail 9. Ahmad Nasirruddin Harun 11. Rafeah Ariffin
9 7 8 10 12
1. Datin Paduka Siti Sadiah Chief Education and Senior General Manager - Senior General Manager - Senior General Manager -
6
5 3 4 Sheikh Bakir Knowledge Management Group Hospital Operation Group Business Transformation Group Marketing and
1 2
Managing Director (EduKATE) and Strategic Direction Corporate Communications
8. Datin Sabariah Fauziah
2. Amiruddin Abdul Satar 5. Abdol Wahab Baba Jamaluddin 10. Norhaizam Mohammad 12. Mah Lai Heng
Executive Director and Chief Risk Officer Senior General Manager - Senior General Manager - Senior General Manager -
Chief Operating Officer Group Human Capital Group Finance and Group Clinical and Quality
6. Yusof Ismail Investor Relations
3. Mohd Sahir Rahmat Group General Manager -
Chief Financial Officer Education and
Corporate Social Responsibility

41 ANNUAL REPORT 2011 ANNUAL REPORT 2011 42

Hospital Medical Directors

First row from left Second row from left Third row from left
1. Dr Wan Hazmy Che Hon 5. Datin Paduka Siti Sadiah 9. Dato Dr Ismail Yaacob 13. Dato Dr Shahrudin Mohd Dun 17. Dr Lim Keok Tang 21. Dr Mahayidin Muhamad
KPJ Seremban Specialist Hospital Sheikh Bakir Kedah Medical Centre KPJ Selangor Specialist Hospital Damai Specialist Hospital KPJ Perdana Specialist Hospital
Managing Director
2. Dato Dr Fadzli Cheah Abdullah 10. Dr Mohd Harris Lu Abdullah 14. Dr Khaled Mat Hassan 18. Dr Choong Yean Yaw 22. Dato Dr N Sivamohan
KPJ Ipoh Specialist Hospital 6. Dr Yoong Fook Ngian Sentosa Medical Centre Kuantan Specialist Hospital Pusat Pakar Mata Centre For Sight KPJ Klang Specialist Hospital
Medical Advisory
3. Dr Mohd Hafetz Ahmad Committee Chairman 11. Dato Dr Shaharudin 15. Dr David Ling Sheng Tee 19. Dr Ong Boon Teik @Taik 23. Dr Ahmad Farid Daud
KPJ Johor Specialist Hospital Abd Jalal Ajmain Kuching Specialist Hospital Taiping Medical Centre Kluang Utama Specialist Hospital
7. Dato Dr Mohd Rani Jusoh Puteri Specialist Hospital
Committee Chairman KPJ Ampang Puteri 16. Dr G Ruslan Nazaruddin 20. Dr Wong Chya Wei 24. Dr Ewe Khay Guan
4. Datuk Dr Hussein Awang Specialist Hospital 12. Dr Balakrishnan Subramaniam Simanjuntak Sibu Specialist Medical Centre KPJ Penang Specialist Hospital
Tawakal Health Centre KPJ Kajang Specialist Hospital KPJ Tawakkal Specialist Hospital
8. Dato Dr Azizi Omar
KPJ Damansara Specialist Hospital

43 ANNUAL REPORT 2011 ANNUAL REPORT 2011 44

Hospital Management Committee

First row from left Second row from left Third row from left

1. Rafeah Ariffin 7. Amiruddin Abdul Satar 13. Hazarul Azly Hamzah 19. Mohd Nasir Mohamed 25. Yusmah Mohd Salleh 32. Zaiton Sulaiman
Senior General Manager - Executive Director and General Manager Chief Executive Officer General Manager General Manager
Group Marketing and Chief Operating Officer RS Medika Permata Hijau KPJ Ipoh Specialist Hospital KPJ Johor Specialist Hospital Kluang Utama Specialist Hospital
Corporate Communications
8. Jasimah Hassan 14. Dr Munirah Khudri 20. Abd Aziz Abd Rahman 26. Zaharah Osman 33. Mohd Azhar Abdullah
2. Datin Sabariah Chief Education and Chief Executive Officer Chief Executive Officer General Manager Chief Operating Officer
Fauziah Jamaluddin Knowledge Management (EduKATE) KPJ Tawakkal Specialist Hospital KPJ Seremban Specialist Hospital KPJ Klang Specialist Hospital Sabah Medical Centre
Senior General Manager -
Group Human Capital 9. Mohd Johar Ismail 15. Maisarah Omar 21. Roslan Ahmad 27. Mohamad Badri Hussin 34. Mohamad Hafiz Zaini
Senior General Manager - Chief Executive Officer Chief Executive Officer General Manager General Manager
3. Abdol Wahab Baba Group Hospital Operation KPJ Kajang Specialist Hospital KPJ Selangor Specialist Hospital RS Medika Bumi Serpong Damai Sibu Specialist Medical Centre
Chief Risk Officer
10. Norhaizam Mohammad 16. Mohd Taufik Ismail 22. Alice Liu Ghee Voon 28. Mohamad Sofian Ismail 35. Muhammad Gunasingam
4. Yusof Ismail Senior General Manager - Chief Executive Officer Chief Executive Officer General Manager Retnasabapathy
Group General Manager - Group Finance and KPJ Damansara Specialist Hospital KPJ Penang Specialist Hospital Taiping Medical Centre General Manager
Education and Investor Relations Tawakal Health Centre
Corporate Social Responsibility 17. Asmadi Mohd Bakri 23. Zabidi Abdul Razak 29. Gunavathy Kalee
11. Ahmad Nasirruddin Harun Chief Executive Officer Chief Executive Officer General Manager 36. Mahazan Kamis
5. Mohd Sahir Rahmat Senior General Manager - KPJ Perdana Specialist Hospital Kedah Medical Centre Sentosa Medical Centre General Manager
Chief Financial Officer Group Business Transformation Damai Specialist Hospital
and Strategic Direction 18. Norita Ahmad 24. Khairun Ahmad 30. Yasser Arafat Ishak
Committee Chairman Chief Executive Officer Chief Executive Officer General Manager 37. Noor Haslina Harun
6. Datin Paduka Siti Sadiah 12. Mah Lai Heng KPJ Johor Specialist Hospital Puteri Specialist Hospital Kuching Specialist Hospital General Manager
Sheikh Bakir Senior General Manager - KPJ Ampang Puteri Specialist Hospital
Managing Director Group Clinical and Quality 31. Haliza Khalid
General Manager
Kuantan Specialist Hospital

45 ANNUAL REPORT 2011 ANNUAL REPORT 2011 46

Divisional Committee

First row from left Second row from left Third Row from left

1. Rafeah Ariffin 5. Mohd Sahir Rahmat 9. Mohd Johar Ismail 13. Maria Khong Poh Fong 18. Iskandar Baharudin 23. Andrew William Burr
Senior General Manager - Chief Financial Officer Senior General Manager - Senior Corporate Manager - General Manager - Senior Corporate Manager -
Group Marketing and Corporate Group Hospital Operation Investor Relations Project Development and Group Marketing
Communications Committee Chairman Commissioning
6. Datin Paduka Siti Sadiah 10. Norhaizam Mohammad 14 . Dr Aliza Jamaluddin 24. Eric Sim Kam Seng
2. Datin Sabariah Sheikh Bakir Senior General Manager - Senior Corporate Manager - 19. Khairol Badariah Basiron General Manager -
Fauziah Jamaluddin Managing Director Group Finance and Group Clinical and Quality General Manager - Information Technology
Senior General Manager - Investor Relations Internal Audit
Group Human Capital 7. Amiruddin Abdul Satar 15. Dr KV Anitha 25. Yusri Ali
Executive Director and 11. Ahmad Nasirruddin Harun Senior Corporate Manager - 20. Elman Mustafa El-Bakri General Manager -
3. Abdol Wahab Baba Chief Operating Officer Senior General Manager - Group Clinical and Quality Senior Corporate Manager - Information Technology
Chief Risk Officer Group Business Transformation Bio-Medical Engineering
8. Jasimah Hassan and Strategic Direction 16. Noreen Abdul Rashid 26. Dr Mubashir Iftikhar
4. Yusof Ismail Chief Education and Senior Corporate Manager - 21. Hanida Mohd Hassan Chief Information Officer
Group General Manager - Knowledge Management (EduKATE) 12. Mah Lai Heng Legal and Secretarial Deputy Manager -
Education and Senior General Manager - Total Patient Experience
Corporate Social Responsibility Group Clinical and Quality 17. Othman Abdullah
General Manager - 22. Maygala Arumugam
Credit Control and Operations Group Chief Nursing Officer

47 ANNUAL REPORT 2011 ANNUAL REPORT 2011 48

 CONTENTS
52 Statement on Corporate Governance
64 Statement on Internal Control
68 Audit Committee Report
72 Medical Advisory Committee Report

CORPORATE
GOVERNANCE

KPJ Healthcare Medical Conference 2011

STATEMENT ON
CORPORATE GOVERNANCE
Statement on Corporate Governance
(Pursuant to Section 15.26 of the Bursa Malaysia Listing Requirements)

The Board of Directors of KPJ Healthcare Berhad subscribes to The size of the Board is optimum for the complexity and As Chairman, his focus is to provide an oversight role on Oversee the conduct of the companys business to
and supports the Malaysian Code on Corporate Governance scale of operations of healthcare business. Whilst the governance and compliance. In turn, the Board monitors evaluate whether the business is being properly manage
(revised 2007) as a minimum basis for practices on corporate Company has a significant shareholder (Johor Corporation), the functions of Board Committees in accordance with The Board is responsible to oversee and review the
governance. The Board of KPJ Healthcare Berhad (KPJ) is the investment of minority shareholders is fairly reflected their respective term of references to ensure its own Groups annual budget, operational and financial
pleased to report to the shareholders in particular and other through Board representation of Independent Non-Executive effectiveness. performance on a periodic basis against the budget. At
stakeholders that highest standards of corporate governance Directors and all of them have fulfilled the criteria of Board meetings, all operational matters will be discussed
has been continuously practiced and upheld in accordance independence as defined in the Bursa Malaysia Securities The current Chairman has never held the position of and appropriate consultation will be sought if necessary.
with the Principles as set out in Part 1 of the Malaysian Code Berhads Listing Requirements which require at least two Managing Director of the Company. Where and when available, the performance of the
on Corporate Governance (The Code). The Board, to the directors or one-third of the total number of Directors, Group will be benchmarked and compared against the
best of their knowledge, confirms that the Group has complied whichever is higher, to be Independent Directors. The Managing Director of the Company, Datin Paduka performance of its competitors.
with the Best Practices as set out in Part 2 of the Code Siti Sadiah Sheikh Bakir, began her career with JCorp
throughout the financial year ended 31 December 2011. The Independent Non-Executive Directors do not engage and has been directly involved with JCorps Healthcare Identify and manage principal risks and ensure the
in any business dealings or other relationships and the Division since 1978. She has the principal responsibility implementation of appropriate systems to manage
The Board recognises the importance of Corporate day-to-day management of the Company. Hence, they are of implementing the policies and decisions approved by these risks.
Governance and conscientiously attains highest business capable of exercising independent judgment and act in the Board and progressively reports and communicates Various committees in relation to clinical and professional
ethics and governance in conducting the day today business the best interests of the Company and its shareholders. all strategic and operational matters to the Board for risk were set up under the Medical Advisory Committee
and affairs of the Group. Thus, at all times the practice of good All Independent Non-Executive Directors are qualified decision-making purposes. She is further supported and the functions of each committee are disclosed in
corporate governance is the main priority in safeguarding and professionals in their respective fields and carry with them by the newly appointed Executive Director, Amiruddin pages 72 to 81. Building Committee was formed to
enhancing the shareholders value and protecting the interests vast industry experience along with subject matter expertise Abdul Satar, who carries with him vast experience in oversee the risks involving projects and development of
of all stakeholders. in medical, legal, accounting and business management. managing the hospital operations. He has been with the new hospitals.
Group since 1991 and is the current Chief Operating
The Board believes that good corporate governance adds The presence of five (5) Independent Non-Executive Officer (COO). Succession planning, including appointing,
value to the main business of the KPJ Group and will ensure Directors ensures that the Board is well balanced and training and fixing the compensation of, and where
that this practice continues. could carry sufficient weight on Boards decisions. The Board has also developed and approved the corporate appropriate, replacing senior management.
Although all the Directors have equal responsibilities for objectives for 2012, for which the Managing Director and The Board will deliberate on the latest plans and actions
The Board of Directors believes in playing an active role in the Groups operations, the role of these Independent Executive Director are responsible to achieve. taken in respect of the succession planning as provided
directing management through its review and approval of Non-Executive Directors is particularly important in by the Group Human Capital Services. More importantly,
the Groups direction and strategy and acknowledged that ensuring that all business strategies proposed by the Terms of Reference after several years of continuous efforts in emphasizing
their primary role is to lead and control, via its monitoring executive management are fully and independently Terms of reference have been developed for both the Board and communicating the importance of succession
of professional standards and business performance, its discussed and assessed, and take into account the and Management, defining their respective planning, the subject has now become an ongoing
review of the adequacy and integrity of the Groups internal long term interest, not only of shareholders, but also authorities, duties and responsibilities, and this is covered agenda being reviewed and discussed at various high-
control systems, including the identification of principal risks employees, customers, suppliers, and the many by the Groups Code of Conduct and Business Ethics. While level management and operational meetings of the
and ensuring the implementation of appropriate systems to communities in which the Group operate. the Chairman encourages full discussion and deliberation Group. An overview of the Group Human Capital and its
manage those risks, are part of its underlying duty to ensure of issues affecting the Group by all Board Members, importance to the Group are mentioned on pages 117 to
This Board composition complied with the Bursa Malaysia
that the Group meets its responsibilities to its shareholders. the Board has appointed Zainah Mustafa, the Senior 118 of this Annual Report.
Securities Berhads Listing Requirements.
Independent Non-Executive Director, to whom concerns
Board Of Directors Responsibility between Chairman and pertaining to the Group maybe conveyed by shareholders Develop and implement investors relations
Managing Director and other stakeholders. programme or shareholder communications policy
Board Structure, Composition and Balance for the Group.
The responsibility between the Chairman and Managing Director
During the financial year, there have been few changes in Board Responsibility The Group has introduced many activities with regards
are clearly divided to ensure that there is a balance of power and
the composition of the Board of Directors of KPJ from the In discharging their duties and responsibilities, the Board to engagement and communication with investors to
authority. Kamaruzzaman Abu Kassim, who was appointed as the
previous year. On 1 January 2011, Amiruddin Abdul Satar, ensures that all decisions made are in the best interests ensure that they are well informed about the Group
President and Group CEO of JCorp on 1 December 2010, was
Chief Operating Officer of the Company was appointed as of the Company and stakeholders. The key duties of the affairs and developments. Details of investors activities
appointed as Director and Chairman of the Company on 3 January
Executive Director of the Company and on 16 June 2011 Board include the following: are disclosed on pages 61 to 62 of this Annual Report.
2011 and 12 January 2011, respectively.
one Independent Non-Executive Director, Tan Sri Dato
Seri Arshad Ayub, had resigned which reduced down the He carried with him vast experience and wide experience Review and adopt the business strategic plans for Review the adequacy and integrity of the internal
number of Independent Non-Executive Directors to five. within the corporate business and has been with the the Group. controls of the Group and management information
JCorp Group since December 1992. He is also a Director The strategic and business plan for the period 2012 systems, including compliance with applicable laws,
As a result of the above changes, the composition of the and Chairman of other listed companies within the JCorp 2016 was tabled, discussed and approved by the Board regulations, rules, directives and guidelines.
Board of Director is as follows: Group, Kulim Berhad, QSR Brands Berhad, KFC Holdings at its meeting on 29 November 2011. Additionally, on The Boards function as regard to fulfilling these
1. One Non-Executive Chairman Malaysia Berhad and Sindora Berhad. an ongoing basis as need arises, the Board will assess responsibilities effectively are supported and reinforced
2. Three Non-Executive Directors whether projects, purchases and sale of equity as well as through the various Committees established at both the
3. Five Independent Non-Executive Directors Other than actively involved in the corporate business, other strategic consideration being proposed at Board Board and Managements level. Aided by an Independent
4. One Managing Director he also contributed significantly to the development of meetings during the year are in line with the objectives function of the Group Internal Audit Services, the active
5. One Executive Director the JCorp Groups commitment towards Corporate Social and broad outline of the adopted strategic plans. functioning of these Committees through their regular
Responsibility. He is also a director in Waqaf An-Nur meetings and discussions would provide a strong check
The present size and composition remains well balanced and is Corporation Berhad, an Islamic endowment institution and balance and reasonable assurance on the adequacy
made up of professionals with a wide range of knowledge and that spearheads JCorp Groups Corporate Responsibility of the Groups internal controls. Details of these functions
experience in business, operations and finance relevant to the programmes, including the unique Corporate Waqaf are discussed in the Internal Control Statement and Audit
direction of a large expanding Group. The profiles, inclusive of Concept initiated by JCorp. He also sits as Director of Committee report in this Annual Report.
caliber, credibility, skill and experience, of each Board Member Damansara REIT Managers Sdn Bhd. Besides that,
are disclosed on pages 35 to 40 of this Annual Report. he is also the Chairman and/or Director of several other
companies within the JCorp Group.

53 ANNUAL REPORT 2011 ANNUAL REPORT 2011 54

The Board is also responsible to ensure smooth functioning All Directors have complied with the minimum of 50% All Directors are also entitled to have access to the advice In accordance with Article 97 of the Articles of Association
of core processes, board governance, business value and attendance as required by Paragraph 15.05 of the Bursa and services of the Company Secretary. In between of the Company, Abd Razak Haron and Amiruddin Abdul
ethical oversight, whilst the Non-Executive Independent Malaysia Securities Berhads Listing Requirements. meetings, the Managing and/or Executive Director meet Satar, who were appointed during the financial year retire
Directors will further provide an independent and objective regularly with the Chairman and other Board Member to at the forthcoming Annual General Meeting and being
view with effective check and balance in deliberating the Prior to each meeting, the Board Report will be circulated keep them abreast of current developments of the Group. eligible, offer themselves for re-election.
above mentioned. to all Directors so that each Director has ample time to
peruse and review it for further deliberation at the Board Appointment and re-election of Directors Pursuant to Section 129 (6) of the Companies Act,
Board Meetings and Supply of Information meeting. The Board Report includes among others, the The number and composition of Board membership are 1965, Datuk Dr Hussein Awang and Dr Yoong Fook
The Board meets on a quarterly basis with additional following details: reviewed on a regular basis appropriate to the prevailing Ngian, who are above the age of seventy (70) retire at
meetings convened for specific matters when necessary. size, nature and complexity of the Groups business the forthcoming Annual General Meeting and will be re-
Meetings are scheduled ahead to facilitate Directors Minutes of meeting of all Committees of the Board operations so as to ensure the relevance and effectiveness appointed as Director and to hold office until the next
attendance and for the financial year 2011 the meetings Any matters arising from previous meetings of the Board. Annual General Meeting.
were fixed in December 2010. During the year ended 31 Business strategies and corporate proposals
December 2011, the Board convened five meetings on the Review of operational matters and financial report of The Board is responsible to the shareholders. All Directors Directors Remuneration
following dates and venues: the Group appointed during the financial year retire at the Annual The Board believes that the levels of remuneration offered
Review of clinical and professional services report General Meeting (AGM) of the Company in the period of by the Group are sufficient to attract Directors of calibre
Approval sought for capital expenditure and expansion appointment and are eligible for re-election. In compliance and with sufficient experience and talents to contribute
Date of project reports with Paragraph 7.26(2) of the Listing Requirements, all to the performance of the Group. The remuneration
Meeting Description Venue Attendance Progress report on risk management and Audit directors shall retire once at least in every 3 years. framework for Management and Executive Director has
12 Jan 11 Special Board Persada Johor 10/11 Committee report an underlying objective of attracting and retaining director
of Directors Report of the Registrar In accordance with Article 96 of the Articles of Association needed to run the Company successfully. Remuneration
Meeting of the Company, Datin Paduka Siti Sadiah Sheikh Bakir, packages of Management and Executive Director
28 Feb 11 62nd Board KPJ Tawakkal 10/10 There is also a schedule of matters reserved specifically for Zainah binti Mustafa and Rozan Mohd Saat, will retire by are structured to commensurate with corporate and
Of Directors Specialist the Boards decision, including the approval of corporate rotation at the forthcoming Annual General Meeting and individuals performance. The Non-Executive Directors are
Meeting Hospital plans and budgets, acquisition and disposal of assets that being eligible, offer themselves for re-election. remunerated based on fixed annual fees approved by the
10/10
are material to the Group, major investments, changes to shareholders of the Company. (Table 1)
16 Jun 11 63rd Board Persada Johor
Of Directors management and control structure of the Group, including
Meeting key policies, procedures and authority limits.
Table 1
12 Sep 11 64th Board Menara Johor 10/11
Corporation,
The Board is fully aware of its duties and responsibilities
Of Directors Salary and Allowances Fees from Benefit in
Meeting Kuala Lumpur with regards to the above and decisions and deliberation
others and Fees Subsidiary Kind Total
at the Board meetings are recorded and minuted by the
29 Nov 11 th
65 Board Persada Johor 11/11 Company Secretary. All minutes will be confirmed prior to Non-Executive Directors
Of Directors the meetings.
Meeting Kamaruzzaman Abu Kassim (a) 110,556 110,556

The Directors, whether as a full Board or in the individual Ahamad Mohamad (a) 57,500 57,500
capacities, have access to all information within the Company Rozan Mohd Saat (a) 58,800 58,800
The Board Members remain committed and dedicated in and could where necessary take independent advice at the Abd Razak Haron (a) 28,000 28,000
fulfilling their duties and responsibilities and this is reflected Groups expense, in the furtherance of their duties.
via their attendance at each Board meeting as listed below: Independent Non-Executive Directors
Tan Sri Dato Seri Arshad Ayub 31,056 31,056
Zainah Mustafa 65,500 65,500

No Name BOD Attendance Datuk Azzat Kamaludin (b) 62,000 18,000 80,000
Datuk Dr Hussein Awang (c) 92,000 21,000 113,000
1. Kamaruzzaman Abu Kassim Chairman 5/5
2. Datin Paduka Siti Sadiah Sheikh Bakir Members 5/5 Dr Kok Chin Leong (d) 144,750 18,200 162,950
3. Amiruddin Abdul Satar Members 2/2 Dr Yoong Fook Ngian (e) 253,000 6,200 259,200
4. Tan Sri Dato Seri Arshad Ayub Members 2/2
5. Datuk Dr Hussein Awang Members 5/5 Managing Director
6. Datuk Azzat Kamaludin Members 4/5 Datin Paduka Siti Sadiah Sheikh Bakir 998,600 82,500 90,000 70,600 1,241,700
7. Zainah Mustafa Members 5/5
Executive Director
8. Ahamad Mohamad Members 5/5
9. Dr Kok Chin Leong Members 5/5 Amiruddin Abdul Satar 584,550 28,000 36,000 15,521 664,071
10. Dr Yoong Fook Ngian Members 5/5 Total 1,583,150 1,013,662 189,400 86,121 2,872,333
11. Abd Razak Haron Members 2/2
12. Rozan Mohd Saat Members 5/5
(a) Representatives of majority shareholders
(b) Received allowances for appointment as Independent Director of subsidiary company
(c) Received allowances for professional advisory services as Group Healthcare Adviser
(d) Received allowances for professional advisory services on implementation of KPJ Clinical Information System (K-CIS)
(e) Received allowances for professional advisory services as Medical Advisory Committee Chairman

55 ANNUAL REPORT 2011 ANNUAL REPORT 2011 56

Table 2 Directors Training Pursuant to paragraph 15.15 of the Listing Requirements of
As an integral element of the process of appointing new Bursa Securities, the Audit Committee Report for the financial
Directors, the Board ensures that there is an orientation and year, which sets out the composition, terms of reference and a
Name of Workshop Date Venue Name of Organizer Name of Directors
education program for new Board Members. Directors also summary of activities of the Audit Committee, is contained on
1. Invest Malaysia 30 Jan 11 Abu Dhabi, Malaysian Industrial Datin Paduka Siti Sadiah Sheikh Bakir receive further training from time to time through Continuous pages 68 to 71 of this Annual Report.
UAE Development Authority Education Programs (CEP), particularly on relevant laws and
(MIDA) and regulations and changing commercial risks as required by Building Committee (BC)
Focus International Bursa Malaysia Securities Berhad. The Group complies with In line with the extensive development of new and existing
the requirements set out in the Listing Requirements in that hospital buildings, the Board had on 31 May 2010 resolved
2. Women In 22 Feb 11 Kuala Naseba and Peniagawati Datin Paduka Siti Sadiah Sheikh Bakir it regularly assesses the training needs of its Directors to to establish the BC. The main purpose of the committee
Leadership Forum Lumpur ensure that they are updated with the latest requirements. The is to oversee the timeline and costing of each project
Company Secretary will assist to schedule dates for training of undertaken by the Group and to address any issues
3. Clinical Governance 22 Feb 11 Sydney, International Quality Dr Yoong Fook Ngian Directors whether in a group or on an ad-hoc basis. relating to these projects.
Conference Australia & Productivity Centre
During the year, the Board Members have attended the The committee is chaired by Dr Yoong Fook Ngian and
4. Asian CG: 1 Mar 11 Kuala International Corporate Datin Paduka Siti Sadiah Sheikh Bakir
following training organized by external parties (Table 2) comprises 2 other members, Datin Paduka Siti Sadiah
The Future Steps Lumpur Governance Network
Sheikh Bakir and Rozan Mohd Saat. The Committee meets
5. Allergy and Asthma 21 - 24 Kuala Malaysian Paediatric Dr Kok Chin Leong Board Committees on a scheduled basis at least 4 times a year and all reports
In Childhood - An Update Apr 11 Lumpur Associations (MPA) and minutes of the meeting will be escalated to the Board.
Board and Management Committees
6. Malaysian Society for 9 - 11 Kuala Malaysian Society for Dr Yoong Fook Ngian The Board as part of its leadership role coordinates and Medical Advisory Committee (MAC)
Quality in Health (MSQH) May 11 Lumpur Quality in Health (MSQH) delegates specific responsibilities to several committees to The Committees role is to ensure that the best clinical
facilitate the operations of the Group at Board and Management governance activities and guidelines are being practiced
7. Assessing the Risk 24 Mar 11/ Kuala Bursa Malaysia Berhad Datin Paduka Siti level. Each committee has written terms of reference defining by the Group. The Committee meets on a scheduled basis
and Control Environment 22 Aug 11 Lumpur Sadiah Sheikh Bakir their scope, powers and responsibilities. These Committees at least 4 times a year and was chaired by the Chairman of
have the authority to examine particular issues and report MAC, Dr Yoong Fook Ngian.
Malaysian Paediatric back to the Board with their recommendations.
8. 31 May 11 Kota Bahru Malaysian Paediatric Dr Kok Chin Leong
Associations (MPA) The functions and activities carried out by the Committee
- 3 Jun 11 Associations (MPA)
33rd Congress The ultimate responsibility for the final decisions and are set out under the Medical Advisory Committee Report
recommendations on all matters emanating from these on pages 72 to 81 of this annual report.
9. APHM/ASQua/ISQua 6-8 Kuala Association of Private Datin Paduka Siti Sadiah Sheikh Bakir
Committees, however, lies with the entire Board.
International Healthcare July 11 Lumpur Healthcare Malaysia Amiruddin Abdul Satar
Conference
Nomination and Remuneration Committee (NRC)
APHM/ASQua/ISQua Dr Yoong Fook Ngian
The committees are divided into Board and Management Previously, the Nomination and Remuneration Committee
Dr Kok Chin Leong (NRC) for all listed subsidiaries of Johor Corporation
Committees.
The Board Committees comprises of 4 main committees: (JCorp) were centralised at the holding corporation
10. 1st KPJ Medical Workshop 15 - 17 Johor Bahru KPJ Healthcare Berhad Datin Paduka Siti Sadiah Sheikh Bakir
Audit Committee level. The Board had on 28 February 2011 resolved to
2011 July 11 Amiruddin Abdul Satar
Building Committee establish its own NRC and with the establishment of the
Dr Yoong Fook Ngian
Medical Advisory Committee Companys NRC, the functions and responsibilities of the
Dr Kok Chin Leong
Nomination and Remuneration Committee Companys NRC now been decentralized and vested with
Datuk Dr Hussein Awang
the respective Board NRC of each public listed company.
11. Asian Academy of 10 - 11 Kuala Dermatology Society Dr Kok Chin Leong The Management Committees comprises of one main
Eczema Summit Sep 11 Lumpur of Malaysia committee: The Board is of the view that the composition of the NRC meets
Executive Committee the objectives and principles of the corporate governance.
12. Khazanah Mega Trends 26 - 27 Kuala Khazanah Nasional Datuk Azzat Kamaludin
Forum 2011 : Uncertainty Sep 11 Lumpur Board Committees The terms of reference of the NRC are as follows:
as Normality - Navigating Audit Committee (AC) 1. Purpose
Through Complex At the last Annual General Meeting, Pursuant to Section 129 The NRC is established primarily for the following
Interconnection (6) of the Companies Act, 1965, Tan Sri Arshad Ayub, who purposes:
was above the age of seventy (70) retire and did not offer a) Nomination
13. Black Hole of Assurance - Is 4-5 Kuala Institute of Internal Zainah Mustafa
Auditors
himself for re-appointment hence ceased to the Chairman Identify and recommend candidates for Board
your Board & Audit Committee Oct 11 Lumpur
of the Audit Committee. Subsequent to that the Board of directorship;
aware of the Red Flags?
Directors has appointed Zainah Mustafa as the Chairman Recommend directors to fill the seats on Board
14. Early Infant Nutrition 15 - 16 Langkawi Malaysian Paediatric Dr Kok Chin Leong of Audit Committee. Committee, with diversity in consideration;
Oct 11 Associations (MPA) Evaluate the effectiveness of the Board and Board
The Audit Committee comprises of 3 members inclusive of Committee (including the size and composition)
15. JCorp Group Directors 27 - 28 Johor Bahru Johor Corporation Kamaruzzaman Abu Kassim Zainah Mustafa as the Chairman and 2 other members of and contributions of each individual director; and
Conference 2011 - Towards Oct 11 Datin Paduka Siti Sadiah Sheikh Bakir whom all are Independent Non-Executive Directors. The Ensure an appropriate framework and plan for
Boardroom Excellence Amiruddin Abdul Satar Committee meets on a scheduled basis at least 4 times a Board succession.
and Corporate Governance Dr Kok Chin Leong year. The profiles, inclusive of caliber, credibility, skill and Assess the quality of performance and training
Best Practices Dr Yoong Fook Ngian experience, of each Board Member are disclosed on pages needs are addressed
Zainah Mustafa 35 to 40 of this Annual Report.
Rozan Mohd Saat
Abd Razak Haron

57 ANNUAL REPORT 2011 ANNUAL REPORT 2011 58

 b) Remuneration The NRC shall cause the minutes to be duly entered in To propose to the Board the responsibilities of To review with the Managing Director/Chief
Provide assistance to the Board in determining the books provided for the purpose of all resolutions and non-executive directors, including membership Executive Officer, his/her goals and objectives
the remuneration of Executive Directors, proceedings of all meeting of the NRC. Such minutes and Chairpersonship of Board Committees. and to assess his/her performance against
Managing Director and Senior Management. shall be signed by the Chairperson of the meeting at To evaluate and recommend the appointment these objectives as well as contribution to the
In fulfilling these responsibilities, the NRC is to which the proceedings were held or by the Chairperson of senior executive positions, including that of corporate strategy.
ensure that executive directors and applicable of the next succeeding meeting, and if so signed, shall the Managing Director and their duties and the To review the performance standards for key
senior management of the Company: be the conclusive evidence without any further proof of continuation (or not) of their service. executives to be used in implementing the Groups
* Are fairly rewarded for their individual contribution the facts thereon stated. To establish and implement processes for compensation programs where appropriate.
to overall performance; assessing the effectiveness of the Board as To consider and approve compensation
* Are compensated reasonably in light of the The NRC, through its Chairperson, shall report to the a whole, the Committees of the Board and for commitments/severance payments for executive
Companys objectives; and Board at the next Board of Directors meeting after each assessing the contribution of each director. directors and key executives, where appropriate,
* Are compensated similar to other companies. NRC meeting. When presenting any recommendation To evaluate on an annual basis: in the event of early termination of the employment/
Establish the Managing Directors goals and to the Board, the NRC shall provide such background * The effectiveness of each directors ability to service contract.
objectives; and and supporting information as may be necessary for contribute to the effectiveness of the Board and To consider other matters as referred to the NRC
Review the Managing Directors performance the Board to make an informed decision. The NRC shall the relevant Board Committees and to provide by the Board.
against the goals and objectives set. provide such information to the Board as necessary to the necessary feedback to the directors in
assist the Board in making a disclosure in the Annual respect of their performance; During the year, the NRC had one meeting on 28 February
2. Membership Report of the Company in accordance with the Best * The effectiveness of the Committees of the 2011 with full attendance by all members.
The NRC shall consist of the following members: Practices of the Code Part 2 AAIX. Board; and
a) Kamaruzzaman Abu Kassim * The effectiveness of the Board as a whole. Management Committees
- Chairman The Chairperson of the NRC shall be available to answer To recommend to the Board: Executive Committee (EXCO)
b) Zainah Mustafa questions about the NRCs work at the Annual General * Whether directors who are retiring by rotation The terms of reference and objectives of the EXCO are
- Independent Non-Executive Director Meeting of the Company. should be put forward for re-election; and as follows:
c) Datin Paduka Siti Sadiah Sheikh Bakir * Termination of membership of individual
- Managing Director 4. Scope of Activities director in accordance with policy, for cause of 1. Purpose
The duties of the NRC shall include the following: other appropriate reasons. The main objective and purpose of the EXCO are:
The appointment of an NRC member terminates when a) Nomination
the member ceases to be a director of the Company. To establish appropriate plans for Manages the Group in all aspects of business;
To determine the criteria for Board membership, succession at Board level, and if appropriate, at Implements strategic business plans and policies as
including qualities, experience, skills, education senior management level. approved by the Board of Directors
The NRC shall have no executive powers.
and other factors that will best qualify a nominee To provide for adequate training and orientation Identifies, formulates and prioritizes strategic issues
In the event of equality of votes, the Chairperson of the to serve on the Board; of new directors with respect to the business, and charts strategic directions for action by the
NRC shall have a casting vote. In the absence of the To review annually and recommend to the Board structure and management of the Group as well as management and staff
Chairperson of the NRC, the members present shall with regards to the structure, size, balance the expectations of the Board with regard to their
and composition of the Board and Committees 2. Members
elect one of their members to chair the meeting. contribution to the Board and Company.
including the required mix of skills and experience, Managing Director
To consider other matters as referred to the NRC
core competencies which non-executive directors Executive Director
3. Meetings by the Board.
should bring to the Board and other qualities to Chief Education and Knowledge Management
The NRC shall meet at least once a year. Additional
function effectively and efficiently; (EduKATE)
meetings shall be scheduled as considered necessary
To consider, evaluate and propose to the Board b) Remuneration Chief Financial Officer
by the NRC or Chairperson. The NRC may establish
any new board appointments, whether of To establish and recommend the remuneration Senior Group General Manager
procedures from time to time to govern its meeting,
executive or non-executive position. In making a structure and policy for directors and key Chief Risk Officer
keeping of minutes and its administration.
recommendation to the Board on the candidate for executives, if applicable, and to review for Group General Manager
The NRC shall have access to such information and advice, directorship, the NRC shall have regard to: changes to the policy as necessary. Education and Corporate Social Responsibility
both from within the Group and externally, as it deems * Size, composition, mix of skills, experience, To ensure that a strong link is maintained Senior General Manager
necessary or appropriate in accordance with the procedures competencies and other qualities of the between the level of remuneration and individual Group Human Capital
determined by the Company. The NRC may request existing Board, level of commitment, resources performance against agreed targets, the Senior General Manager
other directors, members of management, counsels and and time that the recommended candidate can performance-related elements of remuneration Group Hospital Operation
consultants as applicable to participate in NRC meetings, contribute to the existing Board; and setting forming a significant proportion of the total Senior General Manager
as necessary, to carry out the NRCs responsibilities. Non- * Best Practices of the Code Part 2 AAIII which remuneration package of executive directors. Business Transformation and Strategic Direction
NRC directors and members of management in attendance stipulate that non-executive directors should To review and recommend the entire individual Senior General Manager
may be required by the Chairperson to leave the meeting of be persons of calibre, credibility and have remuneration packages for each of the executive Group Finance and Investor Relations
the NRC when so requested. the necessary skill and experience to bring director and, as appropriate, other senior Senior General Manager
an independent judgement to bear on issues executives, including: the terms of employment Group Marketing and Corporate Communications
The Secretary of the NRC shall be the Company Secretary. considered by the Board and that independent or contract of employment/service; any benefit, Senior General Manager
NRC meeting agendas shall be the responsibility of the non-executive directors should make up at pension or incentive scheme entitlement; any Group Clinical and Quality
NRC Chairperson with input from the NRC members. least one-third of the membership of the Board. other bonuses, fees and expenses; and any
The Chairperson may also request management to compensation payable on the termination of the
participate in this process. The agenda of each meeting service contract.
including supporting information shall be circulated to the
NRC members and all those who are required to attend
the meeting prior to each meeting.

59 ANNUAL REPORT 2011 ANNUAL REPORT 2011 60

3. Meeting Dialogue between Companies and Investors Other than that, the Board believes that the Companys
Meetings are held on every Tuesday on a weekly basis The Group understands that one of its major responsibilities Annual Report also serves as an important communication
or/as and when it deems necessary. is to provide sufficient and timely information as and tool to the shareholders, investors and all stakeholders in
when necessary to its shareholders and investors as general. As such, each year, the Company strives to produce
Relationship With Shareholders this reflects good corporate governance practice. It is a value-added and transparent reporting to its readers.
imperative to maintain transparency and to build trust and
Annual General Meeting understanding in the relationship through active dialogue Accountability And Audit
At each Annual General Meeting, the Chairman and communication with shareholders and investors.
presents the progress and performance of the business Financial Reporting
and encourages shareholders to participate in the As part of Groups commitment to a high level In presenting the annual financial statements and quarterly
question-and-answer session. The Managing Director, communication and transparency with the investment announcements to shareholders, the Board aims to present
the Chairman of the Audit Committee and other Board community, experienced and senior level management a balanced and understandable assessment of the Groups
Members are available to respond to shareholders personnel are directly involved in the Groups investor position and prospects. This also applies to other price-
questions during the meeting. Where appropriate, the relations function. sensitive public reports and reports to regulators. Timely
Chairman will undertake to provide a written answer to Norhaizam giving a presentation on KPJ during Malaysia GEMS 2011 release of announcements reflects the Boards commitment
any significant question that cannot be readily answered The Chairman, Managing Director and senior management in Singapore to provide transparent information on the Groups
at the meeting. Other than the Board Chairman and personnel hold discussions with analysts and shareholders performances and activities.
Other than the website, the Group continues to produce and
Managing Director, the shareholders or any stakeholders from time to time on the Groups results submitted to Bursa
enhance its Annual Report, Corporate Brochures and Fact
may convey any concerns that they may have to Zainah Malaysia. Presentations are made, where appropriate, to In preparation of the financial statements, the Directors
Sheets to provide sufficient details to the shareholders and
Mustafa, Senior Independent Non-Executive Director and explain the Groups strategies, performance and major have taken the necessary steps to ensure that the Group
stakeholders. Other than that, the Group also makes regular
Chairman of the Audit Committee. developments. However, any information that may be had complied with all applicable Financial Reporting
announcements on Bursa Malaysia to provide stakeholders
regarded as undisclosed material information about the Standards, provisions of the Companies Act 1965 and
with important information which affects their decision
Each item of special business included in the notice Group will be safeguarded. relevant provision of laws and regulations in Malaysia
making, thus enhancing the level of transparency.
of the meeting will be accompanied by detailed and the respective countries in which the subsidiaries
explanations. Separate resolutions are proposed In addition, the Group has established a website at www. operate, consistently and that the policies are supported
As part of the Groups annual activities the Group
for substantially different issues at the meeting and kpjhealth.com.my, which shareholders can access. The by reasonable and prudent judgment and estimates.
conducted meetings, teleconferencing and briefings
theChairman declares the number of proxy votes Groups quarterly and annual results announcements and
either upon request by the shareholders and investors or
received both for and against each resolution. The press releases are also posted in the Investor Relations page The Audit Committee assists the Board in ensuring both
via events organized by corporate analysts in Malaysia
Company provides shareholders with a summary of on the Groups website immediately after announcements annual financial statements and quarterly announcements
and abroad i.e. Singapore, Hong Kong, France, United
the discussions at the Annual General Meeting. are made on the Bursa Malaysias website. are accurate and the preparation is consistent with the
Kingdom and United States.
accounting policies adopted by the Group. The quarterly
reports, prior to tabling to the Board for approval, will be
In the year 2011, the following activities were conducted
reviewed and approved by the Audit Committee.
with the investors:
Statement of Directors Responsibility for Preparing the
Types of Meeting No of meetings
Financial Statements
Investors meetings 42 The Directors are required by Companies Act 1965 to
prepare financial statements for each financial year which
Conference Calls 5 have been made in accordance with the applicable
Foreign road shows 17 approved accounting standards and give a true and fair
view of the state of affairs of the Group and the Company
at the end of the financial year and of the results and cash
Senior management personnel involved in Investor
flows of the Group and Company for the financial year.
Relations activities are:
In preparing the financial statements, the Directors have
Designation
adopted suitable accounting policies and applied them
Datin Paduka Siti Sadiah Sheikh Bakir
consistently, made judgement and estimates that are
Managing Director
reasonable and prudent and prepared financial statements
on the going concern basis as the Directors have a
Amiruddin Abdul Satar
reasonable expectation, having made enquiries that
Executive Director and Chief Operating Officer
the Group and Company have resources to continue in
operational existence for the foreseeable future.
Mohd Sahir Rahmat
Chief Financial Officer
The Directors have overall responsibilities for taking such
steps necessary to safeguard the assets of the Group and
Norhaizam Mohammad
to prevent and detect fraud and other irregularities.
Senior General Manager - Group Finance and
Investor Relations
The Statement by Directors pursuant to Section 169 of the
Companies Act 1965 is set out in the financial statements.
Maria Khong Poh Fong
Senior Corporate Manager - Investor Relations

Datin Paduka SIti Sadiah giving a corporate presentation on KPJ during Invest Malaysia 2011.

61 ANNUAL REPORT 2011 ANNUAL REPORT 2011 62

 STATEMENT ON
INTERNAL CONTROL
Internal Control During the year, the Company has changed its external
The Board acknowledges its primary responsibility for auditor from PricewaterhouseCoopers to Ernst & Young.
the Groups system of internal controls covering not only
financial controls but also operational, compliance controls The External Auditor is independent and re-appointed
and risk management, and for reviewing the adequacy and annually at the Annual General Meeting.
integrity of those systems. The effectiveness of the system
of internal controls of the Group is reviewed by the Audit Related Party Transactions
Committee during its quarterly meetings. The significant related party transactions for the financial
year ended 31 December 2011 are set out in the notes
An overview of the state of internal control is set out in the to the financial statements on pages 176 to 177 of the
Statement on Internal Control on pages 64 to 67 of this Annual Report.
Annual Report.
At the 19th Annual General Meeting held on 16 June 2011,
Relationship with the External Auditors the Company obtained a shareholders mandate to allow the
The Board through the Audit Committee has maintained Group to enter into recurrent related party transactions as
an appropriate relationship with the External Auditors and set out in the Notes of the Compliance Information on page
there is a formal and transparent arrangement in the review 191. As set out in the Bursa Malaysia Listing Requirements
of the External Auditors audit plan, report, internal control and Companys Articles of Association, a Director who has
issues and procedures. an interest in a transaction shall abstain from deliberation
and voting on the relevant resolution inrespect of such
The Committee meets with the External Auditor without transaction at the Board and general meeting convened to
the presence of the Executive Board Members and Senior consider the matter.
Management twice during the year. The External Auditor has
attended three out of four Audit Committee Meetings which Signed on behalf of the Board of Directors in accordance
were held on these dates 18 February 2011, 15 August 2011 with its resolution dated 23 February 2012.
and 17 November 2011 and they also attended the 19th
Annual General Meeting held on 16 June 2011.

KAMARUZZAMAN ABU KASSIM DATIN PADUKA SITI SADIAH SHEIKH BAKIR

CHAIRMAN MANAGING DIRECTOR

63 ANNUAL REPORT 2011

Statement On Internal Control
(Pursuant to Paragraph 15.27(b) of the Bursa Malaysia Listing Requirements)

The Board of Directors of KPJ Healthcare Berhad (KPJ) The Group has implemented the policy on Code of Ethics All operational matters are deliberated at the Operational The Group focused its Risk Management activities on
is pleased to provide the following statement on the state and Business Conduct to emphasize the commitment of Committee, chaired by the Executive Director. incident reporting, root cause analysis, adopting the Seven
of internal controls of the Group for the financial year the Group towards ethical values. Patient Safety Goals of the World Health Organization and
ended 31st December 2011, which has been prepared Various committees were formed to identify, evaluate, monitor monitoring activities that depart from best practices. This
in accordance with Paragraph 15.27 (b) of the Listing All hospitals and companies within the Group have been and manage the significant risks affecting the achievement of is to ensure that every incident is investigated and root
Requirements of Bursa Malaysia and the Statement on requested to sign an integrity pledge with their suppliers, business objectives. These committees are: cause identified to prevent future recurrence and ensure
Internal Control Guidance for Directors of Public Listed contractors and other related third parties. patient safety is given top priority.
Companies. The system of internal controls is designed to 1. Medical Advisory Committee
manage risks to an acceptable level within the context of Commitment To Competence Responsible for monitoring the ethical and good Control Activities
the business environment throughout the Group. As a service provider, the Group is committed to improve medical practice of medical consultants.
the skills and competencies of its management, medical Policies and Procedures
Board Responsibilities consultants and employees through various training 2. Clinical Governance Committee Policies and procedures are documented comprehensively
The primary responsibility of the Board is to ensure the programmes, seminars, workshops and quality initiatives. a. Responsible for the establishment of framework in the Malaysian Society for Quality in Healthcare (MSQH)
adequacy and integrity of the Groups internal controls for all the clinicians with the Group to: accreditation standards as well as the MS ISO 9001:2008
system which cover financial, operational and compliance The Group has made it mandatory for each staff to undergo i. Continuously improve service quality standard operating procedure manuals, which are updated
controls management. The principal objective of at least 30 hours of training per year as part of the indicator ii. Ensure high standard of care from time to time. These policies and procedures help
the internal controls system is to manage business in the Key Performance Indicators with the objective of iii. Create an environment that promotes to ensure management directives are carried out and
risks effectively, enhance the value of shareholders encouraging knowledge management and initiatives. excellence in clinical care necessary actions are taken to address and minimize risks.
investments and safeguards assets of the Group. The Training on work related areas such as customer services, b. There are various sub-committees under the Clinical All hospitals in the Group are targeted to obtain the MSQH
role of Managing Director and Management is to assist fire safety and corporate culture are done either internally Governance Committee; namely Clinical Governance Accreditation certification ultimately.
in the design and implementation of the Boards policies or through external moderators. Policy Committee, Clinical Governance Action
on internal control system. Committee and Clinical Risk Management Committee. For the year 2011, 11 of the hospitals in the Group have
The Group also organizes the KPJ Medical Conference, been accredited by the MSQH Accreditation Certification
Since internal controls are designed to manage and Medical Workshop and Nursing Convention yearly for 3. Procurement/Tender Committee and two hospitals namely KPJ Ampang Puteri Specialist
reduce risks rather than eliminate them, therefore such the medical consultants, nurses and allied health staff to a. Ensure that purchases of equipment and tender of Hospitals and KPJ Seremban Specialist Hospitals are
internal controls can provide only reasonable assurance deliberate and discuss medical and clinical issues related projects are made in accordance with the standard undergoing JCI Accreditation process.
to Management and the Board of Directors regarding the to their practices to promote patient safety, best practices operating procedures as well as leveraging on
achievement of company objectives through:- as well as standardization of practices. bulk discounts. As for the year 2012, four hospitals have been identified to
effectiveness and efficiency of operations b. Coordinates the standardization of equipment, get the MSQH Accreditation certification.
reliability of financial reporting New and creative ideas are encouraged through suggestion pharmaceutical items and medical supplies purchased.
compliance with applicable laws and regulations schemes and Innovative Circle Committee competitions,
Segregation of Duties
held yearly, whereby the winner of this event will represent Risk Assessment Framework and Process The delegation of responsibilities to the Board, the
The Board still relies on the COSO Internal Control Framework KPJ at the higher level of competition at JCorp, the ultimate
Management and Operating Units are clearly defined and
to ensure an appropriate and sound system of internal holding corporation. Company-Wide Objectives authority limits are strictly enforced. Different authority
controls, which encompasses five interrelated components Enterprise-Wide Risk Management has been implemented limits are set for different categories of executives for the
i.e. the Control Environment, Risk Assessment Framework,
Organisation Structure across the Group through Risk Coordinators, appointed procurement of capital expenditure. Similarly, cheque
The organization structure of the Group, headed by the
Control Activities, Information and Communication and at each hospital to co-ordinate and monitors the signatories and authority limits are clearly defined and
Managing Director, is divided into three (3) main divisions:
Continuous Monitoring process. implementation of risk management activities. All hospitals enforced. As a measure to curb and reduce the incident of
Financial, Professional Services and Operation. For the
and companies are encouraged to identify and mitigate fraud and error, duties and tasks are segregated between
year 2011, the Group has created new position ie Executive
Control Environment relevant risks that may affect the achievement of the different members of staff especially those in finance and
Director, to overseeing operational matters of the Group.
Groups Key Performance Indicators and report to their purchasing services.
Integrity And Ethical Values As for the hospitals, the day-to-day operations are respective Board.
The Management is committed to enforce ethical managed by the Executive Directors cum Chief
behaviour in employees and medical consultants. At Executives Officer or the General Manager.
the annual staff assembly or Pedoman (Perhimpunan,
Dialog dan Anugerah Tahunan Anggota Pekerja) in the The Executive Directors cum Chief Executive Officers
hospitals, new staff take an oath and sign a Service and the General Managers are assisted by the Medical
Pledge declaration form. All employees and medical Directors in relation to clinical issues in the hospitals.
consultants are reminded during the Pedoman of
the five Core Values adopted by the Group, which At the Corporate level, the Group is assisted by the Medical
are Safety, Courtesy, Integrity, Professionalism and Advisory Committee and Clinical Governance Committee
Continuous Improvement. on matters pertaining to clinical issues.

Employees are also encouraged to report directly to Assignment of Authority and Responsibility
the Managing Director of any misconduct or unethical The Board assigns authority and responsibility mainly to the
behaviour committed by any staff of the Group through Executive Committee (EXCO) to manage the strategic issues
the Borang Peradaban declaration. pertaining to the delivery of services and future direction of
the Group. Major purchases are discussed and deliberated
by the EXCO before they are tabled at the respective
hospitals Board meetings. The objective is to ensure Group
synergy, standardization and bulk discounts.
KPJ Penang Specialist Hospital receiving the MSQH Accrediation certificate

65 ANNUAL REPORT 2011 ANNUAL REPORT 2011 66

 AUDIT
Any discrepancy and irregularity will be reported to
the Management for correction and improvement. The
Management also monitors the performance of the
hospitals and companies through regular meetings
COMMITTEE REPORT
and reports.

Separate Evaluations
All hospitals certified with the MSQH accreditation have
to undergo stringent surveillance audit by the respective
surveyors and audit teams to ensure compliance.

The Groups Internal Auditors also visits the hospitals

from time to time to monitor and evaluate their activities
KPJ Clinical Information System and performance and report back to the Audit
Committee quarterly.
Information and Communication Process As mentioned above, the Group also monitors the
KPJ has successfully implemented the KPJ Clinical effectiveness of internal controls through Borang
Information System (KCIS) in KPJ Penang Specialist Hospital, Peradaban, the declaration form used by employees
KPJ Johor Specialist Hospital, Puteri Specialist Hospital, KPJ to report any deficiency or dishonest act directly to the
Tawakkal Specialist Hospital, KPJ Ampang Puteri Specialist Managing Director of the Group.
Hospital and KPJ Damansara Specialist Hospital.
Assurance
New modules introduced include the Medical Care Solution
The Board is of the view that the system of internal
for patient management, Nursing Care Solution catering
controls instituted throughout the Group is sound and
for nursing care plan and management, Pharmacy with
effective and provides a level of confidence on which
interface to a drug database decision support system and
the Board relies for assurance. In the year under review,
also Picture Archiving and Communications System for the
there was no significant control failure or weakness that
imaging department and medical records.
would result in any material losses, contingencies or
uncertainties that would require separate disclosure in
Ultimately all hospitals within the Group would be
the Annual Report. The Board ensures that the internal
implementing KPJ Clinical Information System. By
controls system and the risk management practices of
implementing and utilizing this system, all patient
the Group are reviewed regularly to meet the changing
information can be shared throughout the Group and
and challenging operating environment.
facilitates patient transfer from one hospital to another.
The Board is therefore pleased to disclose that the state
Continuous Monitoring Process of internal controls of the Group is sufficient, appropriate
and effective and in line with the Malaysian Code of
Ongoing Monitoring Corporate Governance and the Statement of Internal
Ongoing monitoring of internal control effectiveness Control Guidance.
is appropriately and sufficiently done through not only
normal daily supervision by immediate supervisors,
but also by the Internal Auditors and Quality Auditors,
who make both scheduled and surprised audit visits to
ensure compliance.

KAMARUZZAMAN ABU KASSIM DATIN PADUKA SITI SADIAH SHEIKH BAKIR

CHAIRMAN MANAGING DIRECTOR

67 ANNUAL REPORT 2011

Audit Committee Report

A total of four (4) meetings were held on 18 February b. Risk Management

2011, 13 May 2011, 15 August 2011 and 17 November i. Review the adequacy and provide independent
2011 respectively. assurance to the Board on the effectiveness of risk
management functions in the Group and whether
All the Audit Committee members are Independent Non- principles and requirements of managing risk are
Executive Directors. The Chairman of the Audit Committee, consistently adopted throughout the Group; and
Zainah Mustafa is a member of the Malaysian Institute of ii. Review the risk profile of the Group and major
Accountants (MIA) and a Fellow of Association of Certified initiatives having significant impact on the business.
Chartered Accountant (FCCA). This meets the requirement
of Section 15.09 (1) of the Bursa Malaysia Securities c. Internal Audit
Berhads Main Market Listing Requirements which i. Approve the Audit Charter and ensure the internal
stipulates at least one qualified accountant as a member audit functions are adequately resourced;
of the Committee. ii. Review the adequacy of Internal Audit Plan, the scope
of audits and that the internal audit function has the
Subsequent to each meeting, the Audit Committee necessary authority, competency and resources to
Chairman submits a report on matters deliberated to the carry out its work;
Board of Directors for their information and attention. The iii. Review the results of the internal audit process and
Management would implement the decisions made and where necessary ensure that appropriate action is
corrective actions required. taken on the recommendations of the internal audit
From left: Datuk Azzat Kamaludin Member/Independent Non-Executive Director Zainah Mustafa Chairman/Independent Non-Executive Director
function;
Datuk Dr Hussein Awang Member/Independent Non-Executive Director
The Committee shall meet a minimum of twice a year with iv. Approve any appointment or dismissal of the Head of
the External Auditors in separate sessions without the Internal Audit;
1. Composition And Attendance b. To provide assistance to the Board in fulfilling its fiduciary presence of executive Board members or management of v. Review appraisal or assessment of members of the
responsibilities relating to corporate accounting and the Company. internal audit function; and
For the financial year ended 31 December 2011, the Audit vi. Direct any special investigation to be carried out by
reporting practices;
Committee comprised of three Directors, all of whom are In year 2011, three (3) meetings were held on 18 February the internal audit.
c. To improve the Groups business efficiency, the quality of
also members of the Board of KPJ Healthcare Berhad. 2011, 15 August 2011 and 17 November 2011
the accounting and audit function and strengthen public
The composition of the Audit Committee and the record of confidence in the Groups reported financial results; and respectively. A separate session was also conducted on d. External Audit
their attendance are as follows: d. To maintain open lines of communication between the 13 February 2012. i. Review the External Auditors audit plan, scope of the
Board and the External and Internal Auditors. audit and audit reports;
The Managing Director, Executive Director and Chief ii. Consider the appointment of the External Auditor,
Membership Operating Officer, Chief Financial Officer, senior management the audit fee and any questions of resignation or
Members / team, Executive Directors of the hospitals as well as the Head dismissal of the External Auditor before making any
a. The members of the Committee shall be appointed by
Status of directorship Attendance % of Internal Audit and representatives of the External Auditors recommendation to the Board;
the Board, amongst its Directors who fulfils the following
requirements: shall normally attend the meetings. Other directors and iii. Discuss issues and reservations arising from the
Zainah Mustafa 4/4 100 employees of the Company and/ or Group may attend any interim and final audits, and any matters the Auditor
i. the Committee must comprise not less than three (3)
Chairman/Independent particular meeting upon invitation, where appropriate. The may wish to discuss; and
members;
Non-Executive Director ii. all members must be Non-Executive Directors, with a Company Secretary shall be the secretary for the meeting. iv. Review the External Auditors Management Letter and
(Re-designated as Chairman majority of them being independent directors; and Managements response.
on 16 June 2011) iii. all members should be financially literate and at least Authority
one (1) must be a member of the Malaysian Institute of The Committee is empowered by the Board to:- e. Related Party Transactions
Datuk Azzat Kamaludin 4/4 100 Accountants (MIA) or have the relevant qualifications a. investigate any matter within its terms of reference or as Monitor and review any related party transactions that
Member/Independent and experience as specified in the Bursa Malaysia directed by the Board; may arise within the Company or Group.
Non-Executive Director Securities Berhad (Bursa Securities) Main Market b. determine and obtain the resources which are required to
Listing Requirements. perform its duties; f. Other Matters
b. The Chairman of the Committee, elected from amongst c. have full and unrestricted access to any information Consider such other matters as the Committee considers
Datuk Dr Hussein Awang 4/4 100
the Audit Committee members, shall be approved by the pertaining to the Group; appropriate or as authorized by the Board.
Member/Independent
Board and shall be an Independent Director. d. have direct communication channels with the External
Non-Executive Director and Internal Auditors; and
c. No alternate Director of the Board shall be appointed as 4. Summary Of Activities
a member of the Committee. e. obtain external legal and other independent professional
Tan Sri Datuk Arshad Ayub 2/2* 100 advice. During the year, the Committee carried out the following
d. The term of office and performance of the Committee
Chairman/Senior Independent activities:
members are reviewed by the Board yearly and may be
Non-Executive Director 3. Duties And Responsibilities a. Financial results
re-nominated and appointed by the Board.
(Ceased as Chairman and The Committee shall carry out the following functions:- i. Review the quarterly unaudited financial result
member on 16 June 2011) Reporting Responsibilities announcements before recommending the same to
a. Financial Reporting Review the Board for approval; and
The Committee will report to the Board on the nature and
Review the quarterly and year-end financial statements
extent of the functions performed by it and may take such ii. Review the Companys compliance, in particular the
* Reflects the number of meetings attended during the of the Company, focusing particularly on:-
recommendations to the Board on any audit and financial quarterly and year end financial statements, with the
time the Director held office. i. any changes in accounting policies and practices;
reporting matters as it may think fit. Listing Requirements of Bursa Malaysia, Malaysian
ii. significant adjustments arising from the audit;
iii. the going concern assumption; Accounting Standards Board and other relevant legal
2. Terms Of Reference Meetings
iv. compliance with accounting standards; and and regulatory requirements.
Purpose A minimum of four (4) meetings a year shall be planned
v. compliance with Listing Requirements of Bursa
a. To ensure transparency, integrity and accountability in and additional meetings may be called at any time at the
Malaysia and other legal and statutory requirements.
the Groups activities so as to safeguard the rights and Chairmans discretion.
interests of the shareholders;

69 ANNUAL REPORT 2011 ANNUAL REPORT 2011 70

 MEDICAL ADVISORY
b. Risk Management
i. Review the Groups risk management process in
mitigating the principal business risks identified; and
The Internal Audit Department within its terms and reference
carried out the following activities for the period:-
review and appraise the adequacy and integrity of the
internal financial controls so as to ensure that it provides
COMMITTEE REPORT
ii. Review the risk profile of the Group and major
initiatives having significant impact on the business. a reasonable but not absolute assurance that assets are
properly safeguarded;
ascertain the effectiveness of the Management in identifying
c. Internal Audit principal risks and to manage such risks through the
i. Review and approve the annual audit plan for the Risk Management Framework set-up by the Group;
year 2010/2011 to ensure adequate scope and ascertain the level of compliance with Groups plans,
comprehensive coverage over the audit activities; and policies, procedures and adherence to laws and
ii. Deliberate on the Internal Audit Reports that were regulations;
tabled and appraised Managements response to the appraise the effectiveness of administrative and financial
key audit observations and recommendations. controls applied and the reliability and integrity of data
that is produced within the Group;
d. External Audit perform follow-up reviews of previous audit reports to
i. Review the audit plan, audit strategy and scope of ensure appropriate actions are implemented to address
work before the audit commences; and control weaknesses highlighted;
ii. Review the results of the interim and annual audit as carry out investigations and special reviews requested by
well as the External Auditors Management Letter and the Committee and/or Management; and
evaluated Managements response. prepare the Audit Committee Report for the Companys
Annual Report 2011.
e. Related Party Transactions
Review the recurrent related party transactions entered The internal audit function is performed in-house with thirteen
into by the Group. (13) staff members. A total of 171 audits were carried out
and presented to the Committee with the recommended
f. Other Matters corrective actions acted upon.
Review the Audit Committee Report, Statement on
Corporate Governance and Statement of Internal Control The total costs incurred for the internal audit function for
prior to their inclusion in the Companys Annual Report. the financial year 31 December 2011 was approximately
RM950,000. Training and courses are provided to the staff
5. Internal Audit Function members in the areas of auditing and technical skills as well
The Group has an internal audit function which is carried as personal development.
out by the Internal Audit Services (IAS). The IAS reports
directly to the Audit Committee and is guided by its Internal 6. Seminars/Conferences Attended By The Committee
Audit Charter. Its principal activity is to assist the Board in
For the year under review, the Committee attended the
monitoring and managing risk by undertaking regular and
following seminars and conferences:
systematic independent reviews of the system of controls in
accordance with the approved Audit Plan. This is to provide
reasonable assurance that such system continues to operate
No Name of Seminars / Conference Date
satisfactorily and effectively in the Group.
1. st
1 KPJ Medical Workshop 2011 15 - 17
The high risk activities are given due attention on a more Jul 2011
regular basis while the others are prioritized accordingly to
an assessment of the potential risk exposure and impact. 2. Khazanah Mega Trends Forum 2011: 26 - 27
During the financial year ended 31 December 2011, the Uncertainty as Normality - Navigating Sep 2011
IAS carried out its duties covering audits on cash and Through Complex Interconnection
credit management as well as operational controls on
revenue assurance, procurement and inventory. Reviews on
3. Institute of Internal Auditors: Black 4-5
compliance with the established procedures, guidelines and
statutory obligations are also performed. Hole of Assurance - Is your Board Oct 2011
and Audit Committee aware of the
The internal audit reports were issued to Management for Red Flags?
their response on corrective and preventive actions as well as
deadlines to complete the actions. The reports were tabled to 4. Johor Corporation Directors 27 - 28
the Committee for deliberation on quarterly basis. Conference 2011 Oct 2011
Towards Boardroom Excellence
Investigations were also performed at the request of the and Corporate Governance Best
Committee and Management on specific areas of concern to Practices
follow up in relation to high risk areas identified in the regular
reports. These investigations provided additional assurance
on the integrity and robustness of the internal control systems.

71 ANNUAL REPORT 2011

Medical Advisory Committee Clinical Governance Policy Commitee

First row from left Second row from left Third row from left First row from left Second row from left Third row from left

1. Dr Kok Chin Leong 6. Dato Dr Azizi Omar 11. Amiruddin Abdul Satar 1. Dato Dr Mohd Rani Jusoh 6. Dr Abd Razak Samsudin 10. Dr KV Anitha
Clinical Governance Policy Research Development Executive Director and Medical Director Consultant General Surgeon Senior Corporate Manager -
Committee Chairman Committee Chairman Chief Operating Officer Consultant Physician and Neurologist Puteri Specialist Hospital Group Clinical and Quality
Consultant Paediatrician Medical Director and KPJ Ampang Puteri Specialist Hospital
Puteri Specialist Hospital Consultant Paediatrician 12. Dr KV Anitha 7. Dr Wan Hazmy Che Hon 11. Mah Lai Heng
KPJ Damansara Specialist Hospital Senior Corporate Manager - 2. Tan Sri Dato Dr Yahya Awang Medical Director Senior General Manager
2. Datin Paduka Siti Sadiah Group Clinical and Quality Consultant Cardiothoracic Surgeon Consultant Orthopaedic Surgeon Group Clinical and Quality
Sheikh Bakir 7. Dato Dr Zaki Morad KPJ Damansara Specialist Hospital KPJ Seremban Specialist Hospital
Managing Director Mohamad Zaher 13. Mah Lai Heng 12. Dr Aliza Jamaluddin
Clinical Ethics Committee Chairman Senior General Manager Committee Chairman 8. Dr Mahayidin Muhamad Senior Corporate Manager -
Committee Chairman Consultant Physician Nephrologist Group Clinical and Quality 3. Dr Kok Chin Leong Medical Director Group Clinical and Quality
3. Dr Yoong Fook Ngian KPJ Ampang Puteri Specialist Hospital Consultant Paediatrician Consultant Radiologist
Consultant Ear, Nose 14. Maygala Arumugam Puteri Specialist Hospital KPJ Perdana Specialist Hospital 13. Maygala Arumugam
and Throat Surgeon 8. Dr Mohd Hafetz Ahmad Group Chief Nursing Officer Group Chief Nursing Officer
KPJ Ipoh Specialist Hospital Medical Director 4. Datuk Dr Johan Thambu 9. Dr Alex Tang Tuck Hon
Consultant Obstetrician 15. Dr Aliza Jamaluddin Abd Malek Consultant Paediatrician
4. Datuk Dr Hussein Awang and Gynaecologist Senior Corporate Manager Consultant Obstetrician and KPJ Johor Specialist Hospital
Hospital Medical Directors KPJ Johor Specialist Hospital - Group Clinical and Quality Gynaecologist
Committee Chairman KPJ Tawakkal Specialist Hospital
Medical Director 9. Dato Dr Shahrudin Mohd Dun 16. Jasimah Hassan
Consultant Urologist Clinical Governance Action Chief Education and Knowledge 5. Dato Dr Fadzli Cheah Abdullah
Tawakal Health Centre Committee Chairman Management (EduKATE) Medical Director
Medical Director Consultant Neuro Surgeon
5. Dato Dr S Jenagaratnam Consultant General Surgeon KPJ Ipoh Specialist Hospital
Clinical Risk Management KPJ Selangor Specialist Hospital
Committee Chairman
Consultant Anaesthetist 10. Dato Dr Ngun Kok Weng
KPJ Ipoh Specialist Hospital Consultant General Surgeon
Kuantan Specialist Hospital

73 ANNUAL REPORT 2011 ANNUAL REPORT 2011 74

Clinical Governance Action Committee Clinical Risk Management Committee

First row from left Second row from left Third row from left First row from left Second row from left Third row from left

1. Dr Mohd Harris Lu 6. Dr Mohamed Namazie Ibrahim 11. Dr K V Anitha 1. Dr Primuharsa Putra Sabir 6. Dr Siti Salwa Mohd Nazri 11. Dr KV Anitha
Medical Director Consultant Anaesthetist Senior Corporate Manager - Husin Athar Medical Officer Senior Corporate Manager -
Consultant Ophthalmologist KPJ Selangor Specialist Hospital Group Clinical and Quality Consultant Ear, Nose, Throat, KPJ Ampang Puteri Specialist Hospital Group Clinical and Quality
Sentosa Medical Centre Head and Neck Surgeon
7. Dr G Ruslan Nazaruddin 12. Dr Aliza Jamaluddin KPJ Seremban Specialist Hospital 7. Dato Dr Azlin Azizan 12. Abdol Wahab Baba
2. Dato Dr Ismail Yaacob Simanjuntak Senior Corporate Manager - Consultant Radiologist Chief Risk Officer
Medical Director Medical Director Group Clinical and Quality 2. Dato Dr N Sivamohan KPJ Ampang Puteri Specialist Hospital
Consultant Physician Consultant Orthopaedic Surgeon Medical Director 13. Mah Lai Heng
Kedah Medical Centre KPJ Tawakkal Specialist Hospital 13. Mah Lai Heng Consultant Obstetrician 8. Dr Norita Ahmad Senior General Manager -
Senior General Manager - and Gynaecologist Consultant Physician Group Clinical and Quality
Committee Chairman 8. Dr Khaled Mat Hassan Group Clinical and Quality KPJ Klang Specialist Hospital KPJ Perdana Specialist Hospital
3. Dato Dr Shahrudin Mohd Dun Medical Director 14. Dr Aliza Jamaluddin
Medical Director Consultant Obstetrician 14. Maygala Arumugam Committee Chairman 9. Dato Dr Zurin Adnan Senior Corporate Manager -
Consultant General Surgeon and Gynaecologist Group Chief Nursing Officer 3. Dato Dr S Jenagaranam Abd Rahman Group Clinical and Quality
KPJ Selangor Specialist Hospital Kuantan Specialist Hospital Consultant Anaesthetist Consultant Surgeon
KPJ Ipoh Specialist Hospital KPJ Damansara Specialist Hospital 15. Maygala Arumugam
4. Dr Balakrishnan Subramaniam 9. Abdol Wahab Baba Group Chief Nursing Officer
Medical Director Chief Risk Officer 4. Dr Noor Hisham Mansor 10. Dr Shaharudin
Consultant Obstetrician Consultant Physician Abdul Jalal Ajmain
and Gynaecologist 10. Dr Ewe Khay Guan KPJ Tawakkal Specialist Hospital Medical Director
KPJ Kajang Specialist Hospital Medical Director Consultant Radiologist
Consultant Ear, Nose 5. Dato Dr Abd Wahab Ghani Puteri Specialist Hospital
5. Dato Dr Azizi Omar and Throat Surgeon Deputy Medical Director
Medical Director KPJ Penang Specialist Hospital Consultant Orthopaedic Surgeon
Consultant Paediatrician KPJ Ampang Puteri Specialist Hospital
KPJ Damansara Specialist Hospital

75 ANNUAL REPORT 2011 ANNUAL REPORT 2011 76

Medical Advisory Committee Report

Clinical Governance is defined as A framework through 1. Identify Patients Correctly vi. Monitoring of Medication Error / Adverse Events viii. Clinical Indicators
which the organization is accountable for continually 2. Improve Effective Communication As a part of the Incident Reporting program all The Group has been collecting, analyzing and
improving the quality of their services and safeguarding 3. Improve the Safety of Using Medication medication error and other adverse events are monitoring clinical indicators to improve patient
high standards of care by creating an environment in which 4. Ensure Correct-Site, Correct-Procedure, monitored, root cause analysis (RCA) done and outcomes. The program started in 2001 with seven
excellence in clinical care will flourish and the Group Correct-Patient Surgery corrective actions and improvement measures put indicators and currently 20 indicators are being
is committed to continuously strive to enhance clinical 5. Improved Hand Hygiene to Prevent Health Care- into practice routinely. monitored and whereas Patient Safety indicators
governance as the main thrust for improving the quality of Associated Infection that are being monitored include O&G, Diagnostic
care, ensuring patient safety and developing the capacity 6. Reduce the Risk of Patient Harm Resulting vii. Safety Research or Studies Imaging, Radiotherapy and Hospital-wide indicators.
to maintain high standards. from Falls Currently the following research safety and quality (Table 4)
studies are being monitored by the KPJ Research &
Development Committee: In 2011, MAC also reviewed the current governing policies
At the Group level, the Group Medical Advisory Committee iii. WHO World Alliance on Patient Safety Challenges
KPJ Johor: Epidemiology of Medication Errors of which currently there are a total of 99 policies complied
(MAC) develops and monitors clinical governance activities Clean Care is Safe Care (2005-2006)
in KPJ Johor Specialist Hospital into 4 groups i.e. Clinical Governance (CG 001 012),
and guidelines for the Group. Whereas at the individual The WHO guidelines on hand hygiene were reviewed
KPJ Ipoh: The occurrence of sharp injury Clinical Services (CS 001 050), Hospital Operations (HO
hospital level, the Hospital MAC under the chairmanship of and adapted for KPJ Hospitals use in 2008. Continuous among workers in KPJ Ipoh from 001 027) and Pharmacy (PS 001 010). To be in line with
the hospital Medical Director facilitates the implementation training and monitoring of hand hygiene compliance is 2007 2010 KPJs objective to be a paper-less organization these policies
and oversees compliance to clinical governance through part of the regular activities of the hospital Infection KPJ Damansara: 1. Comparison on the effectiveness have been converted to electronic media called e-Governing
various clinical sub-committees such as the Hospital Control Unit. of the current teaching module Policy which can be accessed by all Medical Directors &
Credentialing & Privileging, Audit & Medical Education, versus traditional method on medical staff and all other KPJ staff in the future.
Infection Control, Medical Records, Mortality Review, Safe Surgery Saves Lives (2007-2008) hand hygiene practice among
Pharmacy & Therapeutics and Surgical Medical Intervention The Peri-operative Check List for KPJ was healthcare providers MAC continues to monitor all other clinical governance
Committees and other hospital committees. established at the end of 2009 based on the WHO 2. Effectiveness of Shift Handover activities for the Group including:
Check List and the Ministry of Health Check List among State Registered Nurses Mortality reports and Hospital Mortality Review
MAC governs and functions through a number of committees, and the pilot project was successfully carried out. In at KPJ Damansara Committee reports
namely the Clinical Governance Policy Committee (CGPC), 2010 all KPJ Hospitals started implementing this and KPJ Selangor: Epidemiology of fall and the Diagnostic groups admitted to the Group
Clinical Governance Action Committee (CGAC), Clinical compliance is being monitored. effectiveness of the KPJ Fall Risk Antibiogram and Antibiotic Resistance reports, etc.
Risk Management Committee (CRM), Central Credentialing Assessment Tool
& Privileging Committee (CCPC) and Central Mortality Tackling Antimicrobial Resistance (2009-2010) KPJ Tawakkal: A 12 month study of inpatients
Review Committee (CMRC); including two new committees The Infection Control Policy and Procedure are being complaints at KPJ Tawakkal
started in 2010; Clinical Ethics Committee and Research & reviewed and the National Antibiotic Guidelines 2008
Development Committee. (Table 1) have been adopted for use for the Group. Antibiogram
and antibiotic resistance patterns are being monitored
In KPJs journey to always improve quality of care and to at hospital as well as Group level.
ensure patient safety the Group has embarked on various
programs over the years. Starting with quality improvement iv. Infection Control Program (ICP)
certifications (ISO, OSH certifications, etc.) to look at ICP Manpower Status for the year 2011 showed that
proper documentation & processes, followed by MSQH there are 22 Infection Control Officers / Infection Control
accreditation and 10 hospitals have been accredited thus far Nurse (ICO / ICN) in the Group. All accredited and non
i.e. KPJ Ampang, KPJ Johor, KPJ Damansara, KPJ Ipoh, KPJ accredited hospitals with more than 110 beds comply
Selangor, KPJ Seremban, KPJ Perdana, KPJ Kajang, KPJ with the regulatory requirement of having dedicated
Penang and Kedah Medical Centre. ICOs. ICOs are being supported by a total of 199
ICNs to facilitate and implement the Infection Control
Numerous quality and safety programs have been Program (ICP).
implemented from the time when the Medical Advisory
Committee began in full swing in the year 2002. The report Monitoring and Surveillance on Hospital Acquired
on the Patient Safety programs for the year 2011 follows: Infection (HAI)
6 parameters are monitored currently (Table 2) and
i. Quality Committees & Quality Officer HAI monitoring results showed significant reduction
All hospitals have Quality Committees and Quality in Surgical Site Infection (SSI) and Catheter Related
Officers. The Quality Officer collects, complies, Blood Stream Infection (CRBSI) when compared to the
analyzes, monitors the statistics and trends and same period last year. Currently this surveillance study
reports to the Quality Committee quarterly and conducted in ICU/CICU only and will be extended to
all reports are presented to the Hospital Board of other areas of the hospital next year.
Director meeting.
v. Incident Reporting
ii. Patient Safety Day The Group hospitals have been reporting since
In year 2011 all hospitals have commenced with the KPJ 2006 using a standardized format based on the
Patient Safety Goals at their hospitals with participation ICPS Classification for Patient Safety recommended
of patients, visitors, consultants and all staff. KPJ by the World Health Organization (WHO). List of
hospitals have implemented and are monitoring the 6 incidents reported include the following: (Refer to
international Patient Safety Goals identified by WHO: Table 3 for details)

77 ANNUAL REPORT 2011 ANNUAL REPORT 2011 78

Table 1: Table 3:
Frequency of Hospital Clinical Committee Meeting in 2011
Incidents Being Monitored

1 Patient Fall 11 OT & CSSD Services

Committees Date of Meetings Cancellations (not related to biomedical equipment)
2 Medication Related
Incomplete consent forms
Group Medical Advisory Committee (MAC) 16/2/2011 Prescribing
Operative delay (not related to biomedical
Dispensing / preparation (Pharmacy)
19/5/2011 equipment)
Administration (Nursing)
11/8/2011 OT - Infection control related
9/11/2011 3 Sentinel Events Pre-operative assessment not done
Retained instruments / swabs Medical records related (missing test results, x-ray, etc)
Clinical Governance Policy Committee (CGPC) 27/1/2011 Severe hemolytic blood transfusion reaction due Unplanned return to OT
28/4/2011 to ABO incompatibility CSSD - infection control related
15/7/2011 Baby identification error
12 Hospital Wide General Events
Intravascular gas embolism leading to death or
14/10/2011 Allergic reaction medication or non-medication
severe injury
Clinical Governance Action Committee (CGAC) 22/4/2011 related
Maternal death / severe morbidity
Burns / Scalds
8/8/2011 Medication error leading to death or serious
Clinical procedures (adverse outcome / error /
17/10/2011 adverse event
failure) - doctor related
Suicide/ para-suicide/self-harm
Clinical Risk Management Committee (CRM) 7/4/2011 Complication (unpredicted) NOT during or related
Unexpected death
2/8/2011 to surgery or procedure
Wrong patient / wrong site / wrong procedure /
13/10/2011 Complication (unpredicted) occurring
wrong body part
during or within 24 hours of all operative &
Research & Development Committee (R&D) 2/10/2011 Fall with serious injury / death
interventional procedure
Clinical Ethics Committee (CEC) 18/5/2011 4 Blood Transfusion Related Delayed care - bed or equipment not available
31/10/2011 Laboratory error Medical supply (causing delay in clinical care) -
Wrong patient / wrong blood not available / insufficient stock
Blood transfusion reaction - haemolytic (mild)
13 Equipment / Device Related
Blood transfusion reaction - others
Biomedical equipment failure affecting clinical care
5 Sharps Injury (exclude lost/missing)
Table 2: Needle Stick Injury (Patient, Staff & Student) All other medical equipment failure affecting
Surveillance on Hospital Acquired Infection (HAI) Other Sharps Injury (exclude needle stick) clinical care (exclude lost/missing)
6 OSH Related 14 Customer Feedback (Anecdotal)
Injury to staff (at work, coming & going home Dissatisfied with Doctor, nursing service
from work) or support service
SN Hospital Acquired Iinfections Being Monitored
Injury or incident related to patient, visitor or Dissatisfaction with service / facility
1 Surgical Site Infection (SSI) outsourced staff/contractor
15 Medical Records Related
Electric events (affecting patient / staff safety)
Records misplaced / lost
Cytotoxic spillage
2 Ventilator Associated Pneumonia (VAP) Incomplete (no admission form, discharge
7 Discharge Related (Clinical) summary, etc)
3 Catheter Related Blood Stream Infection Dis-satisfaction with service Information security breach
Service not available
16 Laboratory Services
Discharge Against Medical Advise
4 Catheter Assoc Urinary Tract Infection Hematoma at bleeding site
Poor prognosis
Missing specimen / result
2nd opinion Nursing Services Related
5 Methicillin-resistant Staphylococcus Aureus (MRSA) Service interruption
8 Nursing Services Related Wrong patient / wrong procedure / wrong result
Communication related incidents affecting clinical
6 Methicillin-resistant Staphylococcus Epidermidis (MRSE) 17 Diagnostic Imaging Services
care
Exposure to pregnant women
Delay in carrying out orders
DID - Wrong person / wrong site / wrong procedure
Nursing process error / failure
Delay in carrying out orders
Error in documentation / documentation related
Service interruption
Bedsore (severe) Grade 4 muscle & bone exposed
Thrombophlebitis 18 Radiotherapy Services
Radiotherapy - Wrong person / wrong site / wrong
9 O&G Services
procedure / wrong dose
Maternal events (maternal deaths reported under
Delay in carrying out orders
sentinel events)
Service interruption
Delivery events / injury to baby during delivery
Perinatal deaths 19 Food Services
Food safety / hygiene
10 ICU Services
Wrong person / wrong diet
Readmission to ICU within 24 hours
Unplanned transfers to ICU / HDU 20 Discharge Related (Non-Clinical) Incidents
Adverse clinical events - Dislodged ETT / Financial constraints / no insurance cover
monitoring lines Absconded
Appointment at other Hospitals
Bed Constraint

79 ANNUAL REPORT 2011 ANNUAL REPORT 2011 80

Table 4:

Clinical (Outcome) Indicators CONTENTS

1 Surgical indicators
a. Mild & moderate head injury case fatality rate 84 Hospital Operations
b. Rate of white appendix 88 Medical Tourism
c. Laparoscopic Cholecystectomy discharged within 48 hours
92 New Developments Hospitals
2 Medical indicators 96 New Development
a. Percentage of myocardial infarction patients receiving thrombolytic therapy within 1 hour of their presentation
at the Emergency Department Aged Care and Retirement Village
b. Percentage of myocardial infarction patients undergoing primary PCI 98 EduKATE
c. Myocardial infarction case fatality rate
d. Dengue fever case fatality rate 104 Ancillary Services
e. CABG Death in low risk, high volume cases 108 Corporate Responsibility
3 O&G indicators
a. Percentage of patients with length of hospital stay > 5 days after elective caesarean section
b. Percentage of patients with length of hospital stay > 5 days after emergency caesarean section
c. Adequacy of PAP smear
d. Birth trauma injury to neonate
e. Obstetric trauma during LSCS injury to mother
f. Urinary tract injury following hysterectomy
4 Anaesthesia indicators
a. Occurrence of adverse events during the recovery period
b. Unplanned admission to the Intensive Care Unit within 24 hours of surgery
BUSINESS
5 Paediatric indicator
a. Incidence rate of neonatal hyperbilirubinemia >20mg/Dl REVIEW
6 Other surgical indicators
a. Incidence of casting complications
b. Rate of reactionary post tonsillectomy bleeding
c. Percentage of post operative cataract patients with BCVA less than 6/9 - three months post operatively

Safety Indicators

1 O&G indicators
a. Birth trauma injury to neonate
b. Obstetric trauma during LSCS injury to mother
c. Urinary tract injury following hysterectomy
2 Diagnostic Imaging indicators
a. Morbidity associated with Percutaneous Needle Aspiration Cytology / Biopsy of Abdomen Haemorrhage
b. Wrong person / wrong site / wrong procedure / wrong dose error
3 Radiotherapy
a. Wrong person / wrong site / wrong procedure / wrong dose error
4 Hospital wide indicators
a. Patient Fall
b. Sharps injury
c. Medication error
d. Blood / blood products transfusion error
e. Burns during delivery of electro-therapeutic modalities & thermal agents

81 ANNUAL REPORT 2011

 HOSPITAL
OPERATIONS

State-of-the-art Facilities

24-hour Accident and Emergency Unit High Dependency Unit (HDU)/Neonatal HDU
24-hour Ambulance Services Intensive Care Unit (ICU)/Neonatal ICU
3-D/4-D Ultrasound Laboratory
Angiography and Cardiac Catheterization Lab (Cathlab) Lithotripsy Centre
Bone Densitometer Digital and Navigated Orthopaedic Operation Theatre,
Coronary Intensive Care Unit (CICU) Cardiac Operation Theatre and General Operation Theatre
Coronary Care Unit (CCU) Oncology and Radiotherapy Centre/Linear Accelerator
Cardiothoracic Centre Ophthalmic Laser
Convalescent Centre/Home Nursing Picture Archiving and Communications System (PACS)
Diagnostic Imaging Superconductive MRI/Multi-slice Pharmacy
CT Scan/Digital Fluoroscopy/General X-Ray with CR Physiotherapy and Rehabilitative Centre
System/Mammography/Mobile X-Ray/Mobile C-Arm Private Delivery Rooms
Diagnostic/Screening Centre Special Care Nursery
Dental X-Ray Treadmill Stress Test
Day Care Ward Women and Baby Centre
Haemodialysis Centre

83 ANNUAL REPORT 2011

Hospital Operations
Three Decades On and Still Going Strong

KPJ Healthcare Berhad operates a network of 20 private

Specialist Services
specialist hospitals that spans the length and breadth of
Malaysia and also serves neighbouring Indonesia with two
- Anaesthetics Services
hospitals in Jakarta.
- Coronary Angiogram & Angioplasty
- Audiology
The services provided to the local communities where
- Bariatric Surgery
the hospitals are located as well as to foreign patients
- Cancer & Chemotherapy Services
encompasses services in various medical disciplines,
- Cardiology & Cardiothoracic Surgery
ranging from general medicine and surgery to more
- Child Psychiatry
specialized areas such as cardiothoracic or plastic and
- Clinic Pathology
reconstructive surgery and many others.
- Colorectal Surgery
- Cornea Transplant Surgery
Continued Growth in 2011 - Diet Counselling
In celebrating its 30th anniversary, KPJ continued to drive
- Dental Services
ahead with record achievements in 2011.
- Dermatology (Skin)
- Day Surgery
Its financial position remains strong with another year of
- Ear, Nose & Throat (ENT)
record growth in both the top line and bottom line.
- Endochrinology
- Feto-Maternal Medicine
KPJ achieved its highest ever consolidated revenue of more
- General Surgery
than RM1.91 billion, more than doubling what it achieved
- General / Internal Medicine
five years ago and about 15% higher than the preceding
- Endoscopy Services Gastroscopy,
years performance.
Colonoscopy, ERCP etc.
- Haemotology
This achievement was possible with improvements seen
- Immunisation & Vaccination Services
across the network of hospitals, with the Malaysian hospitals
- Interventional Angioplasty KPJ is steadfast in its commitment to quality
still generating the bulk of the revenue, alongside better
- Interventional Chronic Pain Management
performance among support services and the education unit.
Services / Centre Meanwhile, the Indonesian operations also posted higher Total outpatients rose by more than 7% while the number
- In-vitro Fertilisation (IVF) revenue as RS Bumi Serpong Damai, which is still in the of inpatients increased by almost 5%, bringing the total
All 20 Malaysian hospitals continued to remain profitable
- Joint Replacement and Reconstructive Surgery gestation period, showed a marked three-fold improvement number of patients to more than 2.6 million for 2011.
concerns in 2011, with 13 posting double-digit top line
- Laparoscopic Surgery in revenue.
growth, which was supported by expansion of bed Occupancy rate remained high, averaging at around
- Neurology (EEG & EMG)
capacity, extensions to house more Consultant suites, 70%, and a number of hospitals are currently undergoing
- Neurosurgery Support services such as Pharmaserve Alliances Sdn Bhd
introduction of new services and medical equipment, as expansion to increase the bed capacity.
- Neonatology and Lablink Sdn Bhd, the education unit KPJ Healthcare
well as recruitment of more Medical Consultants.
- Nephrology University College, as well as intrapreneur and other
- Occupational Health Services subsidiaries also contributed positively to the Groups Hospitals located in Klang Valley and major towns continued
The top eight largest hospitals accounted for more than 60% to lead in terms of patient numbers and almost all hospitals
- Orthopaedic & Trauma Surgery 2011 performance.
of the total revenue contributions from Malaysian hospitals. showed an increase in the number of patients, with some
- Ophthalmic (Eye) Laser
- Ophthalmic (Eye) Surgery The strong revenue achieved during the year also translated showing double digit growth as a result of expansion in
Earnings from Malaysian hospitals also improved because capacity, improvement in services rendered as well as
- Ophthalmology into higher earnings for the Group, recording a record high
of contributions from Sibu Specialist Medical Centre, aggressive marketing and promotional efforts.
- Orthodontic & Maxillofacial Surgery profit before zakat and tax of RM204.60 million in fiscal
which was acquired in early 2011, as well as more
- Obstetrics & Gynaecology (O&G) 2011, surging 21.8% on year.
prudent spending and the austerity drive to contain costs. This included, among others, extensive publicity through
- Outpatient Treatment
- Paediatric Surgery KPJ also continued to earn dividend income from its the media as well as advertising mediums such as
- Plastic & Reconstructive Surgery ownership of 49% stake in Al-Aqar Healthcare REIT. The billboards and community projects. Notable among them
- Physiotherapy, Rehabilitative & Occupational stronger performance by Al-`Aqar also resulted in higher is the Johnson & Johnson Touch Campaign that was
Therapy Services returns for KPJ. launched on 2 March 2011.
- Psychiatry General & Paediatric
During the year, KPJ also conducted a survey to evaluate
- Pharmacy & Laboratory Services The acquisition of a 51% stake in Jeta Gardens Waterford
the effectiveness of its advertising initiatives and to measure
- Radiotherapy & Oncology Trust (JGWT) was completed on 30 November 2011,
the success of its branding exercise.
- Reconstructive & Spinal Surgery and therefore is expected to make a more meaningful
- Respiratory Medecine Services contribution in the following year. The survey findings showed that 82% of the
- Restorative Dentistry & Endodontics respondents marked KPJ under the total brand recall
- Rheumatology Quality Healthcare Delivery Strengthens among the top eight healthcare players in the country.
- Sleep Disorder Centre Consumer Confidence The results of the survey reflected positive outcome
- Urology KPJs commitment to quality and patient safety continues to from the advertising efforts.
- Vascular Surgery play a significant role in ensuring high consumer confidence
in its hospital operations and this effort is reflected in the
increase in overall patient numbers.

Linear Accelerator (LINAC) for Oncology treatment

85 ANNUAL REPORT 2011 ANNUAL REPORT 2011 86

 MEDICAL
TOURISM

KPJ continues to focus on enhancing good customer service

Community projects and events were also conducted by While KPJ continues to focus on promoting its brand and
every KPJ hospital as part of its contribution to building up services to the local community, it is also marketing its
a healthier society and to create greater awareness about hospitals abroad to attract more international patients.
the services that are available at the hospitals.

Corporate clients and insurers also continued to remain a

major supporter of KPJ hospitals and significant emphasis
was placed on building relationships with these clients
and to acquire new ones to generate greater revenue for
the Group.

87 ANNUAL REPORT 2011

Medical Tourism
A Hidden Jewel

KPJ participates in exhibition in Middle East

KPJ participates in exhibition in China

KPJ intensified its medical tourism activities in 2011, Driven by the positive outlook as well as these Government
strengthening its brand and growing its profile of initiatives, KPJ lent its support to many of the activities led
These marketing efforts proved to be effective with the Enhancing Services to Support Medical Tourism
international patients through marketing and promotions in by MHTC, the Ministry of Health and the Tourism Ministry,
target markets in Asia, the Middle East and Australia. number of patients from the Middle East seen rising in 2011 Meanwhile, KPJ hospitals are also enhancing its services to
which took KPJ to many international trade fairs and
and revenue doubling over the 12-month period. better cater to the needs of the foreign patients from various
roadshows throughout the year.
The Group made a greater presence in these target countries by opening new premier wards, hiring patient
markets through participation in international exhibitions, Marketing and promotions in Bangladesh and China were liaison officers who are well-versed with various foreign
Promoting KPJ at International Exhibitions
trade expos, and sales visits across several countries in also very well received, translating into an improvement in languages such as Arabic, Indonesian, Japanese and
The years marketing efforts took KPJ to Indonesia,
the Asia continent, focusing mainly on Indonesia, Australia, the number of patients from these countries in 2011. Korean, to name a few, and increasing the overall capacity
beginning with sales visits and promotions at Acheh and
Bangladesh and China as well as the Middle East, to name Medan in January and later in November to Surabaya. at existing hospitals.
a few. Under the guidance of Matrade, KPJ had also participated
in the 8th China-ASEAN Expo (CAEXPO), which was held at Investments continued to be made in new medical
The promotional drive in Surabaya was led by MHTC and it
The number of medical tourists, who are essentially patients Nanning, Guangxi, China, on 21-26 October 2011. equipment and facilities featuring the latest technologies for
also served as a platform for KPJ to expand its network with
who travel out of their home country to a foreign destination travel agents who can refer patients to KPJ hospitals. a more positive patient experience and better medical and
for elective surgeries and procedures, are expected to The 8th Expo, which was jointly officiated by Chinese surgical outcomes.
continue rising in future years as many more will be attracted Premier Wen Jiabao and Malaysian Prime Minister YAB
Indonesia is an important market for KPJ as it currently
to take advantage of the international-standard medical Dato Sri Mohd Najib Tun Abdul Razak, is an annual event Programmes are also being drawn up for the convenience
accounts for the largest proportion of KPJs international
care at competitive prices that are available in Malaysia. and has been highly credited as an effective platform to of international patients and their accompanying family
patients, accounting for almost a third, and it is expected to
promote trade, investment, and tourism. members, including arrangements for services that they
continue to remain a significant market for the Group.
This, coupled with the Governments initiatives to boost the may need during their stay in Malaysia.
healthcare travel industry, should also contribute to further In support of initiatives by MHTC and APHM, KPJ
Meanwhile, efforts were also made to further enhance
development of the sector. also participated in the Malaysia Healthcare Travel Some relevant information such as brochures and vital
KPJs presence in the Middle East and in highly-populated
Exhibition 2011 in Hong Kong and the medical tourism information are also published in foreign languages to help
As a major healthcare player in Malaysia, these countries such as Bangladesh and China.
promotion to Guangzhou, China, in September and answer queries from foreign visitors.
developments will bode well for KPJ and the Group is also December 2011, respectively.
planning to further strengthen its foothold in target markets The Middle Eastern market promises much growth
potential as Malaysia is a very attractive destination given KPJs efforts to have its hospitals accredited by the
through continued promotions and aggressive marketing. Promotions and marketing were also extended to other Malaysian Society for Quality in Health (MSQH) and later
the many similarities in culture and customs. KPJ is also
countries around the globe, from Vietnam in Indochina to by the Joint Commission International (JCI) further affirms
Strategy to Grow the Medical Tourism Dollar well-positioned to attract patients from the Middle East
Australia and to the West to Kurdistan, Iraq, and as far as its commitment to ensure continued quality care for all its
While the domestic market remains the mainstay for KPJ given its previous experience in managing hospitals in
the US. patients and serves to instill greater public confidence in
hospitals, the management believes that one way to support Saudi Arabia.
its services.
sustainable growth is to enhance its market position in other Among the most recent participation by KPJ in the US
areas of high potential, one of them being the medical Malaysias national trade promotion agency Malaysia
was the 4th World Medical Tourism & Global Healthcare To date, 11 KPJ hospitals have been accredited by MSQH,
tourism segment. External Trade Development Corp (Matrade) has also
Congress. The congress was held in Chicago, Illinois, on with more undergoing the MSQH survey this year and two
identified the Middle East as one of the target markets
25-28 October 2011. others preparing for the JCI accreditation.
The Governments interest in building up Malaysia as a for promotion of the countrys healthcare business and as
medical tourism hub has catapulted healthcare travel to a major healthcare player, KPJ is fully supportive of the
Clearly such marketing efforts proved to be fruitful with a In this digital age, the web portal is more than just a
even greater significance than before, starting first with the initiatives launched by Matrade.
marked increase seen in the number of patients originating marketing tool to provide information to patients and
launch of the Malaysia Healthcare Travel Council (MHTC) in
from many of the targeted countries, and KPJ plans to potential customers. For KPJ, the web portal is also used to
December 2009 and subsequent health travel promotional In April, KPJ participated in the fourth edition of the Malaysia
activities led by MHTC, the Association of Private Hospitals continue with the current marketing strategies. KPJ is also facilitate the needs of its patients by allowing them to make
Services Exhibition (MSE 2011), which was held at the Abu
of Malaysia (APHM) and various healthcare facilitators and exploring the possibility of setting up a representative office appointments with the doctor of their choice.
Dhabi National Exhibition Centre in Abu Dhabi, the capital
government agencies. in some of the major markets to promote KPJ hospitals
of United Arab Emirates (UAE).
more aggressively and to provide added services.
Further regulatory liberalisation by the Government, in KPJs marketing efforts in the Arab countries also included
support of medical tourism, opened new avenues for sales visits and tie-ups with medical tourism agents, with
healthcare players, including KPJ, to promote their services the aim of enhancing the Groups relations with the local
to potential patients abroad. governments and other business establishments from the
UAE region for the treatment of their employees to KPJ
hospitals in Malaysia.

89 ANNUAL REPORT 2011 ANNUAL REPORT 2011 90

 NEW DEVELOPMENTS
- HOSPITALS

Announcement of KPJ projects under ETP

Increasing Capacity, Expanding KPJ is investing some RM760 million over the next 3-4 years
Hospital Network to develop five new hospitals in Malaysia namely KPJ Klang
In view of the anticipated increase in patient numbers, from Specialist Hospital, Sabah Medical Centre, Pasir Gudang
both domestic and international markets, KPJ had drawn Specialist Hospital, KPJ Pahang Specialist Hospital and
up plans to expand its capacity over the next five years, Bandar Dato Onn Specialist Hospital which were named
in line with its aim to add 1-2 new hospitals to its network under the ETP Healthcare Travel category.
via acquisitions or greenfield developments at locations that
KPJ has yet to set foot in. These five projects will collectively add 822 beds to
KPJs existing capacity of more than 2,500 beds, and are
The expansion effort coupled with initiatives to expand its expected to create over 3,000 new jobs and contribute
medical tourism market culminated in the announcement an estimated RM1.2 billion in GNI for the country.
of KPJ as one of the 13 new project owners under the 8th
update of the Economic Transformation Programme (ETP) These new investments, alongside other projects that are
by Malaysian Prime Minister YAB Dato Sri Mohd Najib Tun currently in the pipeline, will bring KPJ closer to the local
Abdul Razak on 10 November 2011. community and enhance the services that will be available
to medical tourists.
The ETP has identified 12 National Key Economic Areas
(NKEAs) 11 industry sectors and Greater KL/Klang Valley The tapping of this potential healthcare travel market
that will drive overall economic growth in the country and a hidden jewel will also be accompanied by new job
to transform Malaysia into a high-income nation by 2020. creation as well as opportunities for skill enhancement,
which will bode well for the economy and the healthcare
The healthcare sector, one of the 12 NKEAs, is viewed as labour market over the long run.
a private-sector driven growth engine that will generate
RM35 billion in incremental gross national income (GNI)
contribution to reach RM50 billion by 2020. It will focus on
three sub-sectors, namely Pharmaceuticals, Health Travel
and Medical Technology Products.

91 ANNUAL REPORT 2011

New Developments - Hospitals
Positioning for Sustainable Growth

KPJ Klang Specialist Hospital KPJ Muar Specialist Hospital

While working on increasing the number of foreign patients, Plans are also afoot to develop the KPJ Muar Specialist
KPJ also puts significant emphasis on the growing needs Hospital, a project which began when KPJ first acquired the
of the local community and to this end, the Group has partially-completed 7-storey building located along Jalan
committed to invest almost RM900 million to develop seven Stadium in Muar, Johor for RM22 million. The acquisition
new hospitals over the next few years, including the five was completed on 12 April 2010.
hospitals named under the ETP.
KPJ is currently completing the hospital building at an
With that, KPJ will bring new technologies and medical estimated development cost of around RM26 million, and
KPJ Specialist Hospital Bandar Dato Onn
services closer to the local community while setting its anticipates a capacity of more than 100 beds with a floor
footprint in new locations. space of more than 200,000 sq ft and almost 200 car park
bays. KPJ Muar Specialist Hospital is likely to be completed The blueprint includes, among others, three operation
in early 2013 and is expected to provide various surgical theatres alongside an intensive care unit and labour room
Blazing on the Expansion Trail
and medical services such as Orthopaedic, Mother and as well as other medical facilities and services.
Having successfully concluded its acquisition of Sibu
Specialist Medical Centre in 2011, KPJ continues to look at Child Care, Renal Care and many others. The new KPJ Perlis Specialist Hospital will also provide
new markets and plans are afoot to open its new KPJ Klang Physiotherapy, Haemodialysis, Accident & Emergency as
Specialist Hospital in Bandar Baru Klang, Selangor, in the In the more distant future, KPJ is also placing a flag in the
well as 24-hour Outpatient Services.
first half of 2012. Perlis state capital of Kangar following its signing of a
60-40 joint-venture agreement with Yayasan Islam Perlis The hospital will be ready to serve the Perlis population and
Built at a cost of about RM50 million, KPJ Klang will (YIP) on 11 July 2011 to develop the first private specialist foreign patients from as far as southern Thailand by 2014.
have more than 300,000 sq ft in built-up area, allowing hospital in the peninsulas northern-most state of Perlis. The
it a maximum capacity of 200 beds and 29 consultant ground-breaking ceremony was held on 20 November 2011. During that same year, KPJ is also anticipating two further
suites as well as ample space for various services and additions to its network of hospitals.
medical facilities. As part of the agreement, YIP will provide a 4.3-acre land KPJ Pahang Specialist Hospital
land in Pengkalan Asam, Mukim Seriab, Kangar for the KPJ will also be expanding its foothold in the Pahang state
development, while KPJ will leverage on its 30 years of through the development of its new KPJ Pahang Specialist These centres will be equipped with advanced medical
Down south, the KPJ Pasir Gudang Specialist Hospital
healthcare experience to develop the new hospital and to Hospital, a 188-bedded hospital that will complement the equipment based on state-of-the-art technologies.
in Johor is also slated for completion in 2012. The multi-
provide its expertise in administration, financial, general services currently rendered by Kuantan Specialist Hospital
disciplinary hospital, which will be opened in phases, will Currently, KPJ is also developing a new hospital building
management, and other services related to the running and in Pahang.
enable KPJ to provide a comprehensive range of medical in Kota Kinabalu, Sabah, which upon completion of its first
care to the local community as well as international patients operation of a private specialist hospital.
KPJ Pahang will be developed by Pahang Specialist phase in 2012, will replace the existing premise that Sabah
from the neighbouring countries. Hospital Sdn Bhd, a 70:30 joint venture company of KPJ and
This new development will change the landscape of Medical Centre is currently operating in.
Kangar with a 6-storey hospital building that has a total PASDEC Corp, a subsidiary of Pahang State Development
KPJ will spend more than RM40 million to develop this The community can expect more comprehensive services
capacity of 90 beds and equipped with the latest facilities Corporation (PKNP).
hospital, building up almost RM200,000 sq ft of floor space alongside the medical care from Consultants with a wider
that will encompass a built-up area of 123,000 sq ft. The
to house more than 100 beds and medical facilities. Further south, KPJ Specialist Hospital Bandar Dato Onn range of medical disciplines when the new 11-storey
first phase of the projects development cost is estimated
at RM30 million. will begin construction soon at Bandar Dato Onn, a new hospital in Kota Kinabalu is completed.
township that is located within the Iskandar Development
Region in Johor. The first phase of this development should
be ready to welcome both domestic and international
patients in two years time.

The new hospital will be developed in two phases, with the

first phase encompassing about 280,000 sq ft and a bed
capacity of 150, and when fully completed, the total bed
capacity will rise to almost 400 beds with a built-up area of
approximately 500,000 sq ft.

This new facility will serve as a one-stop centre featuring

six centres of excellence, namely, a Heart Centre, Geriatric
Centre, Cancer Centre, Woman and Child Centre, Cosmetic
and Reconstructive Centre, as well as Orthopaedic and
KPJ Pasir Gudang Specialist Hospital KPJ Perlis Specialist Hospital Related Surgery Centre. The new Sabah Medical Centre building

93 ANNUAL REPORT 2011 ANNUAL REPORT 2011 94

 NEW DEVELOPMENT
-AGED CARE AND
RETIREMENT VILLAGE

KPJ Selangor Specialist Hospital

The RM200-million hospital is expected to house a total of In some cases, where the need arises, KPJ will also
250 beds at full capacity along with 500 parking bays, and build a new hospital building in place of an old facility to
it will be fitted with the latest equipment and facilities for enable the hospital services to be enlarged and to allow
better outcomes and comfort. for the provision of more facilities and services as well as
installation of the latest medical equipment that employ
Enhancing Sustainability state-of-the-art technologies.
through Organic Growth
KPJs expansion strategy also includes plans to expand In 2009, KPJ opened a new hospital building in KPJ
existing hospitals to provide more bed capacity and Penang Specialist Hospital as a replacement for the former
additional space for new facilities and the latest equipment as Bukit Mertajam Specialist Hospital and the following year,
well as upgrading of existing services to provide customers it opened the KPJ Tawakkal Specialist Hospital in place
with better quality care and improved ambience. of the old Tawakal Hospital, which is currently being re-
developed at a cost of more than RM15 million to become
To this end, KPJ has committed some RM250 million Tawakal Health Centre.
to expand and upgrade its existing hospitals in order to
enhance patient experience at all KPJ hospitals.

Work is currently underway to expand several hospitals,

including KPJ Selangor Specialist Hospital and KPJ
Seremban Specialist Hospital, by developing a new block
adjacent to the existing building.

For other hospitals, such as KPJ Tawakkal Specialist

Hospital and KPJ Damansara Specialist Hospital,
renovation is currently ongoing to fit out the next phase
of their development or expansion, while for others, such
as KPJ Johor Specialist Hospital and Puteri Specialist
Hospital, upgrading works are being carried out to Tawakal Health Centre
enhance the level of comfort and ambience as well as
improvement in the facilities.

95 ANNUAL REPORT 2011

New Development - Aged Care and Retirement Village
The Golden Age Living Experience

EduKATE
Aside from charting the expansion path for its network of
hospitals, KPJ has also travelled far to venture into another
new area of community care to enhance its range of
Jeta Gardens
Jeta Gardens was founded some four years ago with a
vision to provide aged care and retirement living services
- KPJ UNIVERSITY COLLEGE
services as well as provide an additional avenue of income for the retirement community while recognizing also their
for the Group Retirement Care. needs to have the appropriate environment, culture and
lifestyle amid modern amenities.
Times A-Changing for Golden Boomers
The Baby Boomers start to turn 65 in year 2011 and they are The 64 acres of extensive parklands and renowned Chinese
transforming the retirement age. Surveys by independent Gardens at Jeta Gardens, bordering the Logan River, is a
research houses have shown that the boomers have a profusion of scenery and wildlife as well as home to more
longer life span and have a whole new view on retirement, than 200 residents living in 23 villas, 32 apartments and the
forcing a re-examination of the traditional assumptions 108-bedded aged care facility.
relating to retirement. In short, they will reinvent retirement.
There are some 150 staff members at the resort who provide
As Baby Boomers retire, focus will also be on caregivers various services to the residents.
and how they prepare for the impact of providing healthcare
to those in their golden years. And as a major healthcare In December 2011, the Australian Federal Government
provider, KPJ must change with the times and continue its awarded Jeta Gardens approval to add a further 70 beds
mission by transforming the way it provides care to meet in its aged care facility and the resort is also developing 10
the changing needs of the population. additional villas.
As a dynamic business, KPJ must also be at the forefront
To date about half of the land bank has been developed. Plans
in identifying new opportunities and potential markets to
currently are on the drawing board on how best to maximize
sustain continued long-term growth for the Group.
returns on the remaining land and to create the ultimate utopia
Hence, on 22 September 2010, KPJ signed an agreement for the retirement community at Jeta Gardens.
to acquire up to 367,605 new ordinary units in Jeta Gardens
Waterford Trust (JGWT) and up to 3.3 million 10-year Amplifying Services, Maximizing Returns
convertible notes for RM19 million in an all-cash deal, and In addition to the development of more villas and the
this would give KPJ a 51% equity interest in JGWT. increase in occupational beds at the aged care facility,
the blueprint for the expansion at Jeta also includes ideas
The exercise was concluded on 30 November 2011, to set up more facilities for the comfort and convenience
making JGWT a subsidiary of the KPJ Group. of the residents, including the possibility of setting up a
Geriatric and Rehabilitation Hospital.
JGWT owns and operates Jeta Gardens Australias first
retirement and aged care resort that incorporates Eastern The effort to continuously improve the ambience and
values which is located in Bethania, a southern suburb of service rendered to the residents has not gone unnoticed,
Brisbane, Australia. with Jetas Aged Care Facility securing the second cycle
of accreditation in 2011, based on compliance with all 44
KPJs involvement in Jeta Gardens will be the gateway to standards and assessment criteria, as well as receiving
the retirement world, allowing it to gain greater knowledge an award as the most innovative aged care and retirement
and experience in providing retirement care to the elderly. living business model.

The Group will also leverage on its experience as a primary KPJs entry has also injected greater synergy into the
caregiver as well as the knowledge of its team of managers retirement resort. The unique combination of Jetas
and clinicians to create a new experience and lifestyle for successful operations alongside KPJs experience in the
the Golden Boomers in Malaysia. healthcare industry has helped strengthen JGWTs financial
position in 2011.

Further development of the Bethania site and the provision of

more comprehensive services in the coming years will further
magnify the returns for JGWT, and ultimately for KPJ.

Villa at Jeta Gardens

97 ANNUAL REPORT 2011

KPJ University College

First row from left Second row from left

1. Dato Dr Azizi Omar 4. Tan Sri Dato Seri Arshad Ayub 7. Prof Dr Durrishah Idrus 9. Dr Wan Hazmy Che Hon 11. Dato Dr Shahrudin Mohd Dun 13. Dr Abd Razak Samsudin
Director Chancellor Vice Chancellor cum Director Director Director
Member, Senate Chief Executive Officer Member, Senate Medical Director Consultant General Surgeon
Member, Education Advisory Committee 5. Datin Paduka Siti Sadiah Member, Research Consultant General Surgeon Puteri Specialist Hospital
Medical Director Sheikh Bakir 8. Dato Dr Hussein Awang and Development Committee KPJ Selangor Specialist Hospital
Consultant Paediatrician Pro-Chancellor and Chaiman Medical Director Medical Director 14. Dato Dr N Sivamohan
KPJ Damansara Specialist Hospital Consultant Urological Surgeon Consultant Orthopaedic Surgeon 12. Dr Noor Hisham Mansor Medical Director
6. Yusof Ismail Tawakal Health Centre KPJ Seremban Specialist Hospital Director Consultant Obstetrician
2. Prof Dato Dr Lokman Saim Executive Director and Member, Senate and Gynaecologist
President and Group Chief Executive Officer 10. Dr Mohd Harris Lu Member, Research KPJ Klang Specialist Hospital
Dean of School of Medicine Director and Development Committee
Medical Director Consultant Physician 15. Dr Mohd Hafetz Ahmad
3. Jasimah Hassan Consultant Ophthalmologist KPJ Tawakkal Specialist Hospital Director
Chief Education and Knowledge Sentosa Medical Centre Medical Director
Management (EduKATE) Consultant Obstetrician
and Deputy Chairman and Gynaecologist
KPJ Johor Specialist Hospital

99 ANNUAL REPORT 2011 ANNUAL REPORT 2011 100

EduKATE - KPJ University College
Enhancing Education for Future Generations

Convocation Ceremony on 5 December 2011

KPJ Education and Knowledge Management KPJ International University College

Services (KPJ EduKATE) of Nursing and Health Sciences
The KPJ Education and Knowledge Management It was a historic moment for KPJ International University (From left) Jasimah Hassan, Tan Sri Arshad, Kamaruzzaman, Datin Paduka Siti Sadiah, Prof Dr Durrishah
Services (KPJ EduKATE) was newly introduced into College of Nursing and Health Sciences (KPJ University
KPJ Organization Structure beginning year 2011. College) when it was bestowed the University College A Peek Beyond 2011 Almost RM50 million will be spent on the development of
status in mid-2011 and another milestone was Clearly the year 2011 had been an exciting one for the an 8-storey academic block that has a capacity for 1,600
KPJ EduKATE term of reference covers four main achieved through the successful conclusion of its 15th education unit, which was also given the nod of approval students alongside a new 11-storey hostel block that will
broad areas:- Convocation Ceremony later that year, which was its first by the minister himself to proceed with the setting up of a house up to 2,000 students at any one time. Within the
i Formal Education and Training, i.e. the KPJ College as a University College. development will be a nursing skill lab, pharmacy lab, and
medical school, thus moving a step closer to realizing its
& KPJ University College ambition of becoming an envied higher learning institution. medical imaging skills lab, among other things.
ii KPJ Corporate Intellectual Property Management and Datin Paduka Siti Sadiah Sheikh Bakir, Managing Director
Resource Centre (Library, etc) including data processing of KPJ Healthcare Berhad received the University College Under the second phase, the construction of the hostel is
award certificate from Malaysias Minister of Higher The university college is in the midst of establishing anticipated to be completed by June 2012 while the
and management
iii Knowledge Events / Conferences / Seminars Education, Datuk Seri Mohamed Khaled Nordin, at an medical school in 2012. Plans are also afoot to expand academic block is slated for completion two months later, to
and Workshops event held at the ministry on 25 July 2011. The event was the student capacity at the main campus in Nilai, Negeri be in time for the subsequent student intake in September 2012.
iv Training, knowledge and skill enhancement for witnessed by Kamaruzzaman Abu Kassim, President and Sembilan, while also increasing the number and types of
Chief Executive of Johor Corporation. education programmes. Currently, the existing campus has a capacity of about 2,500
KPJ staff.
and the completion of the second phase of expansion will
This was soon followed by the University Colleges First Five new homegrown Bachelor programmes, namely, allow for a maximum intake of 5,000 students.
KPJ EduKATE aims to encourage the inculcation and
cultivation of knowledge sharing culture among the KPJ Convocation Ceremony on 5 December 2011, which was Bachelor in Nursing, Pharmacy, Pharmaceutical and Health The third phase, which will be built at a later stage, will see
community through systematic compilation and collection also the 15th Convocation Ceremony for the education Sciences, Medical Imaging, and Physiotherapy, as well as the addition of two hostel blocks, three academic blocks, a
of the abundance of intangible and tangible knowledge unit under its previous College status when it was known a Foundation in Science programme, has been submitted multipurpose hall and modern sports complex, after which
assets available within the Group for the last 30 years. as KPJ International College of Nursing and Health to the education ministry for approval. the student capacity will rise to 10,000 upon full completion.
These KPJ intellectual properties could be survived and Sciences (KPJIC).
archived for reference, guidance and training of future KPJ These and other initiatives to boost the university colleges Widening of Education Programmes
generation of managers and staff, while data processing Scrolls were presented to 782 graduates, alongside various physical capacity, intellectual property, image and financial In 2011, KPJ University College registered slightly more
and management will provide value added knowledge awards for academic achievements in the fields of nursing performance of the education unit are expected to help than 2,500 students, which was an increase of 2% from
towards decision making process and strategic planning. and health sciences, ranging from Diplomas to Bachelors KPJ University College double its net income in 2012. the preceding year, all of whom are part of 11 Nursing
and Masters degrees. This represented an 11% year-on- and Health Sciences programmes that are available at the
All materials are being compiled and stored in KPJ year rise in the number of graduates. education facility.
Campus Expansion
EduKATE Resource Centre to serve as a central resource/ The campus ground in Nilai transformed rapidly throughout
reference centre for KPJ community and will be made Of this, 655 were diploma nursing graduates who have sat Following the elevation of its status to a University College
for and passed the Malaysian Nursing Board examination. the year 2011 under Phase 2 of its expansion plan. in mid-2011, KPJ University College has since began
available and accessible via existing electronic platform
with aims to have a more effective knowledge management structuring new programmes to be offered at the institution
The inauguration of both the Chancellor and Pro-Chancellor As it begins to take shape in 2012, KPJ University College in addition to the existing ones.
system in the very near future for easy access and promote
for the university college was also formalized at the is also preparing to take in a higher number of students
self-learning. At the next intake in September 2012, KPJ University
convocation ceremony, with Tan Sri Dato Seri Arshad Ayub in the coming years and planning its manpower and
education programmes that will be offered. College expects to offer, in addition to the existing ones,
Collaborating with Human Capital Management, receiving the appointment certificate as Chancellor and 30 new bachelors and masters degree as well as doctorate
KPJ EduKATE looks into the training appropriateness, Datin Paduka Siti Sadiah accepting the certificate as Pro- programmes at the main Nilai campus.
This expansion is designed to enhance the teaching and
applicability, efficiency and effectiveness in tandem Chancellor from Kamaruzzaman.
learning environment as it will provide wider space and will
with KPJs mission of being a learning organization To cater to the increase in capacity and student intake, the
be equipped with an extensive range of the latest facilities to
embracing continuous education, training and skill New and recent appointments included, among others, university college has also placed significant emphasis on
sharpen the skills and understanding of the students. its human capital development and has grown its staff force
enhancement for staff. Professor Dato Dr Lokman Saim as President and Dean
of School of Medicine, and Professor Dr Durrishah Idrus as by 15% year-on-year to 204 employees in 2011 from 170 in
the first Vice-Chancellor of KPJ University College. the preceding year.

101 ANNUAL REPORT 2011 ANNUAL REPORT 2011 102

 ANCILLARY
The rise in manpower numbers are in tandem with the
increase in the number of programmes that will be offered,
with more than half of the staff members being qualified
and experienced lecturers in order to achieve a balanced
List of programmes for Johor Bahru and
Penang campuses:
School of Nursing (Johor Bahru)
SERVICES
student-lecturer ratio. Bachelor of Science (Hons) Nursing
(in collaboration with Liverpool John Moores University, UK)
KPJIC Johor Bahru and Penang Professional Certificate in Renal Nursing
KPJIC Johor Bahru Campus will be offering diploma and Professional Certificate in Neonatology
Professional Certificate in Orthopedic Nursing
degree programmes with the option of a collaboration Professional Certificate in Gerontology Nursing
degree programme with Liverpool John Moores University
or several other Diploma and Post-Graduate Certificate in School of Nursing (Penang)
Paediatric Nursing and Diploma in Nursing programmes. Professional Certificate in Critical Care Nursing
Certificate in Renal Nursing
Certificate in Perioperative Nursing
At the same time, KPJIC Penang Campus in Bukit Mertajam, Certificate in Teaching Methodology for Allied Health
Seberang Perai, is set to open in mid-2012.
School of Pharmacy (Penang)
Bachelor (Hons) in Pharmacy
The certificate of Completion and Compliance for (in collaboration with Universiti Sains Malaysia)
the building was obtained at end-2011 and it is now Diploma in Pharmacy
applying for the license to operate from the Ministry of
Higher Education.
Programmes that will be submitted for
Among the first programmes planned for the Penang approval in 2012:
Campus is the Diploma in Pharmacy and it is also planning School of Medicine
to offer Bachelor (Hons) of Pharmacy programme in Bachelor of Surgery and Bachelor of Medicine (MBBS)
collaboration with University Sains Malaysia. Masters of Otorhinolaryngology
Masters of Pediatrics
Masters of Radiology
Programmes that will commence in 2012: School of Nursing
Bachelor of Science in Nursing (Hons) Doctor of Philosophy in Nursing
Bachelor of Pharmacy (Hons) Masters of Nursing Science (by mix mode)
Bachelor of Pharmaceutical with Health Science (Hons) Masters of Nursing Science (by research)
Bachelor of Science (Hons) Nursing
Bachelor of Physiotherapy (Hons)
(in collaboration with Liverpool John Moores University, UK)
Bachelor of Medical Imaging (Hons)
Advanced Diploma in Peri operative Nursing
Diploma in Health Information Management (in collaboration with Liverpool John Moores University, UK)
Foundation in Science Advanced Diploma in Midwifery
Professional Certificate in Critical Care Nursing
School of Pharmacy
Doctor of Philosophy in Pharmacy
Master in Pharmacy
Current Programmes: Master in Pharmaceutical Technology

Bachelor of Science (Hons) International Nursing School of Allied Health

(in collaboration with Hertfordshire University, UK) Doctor of Philosophy in Medical Imaging
Post-Basic Certificate In Pediatric Nursing Doctor of Philosophy in Physiotherapy
Post-Basic Certificate In Renal Nursing Master of Physiotherapy (by research)
Certificate in Health Information Management Master of Physiotherapy in Clinical Practice
Master of Medical Imaging (by coursework)
Diploma in Medical Imaging
Master of Medical Imaging (by research)
Diploma in Nursing
Diploma in Pharmacy School of Business and Management
Diploma in Physiotherapy Doctor of Philosophy in Management
Diploma of Higher Education In Operating Department Practice Master of Healthcare Management
(in collaboration with Liverpool John Moores University, UK) Bachelor (Hons) of Healthcare Information System
Professional Certificate in Education School of Behavioral Sciences and Humanities
and Teaching For Nursing Professionals Master of Art in Special Education Needs
Professional Certificate in Gerontology Nursing (in collaboration with University of East London)

Facts on KPJ International University College of Nursing and Health Sciences

Located in Nilai, Negeri Sembilan
Established 1 April 1991 as PNC International College of Nursing and Health Sciences
Renamed KPJ International College of Nursing and Health Sciences (KPJIC) on 4 November 2008
Obtained University College status in May 2011, changed name to KPJ University College of Nursing and Health Sciences
First private nursing college to offer Diploma in Nursing programme
First private nursing college to obtain Diploma in Nursing accreditation by Malaysian Qualification Agency
To date, produced almost 5,000 nurses and healthcare professionals with Diploma, Degree and Post-graduate
specialized qualifications
International alliance with foreign universities from Australia, UK:
- University of South Australia (1994)
- Liverpool John Moores University, United Kingdom (1997)
- University of Hertfordshire, United Kingdom (2009)

103 ANNUAL REPORT 2011

Ancillary Services

The intricate interplay of medical treatment calls for a host The DIN EN ISO 9002 accreditation from IQNET, which
of integrated services that support the operations at KPJ Lablink received in 2002, marked a major milestone
hospitals and complement the overall healthcare services, for the company as it reflects international recognition
which the Group currently provides to customers. through such management and system assessments and
certifications. LabLink is also ISO9001:2000 certified.
These ancillary services, which are provided for by several
key subsidiary companies of the Group, have helped Central Purchasing & Distribution Services
KPJ keep some of its operating costs low and, as these Aside from laboratory services, KPJ also leverages on
companies grow, they have also generated good earnings economies of scale through its central purchasing arm,
income for the KPJ Group. Pharmaserve Alliances Sdn Bhd (PASB), which has
contributed significantly to the Groups earnings.
For fiscal year 2011, KPJ generated total revenue of
RM602.66 million from the provision of management PASB, which was established in 2002, is a wholesaler and
services, pathology and laboratory services, marketing distributor of pharmaceutical, medical and other hospital-
and distribution of pharmaceutical, medical and surgical related products, mainly to support the needs of KPJ
products, and operating its private nursing college. This hospitals and companies.
represented a 24% increase from the preceding year.
Today, PASB is one of the largest buyers in the medical
Laboratory Services industry after the Ministry of Health, and with volume
Following the expansion of KPJs hospital network and purchases enable the Group to generate relatively better
extension of its range of services, the Group set up a margins and also allow for the translation of cost savings to
subsidiary, Lablink (M) Sdn Bhd, in 1991 to manage all KPJs customers.
laboratories at its hospitals and to enhance services
provided to customers through greater efficiency and Its range of products include, among others, pharmaceutical, Sterilization of medical instruments at KPJ Sterillization Centre in Rawang
speed in processing lab tests and results. medical disposables, radiological, rehabilitation, laboratory
and other related goods, as well as sutures and catgut,
Specialising in laboratory and pathology services, implants and stationeries. Sterilization Services KPJ Eye Centre
LabLink began operating within the hospital premise at To further improve the Groups efficiency and trim To further enhance its specialist services, KPJ Group had
KPJ Ampang Puteri Specialist Hospital in January 1999 The company also puts much emphasis on efficiency and operating costs, KPJ opened its own Certified Sterilization in December 2010 acquired a strategic 80% stake in Sri
and subsequently extended its in-house services to Pusat enhances its operations through the use of information Service Centre (CSSS) in Rawang, Selangor in 2011 Kota Refractive and Eye Centre Sdn Bhd, which has its
Pakar Tawakal, KPJ Damansara Specialist Hospital, technology and best practices in management systems. together with its joint-venture partner, Steril Gamma main office in Petaling Jaya, Selangor and a branch in
KPJ Ipoh Specialist Hospital, KPJ Perdana Specialist PASB has its main office in Petaling Jaya, Selangor, but Sdn Bhd. Rawang, Selangor.
Hospital, Kuching Specialist Hospital and KPJ Seremban also operates several sub-stores in a few KPJ hospitals to
Specialist Hospital. better service the needs of the hospitals that are located in The centre, which is owned and operated by KPJs Branded as Pusat Pakar Mata Centre For Sight (CFS), the
various regions in Malaysia. subsidiary Sterile Services Sdn Bhd (SSSB), was officially eye centre has been operating in Selangor since 2004.
LabLink also manages the laboratory at Nilai Cancer Institute. opened by the Minister of Health, Dato Sri Liow Tiong Lai,
on 11 January 2011. Currently, CFS offers outpatient and day care facility for
about 20,000 patients and performing 1,600 procedures
It essentially functions as the central sterilization and annually, alongside a comprehensive range of eye surgery
supply network for sterile goods, where it is responsible for services including sub-specialties in cornea, vitreo-retinal
the logistics relating to the management, supply, collection surgery, glaucoma, cataract, refractive surgery / lasik,
and delivery of sterile goods to KPJ hospitals. This central oculoplastic surgery and paediatric ophthalmology.
sterilization of all medical instruments from KPJ hospitals
will result in significant cost savings and greater efficiency As part of its expansion plan, CFS is planning to open
for the hospitals. another branch in Kuala Lumpur in 2012, investing about
RM10 million to set up the 5,000sq ft facility.
Currently, its services are provided to Klang Valley hospitals
but will be extended to KPJ hospitals in other parts of the Healthcare Technical Services
country in future. KPJs rapid expansion called for the services of project
managers and this boosted the growth of Healthcare
SSSBs operations are properly documented and processes Technical Services Sdn Bhd (HTSSB), in which KPJ holds
are carried out in compliance with certified standards, as a 30% interest.
the company is aiming to achieve its ISO certification in 2012,
specifically the QMS and sterilization process certifications. HTSSB specializes in project management, specifically
the construction of hospital buildings and is actively
As a pioneer in Malaysias independent sterilization and involved in the development of KPJs new projects as well
decontamination CSSC service sub-sector, SSSB vision as the expansion at existing hospitals.
is to provide services that conform to international
quality standards.

KPJ practices laboratory services in-house

105 ANNUAL REPORT 2011 ANNUAL REPORT 2011 106

 CORPORATE
Intrapreneur Companies
The Intrapreneur concept of Shared Growth and Shared
Prosperity was introduced in KPJ to develop entrepreneurial
Currently, KPJ hospitals account for almost three-quarters
of Fabricares business and the laundry service providers
revenue has shown improvement in fiscal 2011 in tandem
RESPONSIBILITY
talent among its staff members, and this initiative has paid with higher patient numbers in both Johor hospitals.
off in several ways.
Healthcare IT Solution
KPJ has succeeded in bringing up talented employees by To enhance efficiency and reduce patients waiting time at
cultivating their entrepreneurial spirit and this, in turn, has KPJ hospitals, the Group has continuously tapped on the
also helped the Group develop new services that generate advantages of information technology (IT), implementing
additional income as well as further support the expansion the hospital information system and rolling out other IT
of KPJ hospitals care for patients. systems at these hospitals.

Currently, there are four companies under the Intrapreneur Healthcare IT Solution Sdn Bhd (HITSSB) was set up to
stable and they have performed well despite the economic manage the healthcare IT system for KPJ hospitals and,
uncertainties. The four are Teraju Farma Sdn Bhd, Fabricare over time, has evolved to become a player in healthcare
Laundry Sdn Bhd, Healthcare IT Solution Sdn Bhd and solutions for KPJ and other customers.
Skop Yakin (M) Sdn Bhd.
The company continued to perform well in 2011, showing
positive growth as more systems are introduced to the KPJ
hospitals and external clients, and HITSSB is expected to
continue riding the ICT wave in Malaysia.

Skop Yakin
As with all other enterprises, KPJ is also a consumer of
printing and stationeries and the setting up of its Skop Yakin
(M) Sdn Bhd was aimed at leveraging on bulk purchasing
in order to bring down overall costs.

This company is still at its infancy, having been established

since March 2010, but is showing good revenue growth
from its provision of supplies to KPJ and other clients,
and holds much potential as the company continues
to actively bid for new contracts whenever business
opportunities arise.
Teraju Farma
Teraju Farmas core business is in supplying pharmaceutical Small Business Units
and medical equipment as well as hospital supplies and KPJ plans to continue supporting this Intrapreneur
it also acts as a sole distributor with warehousing and initiative and in 2011, KPJ has identified four sub-
distribution facilities for a number of products. business units (SBUs), or incubator companies, that hold
much growth potential.
Aside from the KPJ Group, Teraju Farma is also actively
servicing the Government sector, as a tendering agent, These SBUs are now operating under the wing of the
where it supplies pharmaceuticals, medical and healthcare Group as they strengthen their foundation and prove
related products to over 150 health institutions nationwide. their business viability, before they are elevated into the
Intrapreneur programme.
Fabricare Laundry
Fabricare Laundry Sdn Bhd supports the KPJ Group To date, they have showed significant progress, with some
by undertaking laundry services for KPJ hospitals showing profits within the first year of operations, and are
in the Johor state and it also extends its services to expected to continue this upward momentum.
the hotels and convention centre that is operated by
Johor Corporation. The four SBUs are involved in the supply of perishables,
ambulance services, home nursing services and
With its main office in Johor Bahru, Fabricare is currently event management.
focusing its attention on the Johor market due to logistical
reasons, servicing both KPJ Johor Specialist Hospital and
Puteri Specialist Hospital, and will be offering its services
to the Groups two new hospitals in Pasir Gudang and
Muar once they are operational.

107 ANNUAL REPORT 2011

Corporate Responsibility

Over the past three decades, KPJ has developed a culture Community
of socially responsible operations and a comprehensive Delivering a Healthier Society
approach to sustainable business by aligning its practices KPJs move to empower the community with
to its core values. knowledge and good practices in order to improve
their overall well-being is an ongoing effort and
The values of giving to the community, helping the continues to form a significant part of the Groups
indigent and underprivileged, adopting good social corporate responsibility strategy.
and environmental practices are deeply embedded in
KPJs operations and this continues to permeate the During the year, KPJs team of Medical Consultants and
work culture within the Group through its Corporate nurses and dietitians conducted a wide range of public
Responsibility (CR) initiatives. health talks on various medical and nutritional topics and
its employees also organized many events to promote
It maximizes the positive impact in this journey towards healthy lifestyles and good hygiene practices.
sustainability by focusing on four key areas, namely, the
community, marketplace, workplace and environment, and It is heartening to see the encouraging response from
it approaches these CR initiatives through five ways: the public to KPJs community projects, because these
1. Community engagement through health awareness initiatives form the platform for its staff members to Dr Huzaimi Yaakob, General Surgeon of Kuantan Specialist Hospital, at Dr Mohd Harris Lu Abdullah launching Klinik Waqaf An - Nur or KWAN
programmes and educating the public with the aim of better understand the needs of the people and to work Radio Pahang FM

develop a healthier society together to build a healthier nation.

2. Community outreach integrating social responsibility Community Projects for the Needy KPJs Medical Consultants also play their role in developing
by reaching out to the indigent and underprivileged Some of the notable projects that took place in fiscal The Group is also committed to helping the community, a sustainable community through the Consultants Charity
2011 include, among others, nationwide celebration of particularly the indigent and underprivileged, through Fund and a number of them have also championed
though financial, literacy, health and volunteer support
the World Health Day, World Heart Day, World Diabetes volunteer programmes or charity events. various humanitarian causes and supported fund raising
3. Accountability identify and implement best practices, Day, and blood donation drives at all KPJ hospitals. exercises for the indigent.
prioritize patient safety and uphold stakeholders trust
One of KPJs major CR efforts is the chain of charity
and confidence These events often include activities such as health clinics under Klinik Waqaf An-Nur or KWAN programme, They also support KPJs social responsibility efforts by
4. Empowering people investing in its greatest asset talks on related medical conditions, free basic medical where the needy can seek basic medical care that would providing free surgery to select patients under KPJs CSR
through improvement and training programmes for screening, advice from Medical Consultants or clinical normally be beyond their reach. programme and volunteer their time to the community
employees and shaping future leaders through coaching staff on how to deal with those medical conditions and during disasters by participating in flood relief activities
and transformational leadership the availability of treatment options, as well as exhibitions These clinics provide medical assistance to low-income and other efforts.
5. Environmental protection sustaining the and various other forms of information distribution to patients those with monthly income below RM1,000.00
environment for future generations through investments promote health awareness and healthy lifestyles. at a nominal fee of RM5.00. The Group will continue to harness the commitment and
in green technology and identifying ways to reduce dedication of its Medical Consultants and employees
KPJ also tries to communicate these messages to The focus of these charity clinics is on delivering basic to build community leadership that will define KPJ and
carbon footprint. the communities in far reaches of the country through medical care to them so that they may lead a healthier life further strengthen its philosophy to Care for Life.
publications in the media on medical-related issues and and in doing so, promote a more productive Malaysia.
Every year, staff members of the Group touch millions of conditions as well as Medical Consultants going on air No Clinic/Hospital Location Date opened
lives across the nation and KPJ believes these community through the radio or television to educate the public
service efforts alongside active stakeholder approach will This initiative began as early as 1998 when KPJ, together
on health care with the aim of improving the societys with its parent company Johor Corporation, established 1 Klinik Waqaf An-Nur Johor Bahru, Johor 1 Nov 1998
result in meaningful and sustainable solutions. overall wellbeing. Kotaraya
the first charity clinic in Johor Bahru, Klinik Waqaf An-Nur
Kotaraya, and the drive to expand this network has been 2 Klinik Waqaf An-Nur Batu Pahat, Johor 16 Mar 2001
This commitment to corporate responsibility is led by senior To create a more sustainable society, KPJ must Batu Pahat
management and extends to all divisions within the KPJ on-going ever since.
continue to find more innovative ways to help its 3 Klinik Waqaf An-Nur Seremban, Negeri 16 Oct 2003
Group, which encompasses almost 9,000 employees customers take greater interest in their health and to MAINS Sembilan
across the nation as well as a supply chain of thousands of As at end 2011, KWAN has a network of 15 charity
lead healthier lifestyles. 4 Hospital Waqaf Pasir Gudang, Johor 16 Jun 2006
suppliers and business partners who share KPJs vision to clinics and dialysis centres throughout Malaysia and
An-Nur PasirGudang
operate in a responsible and sustainable manner. one charity hospital, Hospital Waqaf Pasir Gudang
5 Klinik Waqaf A-Nur Sg. Buloh, Selangor 23 Jun 2006
in Johor, and plans are afoot to open two additional
Sg. Buloh,
clinics in 2012.
6 Klinik Waqaf An-Nur Muar, Johor 1Aug 2007
Muar
On its part, KPJ provides the clinical resources Klinik Waqaf An-Nur Kluang, Johor 1Aug 2007
7
and bears the cost of the medication supplied to patients Kluang
and the Group also contributes more than RM1.75 million 8 Klinik Wakaf An-Nur Ijok, Selangor 1 Nov 2007
annually in financial aid to support KWANs activities. Ijok
9 Klinik Waqaf An Nur Kuching, Sarawak 19 Feb 2008
To date, KWAN has helped more than 760,000 Satok Sarawak
patients of all races throughout the country and 10 Klinik Waqaf An-Nur Ampang, Selangor 24 Dec 2009
expects to widen its reach to more communities as Bukit Indah
the network expands. 11 Klinik Waqaf An Nur Johor Bahru, Johor 29 Dec 2009
Larkin Sentral
The spirit of giving that KPJ nurtures among its employees 12 Klinik Waqaf An-Nur Kuching, Sarawak 23 Dec 2009
is also reflected in their efforts to lend a helping hand to Samariang Sarawak
the underprivileged through visits and donations made to 13 Klinik Waqaf An-Nur Ipoh, Perak 15 Jan 2010
orphanages as well as disabled and aged care centres, Manjoi Perak
charity fund-raisers to help them seek a better life, and 14 Klinik Waqaf An-Nur Subang Jaya. 31 Dec 2010
other meaningful projects to help those around them. USJ9 Subang Jaya Selangor
15 Klinik Waqaf An-Nur Kajang, Selangor 31 Dec 2010
Pekan Kajang
KPJ commemorating World Diabetes Day at its hospital Dr G Ruslan Nazaruddin Simanjuntak of KPJ Tawakkal Specialist Hospital 16 Klinik Waqaf An-Nur Rembau, Negeri 1 Nov 2011
at Selamat Pagi Malaysia programme, TV1 Rembau Sembilan

109 ANNUAL REPORT 2011 ANNUAL REPORT 2011 110

Highlights in Pictures:
Hospital Activities

1 4 7 10

2 5 8 11

3 6 9 12

1. 12 Feb 2011 KPJ Damansara Specialist Hospital - Chinese New Year Celebration 2. 14 Feb 2011 KPJ Perdana Specialist Hospital 7. 9 Sept 2011 Kuantan Specialist Hospital - World Heart Day 8. 10 Sept 2011 KPJ Healthcare Berhad - Merdeka Day
- Healthy Lifestyle Bazaar 3. 26 -27 Feb 2011 Damai Specialist Hospital - Wellness Journey 4. 13 May 2011 KPJ Tawakkal Specialist Celebration 9. 16 Sept 2011 Sentosa Medical Centre - Hari Malaysia Baby 10. 21 Sept 2011 KPJ Healthcare Berhad - Hari
Hospital - Nurses Day Celebration 5. 16 - 17 Jul 2011 KPJ Tawakkal Specialist Hospital - Relay For Life 6. 20 - 24 Jul 2011 KPJ Raya Open House 11. 25 Sept 2011 KPJ Ipoh Specialist Hospital - World Heart Day 12. 29 Dec 2011 Kuantan Specialist
Penang Specialist Hospital - KPJ Sports Carnival 2011 Hospital - 25th Anniversary Celebration

111 ANNUAL REPORT 2011 ANNUAL REPORT 2011 112

Highlights in Pictures:
Health Education

1 4 7 10

2 5 8 11

3 6 9

1. 3 Feb 11 Kluang Utama Specialist Hospital - CPR Training 2. 26 Feb 11 Sentosa Medical Centre - GP talk by Dato Dr Abdul Samad 7. & 8. 2 Jul 11 Puteri Specialist Hospital - Antenatal Class 9. 15 - 17 Jul 11 KPJ Healhcare Berhad - Medical Workshop on
(Consultant Radiologist), Dr S. Sivabalan (Consultant General Surgeon) & Dr Bala Sundaram (Consultant Urologist) 3. 28 Apr 11 KPJ Kajang Enhancing Engagement in Clinical Leadership by Datin Paduka Siti Sadiah Sheikh Bakir. 10. 6 Sep 11 Kuantan Specialist Hospital
Specialist Hospital - Dr Balbir Singh (Consultant Ophthalmologist) speaking on Common Eye Disease & Avoidable Blindness in Adults. 4. - Dr Khairul Muhsein Abdullah, (Consultant Neurosurgeon) talks about Stroke on Radio at Pahang.fm. 11. 26 Nov 11 Sentosa Medical
30 Apr 11 Damai Specialist Hospital - Dr Joseph Lau Hui Lung (Consultant Obstetrician & Gynaecologist) speaking on Understanding Centre - Educating children on proper hand hygiene.
Labour, Delivery & Pain Relief 5. 15 May 11 Kuantan Specialist Hospital - Dr Khairul Muhsein Abdullah, (Consultant Neurosurgeon)
speaking on Treatment for Stroke 6. 18 Jun 11 Kluang Utama Specialist Hospital - Talk by Dr Md Adhanizam (Consultant Obstetrician and
Gynaecologist) about Cervical Cancer

113 ANNUAL REPORT 2011 ANNUAL REPORT 2011 114

Highlights in Pictures:
Corporate Social Responsibility

1 4 7 10

2 5 8 11

3 6 9 12

1. 7 Jan 2011 Taiping Medical Centre - CSR Activities with Majlis Perbandaran Taiping 2 & 3. 25 March 2011 KPJ Perdana Specialist 7. 15 May 2011 KPJ Ampang Puteri Specialist Hospital - Visit To Rumah Titian Kasih, Taman Titingwasa 8. 18 Aug 2011 KPJ Selangor
Hospital - Anti-Dengue Campaign 2011 with the Jalan Bayan Committee 4. 7 Apr 2011 KPJ Selangor Specialist Hospital - World Health Specialist Hospital - Breaking Fast With Orphans From Rumah Anak-Anak Yatim Bangi 9. 15 Nov 2011 KPJ Seremban Specialist Hospital
Day and Wheelchair Presentation 5. 23 Apr 2011 KPJ Tawakkal Specialist Hospital - World Health Day and Health Awareness Campaign - Presentation of Three Units of Computers to Sekolah Kebangsaan Temian Seremban 10 & 11. 4 Dec 2011 KPJ Johor Specialist Hospital
With Residents of Perkampungan Orang Asli Bukit Kala 6. 11 May 2011 Damai Specialist Hospital - Nurses Day and Community Services - Programme for Underprivileged Students at Sekolah Kebangsaan Kampung Pasir, Tampoi 12. KPJ Kajang Specialist Hospital - Klinik Wakaf
at Seri Mengasih Sensory Centre, Tanjung Aru. An-Nur (KWAN) opens every Wednesday and Friday.

115 ANNUAL REPORT 2011 ANNUAL REPORT 2011 116

Marketplace The objective of this Corporate Integrity Pledge is to KPJ contributes to the development of the healthcare Its pay for performance reward scheme has also helped
As a major healthcare provider, KPJ has a responsibility to reinforce KPJs commitment to promote values of integrity, industry by actively training healthcare professionals encourage improvement in staff performance and the good
uphold the trust and confidence that the stakeholders have transparency and good governance, and strengthen through sponsorship of doctors, pharmacists, nurses, ethics and culture inculcated in work processes have also
placed in it. internal systems that support corruption prevention. paramedics, and other support personnel, and helped to boost transparency and accountability among
providing training its existing clinical team, to meet the workforce.
This means putting patient safety as its utmost priority and It is also a commitment to comply with laws, policies and the constantly growing demand for quality healthcare
being accountable to all the stakeholders through adoption procedures relating to fighting corruption and corrupt services in the country. Risk management mechanisms are also in place and
of best practices and good work ethics. practices as well as to support corruption prevention continuously reviewed for further improvement.
initiatives by the Malaysian Government and Malaysian In 2011 alone, KPJ spent as much as RM7.2 million on
KPJ has a responsibility to continuously enhance ethics Anti-Corruption Commission. various training programmes for the Groups employees, The framework to ensure high levels of integrity also includes
and transparency within the business and the integrity and encompassing clinical staff, managers, executives and the whistle-blowing avenue via the Borang Peradaban, where
professionalism that is expected of its services. To further strengthen accountability to KPJs stakeholders, non-executives. These programmes focus on leadership employees can report any misappropriation.
with effect from 2012, all suppliers and business partners development, and sharpening of management and
This has been achieved through the risk management will also be required to comply with the Corporate technical skills. KPJ also provides a safe working environment for
mechanisms that are in place as well as the development Integrity Agreement. its employees by placing strict policies on planned
of its framework of clinical governance, which has been Its long-term objectives are to inculcate the knowledge and preventive maintenance. The use and disposal of sharps
structured through years of experience and through the learning culture among its employees, shape skilled and and other materials in the process of providing treatment
invaluable input of experience clinicians, to ensure that Workplace experienced healthcare professionals and managers, and and care for patients. The exposure level for employees
best practices are adhered to and the risks to patients Human capital development is one of KPJs strategies to cultivate the budding spirit of intrapreneurship in talented who work within the confines of radiation and diagnostic
are minimized. create a sustainable workplace for employees. and potential entrepreneurs. imaging services are also closely monitored according to
the atomic regulations in the country.
Clinical governance committees are established at both KPJ develops responsible leaders by providing its The deliverables for 2011 include, among others, the
the Group and at hospital levels, along with various employees with the opportunities to enhance their successful initiation of several SBUs under the Intrapreneur Where appropriate, relevant employees are also sent for
clinical sub-committees, to facilitate the implementation knowledge and skills through formal learning and programme, the creation of a pool of about 400 managers Occupational Safety and Health (OSH) training to ensure
and monitoring of compliance with best practices and training as well as by enriching their experience through in the Group, and sponsorship for 191 graduates from that KPJ hospitals keep up with the latest OSH practices
standards set by internationally-recognized bodies such various avenues. various educational programmes in collaboration with and procedures, and on-site training and drills, such as fire
as The International Society for Quality in Health Care Ltd KPJs training partners. and disaster drills, are also organized to help employees
(ISQUA), MSQH and JCI. It is important for KPJ to shape responsible leaders and cope with emergency situations.
employees as the Group deals with the essence of life These training partners are KPJ International University
These priorities continue to guide KPJs marketplace through the provision of healthcare services and its people College of Nursing and Health Sciences, University Contracted vendors and suppliers are also required to
initiatives and integrate good practices in the daily must be able to engage patients in a meaningful and Teknologi Malaysia, Henley Management School of comply with the health and safety measures that KPJ has
engagement with patients. compassionate way. University of Reading, University of Hertfordshire, University put in place, particularly at the hospitals, as the nature of
of East London, University of South Australia, ACCA, CIMA, operations involves the use and disposal of sharps and
Every year, KPJ reviews its policies and practices through This is further strengthened by the employees and International Business School. other clinical materials.
discussion and dialogue among the clinical team in the shared commitment to positive values of honesty and
Group through committee meetings and bi-annual medical transparency in their work ethics, with KPJs core values It has sponsored employees for the Masters programmes, Employee welfare is also covered by the provision of Group
workshops to keep abreast with the latest global practices of Safety, Courtesy, Integrity, Professionalism and Bachelors degrees as well as nursing post-basic Hospitalization and Insurance Plan as well as medical
as well as updates on the latest medical developments. Continuous Improvement playing a significant role as certificates and sent its employees for almost 100 seminars coverage at KPJ hospitals that are provided to staff and
More details are available in the Medical Advisory Report guiding principles. throughout the year, with a target to have every employee their family members.
in subsequent pages. undergo at least 30 hours of training each year.
In fiscal 2011, KPJ continue to help its 8,992 employees For its overall efforts to create a sustainable workplace,
As a learning organization, KPJ also shares its clinical grow by encouraging them to adopt best practices, KPJ espouse the culture of success for its employees KPJ was awarded the Lumesse e-Recruitment Award
knowledge among the members of the Group through training and development, coaching and mentoring and by motivating them to reach their potential and also 2011 in recognition of its contributions to human capital
sessions in the medical workshop and talks that are opportunities to enrich their professional experience. sculpts them to become leaders of tomorrow through development. KPJ triumphed over 30 other organizations
held regularly and it also enhances the knowledge of its transformational leadership, which essentially inspires in Malaysia to take home the award for its efforts in talent
members by participating in seminars and conferences change in people who believe in creating shared progress acquisition and management, and in Asia was second only
locally and abroad. and goals that will bring benefit to all parties. to a nominee from Hong Kong.
8,992

This effort is important as the knowledge gained will Career development opportunities are also offered to KPJ was also named the Gold Winner of the MIHRM
employees based on their ability and initiative to assume Awards 2011, under the Employer of Choice category, by
8,018

enhance the clinicians capabilities to ensure better

medical and surgical outcomes. Healthcare is a dynamic greater responsibilities. the Malaysian Institute of Human Resource Management
6,978
6,730

industry and KPJ must evolve along with the changing (MIHRM). The award was in recognition of KPJs
6,160

needs of the patients and be even more receptive to The Succession Development Programme allows not only outstanding achievement and significant best practices
5,799

clinical and quality excellence. the management to prepare future leaders and also for the in Human Resource Management that is aligned to the
4,448

employees to develop their leadership traits. Groups philosophies and vision.

KPJ also understand its corporate responsibility to
its shareholders, which it undertakes by continuously Emphasis is also placed on leadership succession as part of To further enhance itself as an employer of choice, KPJ has
improving accountability, risk management and internal good management practice by identifying potential leaders also set a goal for itself to retain talent within the Group with
controls through on-going good management practices. from within the group through the competency mapping a target of 5% annual staff resignation rate, and this will
process and other quantifiable measurements through the also minimise the cost of staff turnover.
657

766

860

Existing mechanisms that are in place include strict Staff Performance Appraisal Review, Behavioural Event
572

613

681
439

compliance to Bursa Malaysias listing requirements and Interview, 360 Appraisal and the Psychometric Test.
other regulations, the critical functions of the Audit, Award
Tender and Building Committees, and KPJs whistle- 2005 2006 2007 2008 2009 2010 2011 Good ethics, accountability and transparency play an
blowing policy. Total Staff Total Consultants integral role in the development of KPJs human capital.

Another key deliverable was the signing of the Malaysian

Corporate Integrity Pledge for Public Listed Companies.

117 ANNUAL REPORT 2011 ANNUAL REPORT 2011 118

 Announcements To Bursa Malaysia

Environment In developments like its Jeta Gardens retirement resort in

3 Jan 11 Appointment of Kamaruzzaman Abu Kassim as Non-Independent & Non-Executive Director
Australia, the lush greenery of nature is preserved through
To sustain the environment for future generations, KPJ the availability of extensive parklands and the creation of its
leads environment-friendly initiatives in four broad ways: picturesque Chinese Gardens and walkways in the settings 7 Jan 11 Notice of Extraordinary General Meeting (EGM) to be held at Permata 3, Level B2, The Puteri
of an abundance of wildlife and birds at its ponds and the Pacific Johor Bahru, Jalan Abdullah Ibrahim , 80000 Johor Bahru, Johor, on 26 January 2011 at
1. Paying homage to the environment by raising awareness surrounding borders of the Logan River. 9.00 a.m.
among employees and community
2. Reducing carbon footprint through conscious effort to Environmental protection efforts also include 12 Jan 11 Resignation of Tan Sri Dato Muhammad Ali Hashim as Chairman and Non-Independent & Non
recycle and reduce waste significant investment in information technology Executive Director
3. Creating a green environment at place of business through the roll out and continuous enhancement of IT
4. Investing in Green Technology for environmental systems at KPJ hospitals.
12 Jan 11 Redesignation of Kamaruzzaman Abu Kassim as Chairman and Non-Independent &
protection and maximize resources
Of significance is the utilization of the Picture Archiving Non-Executive Director
KPJs projects such as tree planting, promoting recycling, and Communication System (PACS), Digital Imaging
community service or gotong-royong together with the Systems and Computed Radiography Systems, which 13 Jan 11 Securities Commissions approval obtained for Point Zone (M) Sdn Bhds proposed issue of up
community are aimed at continually raising awareness eliminates the use of imaging films and chemicals for to RM500.0 million nominal value of Islamic Commercial Papers/Islamic Medium Term Notes
about the need to care for the environment and preserve processing the films. (ICP/IMTN)
this treasure.
In addition, with the integrated KPJ Clinical Information 18 Jan 11 Signing of Share Sale Agreement for acquisition of 100% stake In Sibu Medical Centre Corporation
It also shows support for green activities by commemorating System being rolled out at its hospitals, KPJ further Sdn Bhd (SMCC) and Sibu Geriatric Health & Nursing Centre Sdn Bhd (SGHNC) for RM28.15 million
World Environment Day through activities and display of eliminates the use of paper for a significant portion of in cash
information at its hospitals to educate its employees and its processes as they system enables processes to be
the community on climate changes and the impact of efficiently carried out online without the use of paper and
wastage on the environment. for diagnostic images to be stored and read online without 2 Feb 11 Signing of a Supplementary Deed with Jeta Gardens Waterford Trust (JGWT) on 31 January 2011 to
the need to produce films, unless requested by patients. vary certain terms of the proposed acquisition of 51% equity interest in JGWT
While the use of electricity is essential, KPJ also encourages
its staff to switch off whenever possible and to maximize A wider initiative would be the investment in facilities 9 Feb 11 Completion of the First Tranche Issue of the proposed acquisition of up to 51% equity interest
the use of resources by employing more efficient methods. that can reduce the use of chemicals and other harmful in JGWT
The hospitals also participate in Earth Hour by switching off substances as well as the development of green buildings,
at non-critical areas during the designated hour. which will be the future for environment protection, as that 28 Feb 11 Quarterly report on consolidated results for the financial period ended 31 December 2010
will help to save energy and reduce waste.
Employees, whether as representatives of the Group or on
One achievement of significance is the setting up of the 28 Feb 11 Fourth interim dividend of 5.0 sen gross (less 25% Malaysian income tax) per ordinary share of
volunteer basis, also participate in other independent or
state events that are aimed at environmental protection. Certified Sterilization Service Centre (CSSS) in Rawang, RM0.50 each
Selangor, which sterilizes medical instruments using wet
KPJ also does its part to reduce carbon footprint by steam, and this reduces the use of chemicals. 30 Mar 11 Proposal to seek shareholders approval at the forthcoming Annual General Meeting of the Company
reducing the use of plastic bags at its hospitals and for a renewal of share buy-back authority
encouraging employees to recycle. The use of green buildings technology at KPJ is a
deliverable that is expected to come to fruition with the 6 Apr 11 Completion of acquisition of SMCC and SGHNC
Each hospital allocates a corner for recycling activities and completion of the extension for KPJ Selangor Specialist
staff members are regularly advised to recycle the paper Hospital in the coming year << to check and verify >>,
4 May 11 Issuance of Point Zones ICP/IMTN Programme, with a tenure of up to seven (7) years from the date
and plastic materials. Printing materials are minimized in a which in addition to saving energy, will also feature waste
reduction through the processing of excess food into of the first issuance
bid to reduce the use of paper.
fertilizers.
Sharps and hazardous waste are also appropriately dealt 20 May 11 Quarterly report on consolidated results for the financial period ended 31 March 2011
with, with disposals contracted only to qualified vendors, As with its other CR initiatives, KPJ also looks favourably
to ensure that the disposal is in line with KPJs strict to participating and supporting projects that are 20 May 11 First interim dividend of 0.4 sen gross (less 25% Malaysian income tax) and 2.0 sen single tier
policies on waste management and Safety, Health and environmentally-friendly and dealing with suppliers that dividend per ordinary share of RM0.50 each
Environment (SHE). are environmentally conscious, and the Group will also
continue to invest in new technologies and facilities that 24 May 11 Notice of 18th Annual General Meeting (AGM) to be held at Bilik Sekijang 401, Level 4, Persada Johor
To create a greener environment at the workplace, KPJ minimize the use of chemicals and other substances that
International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on 16 June 2011
hospitals also carry out tree planting activities and gotong- can be harmful to Mother Earth.
at 12.30 p.m.
royong with the local community and authorities to clean
up the surrounding areas and to rid mosquito and pests We also continue to hold dialogues with our suppliers and
breeding grounds. business partners to encourage responsible sourcing of
material and invite them to participate in our green projects
and initiatives.

119 ANNUAL REPORT 2011

 CONTENTS
123 Directors Report
16 Jun 11 Retirement of Tan Sri Dato Seri Arshad Ayub as Independent and Non-Executive Director and he did
not seek re-election. He also ceases to be Chairman of Audit Committee. 127 Statement By Directors
128 Independent Auditors Report
16 Jun 11 Redesignation of Zainah Mustafa as Chairman of Audit Committee
130 Statement of Comprehensive Income
16 Jun 11 All resolutions proposed at the 18th AGM were duly approved by shareholders 131 Statement of Financial Position
133 Consolidated Statement of Changes in Equity
22 Jun 11 Signing of agreement to acquire 3.12-acre leashold land for RM3.76 million from Pasdec Corporation
Sdn Bhd 134 Company Statement of Changes in Equity
135 Statement of Cashflows
4 Jul 11 Appointment of Abd Razak Haron as Non-Independent & Non-Executive Director 137 Notes to the Financial Statements

4 Jul 11 Appointment of Amiruddin Abdul Satar as Executive Director

4 Jul 11 Appointment of Mohd Sahir Rahmat as Chief Financial Officer

11 Jul 11 Signing of joint-venture agreement with Yayasan Islam Perlis to develop new hospital in Perlis

2 Aug 11 Completion of disposal of Rumah Sakit Medika Bumi Serpong Damais building and Rumah Sakit
Medika Permata Hijaus building to Al-`Aqar KPJ REIT on 26 July 2011 FINANCIAL
8 Aug 11 Extension of option expiry date from 1 August 2011 to 30 September 2011 in relation to the proposed
acquisition of 51% equity interest in JGWT
STATEMENTS
19 Aug 11 Quarterly report on consolidated results for the financial period ended 30 June 2011

19 Aug 11 Second interim dividend of 2.5 sen single tier dividend per ordinary share of RM0.50 each

30 Sep 11 Further extension of the options expiry date from 30 September 2011 to 30 November 2011 in relation
to the proposed acqusition of 51% equity interest in JGWT

11 Nov 11 Signing of agreement for proposed acquisition of four plots of land in Klang, Selangor, measuring a
total of 1.84 hectares, from Sazean Development Sdn Bhd for RM23.76 million in cash

11 Nov 11 Signing of Proposed Design, Build and Lease Agreement with Lembaga Kemajuan Wilayah Pulau
Pinang (PERDA) and Aseania Development Sdn Bhd for the construction of a medical care facility on
a four-acre land in Seberang Perai Tengah Pulau Pinang

29 Nov 11 Quarterly report on consolidated results for the financial period ended 30 September 2011

29 Nov 11 Third interim dividend of 2.5 sen single tier dividend per ordinary share of RM0.50 each

30 Nov 11 Completion of the acquisition of 51% equity interest in JGWT

121 ANNUAL REPORT 2011

Directors Report Directors Report (continued)

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of The directors declared fourth interim single tier dividend of 4.7 sen per share on 595,200,000 ordinary shares amounting
the Company for the financial year ended 31 December 2011. to RM27,974,400 on 23 February 2012.

Principal activities The directors do not propose any final dividend for the financial year ended 31 December 2011.

The principal activities of the Company are investment holding and provision of management services to subsidiaries. Issue of shares
The principal activities of the subsidiaries are mainly the operation of specialist hospitals.
During the financial year, 25,077,310 new ordinary shares of RM0.50 each were issued by the Company for cash by virtue
The details of the principal activities of the subsidiaries are set out in Note 16 to the financial statements. of the conversion of warrants at an exercise price of RM1.70 per share.

There were no significant changes in the nature of these activities during the financial year ended 31 December 2011, The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary shares
other than the additional activity of providing retirement village and aged care services arising from the acquisition of Jeta of the Company.
Gardens Waterford Trust in Australia as disclosed in Note 16(b)(iv) to the financial statements.
Directors
Results
The names of the directors of the Company in office since the date of the last report and at the date of this report are:
Group Company
RM000 RM000 Kamaruzzaman bin Abu Kassim (Chairman)
Profit net of tax 154,259 81,669 Datin Paduka Siti Sadiah Sh Bakir (Managing Director)
Datuk Dr Hussien bin Awang
Profit attributable to: Datuk Azzat bin Kamaludin
Owners of the Company 143,670 81,669 Zainah binti Mustafa
Non-controlling interests 10,589 - Hj Ahamad bin Mohamad
Dr Kok Chin Leong
154,259 81,669
Dr Yoong Fook Ngian
Hj Rozan bin Mohd Saat
Abd Razak bin Haron (Appointed on 1 July 2011)
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the Amiruddin bin Abdul Satar (Appointed on 1 July 2011)
financial statements. Tan Sri Dato Seri Arshad bin Ayub (Retired on 16 June 2011)

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year In accordance with Article 96 of the Companys Articles of Association, Datin Paduka Siti Sadiah Sh Bakir, Zainah
were not substantially affected by any item, transaction or event of a material and unusual nature, other than the inclusion binti Mustafa and Hj Rozan bin Mohd Saat, retire at the forthcoming Annual General Meeting and being eligible, offer
of the share of post acquisition accumulated fair value adjustments in relation to investments of an associated company themselves for re-election.
as referred to in Note 17 to the financial statements.
In accordance with Article 97 of the Companys Articles of Association, Amiruddin bin Adbul Satar and Abdul Razak bin
Dividends Haron retire at the forthcoming Annual General Meeting and being eligible, offer themselves for re-election.

The amount of dividends paid and declared by the Company since 31 December 2010 were as follows: In accordance with Section 129 (6) of the Companies Act 1965, Datuk Dr Hussein Bin Awang and Dr Yoong Fook Ngian
retire and offer themselves for re-appointment and to hold office until the conclusion of the next Annual General Meeting
of the Company.
RM000
In respect of the financial year ended 31 December 2010: Directors benefits
Fourth interim gross dividend of 5.0 sen per share on 565,821,150 ordinary shares, Neither at the end of the financial year, not at any time during that year, did there subsist any arrangement to which
less 25% tax, paid on 15 April 2011 21,218 the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or
debentures of the Company or any other body corporate, other than those arising from the share options granted under
In respect of the financial year ended 31 December 2011: the Employee Share Option Plan.

First interim gross dividend on 568,306,400 ordinary shares, declared on Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than
benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed
16 June 2011 and paid on 29 July 2011 of: salary of a full-time employee of the Company as shown in Note 8 to the financial statements) by reason of a contract
i. 0.4 sen per share, less 25% tax 1,705 made by the Company or a related corporation with any director or with a firm of which he is a member, or with a company
ii. 2.0 sen per share, single tier 11,366 in which he has a substantial financial interest, except as disclosed in Note 33 to the financial statements.

Second interim single tier dividend of 2.5 sen per share on 579,773,114 None of the other directors in office at the end of the financial year had any interest in shares in the Company or its related
ordinary shares, declared on 15 August 2011 and paid on 14 October 2011 14,494

Third interim single tier dividend of 2.5 sen per share on 584,905,160
ordinary shares, declared on 29 November 2011 and paid on 13 January 2012 14,623
63,406

123 ANNUAL REPORT 2011 ANNUAL REPORT 2011 124

Directors Report (continued) Directors Report (continued)
Directors Interests Other statutory information (continued)
According to the register of directors shareholdings, the interests of directors in office at the end of the financial year (b) At the date of this report, the directors are not aware of any circumstances which would render:
in shares and options over shares in the Company and its related companies during the financial year were as follows: (i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of
the Company inadequate to any substantial extent; and
Number of ordinary shares of RM0.50 each (ii) the values attributed to the current assets in the financial statements of the Company misleading.

As at 1.1.2011/
At date of As at (c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render
appointment Addition (Disposal) 31.12.2011 adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or
inappropriate.
KPJ Healthcare Berhad
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or
Datin Paduka Siti Sadiah Sh Bakir
the financial statements of the Group and of the Company which would render any amount stated in the financial
- direct 1,118,250 - (560,000) 558,250 statements misleading.
- CimSec Noms (T) Sdn Bhd
(e) As at the date of this report, there does not exist:
(A/c CIMB Bank for Siti Sadiah Sh Bakir) - 560,000 - 560,000 (i) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year
which secures the liabilities of any other person; or
- indirect 12,500 - - 12,500
(ii) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.
Datuk Azzat bin Kamaludin 60,000 - - 60,000
Hj Ahamad bin Mohamad (f) In the opinion of the directors:
- direct 750 - - 750 (i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of
Dr Kok Chin Leong 138,000 - - 138,000 twelve months after the end of the financial year which will or may affect the ability of the Group and of the
Company to meet their obligations when they fall due; and
Dr Yoong Fook Ngian 325,000 - (25,000) 300,000 (ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the
Hj Rozan bin Mohd Saat 500 - - 500 financial year and the date of this report which is likely to affect substantially the results of the operations of the
Group and of the Company for the financial year in which this report is made.
Amiruddin bin Abdul Satar 30,000 - (23,000) 7,000

Significant and subsequent events

Number of warrants of 2010/2015
Significant events and events subsequent to end of the reporting period are disclosed in Note 36 and 42 to the financial
As at As at statements respectively.
1.1.2011 Exercised 31.12.2011

KPJ Healthcare Berhad Auditors

The auditors, Ernst & Young, have expressed their willingness to continue in office.
Datin Paduka Siti Sadiah Sh Bakir
- direct 180,762 - 180,762
Signed on behalf of the Board in accordance with a resolution of the directors dated 31 March 2012.
- indirect 3,125 - 3,125

Hj Ahamad bin Mohamad

- direct 87 - 87
- indirect 6,250 - 6,250

Hj Rozan bin Mohd Saat 125 - 125

Note of the other directors in office at the end of the financial year had any interest in shares in the Company or its related
companies during the financial year.

Other statutory information

(a) Before the statements of comprehensive income and statements of financial position of the Group and of the
Company were made out, the directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision
for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate
provision had been made for doubtful debts; and KAMARUZZAMAN BIN ABU KASSIM DATIN PADUKA SITI SADIAH SHEIKH BAKIR
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in CHAIRMAN MANAGING DIRECTOR
the ordinary course of business had been written down to an amount which they might be expected so to realise.
Kuala Lumpur, Malaysia

125 ANNUAL REPORT 2011 ANNUAL REPORT 2011 126

Statement By Directors Independent Auditors Report to the members of
KPJ Healthcare Berhad
(Incorporated In Malaysia)
(Company No. 247079 M)

Pursuant to Section 169(15) of the Companies Act, 1965 Report on the financial statements
We, Kamaruzzaman bin Abu Kassim and Datin Paduka Siti Sadiah Sh Bakir, being two of the directors of KPJ We have audited the financial statements of KPJ Healthcare Berhad, which comprise the statements of financial position
Healthcare Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out as at 31 December 2011 of the Group and of the Company, and the statements of comprehensive income, statements of
on pages 130 to 185 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in changes in equity and statements of cash flows of the Group and of the Company for the year then ended, and a summary
Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December of significant accounting policies and other explanatory notes, as set out on pages 130 to 185.
2011 and of their financial performance and cash flows for the year then ended.
Directors responsibility for the financial statements
The supplementary information set out in Note 44 to the financial statements on page 185 have been prepared in
accordance with the Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the The directors of the Company are responsible for the preparation of financial statements that give a true and fair view in
Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal controls
Institute of Accountants, and the directive of Bursa Malaysia Securities Berhad. as the directors determine are necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Signed on behalf of the Board in accordance with
wit a resolution of the directors dated 31 March 2012.
Auditors responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free
from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control
KAMARUZZAMAN BIN ABU KASSIM DATIN PADUKA SITI SADIAH SHEIKH BAKIR relevant to the entitys preparation of financial statements that give a true and fair view in order to design audit procedures
CHAIRMAN MANAGING DIRECTOR that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the
Statutory Declaration financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Pursuant to Section 169(16) of the Companies Act, 1965
Opinion
I, Mohd Sahir bin Rahmat, being the officer primarily responsible for the financial management of KPJ HealthcareBerhad,
do solemnly and sincerely declare that the accompanying financial statements set out on pages 130 to 185 are, in my In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards
opinion, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the
provisions of the Statutory Declarations Act, 1960. Company as at 31 December 2011 and of their financial performance and cash flows for the year then ended.

Subscribed and solemnly declared by the Report on other legal and regulatory requirements
abovenamed Mohd Sahir bin Rahmat at
Johor Bahru in Johor In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
on 31 March 2012 (a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its
subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b) We have considered the financial statements and the auditors reports of all the subsidiaries which we have not
acted as auditors, which is indicated in Note16 (a) to the financial statements, being financial statements that have
been included in the consolidated financial statements.
MOHD SAHIR BIN RAHMAT
CHIEF FINANCIAL OFFICER
Before me, (c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial
statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the
consolidated financial statements and we have received satisfactory information and explanations required by us for
those purposes.

(d) The auditors reports on the financial statements of the subsidiaries were not subject to any qualification and did not
include any comment required to be made under Section 174(3) of the Act.

127 ANNUAL REPORT 2011 ANNUAL REPORT 2011 128

 STATEMENT OF COMPREHENSIVE INCOME
For The Financial Year Ended 31 December 2011

Other matters Group Company

The supplementary information set out in Note 44 to the financial statements on page 185 is disclosed to meet the 2011 2010 2011 2010
requirement of Bursa Malaysia Securities Berhad. The directors are responsible for the preparation of the supplementary Notes RM000 RM000 RM000 RM000
information in accordance with Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or
Revenue 4 1,908,993 1,654,611 136,599 82,968
Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the
Cost of sales (1,307,136) (1,150,716) - -
Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our opinion,
the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance and directive
Gross profit 601,857 503,895 136,599 82,968
of Bursa Malaysia Securities Berhad.
Administrative expenses (451,351) (365,500) (29,228) (22,304)
Other income 11,957 12,484 - -
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies
Other operating expenses (3,298) (6,860) - -
Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of
this report. Operating profit 159,165 144,019 107,371 60,664

Finance income 5 10,295 7,157 - -

Finance costs 5 (19,688) (13,597) (19,643) (14,905)
Finance costs - net (9,393) (6,440) (19,643) (14,905)

Associates
- share of results 54,825 23,919 - -
- reversal of impairment of
interest in associates - 6,460 - -
54,825 30,379 - -

Profit before zakat and tax 6 204,597 167,958 87,728 45,759

Zakat 9 (1,300) (1,269) (15) (10)
Income tax expense 10 (49,038) (40,468) (6,044) (9,268)
Profit net of tax 154,259 126,221 81,669 36,481

Other comprehensive income:

Translation of foreign subsidiaries 571 (1,060) - -
Revaluation (deficit)/surplus (2,124) 9,107 - -
ERNST & YOUNG ABRAHAM VERGHESE A/L T.V. ABRAHAM Available-for-sale financial assets - 172 - -
AF: 0039 1664/10/12(J) Other comprehensive income
Chartered Accountants Chartered Accountant for the year, net of tax (1,553) 8,219 - -

Kuala Lumpur, Malaysia Total comprehensive income

31 March 2012 for the year 152,706 134,440 81,669 36,481

Profit attributable to:

Owners of the Company 143,670 118,894 81,669 36,481
Non-controlling interests 10,589 7,327 - -
154,259 126,221 81,669 36,481

Total comprehensive income

attributable to:
Owners of the Company 145,082 123,660 81,669 36,481
Non-controlling interests 7,624 10,780 - -
152,706 134,440 81,669 36,481

Earnings per share attributable to

ordinary equity holders of the Company:
- basic (sen) 12(a) 26.31 22.57
- diluted (sen) 12(b) 23.34 20.31

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

129 ANNUAL REPORT 2011 ANNUAL REPORT 2011 130

STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
As at 31 December 2011 As at 31 December 2011 (continued)

Group Company Group Company

2011 2010 2011 2010 2011 2010 2011 2010
Notes RM000 RM000 RM000 RM000 Notes RM000 RM000 RM000 RM000

Assets Equity attributable to equity

Non-current assets holders of the Company
Property, plant and equipment 13 641,729 536,773 - - Share capital 30 292,492 279,954 292,492 279,954
Investment properties 15 26,223 24,810 - - Reserves 31 600,485 488,716 87,552 39,196
Interest in subsidiaries 16 - - 870,014 762,622 892,977 768,670 380,044 319,150
Interest in associates 17 398,712 307,352 - - Less: Treasury shares 30(a) (23) (23) (23) (23)
Available-for-sale 892,954 768,647 380,021 319,127
financial assets 18 3,074 3,447 - -
Intangible assets 19 167,830 136,317 - - Non-controlling interests 103,898 94,741 - -
Deferred tax assets 21 14,962 15,864 - -
Receivables 23 - - 56,302 94,386 Total equity 996,852 863,388 380,021 319,127
1,252,530 1,024,563 926,316 857,008

Current assets Total equity and liabilities 1,959,264 1,680,039 986,268 904,616
Inventories 22 47,066 41,615 - -
Receivables 23 304,636 298,427 57,393 32,727
Tax refund receivable 8,661 12,342 - 1,288
Deposits, cash and bank balances 24 252,080 197,118 2,559 13,593
612,443 549,502 59,952 47,608

Non-current assets held for sale 25 94,291 105,974 - -

706,734 655,476 59,952 47,608

Total assets 1,959,264 1,680,039 986,268 904,616

Equity and liabilities

Current liabilities
Payables 26 335,229 308,107 91,570 29,062
Current tax liabilities 8,552 3,318 410 -
Borrowings 27
- Bank overdrafts 1,141 18 - -
- others 139,850 362,658 65,000 299,000
Deferred revenue 28 98,339 36,144 - -
Dividend payable 14,623 14,673 14,623 14,673
597,734 724,918 171,603 342,735

Net current assets/(liabilities) 109,000 (69,442) (111,651) (295,127)

Non-current liabilities
Deferred tax liabilities 21 47,413 41,204 - -
Borrowings 27 302,480 36,747 - -
Payables 26 - - 434,644 242,754
Deposits 29 14,785 13,782 - -
364,678 91,733 434,644 242,754

Total liabilities 962,412 816,651 606,247 585,489

Net assets 996,852 863,388 380,021 319,127

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

131 ANNUAL REPORT 2011 ANNUAL REPORT 2011 132

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY COMPANY STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2011 For the financial year ended 31 December 2011

Equity Non-distributable Distributable

Ordinary attributable
share Share Fair to owners Non-
capital premium value Revaluation Retained of the parent, controlling
Ordinary
Treasury Merger Exchange Total
RM000 RM000 shares reserve reserve reserve reserve earnings total interests equity share Shares
At 1 January 2011 (note 30)
279,954 (Note 31)
43,759 RM000
(23) RM000
(3,367) RM000 RM000
(1,295) 172 RM000
56,110 RM000
393,337 RM000
768,647 RM000
94,741 RM000
863,388 capital premium Treasury Retained Total
RM000 RM000 shares earnings equity
At 1 January 2011 279,954 43,759 (23) (3,367) (1,295) 172 56,110 393,337 768,647 94,741 863,388
(Note 30) (Note 31) RM000 RM000 RM000
Comprehensive income
Profit for the year - - - - - - - 143,670 143,670 10,589 154,259 At 1 January 2011 279,954 38,737 (23) 459 319,127
Other comprehensive income
Profit for the year - - - 81,669 81,669
Translation of foreign subsidiaries - - - - 300 - - - 300 271 571
Dividends on ordinary shares - - - (63,406) (63,406)
Issue of shares:
Revaluation surplus - - - - - - 1,112 - 1,112 (3,236) (2,124)
- exercise of share warrants 12,538 30,093 - - 42,631
Realisation of revaluation reserve - - - - - - (12,007) 12,007 - - -

Realisation of fair value reserve - - - - - (172) - 172 - - - At 31 December 2011 292,492 68,830 (23) (18,722) 380,021
Total other comprehensive income - - - - 300 (172) (10,895) 12,179 1,412 (2,965) (1,553)
At 1 January 2010 211,051 31,369 - 26,495 268,915
Total comprehensive income - - - - 300 (172) (10,895) 155,849 145,082 7,624 152,706
Total comprehensive income - - - 36,481 36,481
Acquisition of subsidiaries - - - - - - - - - 1,533 1,533
Issue of shares:
Dividends on ordinary shares - - - (41,124) (41,124)
- exercise of share warants 12,538 30,093 - - - - - - 42,631 - 42,631 Bonus issue 52,762 (31,369) - (21,393) -
Dividends on ordinary shares - - - - - - - (63,406) (63,406) - (63,406) Issue of shares:
- exercise of share warrants 16,141 38,737 - - 54,878
At 31 December 2011 292,492 73,852 (23) (3,367) (995) - 45,215 485,780 892,954 103,898 996,852
Treasury shares purchased - - (23) - (23)
At 1 January 2010 211,051 36,391 - (3,367) (235) - 50,456 337,715 632,011 45,427 677,438
- changes in accounting policies - - - - - - - (755) (755) - (755) At 31 December 2010 279,954 38,737 (23) 459 319,127
As restated 211,051 36,391 - (3,367) (235) - 50,456 336,960 631,256 45,427 676,683
Comprehensive income
Profit for the year - - - - - - - 118,894 118,894 7,327 126,221
Other comprehensive income
Translation of foreign subsidiaries - - - - (1,060) - - - (1,060) - (1,060)

Revaluation surplus - - - - - - 5,654 - 5,654 3,453 9,107

Available-for-sale financial assets - - - - - 172 - - 172 - 172

Total other comprehensive income - - - - (1,060) 172 5,654 - 4,766 3,453 8,219

Total comprehensive income - - - - (1,060) 172 5,654 118,894 123,660 10,780 134,440

Acquisition of subsidiary - - - - - - - - - 38,534 38,534

Bonus issue 52,762 (31,369) - - - - - (21,393) - - -
Issue of shares
- exercise of share warrants 16,141 38,737 - - - - - - 54,878 - 54,878
Treasury shares purchased - - (23) - - - - - (23) - (23)
Dividends on ordinary shares - - - - - - - (41,124) (41,124) - (41,124)

At 31 December 2010 279,954 43,759 (23) (3,367) (1,295) 172 56,110 393,337 768,647 94,741 863,388

The accompanying accounting policies and explanatory notes form an integral part of the financial statements. The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

133 ANNUAL REPORT 2011 ANNUAL REPORT 2011 134

STATEMENT OF CASH FLOWS STATEMENT OF CASH FLOWS
For the financial year ended 31 December 2011 For the financial year ended 31 December 2011 (continued)

Group Company Group Company

2011 2010 2011 2010 2011 2010 2011 2010

RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

Operating activities Investing activities

Profit before zakat and tax 204,597 167,958 87,728 45,759 Purchase of property, plant and equipment (138,792) (215,012) - -
Adjustments for: Purchase of non-current assets held for sale (37,149) (12,526) - -
Associates: Purchase of investment property - (840) - -
- share of results (54,825) (23,919) - - Proceeds from disposal of property,
- reversal of impairment of interest in associates - (6,460) - - plant and equipment 2,256 64,710 - -
Interest income - - (3,168) (3,359) Proceeds from disposal of non-current assets
Finance income (10,295) (7,157) - - held for sale 50,270 - - -
Finance costs Acquisition of subsidiaries, net of cash acquired (36,068) (38,400) - -
- interest expenses 19,379 13,268 19,643 14,905 Additional investment in subsidiaries (26,000) (22,128) - -
- accretion of interest 309 329 - - Proceeds from disposal of shares in associate - 1,134 - -
Dividend income - - (100,582) (49,508) Dividends received 26,465 20,085 100,582 41,903
Bad debts recovered (393) (417) - - Interest received 10,295 7,157 3,168 3,359
Provision for impairment of trade receivables 2285 4,923 - - Net cash (used in)/generated from investing activities (148,723) (195,820) 103,750 45,262
Bad debts written off 871 489 - -
Gain on disposal of non-current assets held for sale (1,321) - - - Financing activities
Gain on fair value of investment properties (1,413) (755) - - Treasury shares purchased - (23) - (23)
Loss/(gain) on disposal of property, plant and Issue of shares:
equipment 320 (1,770) - - - exercise of share warrants 42,631 54,878 42,631 54,878
Property, plant and equipment - - Bank borrowings:
- depreciation 69,612 59,367 - - - drawdown 32,498 120,200 15,000 50,000
- written off 655 15 - - - repayment (15,415) (89,576) - -
- revaluation (surplus)/deficit (1,877) 885 - - Dividends paid to shareholders (63,456) (26,451) (63,406) (26,451)
Inventories written off 644 28 - - Net cash (used in)/generated
Amortisation of deferred consultancy expenses (305) (414) - - from financing activities (3,742) 59,028 (5,775) 78,404
Operating profit before working capital changes 228,243 206,370 3,621 7,797
Net changes in cash and cash equivalents 52,619 51,484 (11,034) 3,402
Changes in working capital: Currency translation differences 1,220 7,767 - -
-Inventories (6,095) (7,428) - - Cash and cash equivalents
-Receivables (8,972) (4,811) 2,477 3,839 at beginning of the financial year 197,100 143,849 13,593 10,191
-Payables 44,569 43,663 (884) (5,448) Cash and cash equivalents
Related companies - - (90,225) (109,875) at end of the financial year * 197,100 2,559 13,593
250,939
Cash flows generated from/(used in) operations 257,745 237,794 (85,011) (103,687)

Long term deposits 999 828 - -

Interest paid (19,379) (13,268) (19,643) (14,905) * Cash and cash equivalents comprise of the followings:
Zakat paid (1,269) (1,395) (10) (10)
Income tax refund 4,838 - 1,596 -
Income tax paid (37,850) (35,683) (5,941) (1,662) Group Company

Net cash generated from/(used in) 2011 2010 2011 2010

operating activities 205,084 188,276 (109,009) (120,264) RM000 RM000 RM000 RM000

Deposits, cash and bank balances (Note 24) 252,080 197,118 2,559 13,593
Bank overdrafts (Note 27) (1,141) (18) - -
250,939 197,100 2,559 13,593

The accompanying accounting policies and explanatory notes form an integral part of the financial statements. The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

135 ANNUAL REPORT 2011 ANNUAL REPORT 2011 136

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 For the financial year ended 31 December 2011 (continued)

1. Corporate information 2. Summary of significant accounting policies (continued)

The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Market 2.3 Malaysian Financial Reporting Standards
of Bursa Malaysia Securities Berhad.
On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved
The registered office of the Company is located at Suite 12B, Level 12, Menara Ansar, 65 Jalan Trus, 80000 Johor Bahru, accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework).
Johor. The principal place of business of the Company is located at 202, Jalan Pahang, 53000 Kuala Lumpur.
The Company will be required to prepare financial statements using the MFRS Framework in its first MFRS
The principal activities of the Company are investment holding and provision of management services to subsidiaries. financial statements for the year ending 31 December 2012.
The principal activities of the subsidiaries are mainly the operation of specialist hospitals. The details of the principal
activities of the subsidiaries are set out in Note 16. There were no significant changes in the nature of these activities The directors are of the opinion that the financial performance and financial position as disclosed in these
during the financial year ended 31 December 2011, other than the additional activity of providing retirement village and financial statements for the year ended 31 December 2011 would not be significantly different if prepared
aged care services arising from the acquisition of Jeta Gardens Waterford Trust in Australia as disclosed in Note 16(b) under the MFRS Framework.
(iv) to the financial statements.
2.4 Basis of consolidation
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
Directors on 31 March 2012. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated
2. Summary of significant accounting policies financial statements are prepared for the same reporting date as the Company. Consistent accounting policies
are applied to like transactions and events in similar circumstances.
2.1 Basis of preparation
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
The financial statements of the Group and of the Company have been prepared in accordance with Financial transactions are eliminated in full.
Reporting Standards (FRSs) and the Companies Act, 1965 in Malaysia. At the beginning of the current
financial year, the Group and the Company adopted new and revised FRSs which are mandatory for financial Acquisitions of subsidiaries are accounted for by applying the purchase method. Identifiable assets acquired
periods beginning on or after 1 January 2011 as described in Note 2.2. and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair
values at the acquisition date. Adjustments to those fair values relating to previously held interests are treated
The financial statements have been prepared on the historical cost basis except as disclosed in the accounting as a revaluation and recognised in other comprehensive income. The cost of a business combination is
policies below. measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred
or assumed, and equity instruments issued, plus any costs directly attributable to the business combination.
The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest Any excess of the cost of business combination over the Groups share in the net fair value of the acquired
thousand (RM000) except when otherwise indicated. subsidiarys identifiable assets, liabilities and contingent liabilities is recorded as goodwill on the statement of
financial position. The accounting policy for goodwill is set out in Note 2.9.
2.2 Changes in accounting policies
Any excess of the Groups share in the net fair value of the acquired subsidiarys identifiable assets, liabilities
The accounting policies adopted are consistent with those of the previous financial year except as follows: and contingent liabilities over the cost of business combination is recognised as income in profit or loss on
the date of acquisition. When the Group acquires a business, embedded derivatives separated from the host
On 1 January 2011, the Group and the Company adopted the following new and amended FRSs and IC
contract by the acquiree are reassessed on acquisition unless the business combination results in a change
Interpretations mandatory for annual financial periods beginning on or after 1 January 2011.
in the terms of the contract that significantly modifies the cash flows that would otherwise be required under
the contract.
FRS 1 First-time Adoption of Financial Reporting Standards
FRS 3 Business Combinations (revised)
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control,
Amendments to FRS 1: Additional Exemptions for First-time Adopters
and continue to be consolidated until the date that such control ceases.
Amendments to FRS 1: Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters
Amendments to FRS 2 Share-based Payment
Amendments to FRS 2: Group Cash-settled Share-based Payment Transactions
2.5 Transaction with non-controlling interest (NCI)
Amendments to FRS 5 Non-current Assets Held for Sale and Discontinued Operations
Amendments to FRS 7: Improving Disclosures about Financial Instruments NCI represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented
Amendments to FRS 127 Consolidated and Separate Financial Statements separately in profit or loss of the Group and within equity in the consolidated statements of financial position,
Amendments to FRS 132: Classification of Rights Issues separately from parent shareholders equity. Transactions with NCI are accounted for using the entity concept
Amendments to FRS 138 Intangible Assets method, whereby, transactions with NCI are accounted for as transactions with owners. On acquisition of NCI,
IC Interpretation 4 Determining Whether an Arrangement contains a Lease the difference between the consideration and book value of the share of the net assets acquired is recognised
IC Interpretation 12 Service Concession Arrangements directly in equity. Gain or loss on disposal to NCI is recognised directly in equity.
IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation
IC Interpretation 17 Distributions of Non-cash Assets to Owners 2.6 Foreign currency
IC Interpretation 18 Transfer of Assets from Customers
Improvements to FRSs issued in 2010 (a) Functional and presentation currency
TR-i 4 Shariah Compliant Sale Contracts
The individual financial statements of each entity in the Group are measured using the currency of the primary
Adoption of the above standards and interpretations did not have any significant effect on the financial economic environment in which the entity operates (the functional currency). The consolidated financial
performance and position of the Group and of the Company. statements are presented in Ringgit Malaysia (RM), which is also the Companys functional currency.

137 ANNUAL REPORT 2011 ANNUAL REPORT 2011 138

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
2.6 Foreign currency(continued) 2.7 Property, plant and equipment (continued)

(b) Foreign currency transactions Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the
asset and the net amount is restated to the revalued amount of the asset. The revaluation surplus included in
Transactions in foreign currencies are measured in the respective functional currencies of the Company the asset revaluation reserve in respect of an asset is transferred directly to retained earnings on retirement or
and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange disposal of the asset.
rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated
in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation is computed on a
items denominated in foreign currencies that are measured at historical cost are translated using the straight-line basis over the estimated useful lives of the assets as follows:
exchange rates as at the dates of the initial transactions. Non-monetary items denominated in foreign
Buildings 2%
currencies measured at fair value are translated using the exchange rates at the date when the fair value
Renovation 10%
was determined.
Medical and other equipment 7.5% - 25%
Furniture and fittings 10% - 20%
Exchange differences arising on the settlement of monetary items or on translating monetary items at the
Motor vehicles 20%
reporting date are recognised in profit or loss except for exchange differences arising on monetary items
Computers 20% - 30%
that form part of the Groups net investment in foreign operations, which are recognised initially in other
comprehensive income and accumulated under foreign currency translation reserve in equity. The foreign
currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of the Capital work-in-progress included in plant and equipment are not depreciated as these assets are not yet
available for use.
foreign operation.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
Exchange differences arising on the translation of non-monetary items carried at fair value are included in
circumstances indicate that the carrying value may not be recoverable.
profit or loss for the period except for the differences arising on the translation of non-monetary items in
respect of which gains and losses are recognised as other comprehensive income. Exchange differences The residual value, useful life and depreciation method are reviewed at each financial year end, and adjusted
arising from such non-monetary items are also recognised as other comprehensive income. prospectively, if appropriate.

(c) Foreign operations An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the profit or
The assets and liabilities of foreign operations are translated into RM at the rate of exchange ruling at the loss in the year the asset is derecognised.
reporting date and income and expenses are translated at exchange rates at the dates of the transactions.
The exchange differences arising on the translation are taken directly to other comprehensive income. 2.8 Investment properties
On disposal of a foreign operation, the cumulative amount recognised in other comprehensive income
and accumulated in equity under foreign currency translation reserve relating to that particular foreign Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition,
operation is recognised in the profit or loss. investment properties are measured at fair value which reflects market conditions at the reporting date. Fair
value is arrived at by reference to market evidence of transaction prices for similar properties and is performed
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as by registered independent valuers having an appropriate recognised professional qualification and recent
assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign experience in the location and category of the properties being valued. Gains or losses arising from changes in
operations and translated at the closing rate at the reporting date. the fair values of investment properties are included in profit or loss in the year in which they arise.

2.7 Property, plant and equipment A property interest under an operating lease is classified and accounted for as an investment property on a
property-by-property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and property interest under an operating lease classified as an investment property is carried at fair value.
equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably. Investment properties are derecognised when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any
Subsequent to recognition, plant and equipment and furniture and fixtures are measured at cost less accumulated gain or loss on the retirement or disposal of an investment property is recognised in profit or loss in the year of
depreciation and accumulated impairment losses. When significant parts of property, plant and equipment are retirement or disposal.
required to be replaced in intervals, the Group recognises such parts as individual assets with specific useful
lives and depreciation, respectively. Likewise, when a major inspection is performed, its cost is recognised in 2.9 Intangible assets - Goodwill
the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All
other repair and maintenance costs are recognised in profit or loss as incurred. Freehold land and buildings are Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated
measured at fair value less accumulated depreciation on buildings and impairment losses recognised after the impairment losses.
date of the revaluation. Valuations are performed with sufficient regularity to ensure that the carrying amount does
not differ materially from the fair value of the freehold land and buildings at the reporting date. For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the
Groups cash-generating units that are expected to benefit from the synergies of the combination.
Any revaluation surplus is recognised in other comprehensive income and accumulated in equity under the asset
revaluation reserve, except to the extent that it reverses a revaluation decrease of the same asset previously The cash-generating unit to which goodwill has been allocated is tested for impairment annually and
recognised in profit or loss, in which case the increase is recognised in profit or loss. A revaluation deficit is whenever there is an indication that the cash-generating unit may be impaired, by comparing the carrying
recognised in profit or loss, except to the extent that it offsets an existing surplus on the same asset carried in the amount of the cash-generating unit, including the allocated goodwill, with the recoverable amount of the
asset revaluation reserve. cash-generating unit. Where the recoverable amount of the cash-generating unit is less than the carrying
amount, an impairment loss is recognised in the profit or loss. Impairment losses recognised for goodwill are
not reversed in subsequent periods.

139 ANNUAL REPORT 2011 ANNUAL REPORT 2011 140

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
2.9 Intangible assets - Goodwill (continued) 2.12 Subsidiaries (continued)

Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating The Group has taken advantage of the exemption provided under FRS 1222004 Business Combinations to
unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount apply the standard prospectively. Accordingly, business combinations entered into prior to 1 January 2008
of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this have not been restated with this standard.
circumstance is measured based on the relative fair values of the operations disposed of and the portion of
the cash-generating unit retained. 2.13 Associates

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and An associate is an entity, not being a subsidiary or a joint venture, in which the Group has significant influence.
liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and An associate is equity accounted for from the date the Group obtains significant influence until the date the
translated in accordance with the accounting policy set out in Note 2.6. Group ceases to have significant influence over the associate.

2.10 Impairment of non-financial assets The Groups investments in associates are accounted for using the equity method. Under the equity method,
the investment in associates is measured in the statement of financial position at cost plus post-acquisition
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. changes in the Groups share of net assets of the associates. Goodwill relating to associates is included in
If any such indication exists, or when an annual impairment assessment for an asset is required, the Group the carrying amount of the investment. Any excess of the Groups share of the net fair value of the associates
makes an estimate of the assets recoverable amount. identifiable assets, liabilities and contingent liabilities over the cost of the investment is excluded from the
carrying amount of the investment and is instead included as income in the determination of the Groups share
An assets recoverable amount is the higher of an assets fair value less costs to sell and its value in use. For of the associates profit or loss for the period in which the investment is acquired.
the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units (CGU)). Under the equity method, unrealised profit and losses resulting from upstream (associate to investor) and
downstream (investor to associate) associate should be eliminated to the extent of the investors interest in
In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted the associate. However, unrealised losses should not be eliminated to the extent that the transaction provides
to their present value using a pre-tax discount rate that reflects current market assessments of the time value evidence of an impairment of the assets transferred.
of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable
amount, the asset is written down to its recoverable amount. Impairment losses recognised in respect of a After application of the equity method, the Group determines whether it is necessary to recognise an additional
CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those impairment loss on the Groups investment in its associates. The Group determines at each reporting date
units or groups of units and then, to reduce the carrying amount of the other assets in the unit or groups of whether there is any objective evidence that the investment in the associate is impaired. If this is the case,
units on a pro-rata basis. the Group calculates the amount of impairment as the difference between the recoverable amount of the
Impairment losses are recognised in profit or loss except for assets that are previously revalued where the associate and its carrying value and recognises the amount in profit or loss.
revaluation was taken to other comprehensive income. In this case the impairment is also recognised in other
comprehensive income up to the amount of any previous revaluation. The financial statements of the associates are prepared as of the same reporting date as the Company. Where
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is In the Companys financial statements, investments in associates are stated at cost less impairment losses.
reversed only if there has been a change in the estimates used to determine the assets recoverable amount On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is
since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased included in profit or loss.
to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit 2.14 Financial assets
or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation
increase. Impairment loss on goodwill is not reversed in a subsequent period. Financial assets are recognised in the statement of financial position when, and only when, the Group and the
Company become a party to the contractual provisions of the financial instrument.
2.11 Non-current assets (or disposal groups) classified as assets held for sale
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial
Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of assets not at fair value through profit or loss, directly attributable transaction costs.
carrying amount and fair value less cost to sell if their carrying amount is recovered principally through a sale
transaction rather than through a continuing use and a sale is considered highly probable. The Group and the Company determine the classification of their financial assets at initial recognition, and the
categories include loans and receivables and available-for-sale financial assets.
2.12 Subsidiaries
(a) Loans and receivables
A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so
as to obtain benefits from its activities, generally accompanying a shareholding of more than one half of the Financial assets with fixed or determinable payments that are not quoted in an active market are classified
voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible as loans and receivables.
are considered when assessing whether the Group controls another entity.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
Subsidiaries are consolidated using the acquisition method of accounting except for Johor Specialist effective interest method. Gains and losses are recognised in profit or loss when the loans and
Hospital Sdn Bhd and Ipoh Specialist Hospital Sdn Bhd which were consolidated using the merger method receivables are derecognised or impaired, and through the amortisation process.
of accounting. The subsidiaries were consolidated prior to 1 April 2002 in accordance with Malaysia
Accounting Standard 2 Accounting for Acquisitions and Mergers, the generally accepted accounting Loans and receivables are classified as current assets, except for those having maturity dates later than
principles prevailing at that time. 12 months after the reporting date which are classified as non-current.

141 ANNUAL REPORT 2011 ANNUAL REPORT 2011 142

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
2.14 Financial assets (continued) 2.15 Impairment of financial assets (continued)

(b) Available-for-sale financial assets If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
Available-for-sale financial assets are financial assets that are designated as available for sale or are not classified loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the
as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments. reversal date. The amount of reversal is recognised in profit or loss.

After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses (b) Available-for-sale financial assets
from changes in fair value of the financial asset are recognised in other comprehensive income, except that
impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer or
using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously obligor, and the disappearance of an active trading market are considerations to determine whether there is
recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification objective evidence that investment securities classified as available-for-sale financial assets are impaired.
adjustment when the financial asset is derecognised. Interest income calculated using the effective
interest method is recognised in profit or loss. Dividends on an available-for-sale equity instrument are If an available-for-sale financial asset is impaired, an amount comprising the difference between its
recognised in profit or loss when the Groups right to receive payment is established. cost (net of any principal payment and amortisation) and its current fair value, less any impairment loss
previously recognised in profit or loss, is transferred from equity to profit or loss.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less
impairment loss. Impairment losses on available-for-sale equity investments are not reversed in profit or loss in the
subsequent periods. Increase in fair value, if any, subsequent to impairment loss is recognised in other
Available-for-sale financial assets are classified as non-current assets unless they are expected to be comprehensive income. For available-for-sale debt investments, impairment losses are subsequently
realised within 12 months after the reporting date. reversed in profit or loss if an increase in the fair value of the investment can be objectively related to an
event occurring after the recognition of the impairment loss in profit or loss.
A financial asset is derecognised where the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount 2.16 Cash and cash equivalents
and the sum of the consideration received and any cumulative gain or loss that had been recognised in
other comprehensive income is recognised in profit or loss. Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short-term, highly liquid
investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets changes in value. These also include bank overdrafts that form an integral part of the Groups cash management.
within the period generally established by regulation or convention in the marketplace concerned. All
regular way purchases and sales of financial assets are recognised or derecognised on the trade date, 2.17 Inventories
the date that the Group and the Company commit to purchase or sell the asset.
Inventories are stated at the lower of cost (determined on the weighted average basis) and net realisable value.
2.15 Impairment of financial assets
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
The Group and the Company assess at each reporting date whether there is any objective evidence that a of completion and the estimated costs necessary to make the sale.
financial asset is impaired.
2.18 Financial liabilities
(a) Trade and other receivables and other financial assets carried at amortised cost
Financial liabilities are classified according to the substance of the contractual arrangements entered into and
To determine whether there is objective evidence that an impairment loss on financial assets has been the definitions of a financial liability.
incurred, the Group and the Company consider factors such as the probability of insolvency or significant
financial difficulties of the debtor and default or significant delay in payments. For certain categories of Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when,
financial assets, such as trade receivables, receivables that are assessed not to be impaired individually and only when, the Group and the Company become a party to the contractual provisions of the financial
are subsequently assessed for impairment on a collective basis based on similar risk characteristics. instrument. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or
Objective evidence of impairment for a portfolio of receivables could include the Groups and the other financial liabilities.
Companys past experience of collecting payments, an increase in the number of delayed payments in the
portfolio past the average credit period and observable changes in national or local economic conditions (a) Financial liabilities at fair value through profit or loss
that correlate with default on receivables.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
If any such evidence exists, the amount of impairment loss is measured as the difference between the liabilities designated upon initial recognition at fair value through profit or loss.
assets carrying amount and the present value of estimated future cash flows discounted at the financial
assets original effective interest rate. The impairment loss is recognised in profit or loss. Financial liabilities held for trading include derivatives entered into by the Group and the Company that
do not meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value and
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets subsequently stated at fair value, with any resultant gains or losses recognised in profit or loss. Net gains
with the exception of receivables, where the carrying amount is reduced through the use of an allowance or losses on derivatives include exchange differences.
account. When a receivable becomes uncollectible, it is written off against the allowance account.
The Group and the Company have not designated any financial liabilities at fair value through profit or loss.

143 ANNUAL REPORT 2011 ANNUAL REPORT 2011 144

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
2.18 Financial liabilities (continued) 2.20 Leases (continued)

(b) Other financial liabilities (b) As lessor

The Groups and the Companys other financial liabilities include trade payables, other payables and Leases where the Group retains substantially all the risks and rewards of ownership of the asset are
loans and borrowings. classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added
to the carrying amount of the leased asset and recognised over the lease term on the same bases as
Trade and other payables are recognised initially at fair value plus directly attributable transaction costs rental income.
and subsequently measured at amortised cost using the effective interest method.
2.21 Provisions
Loans and borrowings are recognised initially at fair value, net of transaction costs incurred, and
subsequently measured at amortised cost using the effective interest method. Borrowings are classified Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at event, it is probable that an outflow of economic resources will be required to settle the obligation and the
least 12 months after the reporting date. amount of the obligation can be estimated reliably.

For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Where the
derecognised, and through the amortisation process. effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
A financial liability is derecognised when the obligation under the liability is extinguished. When an provision due to the passage of time is recognised as a finance cost.
existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated 2.22 Employee benefits
as a derecognition of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss. (a) Short term benefits

2.19 Borrowing costs Wages, salaries, bonuses and social security contributions are recognised as an expense in the period
in which the associated services are rendered by employees of the Group. Short term accumulating
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the compensated absences such as paid annual leave are recognised when services are rendered by
acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when employees that increase their entitlement to future compensated absences. Short term non-accumulating
the activities to prepare the asset for its intended use or sale are in progress and the expenditures and compensated absences such as sick leave are recognised when the absences occur.
borrowing costs are incurred. Borrowing costs are capitalised until the assets are substantially completed for
their intended use or sale. (b) Defined contribution plans

All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs The Group participates in the national pension schemes as defined by the laws of the countries in which
consist of interest and other costs that the Group and the Company incurred in connection with the borrowing it has operations. The Malaysian companies in the Group make contributions to the Employees Provident
of funds. Fund in Malaysia, a defined contribution pension scheme. Contributions to defined contribution pension
schemes are recognised as an expense in the period in which the related service is performed.
2.20 Leases
2.23 Revenue recognition
(a) As lessee Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.
Finance leases, which transfer to the Group substantially all the risks and rewards incidental to ownership
of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if
(a) Sale of goods and rendering of services
lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the
amount capitalised. Lease payments are apportioned between the finance charges and reduction of the
Revenue from hospital operations comprises inpatient and outpatient hospital charges, consultation fees,
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
and sales of pharmaceutical products and medical supplies. These are recognised when services are
charges are charged to profit or loss. Contingent rents, if any, are charged as expenses in the periods in
rendered and goods are delivered, net of discounts, rebates and returns.
which they are incurred.
Other hospital revenue mainly consists of clinic rental for consultants. These are recognised on an accrual
Leased assets are depreciated over the estimated useful life of the asset. However, if there is no reasonable basis in accordance with the substance of the relevant agreements.
certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over
the shorter of the estimated useful life and the lease term. (b) Deferred revenue
Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the Deferred revenue represents revenue billed in advance in relation to students fees, accommodation
lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of fees, resident fees for retirement village and fees for other external courses. Amounts are included in the
rental expense over the lease term on a straight-line basis. financial statements as deferred revenue at the commencement of the course and recognised as revenue
on monthly basis over the duration of the course.

(c) Dividend income

Dividend income is recognised when the Groups right to receive payment is established.

145 ANNUAL REPORT 2011 ANNUAL REPORT 2011 146

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

2. Summary of significant accounting policies (continued) 2. Summary of significant accounting policies (continued)
2.23 Revenue recognition (continued) 2.24 Income taxes (continued)

(d) Management fees (b) Deferred tax (continued)

Management fees represent fees charged to subsidiaries for assisting in the management of the Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred
subsidiaries and these are recognised upon performance of services. tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity and deferred tax arising from a business combination is adjusted against
(e) Interest income goodwill on acquisition.

Interest income is recognised on an accrual basis using the effective interest method. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
2.24 Income taxes and the same taxation authority.

(a) Current tax 2.25 Segment reporting

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the For management purposes, the Group is organised into operating segments based on their products and
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or services which are independently managed by the respective segment managers responsible for the
substantively enacted by the reporting date. performance of the respective segments under their charge. The segment managers report directly to the
management of the Group who regularly review the segment results in order to allocate resources to the
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised segments and to assess the segment performance. Additional disclosures on each of these segments are
outside profit or loss, either in other comprehensive income or directly in equity. shown in Note 41, including the factors used to identify the reportable segments and the measurement basis
of segment information.
(b) Deferred tax
2.26 Ordinary share capital and share issuance expenses
Deferred tax is provided using the liability method on temporary differences at the reporting date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the
Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Deferred tax liabilities are recognised for all temporary differences, except:
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction
- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the
in a transaction that is not a business combination and, at the time of the transaction, affects period in which they are declared.
neither the accounting profit nor taxable profit or loss; and
2.27 Treasury shares
- in respect of taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, where the timing of the reversal of the temporary differences can be When shares of the Company, that have not been cancelled, recognised as equity are reacquired, the amount
controlled and it is probable that the temporary differences will not reverse in the foreseeable future. of consideration paid is recognised directly in equity. Reacquired shares are classified as treasury shares and
presented as a deduction from total equity. No gain or loss is recognised in profit or loss on the purchase, sale,
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax issue or cancellation of treasury shares. When treasury shares are reissued by resale, the difference between
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against the sales consideration and the carrying amount is recognised in equity.
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilised except: 2.28 Contingencies

- where the deferred tax asset relating to the deductible temporary difference arises from the initial A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence
recognition of an asset or liability in a transaction that is not a business combination and, at the will be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; and control of the Group.

- in respect of deductible temporary differences associated with investments in subsidiaries, Contingent liabilities and assets are not recognised in the statements of financial position of the Group.
associates and interests in joint ventures, deferred tax assets are recognised only to the extent that
it is probable that the temporary differences will reverse in the foreseeable future and taxable profit 3. Significant accounting judgements and estimates
will be available against which the temporary differences can be utilised.
The preparation of the Groups financial statements requires management to make judgements, estimates and assumptions
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could
tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are require a material adjustment to the carrying amount of the asset or liability affected in the future.
recognised to the extent that it has become probable that future taxable profit will allow the deferred tax
assets to be utilised.
3.1 Critical judgements made in applying accounting policies
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been The following are the judgements made by management in the process of applying the Groups accounting
enacted or substantively enacted at the reporting date. policies that have the most significant effect on the amounts recognised in the financial statements.

147 ANNUAL REPORT 2011 ANNUAL REPORT 2011 148

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

3. Significant accounting judgements and estimates 6. Profit before zakat and tax
3.1 Critical judgements made in applying accounting policies The following amounts have been included in arriving at the profit before zakat & tax:

Estimated impairment of goodwill Group Company

The Group tests goodwill for impairment annually whether goodwill has suffered any impairment, in accordance 2011 2010 2011 2010
with its accounting policy stated in Note 2.10. More regular reviews are performed if events indicate that this RM000 RM000 RM000 RM000
is necessary.
Auditors remuneration:
The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. - statutory audits 913 800 73 73
The calculations require the use of estimates as set out in Note 20. Bad debts recovered (393) (417) - -
Provision for impairment of trade receivables 2,285 4,923 - -
Bad debts written off 871 489 - -
Contribution to Klinik Waqaf An-Nur 2,110 2,130 - -
4. Revenue Directors remuneration (Note 8) 3,059 2,219 2,601 2,062
Inventories written off 644 28 - -
Group Company Professional fees 5,317 5,730 1,267 1,164
Repairs and maintenance 34,744 35,294 424 190
2011 2010 2011 2010
Property, plant and equipment:
RM000 RM000 RM000 RM000
- depreciation 69,612 59,367 - -
- written off 655 15 - -
Hospital charges 689,665 638,193 - - - revaluation (surplus)/deficit (1,877) 885 - -
Consultation fees 535,962 490,011 - - Loss/(gain) on disposal of property, plant and equipment 320 (1,770) - -
Sale of pharmaceutical, medical - Gain on disposal of non-current assets held for sale (1,321) - - -
and surgical products 660,478 507,383 - Gain on fair value of investment properties (Note 15) (1,413) (755) - -
Other hospital revenue - Rental expense of land and buildings 85,724 68,876 663 91
- clinics rental 10,955 10,519 - Rental equipment and vehicles 1,534 2,319 24 7
- others 11,933 8,505 - - Employee benefits costs (Note 7) 338,188 308,152 12,691 10,272
Dividend income from subsidiaries - - 100,582 49,508 Amortisation of deferred consultancy expenses (305) (414) - -
Interest income - - 3,168 3,359
Management fees - - 32,849 30,101
1,908,993 1,654,611 136,599 82,968
7. Employee benefits costs
Group Company
2011 2010 2011 2010
5. Finance income and costs RM000 RM000 RM000 RM000

Group Company Staff costs (excluding directors remuneration):

2011 2010 2011 2010 - salaries, allowances and bonus 301,953 275,593 11,331 9,196
RM000 RM000 RM000 RM000 - contribution to defined contribution plan 36,235 32,559 1,360 1,076
338,188 308,152 12,691 10,272
Finance costs
Finance cost on Islamic facilities 561 250 - -
Accretion of interest 309 329 - -
Interest expense 8. Directors remuneration
- commercial papers 8,850 7,232 8,850 7,232
- overdrafts 144 998 - - The aggregate amount of emoluments received/receivable by directors of the Company during the financial year is
- term loans 1,720 1,752 - - as follows:
- hiwalah term loan 123 217 - -
- revolving credits 3,719 452 1,763 988 Group Company
- al-amin 51 431 - -
- lease and hire purchase 838 1,182 - - 2011 2010 2011 2010
- bai al-inah - 12 - - RM000 RM000 RM000 RM000
- others 3,373 742 9,030 6,675
Directors remuneration
19,688 13,597 19,643 14,905 - fees & allowances 1,203 1,187 1,014 1,030
Finance income - salaries, allowances and bonus 1,583 847 1,583 847
Interest income on short term deposits 10,295 7,157 - - - contribution to defined contribution plan 190 102 190 102
Net finance costs 9,393 6,440 19,643 14,905 - benefits-in-kind 83 83 83 83
3,059 2,219 2,601 2,062

149 ANNUAL REPORT 2011 ANNUAL REPORT 2011 150

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

9. Zakat 11. Dividends

Group Company
Company
2011 2010 2011 2010
RM000 RM000 RM000 RM000 2011 2010
RM000 RM000
At 1 January 1,269 1,395 10 10
Recognised during the financial year:
Zakat expense for the financial year 1,300 1,269 15 10
Zakat paid during the financial year (1,269) (1,395) (10) (10)
Interim dividends to ordinary equity holders of the Company:
At 31 December 1,300 1,269 15 10
- Interim gross dividends of 5.4 sen (2010: 10.0 sen) per share less 25% (2009: 25%) tax 22,923 41,124
10. Income tax expense - Interim single tier dividends of 7.0 sen per share 40,483 -
63,406 41,124
Major components of income tax expenses

The major components of income tax expenses for the years ended 31 December 2011 and 2010 are:
12. Earnings per share
Group Company
(a) Basic earnings per share
2011 2010 2011 2010
RM000 RM000 RM000 RM000 Basic earnings per share of the Group is calculated by dividing the profit attributable to ordinary equity holders
of the Company for the financial year by the weighted average number of ordinary shares in issue during the
Statements of comprehensive income: financial year.
Current income tax -
- Malaysian income tax 43,832 36,382 6,577 9,181
Group
- Under/(over) provision in respect of previous years 764 (1,445) (533) 87
44,596 34,937 6,044 9,268 2011 2010
RM000 RM000
Deferred income tax -
- Origination and reversal of temporary differences 6,344 4,586 - - Profit attributable to ordinary equity holders of the Company (RM000) 143,670 118,894
- (Over)/under provision in respect of previous years (1,902) 945 - - Weighted average number of ordinary shares of RM0.50 each (000) 546,128 526,706
Basic earnings per share (sen) 26.31 22.57
4,442 5,531 - -
Income tax expense recognised in profit or loss 49,038 40,468 6,044 9,268

The current income tax is calculated at the statutory tax rate of 25% (2010: 25%) of the estimated assessable profit (b) Diluted earnings per share
for the year.
For the diluted earnings per share calculation, the weighted average number of ordinary shares in issue is
Reconciliation between tax expense and accounting profit adjusted to assume conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares for
the Group are the warrants issued.
The reconciliation of income tax expense and the product of accounting profit multiplied by the applicable corporate
rate for the years ended 31 December 2011 and 2010 is as follows: For the share warrants issued, a calculation is done to determine the number of shares that could have been
acquired at fair value (determined as the average share price of the Companys shares) based on the monetary
Group Company value of the subscriptions rights attached to outstanding warrants. The number of shares calculated as above
2011 2010 2011 2010 is compared with the number of shares that would have been issued assuming the exercise of the warrants.
RM000 RM000 RM000 RM000 The difference is added to the denominator as an issue of ordinary shares for no consideration. This calculation
serves to determine the bonus element in the ordinary shares outstanding for the purpose of computing the
Profit before tax after zakat 203,297 166,689 87,713 45,749 dilution. No adjustment is made to profit for the financial year for the warrants calculation.
Tax at statutory tax rate of 25% 50,824 41,672 21,928 11,437
Income not subject to taxation (713) (1,789) (20,866) (2,748)
Non-deductible expenses 7,893 11,554 5,515 492 Group
Share of results of associates (7,067) (5,980) - - 2011 2010
Benefits from previously unrecognised tax losses (595) (3,948) - - RM000 RM000
Benefits from previously unrecognised
temporary differences (166) (27) - Profit attributable to equity holders of the Company (RM000) 143,670 118,894
Reversal of deferred tax liabilities due to exemption
on taxes arising on disposal of buildings Weighted average number of ordinary shares in issue (000) 546,128 526,706
to Al-Aqar Healthcare REIT - (514) - - Adjusted weighted average number of ordinary shares of RM0.50
Under/(over) provision in respect of previous years each in issue and issuable (000) 69,503 58,832
- current tax 764 (1,445) (533) 87 Weighted average number of ordinary shares for diluted earnings per share (000) 615,631 585,538
- deferred tax (1,902) 945 - - Diluted earnings per share (sen) 23.34 20.31
Tax expense for the year 49,038 40,468 6,044 9,268

151 ANNUAL REPORT 2011 ANNUAL REPORT 2011 152

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

13. Property, plant and equipment 13. Property, plant and equipment (continued)

Medical Furniture, Medical Furniture,

Long and fittings, Capital Long and fittings, Capital
Freehold leasehold other motor vehicles work-in- Freehold leasehold other motor vehicles work-in-
land land Buildings Renovation equipment and computers progress Total land land Buildings Renovation equipment and computers progress Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

Group 2010
2011 At 1 January
At 1 January - cost 19,536 - 61,626 12,219 362,618 203,200 32,535 691,734
- cost 19,098 44,800 15,990 26,356 447,140 244,912 45,255 843,551 - valuation 22,027 - 5,848 - - - - 27,875
- valuation 7,907 9,183 6,136 - - - - 23,226 - effects of adoption of Amendments to FRS 117 - 19,572 - - - - - 19,572
27,005 53,983 22,126 26,356 447,140 244,912 45,255 866,777 As restated 41,563 19,572 67,474 12,219 362,618 203,200 32,535 739,181

Revaluation surplus - 147 1,730 - - - - 1,877 Currency translation differences (901) - (1,707) - (139) (145) - (2,892)
Currency translation differences - - 231 2 330 (32) - 531 Additions 3,000 7,070 308 15,256 90,565 45,439 53,374 215,012
Additions 1,008 - 191 9,190 36,148 29,454 66,777 142,768 Acquisition of subsidiaries - 32,640 - 9 3,805 806 - 37,260
Acquisition of subsidiaries Disposals - - - (509) (6,526) (2,891) (639) (10,565)
- cost 17,014 1,673 322 6,413 8,792 4,827 - 39,041 Write offs - - - - (3,183) (592) - (3,775)
- valuation 830 - - - - - - 830 Revaluation deficit - (746) (139) - - - - (885)
Reclassification to non-current assets held for sale - - - - - - (117) (117) Revaluation surplus 1,771 10,383 (11) - - - - 12,143
Disposals - - - - (7,641) (369) - (8,010) Reclassification to non-current assets held for sale (18,428) (14,482) (33,456) (619) - (905) (40,015) (107,905)
Write offs - - - (109) (1,727) (2,216) - (4,052) Revaluation restatement - (454) (10,343) - - - - (10,797)
Reclassification - - - 7,468 708 - (8,176) -
27,005 53,983 22,126 26,356 447,140 244,912 45,255 866,777
45,857 55,803 24,600 49,320 483,750 276,576 103,739 1,039,645
At 31 December
At 31 December - cost 19,098 44,800 15,990 26,356 447,140 244,912 45,255 843,551
- cost 37,120 46,620 18,464 49,320 483,750 276,576 103,739 1,015,589 - valuation 7,907 9,183 6,136 - - - - 23,226
- valuation 8,737 9,183 6,136 - - - - 24,056
27,005 53,983 22,126 26,356 447,140 244,912 45,255 866,777
45,857 55,803 24,600 49,320 483,750 276,576 103,739 1,039,645
Accumulated depreciation
Accumulated depreciation 2010
2011 At 1 January - - (8,842) (1,295) (177,531) (104,315) - (291,983)
At 1 January - - - (3,145) (206,048) (120,811) - (330,004) - effects of adoption of Amendments to FRS 117 - (413) - - - - - (413)
As restated - (413) (8,842) (1,295) (177,531) (104,315) - (292,396)
Currency translation differences - - (65) (1) 9 1 - (56)
Charge for the financial year - (130) (1,619) (5,881) (40,348) (21,634) - (69,612)
Group (continued)
Acquisition of subsidiaries - (154) - (1,373) (4,060) (1,488) - (7,075)
Currency translation differences - - 54 - - 11 - 65
Disposals - - - - 5,155 279 - 5,434
Charge for the financial year - (233) (2,185) (1,850) (35,881) (19,218) - (59,367)
Write offs - - - 109 1,617 1,671 - 3,397
Reclassification to non-current assets held for sale - 192 568 - - 824 - 1,584
At 31 December - (284) (1,684) (10,291) (243,675) (141,982) - (397,916) Disposals - - 62 - 4,205 1,286 - 5,553
Write offs - - - - 3,159 601 - 3,760
Net carrying amounts Revaluation restatement - 454 10,343 - - - - 10,797
At 31 December - - - (3,145) (206,048) (120,811) - (330,004)
At 31 December 2011 45,857 55,519 22,916 39,029 240,075 134,594 103,739 641,729
Net carrying amounts

At 31 December 2010 27,005 53,983 22,126 23,211 241,092 124,101 45,255 536,773

The freehold land and buildings stated at valuation were revalued by the directors on 31 December 2010 based on
open market valuations carried out by an independent firm of professional valuers to reflect fair value. The book
values of the buildings were adjusted to reflect the revaluation and the resultant surpluses were credited to
revaluation reserve.

If the total amounts of the freehold land and buildings had been determined in accordance with the historical cost
convention, they would have been included at:

Group
2011 2010
RM000 RM000
Costs
Freehold land 21,623 20,093
Buildings 15,990 15,990
37,613 36,083
Accumulated depreciation
Buildings (1,908) (1,822)
Net carrying amounts 35,705 34,261

153 ANNUAL REPORT 2011 ANNUAL REPORT 2011 154

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

13. Property, plant and equipment (continued) 16. Interest in subsidiaries (continued)
The additions and net book value of assets under hire purchase and finance leases are as follows: (a) The following are subsidiaries of the Company:
Group Effective
2011 2010 equity
RM000 RM000 interest
Country of
Assets under hire purchase and finance leases: 2011 2010
Name of company incorporation Principal activities
- addition during the financial year (Note 32(i)) 3,976 6,117 % %
- net book value at the end of financial year 31,263 29,642
Johor Specialist Hospital Sdn Bhd Malaysia 100 100 Operating as a specialist hospital

The net book value of property, plant and equipment pledged for borrowing facility (Note 27) as at 31 December Ipoh Specialist Hospital Sdn Bhd Malaysia 98 98 Operating as a specialist hospital
2011 is RM10,293,000 (2010: RM4,000,000).
Kumpulan Perubatan (Johor) Sdn Bhd Malaysia 100 100 Investment holding, provision of
Borrowing costs of RM2,962,710 (2010: Nil), arising on financing specifically entered into for the construction of the management services, rental of
hospital building, were capitalised during the financial year and included in additions of property, plant and equipment of equipment and health screening
the Group during the financial year. services through wellness program

Puteri Specialist Hospital (Johor) Sdn Bhd * Malaysia 100 100 Operating as a specialist hospital
14. Prepaid leases
Tawakal Holdings Sdn Bhd Malaysia 100 100 Investment holding
Group
Subsidiary of Johor Specialist
2011 2010
Hospital Sdn Bhd
RM000 RM000
Renalcare Perubatan (M) Sdn Bhd Malaysia 100 100 To be operating as an international
Cost
specialist hospital
At 1 January - 19,572
- effect of adoption of Amendments to FRS 117 - (19,572) Subsidiary of Tawakal Holdings Sdn Bhd
As restated - - Pusat Pakar Tawakal Sdn Bhd + Malaysia 100 100 Operating as a specialist hospital

Accumulated amortisation Subsidiaries of Kumpulan Perubatan

At 1 January - (413) (Johor) Sdn Bhd
- effect of adoption of Amendments to FRS 117 - 413
As restated - - Bukit Mertajam Specialist Hospital Sdn Bhd Malaysia 100 100 Dormant

Kota Kinabalu Specialist Hospital Sdn Bhd Malaysia 97 97 Operating as a specialist hospital
15. Investment properties
Damansara Specialist Hospital Sdn Bhd ^ Malaysia 100 100 Operating as a specialist hospital
Group
2011 2010 Kuantan Specialist Hospital Sdn Bhd Malaysia 77 77 Operating as a specialist hospital
RM000 RM000
As fair value: Perdana Specialist Hospital Sdn Bhd Malaysia 61 61 Operating as a specialist hospital
At 1 January 24,810 23,215
Additions - 840 Ampang Puteri Specialist Hospital Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
Gain on fair value 1,413 755
At 31 December 26,223 24,810 Kuching Specialist Hospital Sdn Bhd Malaysia 70 70 Operating as a specialist hospital

The fair value of the properties was estimated at RM26,223,000 (2010: RM24,810,000) based on valuations by an independent Selangor Specialist Hospital Sdn Bhd ~ Malaysia 60 60 Operating as a specialist hospital
professionally qualified valuers, using the comparison method of actual sales transactions in the particular area surrounding the
property. Valuations were based on current prices in an active market for the respective properties. Sentosa Medical Centre Sdn Bhd Malaysia 100 100 Operating as a specialist hospital

16. Interest in subsidiaries Seremban Specialist Hospital Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
Interest in subsidiaries is made up as follows:
Kajang Specialist Hospital Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
Company
Taiping Medical Centre Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
2011 2010
RM000 RM000
Pusat Pakar Kluang Utama Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
Unquoted shares, at cost 222,631 222,631
Loans to subsidiaries 647,383 539,991 Penang Specialist Hospital Sdn Bhd Malaysia 100 100 Operating as a specialist hospital
870,014 762,622
Bandar Baru Klang Specialist Malaysia 100 100 To be operating as a specialist
During the financial year, the Company has reclassified amounts due from subsidiaries amounting to RM107.4 million (2010:
Hospital Sdn Bhd hospital
RM540.0 million) to interest in subsidiaries. This reclassification is in compliance with FRS 139, Financial Instruments: Recognition
and Measurement to reclassify balances when the intercompany advances are not of commercial nature, and are interest free
with no fixed terms of repayment. Sterile Services Sdn Bhd Malaysia 65 65 Providing sterile services

155 ANNUAL REPORT 2011 ANNUAL REPORT 2011 156

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

16. Interest in subsidiaries (continued) 16. Interest in subsidiaries (continued)

(a) The following are subsidiaries of the Company (continued): (a) The following are subsidiaries of the Company (continued):
Effective Effective
equity equity
interest interest
Country of Country of
2011 2010 2011 2010
Name of company incorporation Principal activities Name of company incorporation Principal activities
% % % %

Subsidiaries of Kumpulan Perubatan Point Zone (M) Sdn Bhd ~ Malaysia 100 100 Providing treasury management
(Johor) Sdn Bhd (continued)
Pahang Specialist Hospital Sdn Bhd ~ Malaysia 100 100 To be operating as a specialist hospital
Puteri Nursing College Sdn Bhd Malaysia 100 100 Operating a private university college
Skop Yakin (M) Sdn Bhd ~ Malaysia 90 90 Distribution of general merchandise
Pharmaserv Alliances Sdn Bhd Malaysia 100 100 Marketing and distribution of / stationeries
medical and pharmaceutical
products Healthcare IT Solutions Sdn Bhd ~ Malaysia 87 90 Providing healthcare information

PT Khasanah Putera Jakarta Medica ~ Indonesia 75 75 Operating as a specialist hospital Renal-Link Sentosa Sdn Bhd Malaysia 100 100 Dormant

PharmaCARE Sdn Bhd ~ Malaysia 100 100 Providing human resource, training Sri Kota Refractive And Eye Centre Sdn Bhd ~ Malaysia 80 80 Providing medical profession and
services and rental of human consultancy for eye services
resource information system
Subsidiary of Selangor Specialist
SMC Healthcare Sdn Bhd Malaysia 51 51 Operating as a specialist hospital Hospital Sdn Bhd

Sibu Medical Centre Corporation Sdn Bhd ~ Malaysia 100 - Operating as a specialist hospital Hospital Pusrawi SMC Sdn Bhd ~ Malaysia 51 51 Operating as a specialist hospital

Sibu Geriatric Health & Malaysia 100 - Providing aged care services Subsidiary of PharmaCARE Sdn Bhd
Nursing Centre Sdn Bhd ~
Open Access Sdn Bhd Malaysia 100 100 Dormant
Jeta Gardens Waterford Trust ~ Australia 51 - Providing retirement village and age
care services Subsidiaries of Pharmaserv
Alliances Sdn Bhd
Diaper Technology Industries Sdn Bhd Malaysia 94 94 Providing information technology
related services and rental of Medical Supplies (Sarawak) Sdn Bhd Malaysia 75 75 Distribution of pharmaceutical
software products

Fabricare Laundry Sdn Bhd ~ Malaysia 100 90 Providing business of laundry Malaysian Institute of Healthcare Management Malaysia 75 75 Dormant
services Sdn Bhd

Teraju Farma Sdn Bhd Malaysia 75 75 Distribution of medical and FP Marketing (S) Pte Ltd ~ Singapore 100 100 Import, export and distribution
pharmaceutical products of pharmaceutical, medical and
consumer healthcare products
Maharani Specialist Hospital Sdn Bhd Malaysia 100 100 To be operating as a
specialist hospital Subsidiary of SMC Healthcare Sdn Bhd
Amity Development Sdn Bhd Malaysia 100 100 Dormant
Freewell Sdn Bhd Malaysia 80 80 Dormant

Bayan Baru Specialist Hospital Sdn Bhd Malaysia 55 55 Dormant * Direct equity holding by the Company is 84 % (2010: 84%).
+ Direct equity holding by the Company is 14 % (2010: 14%).
PharmaCARE Surgical Malaysia 99 99 Dormant ^ Direct equity holding by the Company is 10% (2010: 10%).
Technologies (M) Sdn Bhd ~ Audited by a firm other than Ernst & Young

Lablink (M) Sdn Bhd Malaysia 100 100 Pathology and laboratory services

KPJ Medik TV Sdn Bhd ~ Malaysia 100 100 Dormant

Pasir Gudang Specialist Hospital Sdn Bhd Malaysia 100 100 To be operating as a
specialist hospital

157 ANNUAL REPORT 2011 ANNUAL REPORT 2011 158

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

16. Interest in subsidiaries (continued) 16. Interest in subsidiaries (continued)

(b) Acquisition of companies in 2011: (b) Acquisition of companies in 2011 (continued):

During the financial year, the Group completed its acquisition in new interests and increased its stake in The details of net assets acquired and cash flows arising from the acquisitions of the following significant
several subsidiaries as follows: subsidiaries are as follows:

2011
RM000 Acquirees
carrying
Subscription of right issue in subsidiaries (Note (b)(ii) and (b)(iii)) 26,000 amounts Fair value
Acquisition of interests in newly acquired subsidiaries (Note (b)(i) and (b)(iv)) 47,146 RM000 RM000
73,146
Less: Cash and cash equivalents of subsidiaries acquired (11,078) Sibu Medical Centre
Cash outflow of the Group on acquisition of subsidiaries 62,068 Corporation Sdn Bhd

Property, plant and equipment 10,738 10,738

(i) On 18 January 2011, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) entered into a Share Sale Agreement Other investment 79 79
for the acquisition of: Receivables, deposits and prepayments 4,178 4,178
Deposits, cash and bank balances 507 507
(i) 100% equity interest in Sibu Medical Centre Corporation Sdn Bhd (SMCC) comprising 6,624,944 Payables (1,217) (1,217)
ordinary share of RM1.00 each for an aggregate purchase consideration of RM26,904,000. Tax recoverable 111 111
Bank borrowing (1,690) (1,690)
(ii) 100% equity interest in Sibu Geriatric Health & Nursing Centre Sdn Bhd (SGHNC) comprising 1,080,000 Deferred taxation (722) (722)
share for an aggregate purchase consideration of RM1,242,000.
Fair value of net assets acquired 11,984 11,984
Goodwill on acquisition 14,920
The total purchase consideration paid for the above acquisition was RM28,146,000 and the acquisition
Purchase consideration settled in cash 26,904
was completed on 6 April 2011.
Less: Cash and cash equivalents of subsidiary acquired (507)
(ii) On 14 March 2011, KPJSB subscribed for a further 6,999,998 in Pasir Gudang Specialist Hospital Sdn Bhd Cash outflow of the Group on acquisition 26,397
by capitalising RM6,999,998 advances made to the company.
Sibu Geriatric Health and Nursing Centre Sdn Bhd
(iii) On 15 August 2011, KPJSB subscribed for a further 19,000,000 in Bandar Baru Klang Specialist Hospital
Sdn Bhd by capitalising RM19,000,000 advances made to the company. Property, plant and equipment 508 508
Receivables, deposits and prepayments 63 63
(iv) On 9 February 2011, KPJSB acquired a 21% equity investment in Jeta Gardens Waterford Trust (JGWT) Deposits, cash and bank balances 255 255
at a purchase consideration of RM4,750,000 for cash. The balance of the equity investment in JGWT granted Payables (16) (16)
to KPJSB via a put and call option which is exercisable between 1 July 2011 until 30 November 2011 at an Deferred taxation (16) (16)
issue price of AUD1.
Fair value of net assets acquired 794 794
On 29 November 2011, Kumpulan Perubatan (Johor) Sdn Bhd exercised the Call Option to acquire 275,704
ordinary shares and 2,481,311 New A Class Convertible Notes of JGWT at AUD equivalent to RM14,250,001 Goodwill on acquisition 448
at the exchange rate prevalent on the date of payment. Purchase consideration settled in cash 1,242
Less: Cash and cash equivalents of subsidiary acquired (255)
The effect of the acquisitions on the financial results of the Group in the current financial year is as follows: Cash outflow of the Group on acquisition 987

Jeta Gardens Waterford Trust

2011
RM000 Property, plant and equipment 9,467 9,467
Interest in associates 23,902 23,902
Revenue 20,124 Other investment 67 67
Operating costs (17,836) Trade and other receivables 793 793
Deposit, cash and cash equivalents 10,316 10,316
Profit before tax 2,081 Payables (33,720) (33,720)
Tax expense (172) Bank borrowing (7,970) (7,970)
Profit for the financial year 1,909 Fair value of net assets acquired 2,855 2,855

Goodwill on acquisition 16,145

Had the acquisitions took effect at the beginning of the financial year, the revenue and profit of these
Purchase consideration settled in cash 19,000
companies attributable to the Group would have been RM53,225,506 and RM13,540,771 respectively. These
Less: Cash and cash equivalents of subsidiary acquired (10,316)
amounts have been calculated using the Groups accounting policies and by adjusting the results of the
subsidiaries to reflect the additional depreciation and amortisation that would have been charged assuming Cash outflow of the Group on acquisition 8,684
the fair value adjustments to property, plant and equipment had applied from 1 January 2011, together with the
consequential tax effect.

159 ANNUAL REPORT 2011 ANNUAL REPORT 2011 160

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

16. Interest in subsidiaries (continued) 17. Interest in associates (continued)

(b) Acquisition of companies in 2011 (continued): The associates of the Group are as follows:

A summary of the details of net assets acquired and cash flows arising from the acquisitions during the financial Effective
year are as follows: equity
interest
Country of 2011 2010
Name of company incorporation % % Principal activities
Acquirees
carrying Unit trusts
amounts Fair value Al-Aqar Healthcare REIT Malaysia 49 49 Real estate investment trust
RM000 RM000 (formerly known as KPJ Al-AQAR REIT)
Property, plant and equipment 20,713 20,713 Associates of Kumpulan Perubatan
Other investment 146 146 (Johor) Sdn Bhd
Interest in associates 23,902 23,902
Receivables, deposits and prepayments 5,034 5,034 Kedah Medical Centre Sdn Bhd Malaysia 46 46 Operating as a specialist hospital
Deposits, bank and cash balances 11,078 11,078
Payables (34,953) (34,953) Hospital Penawar Sdn Bhd Malaysia 30 30 Operating as a specialist hospital
Tax recoverable 111 111
Bank borrowings (9,660) (9,660) Healthcare Technical Services Sdn Bhd Malaysia 30 30 Project management and
Deferred taxation (738) (738)
engineering maintenance
Fair value of net assets acquired 15,633 15,633 services for specialist hospital

Goodwill on acquisition (Note 19) 31,513

Purchase consideration settled in cash 47,146 The aggregate amount of revenue, profits, assets (excluding goodwill) and liabilities of the associates of the Group
Less: Cash and cash equivalents of subsidiaries acquired (11,078) are as follows:
Cash outflow of the Group on acquisition 36,068 Group
2011 2010
RM000 RM000
17. Interest in associates
Revenue 200,955 172,533
Group Profit after tax 92,707 47,290
2011 2010
Non-current assets 1,409,445 1,156,826
RM000 RM000
Current assets 97,650 87,923
Quoted ordinary shares in Al-Aqar Healthcare REIT, at cost 279,310 279,310 Current liabilities (48,728) (47,362)
Additions 65,360 - Non-current liabilities (687,671) (530,316)

344,670 279,310 Net assets 770,696 667,071

Groups share of post acquisition retained profits and reserves less losses * 43,730 17,730
Unquoted ordinary shares, at cost 10,312 10,312 18. Available-for-sale financial assets
398,712 307,352
Group
Share of capital commitments for property, plant and equipment 47,799 2,505
2011 2010
Share of non-cancellable operating lease commitments 527,693 21,785 RM000 RM000
Market value of quoted ordinary shares in Al-Aqar Healthcare REIT 396,370 319,481
At 1 January 3,447 3,275
Disposals (373) -
3,074 3,275
* Included in the Groups share of post acquisition retained profits are accumulated fair value adjustments amounting Fair value gain recognised in other comprehensive income
to RM25.9 million in relation to investment properties of an associate, Al-Aqar Healthcare REIT At 31 December - 172
3,074 3447
Analysed as follows:
- listed equity securities in Malaysia 8 8
- unlisted equity securities in Malaysia 3,066 3,439

Available-for-sale financial assets are denominated in Ringgit Malaysia. None of these financial assets is impaired.

161 ANNUAL REPORT 2011 ANNUAL REPORT 2011 162

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

19. Intangible assets 21. Deferred taxation

Goodwill Deferred tax assets and liabilities were offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts,
Group determined after appropriate offsetting, are shown on the statement of financial position:

2011 2010
RM000 RM000 Group
2011 2010
Cost RM000 RM000
At 1 January 136,317 115,591
Acquisitions of subsidiaries (Note 16) 31,513 20,726 Deferred tax assets 14,962 15,864
At 31 December 167,830 136,317 Deferred tax liabilities
- subject to income tax (47,413) (41,204)
At 31 December (32,451) (25,340)
The purchase price allocation (PPA) exercise on the acquisition of Sibu Medical Centre Corporation Sdn Bhd, Sibu
Geriatric Health & Nursing College Sdn Bhd and Jeta Gardens Waterford Trust is still being carried out by the Group.
The results of this independent valuation had not been received at the date of this report. Accordingly, the resultant The movement in the deferred tax assets and liabilities (prior to offsetting of balances within the same tax jurisdiction)
goodwill above represents a provisional amount pending the completion of the PPA exercise. In accordance with during the financial year is as follows:
Paragraph 45 of FRS 3, Business Combinations, the Group has a grace period of twelve months from the acquisition
date to complete the PPA exercise.
Group

20. Impairment of assets 2011 2010

RM000 RM000
Impairment tests for goodwill
At 1 January (25,340) (8,619)
Group (Charged)/credited to profit or loss (Note 10):
2011 2010 - property, plant and equipment (2,941) (4,360)
RM000 RM000 - tax losses (4,683) (1,056)
- provisions 3,182 (115)
Hospitals (4,442) (5,531)
- Malaysia 146,059 131,139 Charged to equity - (3,036)
- Indonesia 1,060 1,060 Deferred tax arising from acquisition (2,669) (8,154)
Aged care facility 16,145 - At 31 December (32,451) (25,340)
Support services 4,566 4,118
167,830 136,317 Subject to income tax
Deferred tax assets (before offsetting)
- tax losses 7,352 8,610
Recoverable amount based on value-in use
- property, plant and equipment 8,301 17,910
- provisions 10,159 3,959
The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax
cash flow projections based on financial budgets approved by the directors covering a five-year period. Cash flows 25,812 30,479
beyond the five-year period are extrapolated using the estimated growth rates stated below. The growth rate does Offsetting (10,850) (14,615)
not exceed the long-term average growth rate for the relevant CGUs. Deferred tax assets (after offsetting) 14,962 15,864

The key assumptions used in value-in-use calculations are as follows; Deferred tax liabilities (before offsetting)
- property, plant and equipment (58,263) (55,819)
2011 2010
(58,263) (55,819)
% %
Offsetting 10,850 14,615
Gross margin1 30 29
Growth rate2 7 7 Deferred tax liabilities (after offsetting) (47,413) (41,204)
Discount rate3 12 12
Terminal growth rate 5 5
The amounts of deductible temporary differences and unutilised tax losses (both of which have no expiry date) for
which no deferred tax asset is recognised on the statement of financial position are as follows:
Assumptions:
1
Budgeted gross margin Group
2
Weighted average growth rate used to extrapolate cash flows beyond the budget period
3
Pre-tax discount rate applied to the cash flow projections 2011 2010
RM000 RM000
The directors have determined budgeted gross margin based on past performance and expectations of market Unutilised tax losses 2,560 2,753
development. The discount rates used are pre-tax and reflect specific risks relating to the relevant segments.

163 ANNUAL REPORT 2011 ANNUAL REPORT 2011 164

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

22. Inventories 23. Receivables (continued)

As at 31 December 2011, trade receivables of RM157,990,000 (2010: RM162,833,000) is neither past due nor impaired
Group and RM62,046,000 (2010: RM47,038,000) were past due but not impaired. These relate to a number of independent
2011 2010 customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:
RM000 RM000
Ageing analysis of trade receivables
At cost:
Pharmaceutical products 33,283 29,206 The ageing analysis of the Groups trade receivables is as follows:
Medical supplies 9,637 7,194
Consumables and disposable items 3,302 4,538 Group
Laboratory chemicals 446 517
Other supplies 398 160 2011 2010
RM000 RM000
47,066 41,615
Neither past due nor impaired 157,990 162,833
1 to 30 days past due not impaired 17,395 8,855
23. Receivables 31 to 60 days past due not impaired 12,783 5,963
61 to 90 days past due not impaired 13,339 7,209
91 to 120 days past due not impaired 5,103 14,003
Group Company More than 121 days past due not impaired 13,426 11,008
2011 2010 2011 2010 62,046 47,038
RM000 RM000 RM000 RM000 Impaired 18,560 17,503
238,596 227,374
Non-current
Advances to subsidiaries - - 56,302 94,386
As at 31 December 2011, trade receivables of RM18,560,000 (2010: RM17,503,000) were impaired and provided for.
Current
Trade receivables 238,596 227,374 - - The currency exposure profile of the receivables and deposits (excluding prepayments) are as follows;
Less: Provision for impairment of trade receivables (18,560) (17,503) - -
Trade receivables - net 220,036 209,871 - - Group Company

Amount due from former ultimate holding corporation 217 185 - - 2011 2010 2011 2010
Amounts due from subsidiaries - - 56,613 29,465 RM000 RM000 RM000 RM000
Amounts due from associates 36 595 36 41
Amounts due from former related companies - 95 - - Ringgit Malaysia 274,962 278,114 56,917 31,953
Other receivables 59,393 41,490 268 2,447 Singapore Dollar 3,847 923 - -
Deposits 19,794 28,697 - Indonesian Rupiah 2,860 1,896 - -
Prepayments 5,160 17,494 476 774 Australian Dollar 17,807 - - -

Total receivables 304,636 298,427 57,393 32,727 299,476 280,933 56,917 31,953

Add: Deposits, cash and bank balances (Note 24) 252,080 197,118 2,559 13,593
The other classes within trade and other receivables do not contain impaired assets.
Less: Prepayments (5,160) (17,494) (476) (774)
Total loans and receivables 551,556 478,051 59,476 45,546 The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned
above. The Group does not hold any collateral as security.

Advances given to subsidiaries amounting to RM56.3 million (2010: RM94.4 million) are unsecured, bearing effective
weighted average interest rate of 3.68% (2010: 2.85%) per annum and shall be repaid within 7 years.
24. Deposits, cash and bank balances

Credit terms of trade receivables range from 0 to 60 days (2010: 0 to 60 days). Group Company
2011 2010 2011 2010
RM000 RM000 RM000 RM000

Deposits with licensed banks 83,988 74,622 - -

Cash and bank balances 168,092 122,496 2,559 13,593
252,080 197,118 2,559 13,593

Bank balances are deposits held at call with licensed banks and do not earn interest.

165 ANNUAL REPORT 2011 ANNUAL REPORT 2011 166

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

24. Deposits, cash and bank balances (continued) 26. Payables

The fixed deposits of certain subsidiaries have been pledged to licensed banks for the following facilities: Group Company
2011 2010 2011 2010
Group
RM000 RM000 RM000 RM000
2011 2010
RM000 RM000 Non-current
Advances from subsidiaries - - 434,644 242,754
Performance bonds to Tenaga Nasional Berhad 4,059 4,059
As a security for: Current
- borrowing facilities 1,128 1,128 Trade payables 244,724 186,690 - -
- performance guarantee 112 112 Other payables 38,840 97,508 17 504
5,299 5,299 Accruals 51,597 23,249 3,547 3,889
Amount due to former ultimate holding corporation 68 302 61 93
Amounts due to subsidiaries - - 87,895 24,526
The weighted average interest rates of deposits with licensed banks of the Group during the financial year were 2.76% Amounts due to former related companies - 358 50 50
(2010: 2.37%) per annum. Total current payables 335,229 308,107 91,570 29,062
Total payables 335,229 308,107 526,214 271,816
The currency exposure profile of deposits, cash and bank balances as at end of the reporting period is as follows:

Add: Borrowings (Note 27) 443,471 399,423 65,000 299,000

Group Company Add: Deposits (Note 29) 14,785 13,782 - -
2011 2010 2011 2010 Total financial liabilities carried at amortised costs 793,485 721,312 591,214 570,816
RM000 RM000 RM000 RM000
Advances given by subsidiaries amounting to RM434.6 million (2010: RM242.8 million) are unsecured, bearing
Ringgit Malaysia 225,925 188,479 2,559 13,593 effective weighted average interest rate of 3.35% (2010: 2.85%) per annum and shall be repaid within 7 years.
Singapore Dollar 5,304 4,417 - -
Indonesian Rupiah 259 4,222 - - Amounts due to former ultimate holding corporation, subsidiaries and other related companies are unsecured,
Australian Dollar 20,592 - - - interest free and have no fixed terms of repayment.
252,080 197,118 2,559 13,593
Credit terms of trade payables range from 30 to 60 days (2010: 30 to 60 days).

Deposits of the Group have an average maturity of 365 days (2010: 365 days). The currency exposure profile of payables is as follows:

Group Company
25. Non-current assets held for sale 2011 2010 2011 2010
RM000 RM000 RM000 RM000
Group
Ringgit Malaysia 266,510 295,640 91,570 29,062
2011 2010
Singapore Dollar 5,095 9,530 - -
RM000 RM000
Indonesian Rupiah 14,132 2,937 - -
Australian Dollar 49,492 - - -
Hospitals land and buildings
335,229 308,107 91,570 29,062
At 1 January 105,974 103,765
Additions 37,149 12,526
Reclassification from property, plant and equipment (Note 13) 117 106,321
Disposals (48,949) (116,638)
At 31 December 94,291 105,974

(a) On 30 April 2010, the Group proposed to dispose its entire interest in Rumah Sakit Bumi Serpong Damai (RSBSD)
Building, Kluang Utama Specialist Hospital Building and Bandar Baru Klang Specialist Hospital Building to Al-Aqar
Healthcare Real Estate Investment Trust (Al-Aqar Healthcare REIT) for a proposed total sale consideration of
RM138.77 million to be satisfied partly by cash consideration of RM83.26 million and partly by issuance of RM56.64
million new units in Al-Aqar Healthcare REIT at an issue price of RM0.98 per unit to be credited as fully paid-up. The
proposed disposal was approved by shareholders on 17 December 2010.

The proposed disposal of RSBSD Building was completed on 2 August 2011.

The proposed disposal of Kluang Utama Specialist Hospital Building was completed on 6 January 2012.

167 ANNUAL REPORT 2011 ANNUAL REPORT 2011 168

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

27. Borrowings 27. Borrowings (continued)

Group Company
2011 2010 2011 2010
RM000 RM000 RM000 RM000

Current Current
Term loans (secured) 5,477 7,988 Revolving credits (unsecured)
Commercial papers (unsecured) - 249,000 - Conventional 50,000 -
Revolving credits (unsecured) - Al-Amin 15,000 50,000
- Conventional 103,000 47,037 Commercial papers (unsecured) - 249,000
- Islamic 15,000 50,000 65,000 299,000
118,000 97,037
Islamic facilities:
- Hiwalah term loan (secured) 8,676 1,200
Borrowings for the Group and the Company are denominated in Ringgit Malaysia.
- Al-Ijarah 1,585 207
10,261 1,407
The borrowings are secured by:
Hire purchase and finance lease liabilities
(a) fixed charge on certain landed properties of the Group (Note 13);
- Conventional 5,267 5,985
(b) first fixed charge on certain assets of the Group by way of debenture;
- Bai Al-Inah 845 1,241
(c) letter of awareness, letter of comfort and letter of subordinates from Johor Corporation;
6,112 7,226
(d) a negative pledge over some of the fixed and floating assets of the Group;
139,850 362,658 (e) fixed first and floating charge over some movable and immovable assets of the Group; and
Bank overdrafts (unsecured) 1,141 18 (f) finance leases are effectively secured as the rights to the leased asset revert to the lessor in the event of default.
140,991 362,676
Islamic Commercial Papers/Islamic Medium Term Notes (ICP/IMTN)
Non-current
Term loans (secured) 35,234 18,599 Salient features of the ICP/IMTN are as follows:
Islamic commercial papers (secured) 249,000 -
Islamic facilities: (1) Total outstanding nominal value of ICPs and IMTNs (collectively known as Notes) shall not exceed RM500 million.
- Hiwalah term loan (secured) 5,862 900 (2) The tenure of the Facility is up to 7 years from date of the first issuance of any Notes (3 May 2011) under the Facility.
- Al-Ijarah 3,752 730 (3) ICP has a maturity of between 1,2,3,6 and 7 months and are mandatorily redeemed at nominal value upon
maturity date. The ICP is issued at a discount to its value.
9,614 1,630 (4) IMTN has a maturity of 1 year but not more than 7 years and on condition that the IMTN matures prior to the
expiry of the tenure of the Facility. The IMTN shall be mandatorily redeemed at nominal value upon maturity date.
Hire purchase and finance lease liabilities The interest for the IMTN shall be payable semi-annually upon maturity of IMTN.
- Conventional 6,055 9,987 (5) The ICP/IMTN Facility is issued on a clean basis and shall be fully repaid at the end of the tenure of the Facility.
- Bai Al-Inah 2,577 6,531
8,632 16,518 As at 31 December 2011, the unutilised amount of ICP/IMTN amounted to RM251.0 million (2010: RM1.0 million).
302,480 36,747
Total On 3 May 2011, the Company refinanced its existing Commercial Papers/Medium Term Notes (CP/MTN) with the
Term loans (secured) 40,711 26,587 first issuance of ICP/IMTN up to RM500 million from RM250 million.
Islamic commercial papers (secured)/Commercial papers (unsecured) 249,000 249,000
Revolving credits (unsecured) The ICP/IMTN is parked at Point Zone Sdn Bhd, a special purpose vehicle incorporated to raise funds for the Group.
- Conventional 103,000 47,037
- Al-Amin 15,000 50,000 The ICP/IMTN is pledged against the Groups investment in its associate, Al-Aqar Healthcare REIT amounting to
118,000 97,037 RM235 million as security.
Islamic facilities:
- Hiwalah term loan (secured) 14,538 2,100
- Al-Ijarah 5,337 937
19,875 3,037
Hire purchase and finance lease liabilities
- Conventional 11,322 15,972
- Bai Al-Inah 3,422 7,772
14,744 23,744
Bank overdrafts (unsecured) 1,141 18
443,471 399,423

169 ANNUAL REPORT 2011 ANNUAL REPORT 2011 170

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

27. Borrowings (continued) 27. Borrowings (continued)

Effective Maturity profile Later than Later than Later than Later than
Functional interest rate Total 1 year and 2 years and 3 years and 4 years and Later
currency / at the end carrying >5 Not later than not later than not later than not later than not later than than
currency Interest of the period amount < 1 year 2-3 years 3-4 years 4-5 years years 1 year 2 years 3 years 4 years 5 years 5 years Total
exposure rate % per annum RM000 RM000 1-2 years RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

2011 2010
Group Group
Term loans (secured) RM/RM Floating 3.28 40,711 5,477 6,186 3,601 1,643 682 23,122 Hire purchase and finance lease liabilities
Islamic commercial papers (secured) RM/RM Floating 3.70 249,000 - - - - - 249,000 - Conventional 6,009 4,830 3,771 1,835 2,287 10 18,742
Revolving credits (unsecured) - Bai Al-Inah 1,787 1,662 1,741 1,786 878 - 7,854
- Conventional RM/RM Floating 3.73 103,000 103,000 - - - - -
7,796 6,492 5,512 3,621 3,165 10 26,596
- Islamic RM/RM Floating 4.00 15,000 15,000 - - - - -
Islamic facilities:
Less: Future finance charges
- Hiwalah term loan (secured) RM/RM Floating 6.32 14,538 8,676 5,608 254 - - -
- Conventional (2,770)
- Al-Ijarah RM/RM Floating 2.95 5,337 1,585 1,677 1,770 305 - -
- Bai Al-Inah (82)
Hire purchase and finance lease liabilities
- Conventional RM/RM Floating 3.55 11,322 5,267 2,690 2,213 770 382 - (2,852)
- Bai Al-Inah RM/RM Floating 2.72 3,422 845 773 635 604 565 -
23,744
Bank overdrafts (unsecured) RM/RM Floating 7.56 1,141 1,141 - - - - -
443,471 140,991 16,934 8,473 3,322 1,629 272,122
Company
Revolving credits (unsecured)
- Conventional
- Al-Amin
RM/RM
RM/RM
Floating
Floating
3.75
4.30
50,000
15,000
50,000
15,000
-
-
-
-
-
-
-
-
-
-
28. Deferred revenue
65,000 65,000 - - - - -
Group/Company
2010
Group 2011 2010
Term loans (secured) RM/RM Floating 5.35 26,587 7,988 8,569 6,259 938 2,833 - RM000 RM000
Commercial papers (unsecured) RM/RM Floating 2.90 249,000 249,000 - - - - -
Revolving credits (unsecured)
- Conventional RM/RM Floating 2.75 47,037 47,037 - - - - - At 1 January 36,144 28,812
- Islamic RM/RM Floating 2.75 50,000 50,000 - - - - - Additions 103,760 46,296
Islamic facilities:
- Hiwalah term loan (secured) RM/RM Floating 7.80 2,100 1,200 900 - - - - Earned during the financial year (41,565) (38,964)
- Al-Ijarah RM/RM Floating 3.00 937 207 214 516 - - -
Hire purchase and finance lease liabilities At 31 December 98,339 36,144
- Conventional RM/RM Floating 3.95 15,972 5,985 3,746 3,217 1,281 1,737 6
- Bai Al-Inah RM/RM Floating 3.85 7,772 1,241 1,646 1,725 1,770 1,390 -
Bank overdrafts (unsecured) RM/RM Floating 7.80 18 18 - - - - - Represented by:
399,423 362,676 15,075 11,717 3,989 5,960 6 Students fees 2,307 3,868
Accommodation fees 693 1,028
Company
Commercial papers (unsecured) RM/RM Floating 2.85 249,000 249,000 - - - - -
Resident fees 44,748 -
Revolving credits (unsecured) RM/RM Floating 2.75 50,000 50,000 - - - - - KPJ Wellness Subcription Fees 50,591 31,248
299,000 299,000 - - - - - 98,339 36,144

Later than
1 year and
Later than
2 years and
Later than
3 years and
Later than
4 years and
29. Deposits
Not later than not later than not later than not later than not later than
1 year 2 years 3 years 4 years 5 years Total Long term deposits represent amounts received from consultants, which are repayable on death, retirement (at age
RM000 RM000 RM000 RM000 RM000 RM000
65) or disability of the consultants. Deposits are forfeited on termination of a consultants practice either by the Group
2011 due to events of breach or on early termination by the consultant. However, the deposits may be refunded to the
Group consultants if approval from the Board of Directors is obtained.
Hire purchase and finance lease liabilities
- Conventional 5,606 2,776 2,792 810 412 12,396
- Bai Al-Inah 1,057 980 658 623 582 3,900 Long term deposits previously measured at cost, are now measured at fair value initially and subsequently
6,663 3,756 3,450 1,433 994 16,296 at amortised costs using effective interest method. The differences between the fair value and cash value are
recognised as deferred consultancy expenses and amortised using remaining service period to retirement (at age
Less: Future finance charges
- Conventional (1,074)
65) of consultants. These amortisation expenses are charged to profit or loss.
- Bai Al-Inah (478)
(1,552)
Group
14,744
2011 2010
RM000 RM000

Represented by: 7,356 6,390

Refundable practising deposits 7,429 7,392
Deferred consultancy expenses 14,785 13,782

171 ANNUAL REPORT 2011 ANNUAL REPORT 2011 172

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

30. Share capital 30. Share capital

Group/Company (b) Share split, bonus issue and free warrants (continued)
Details relating to warrants exercised during the year are as follows:
2011 2010
RM000 RM000
Number of shares issued
Authorised ordinary shares of RM0.50 each Exercise Fair value of shares at share issue date Exercised price 2011 2010
At 1 January / 31 December 500,000 500,000 date RM/share RM/share 000 000
Issued and fully paid ordinary shares of RM0.50 each 1 January 2011 to 3.72-4.70 1.70 25,077 32,281
At 1 January 279,954 211,051 31 December 2011
Issued during the financial year
- issuance of bonus shares - 52,762
- exercise of share warrants 12,538 16,141 Details relating to warrants exercised during the year are as follows:
292,492 279,954
Group/Company
2011 2010
(a) Treasury shares
RM000 RM000
On 16 June 2011, at the Annual General Meeting, the shareholders of the Company renewed their approval for
Ordinary share capital - at par 12,538 16,141
the Company to buy-back its own shares of up to ten percent (10%) of the issued and paid-up share capital of the
Share premium 30,093 38,737
Company.
Proceeds from exercised of warrants 42,631 54,878
In the previous financial year, the Company bought back from the open market 10,000 units of KPJ Healthcare Berhad Fair value at exercise date of shares issued 105,570 113,122
shares, listed on the Main Market of Bursa Malaysia Securities Berhad, at an average buy-back price of RM2.26 per
share. The total consideration paid for share buy-back, including transaction costs, was RM22,765 and was financed
by internally generated fund. The shares purchased were retained as treasury shares. The fair value of shares issued on the exercise of warrants is the mean market price at which the Companys shares were
traded on the Main Market of Bursa Malaysia Securities Berhad on the day prior to the exercise of the warrants.
(b) Share split, bonus issue and free warrants
31. Reserves
On 15 January 2010, the Company has subdivided its existing 211,050,615 ordinary shares of RM1 each into
422,101,230 ordinary shares of RM0.50 each (Share Split).
Group Company
On the same date, the Company issued bonus shares of up to 105,525,308 new ordinary shares of RM0.50 each, 2011 2010 2011 2010
which credited as fully paid up by the Company, on the basis of one (1) Bonus Shares for every four (4) shares held RM000 RM000 RM000 RM000
by the entitled share holders of the Company after the share split (Bonus Issue).
Non-distributable reserves:
On the same date, the Company issued up to 131,906,635 free warrants on the basis of one (1) free warrant for every Share premium 73,852 43,759 68,830 38,737
four (4) shares held by the entitled shareholders of the Company after the Share Split and Bonus Issue. Merger reserve (3,367) (3,367) - -
Exchange reserve (995) (1,295) - -
The new shares issued arising from Share Split, Bonus Issue and Free Warrants exercised shall upon issue and Revaluation reserve 45,215 56,110 - -
allotment, rank pari passu in all respects. Fair value reserve - 172 - -
The warrants exercise period is five years commencing from the offer date. Warrant exercise price is 15% discount to 114,705 95,379 68,830 38,737
the theoretical ex-all price based on five-day volume weighted-average market price up to and including 20 November Distributable reserve:
2009 (price fixing date). Retained earnings 485,780 393,337 18,722 459
600,485 488,716 87,552 39,196
Set out below are details of the free warrants issued by the Company:

Under the single-tier tax system which came into effect from the year of assessment 2009, companies are not required to
Issuance date Expiry date Exercise Number of warrants 2010/2015 have tax credits under Section 108 of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid under
price At 1.1.2011 Exercised At 31.12.2011 this system are tax exempt in the hands of shareholders.
RM/share 000 000 000
Companies with Section 108 credits as at 31 December 2011 may continue to pay franked dividends until the Section
15 January 2010 14 January 2015 1.70 99,626 (25,077) 74,549 108 credits are exhausted or 31 December 2013 whichever if earlier unless they opt to disregard the Section 108 credits
to pay single-tier dividends under the special transitional provisions of the Finance Act, 2009. As at 31 December 2011,
KPJ has fully utilised its Section 108 balance.

The revaluation reserve includes surplus from the revaluation of Groups land and buildings and unrealised revaluation
reserves retained in the Groups interest in Al-Aqar Healthcare REIT.

173 ANNUAL REPORT 2011 ANNUAL REPORT 2011 174

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

31. Reserves (continued) 33. Significant related party disclosures

Revaluation reserve (non-distributable) In addition to the related party disclosures elsewhere in the financial statements, set out below are other significant
related party transactions and balances. The related party transactions described below were carried out on terms,
Group conditions and prices obtainable in transactions with unrelated parties.

2011 2010 (a) Significant related party transactions

RM000 RM000

At 1 January 56,110 50,456 Company

Transfer to retained earnings on disposal of property, plant and equipment to Paid/payable to/ 2011 2010
Al-Aqar Healthcare REIT net of non-controlling interest (12,007) - (received/receivable from) subsidiaries Type of transactions RM000 RM000
Revaluation surplus, net of tax 1,112 5,654
(10,895) 5,654 Ampang Puteri Specialist Hospital Sdn Bhd Management fees (2,812) (2,676)
At 31 December 45,215 56,110 Advances received 19,750 1,829
Dividend received (net) (4,350) (5,000)
Interest expense 1,539 1,063

32. Non-cash transactions Bukit Mertajam Specialist Hospital Sdn Bhd Management fees - (15)
Interest on advances given - (22)
The principal non-cash transactions during the financial year are as follows:
Damansara Specialist Hospital Sdn Bhd Management fees (2,484) (2,366)
(i) The acquisition of property, plant and equipment of which RM3,976,000 (2010: RM6,116,532) is by means of hire Advances received (10,117) (6,599)
purchase and finance lease. Dividend received (net) (27,000) (1,178)
Interest expense 973 1,213
(ii) In the previous financial year, the disposal of Pusat Pakar Tawakal Sdn Bhds new buildings for a total consideration
of RM109.1 million, which was satisfied by issuance of RM58.7 million new units of shares in Al-Aqar Healthcare Ipoh Specialist Hospital Sdn Bhd Management fees (3,032) (2,709)
REIT at RM0.95 each and cash consideration of RM50.4 million. The disposal resulted in gain on disposal of RM290,000. Dividend received (net) (1,614) (1,568)
Interest expense 1,525 877
Advances received - (2,123)

Johor Specialist Hospital Sdn Bhd Management fees (2,917) (2,568)

Dividend received (net) (28,753) (15,097)
Interest expense - 944
Advances received - (5,607)

Kuching Specialist Hospital Sdn Bhd Interest income (344) (346)

Management fees (702) (816)

Kumpulan Perubatan (Johor) Sdn Bhd Interest income (1,828) (1,717)

Kuantan Specialist Hospital Sdn Bhd Management fees (707) (696)

Interest expense 598 487

Pharmaserv Alliances Sdn Bhd Management fees (3,949) (2,838)

Interest income (509) (498)

Puteri Nursing College Sdn Bhd Management fees (1,500) (1,200)

Perdana Specialist Hospital Sdn Bhd Interest income (346) (410)

Management fees (864) (735)
Payment on behalf 1,785 -

Puteri Specialist Hospital (Johor) Sdn Bhd Management fees (1,981) (1,841)
Dividend received (net) (5,368) (3,900)
Interest expense 472 457
Advances received (8,016) (7,983)

Pusat Pakar Tawakal Sdn Bhd Management fees (1,825) (1,665)

Dividend received (net) (255) (255)

175 ANNUAL REPORT 2011 ANNUAL REPORT 2011 176

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

33. Significant related party disclosures (continued) 34. Non-cancellable operating lease commitments (continued)
(a) Significant related party transactions (continued) The Group has entered into a contractual agreement with Amanah Raya Berhad (as Trustee for Al-Aqar Healthcare
REIT) and Damansara REIT Managers Sdn Bhd to lease the hospital land and buildings including certain equipment
Company for a period of fifteen years, with an option to renew for another fifteen years subject to terms and conditions as
Paid/payable to/ 2011 2010 stipulated in the agreement.
(received/receivable from) subsidiaries (continued) Type of transactions RM000 RM000
35. Contingent liabilities
Penang Specialist Hospital Sdn Bhd Interest income (409) (398)
Advances given 713 602 Upon the adoption of FRS 139, the financial guarantees provided to financiers for subsidiaries are no longer disclosed
as contingent liabilities, but would instead be recorded as financial liabilities if considered likely to crystallise. The
Selangor Specialist Hospital Sdn Bhd Management fees (1,635) (1,586) Company has assessed the financial guarantee contracts and concluded that the financial impact of the guarantees
Interest expense 741 671 is not material.

Sentosa Medical Centre Sdn Bhd Management fees (880) (866) 36. Significant events
Dividend received (net) (4,959) (4,346)
Interest expense 473 457 (a) Proposed Acquisition by Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB)

Seremban Specialist Hospital Sdn Bhd Management fees (157) (1,299) On 22 June 2011, Pahang Specialist Hospital Sdn Bhd (PSHSB), a wholly-owned subsidiary of KPJSB, proposed
Advances received (3,412) (2,301) to acquire a 3.12 acre leasehold land for a total consideration of RM3,756,750 to be satisfied via issuance of
3,756,750 ordinary shares of RM1.00 each in PSHSB.
Tawakal Holdings Sdn Bhd Dividend received (net) (1,584) (114)
The proposed acquisition is expected to be completed by 2nd quarter 2012.
Kajang Specialist Hospital Sdn Bhd Management fees (1,048) (1,011)
(b) Disposal by Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB)
Lablink (M) Sdn Bhd Management fees (261) (150)
On 30 April 2010, KPJ proposed to dispose its entire interest in Rumah Sakit Bumi Serpong Damai (RSBSD)
Taiping Medical Centre Sdn Bhd Management fees (273) (162) Building, Kluang Utama Specialist Hospital Building and Bandar Baru Klang Specialist Hospital Building to
Al-Aqar Healthcare Real Estate Investment Trust (Al-Aqar Healthcare REIT) for a total sale consideration of
Pusat Pakar Kluang Utama Sdn Bhd Management fees (326) (230) RM138.77 million to be satisfied partly by cash consideration of RM83.26 million and RM55.51 by the issuance
Advances given - (3,077) of 56.64 million new units in Al-Aqar at an issue price of RM0.98 per unit to be credited as fully paid-up. The
disposal was approved by shareholders on 17 December 2010.

The disposal of RSBSD Building was completed on 2 August 2011.

(b) Key management personnel compensation
The disposal of Kluang Utama Specialist Hospital Building was completed on 6 January 2012.

Group/Company (c) Issuance of up to RM500 million Islamic Commercial Papers/Islamic Medium Term Notes
2011 2010 (ICP/IMTN Programme)
RM000 RM000
On 3 May 2011, the Company refinanced its existing Commercial Papers/Medium Term Notes (CP/MTN) with
Salaries, allowances and bonus 2,843 3,399 the first issuance of ICP/IMTN up to RM500 million from RM250 million.
Contribution to defined contribution plan 317 408
The ICP/IMTN Programme will be utilised to repay the existing RM250 million CP/MTN programme and the
3,160 3,807
remaining balance to finance the expansion of healthcare related business.

(d) Joint Venture between Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) and Yayasan Islam Perlis (YIP)
34. Non-cancellable operating lease commitments
On 11 July 2011, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) had signed a Joint Venture Agreement (JVA)
The future minimum lease payments under non-cancellable operating leases are as follows: with Yayasan Islam Perlis (YIP) for the purpose of designing, developing, building, completing, owning and
subsequently operating from a hospital building to be known as KPJ Perlis Specialist Hospital (JV).
Group
(e) Proposed Acquisition of Land at Klang District, Selangor.
2011 2010
RM000 RM000 On 11 November 2011, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) entered into a Sale and Purchase
agreement (SPA) with Sazean Development Sdn Bhd to acquire four (4) plots of land with an aggregate area of
Represented by: approximately 1.8 hectares, for a total cash consideration of RM23,762,400, located at Mukim of Klang District
Not later than 1 year 71,398 75,306 of Klang State of Selangor.
Later than 1 year but not later than 2 years 89,066 81,720
Later than 2 years but not later than 5 years 224,854 251,706 The Proposed Acquisition is expected to be completed by the 4th quarter 2012.
Later than 5 years 516,907 596,356
902,225 1,005,088

177 ANNUAL REPORT 2011 ANNUAL REPORT 2011 178

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

37. Capital commitments 39. Financial risk management objectives and policies (continued)
Capital expenditure not provided for in the financial statements is as follows: (a) Credit risk (continued)

Group The Group seeks to invest cash assets safely and profitability and buys insurance to protect itself against
insurable risk. In this regard, counterparties are assessed for credit limits are set to minimise any potential losses.
2011 2010 The Groups cash and cash equivalents and short term deposits are placed with creditworthy financial institutions
RM000 RM000 and the risks arising there from are minimised in view of the financial strength of these financial institution.

Approved by the directors and contracted 188,031 88,969 Exposure to credit risk
Approved by the directors but not contracted 244,494 323,514
432,525 412,483 At the reporting date, the Groups and the Companys maximum exposure to credit risk is represented by:
Analysed as follows: - The carrying amount of each class of financial assets recognised in the statements of financial position.
- Leasehold land 10,431 9,536
- Buildings 301,372 267,804 Information regarding credit enhancements for trade and other receivables is disclosed in Note 23.
- Medical equipment 29,628 106,506
- Other property, plant and equipment 91,094 28,637 Financial assets that are neither past due nor impaired
432,525 412,483
Information regarding trade receivables that are neither past due nor impaired is disclosed in Note 23. Cash and cash
equivalents that are neither past due nor impaired are placed with or entered into with reputable financial institutions.
The Groups interest in capital commitments of the associates is disclosed in Note 17.
Financial assets that are either past due or impaired

Information regarding trade receivables that are either past due or impaired is disclosed in Note 23.
38. Fair value of financial instruments
Apart from those disclosed above, none of other financial assets is either past due or impaired.
The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are
reasonable approximation of fair value:
(b) Liquidity risk
Note
Receivables 23 Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due
to shortage of funds. The Groups and the Companys exposure to liquidity risk arises primarily from mismatches
Deposits, cash and bank balances 24
of the maturities of financial assets and liabilities.
Payables 26
Borrowings 27
Deposits 29

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values, either due
to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near
the reporting date.

The fair values of long term receivables and payables, which comprise advances to or from subsidiaries, are estimated
by discounting expected future cash flows at market incremental lending rate for similar types of lending, borrowing
or leasing arrangement at the reporting date.

39. Financial risk management objectives and policies

The Group and the Company are exposed to financial risks arising from their operations and the use of financial
instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk.

The following sections provide details regarding the Groups and Companys exposure to the above-mentioned
financial risks and the objectives, policies and processes for the management of these risks.

(a) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default
on its obligations. The Groups and the Companys exposure to credit risk arises mainly from revenue made on
deferred credit terms, cash and cash equivalents, and deposits with financial institutions. Risk arising from these
are minimised through effective monitoring of receivable accounts that exceeded the stipulated credit terms.
Credit limits are set and credit history is reviewed to minimise potential losses. The Group has no significant
concentration of credit risk with any single customer.

179 ANNUAL REPORT 2011 ANNUAL REPORT 2011 180

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

39. Financial risk management objectives and policies (continued) 39. Financial risk management objectives and policies (continued)
(b) Liquidity risk (continued) (d) Foreign currency risk

Analysis of financial instruments by remaining contractual maturities Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.
The table below summarises the maturity profile of the Groups and of the Companys liabilities at the reporting
date based on contractual undiscounted repayment obligations. The Group has three subsidiaries abroad; a hospital in Jakarta, Indonesia, an aged care facility in Queensland,
Australia and a pharmaceutical distributor in Singapore. The Group does not face significant exposure from
currency risk as these subsidiaries operate independently; pharmaceutical drugs and medical supplies are
On demand or One to five Over five supplied from and distributed in the country these subsidiaries operate. Hence, transactions involving foreign
within one year years years Total currency are minimal and risks are limited to the translation of foreign currency functional financial statement to
RM000 RM000 RM000 RM000 that of the presentation currency.

31 December 2011
Group 40. Capital management
Payables 335,229 - - 335,229
Borrowings 142,048 52,615 250,548 445,211 The primary objective of the Groups capital management is to ensure that it maintains a strong credit rating and
Deposits - 9,830 5,665 15,495 healthy capital ratios in order to support its business and maximise shareholder value.

Total undiscounted financial liabilities 477,277 62,445 256,213 795,935 The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital
Company to shareholders or issue new shares.
Payables 91,570 152,942 281,702 526,214
Borrowings 65,000 - - 65,000 The Group monitors capital using a gearing ratio, which is total borrowings divided by shareholders funds.
Total undiscounted financial liabilities 156,570 152,942 281,702 591,214
The Groups gearing ratios as at 31 December 2011 and 2010 were as follows:
31 December 2010
Group
Payables 308,107 - - 308,107 Group
Borrowings 362,676 36,741 6 399,423 2011 2010
Deposits - 8,776 5,006 13,782 RM000 RM000
Total undiscounted financial liabilities 670,783 45,517 5,012 721,312
Current borrowings 140,991 362,676
Company Non-current borrowings 302,480 36,747
Payables 67,432 161,989 42,395 271,816 Total 443,471 399,423
Borrowings 299,000 - - 299,000
Total undiscounted financial liabilities 366,432 161,989 42,395 570,816 Shareholders funds 892,954 768,647

Gearing ratio 0.50 0.52

(c) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the Groups and the Companys financial 41. Segmental reporting
instruments will fluctuate because of changes in market interest rates.
The chief operating decision-maker has been identified as the management committee. This committee reviews
The Groups and the Companys exposure to interest rate risk arises primarily from their loans and borrowings. the Groups internal reporting in order to assess performance and allocate resources. The committee considers the
The Groups policy is to manage interest cost using a mix of fixed and floating rate debts. business from both geographic and nature of business.

Sensitivity analysis for interest rate risk The Group principally operates in one main business segment namely the operating of specialist hospitals. Support
services of the Group mainly comprise provision of management services and pathology and laboratory services,
At the reporting date, if interest rates had been 10 basis points lower/higher, with all other variables held constant, marketing and distribution of pharmaceutical, medical and surgical products and operating a private nursing college.
the Groups profit net of tax would have been RM249,215 higher/lower, arising mainly as a result of lower/
higher interest expense on floating rate loans and borrowings. The assumed movement in interest rate for interest
rate sensitivity analysis is based on the currently observable market environment.

181 ANNUAL REPORT 2011 ANNUAL REPORT 2011 182

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued) For the financial year ended 31 December 2011 (continued)

41. Segmental reporting (continued) 41. Segmental reporting (continued)

Hospitals Age care Hospitals

Support
facility Support Malaysia Indonesia Total services Group
Malaysia Indonesia Total Australia services Group RM000 RM000 RM000 RM000 RM000
RM000 RM000 RM000 RM000 RM000 RM000
Year ended 31 December 2010
Year ended 31 December 2011 Revenue
Revenue Total segment revenue 1,532,868 2,835 1,535,703 485,285 2,020,988
Total segment revenue 1,718,453 11,541 1,729,994 6,609 636,028 2,372,631 Inter-segment revenue - - - (366,377) (366,377)
Inter-segment revenue - - - - (463,638) (463,638)
Revenue from external customers 1,532,868 2,835 1,535,703 118,908 1,654,611
Revenue from external customers 1,718,453 11,541 1,729,994 6,609 172,390 1,908,993
Results
Results Adjusted EBITDA* 192,100 (4,713) 187,387 23,156 210,543
Adjusted EBITDA* 232,835 (7,334) 225,501 948 12,623 239,072 Depreciation and amortisation (52,595) (2,412) (55,007) (4,360) (59,367)
Depreciation and amortisation (60,459) (2,362) (62,821) (50) (6,741) (69,612) Finance cost (7,868) (52) (7,920) (5,677) (13,597)
Finance cost (10,605) (652) (11,257) (1,139) (7,292) (19,688) Associates
Associates - share of results 1,581 - 1,581 22,338 23,919
- share of results 3,960 - 3,960 - 50,865 54,825 - reversal of impairment of interest in associates - - - 6,460 6,460
Profit before zakat and tax 165,731 (10,348) 155,383 (241) 49,455 204,597
Zakat (1,275) - (1,275) - (25) (1,300) Profit before zakat and tax 133,218 (7,177) 126,041 41,917 167,958
Income tax expense (46,200) - (46,200) - (2,838) (49,038) Zakat (1,259) - (1,259) (10) (1,269)
Profit for the year 118,256 (10,348) 107,908 (241) 46,592 154,259 Income tax expense (39,086) - (39,086) (1,382) (40,468)
Profit for the year 92,873 (7,177) 85,696 40,525 126,221
Total assets 1,604,084 22,951 1,627,035 126,546 205,683 1,959,264
Total assets 1,382,253 74,316 1,456,569 223,470 1,680,039
Total assets includes:
Investment in associates 320,659 - 320,659 - 78,053 398,712 Total assets includes:
Investment in associates 17,795 - 17,795 289,557 307,352
Total liabilities 358,158 9,877 368,035 120,097 474,280 962,412
Total liabilities 301,101 17,787 318,888 497,763 816,651

* Earnings before interest, taxation, depreciation and amortisation (EBITDA)

* Earnings before interest, taxation, depreciation and amortisation (EBITDA)

42. Events subsequent to end of the reporting period

(a) Disposal of Redeemable Preference Shares in Intrapreneur Development Sdn Bhd

The Company had on 30 January 2012, disposed its 15,359 Redeemable Preference Shares (RPS) at the
total sale consideration of RM1,536,900 to Johor Corporation. The RPS was previously purchased on 26
November 2009.

(b) Acquisition of 8 units of service apartments for a total purchase consideration of RM1,934,880

On 8 February 2012, Kumpulan Perubatan (Johor) Sdn Bhd entered into separate Sale and Purchase Agreements
(SPAs) with JCorp Hotels and Resorts Sdn Bhd to acquire eight (8) units of Service Apartments for a total
purchase consideration of RM1,934,880. The purchase consideration for each one (1) unit of the Service
Apartment is RM241,860.00.

The Service Apartments are part of the Berjaya Tioman Suites developed by Tioman Island Resort Bhd. The Berjaya
Tioman Suites is located on a parcel of land at PN14711 Lot 5006, Bandar Tioman, Daerah Rompin, Pahang.

183 ANNUAL REPORT 2011 ANNUAL REPORT 2011 184

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued)
CONTENTS
187 Shareholdings Statistics
42. Events subsequent to end of the reporting period (continued)
189 Warrantholdings Statistics
(c) Proposed Acquisition by Kumpulan Perubatan (Johor) Sdn Bhd 191 Compliance Information

On 23 March 2012, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB), proposed to purchase 80% equity interest 192 Listing of Properties
in PT Khidmat Perawatan Jasa Medika (PT KPJ Medika) for a total cash consideration of RM15,840,000 193 Notice of Annual General Meeting
(Proposed Acquisition) from Johor Corporation. 197 Statement Accompanying Notice of
The Proposed Acquisition is expected to be completed within a month from the date of acceptance. Annual General Meeting
198 Form of Proxy

43. Comparatives
(a) The presentation and classification of items in the current year financial statements have been consistent
with the previous financial year except that certain comparative amounts have been reclassified to conform
with current years presentation.

(b) The comparative figures have been audited by a firm of chartered accountants other than Ernst & Young.

44. Supplementary information disclosed pursuant to Bursa Malaysia Securities

STATISTICS AND
Berhad listing requirement
NOTICE OF
The following analysis of realised and unrealised retained earnings is prepared pursuant to Paragraph 2.06 and
2.23 of Bursa Malaysia Securities Berhad Listing Requirements and in accordance with the Guidance on Special
Matter No. 1 - Determination of Realised and Unrealised Profit or Losses as issued by the Malaysian Institute of
ANNUAL GENERAL
MEETING
Accountants. This disclosure is based on the format prescribed by Bursa Malaysia Securities Berhad.

Group

As at 31.12.2011 As at 31.12.2010
RM000 RM000

Total retained earnings of KPJ Healthcare Berhad and its subsidiaries:

- Realised 498,907 418,101
- Unrealised (25,088) (23,065)
473,819 395,036
Total share of retained earnings from associates:
- Realised 50,197 19,363
- Unrealised (26,981) (1,205)
497,035 413,194
Less: Consolidation adjustments (11,255) (19,857)
Total Group retained earnings 485,780 393,337

The disclosure of realised and unrealised earnings above is solely for compliance with the directive issued by the
Bursa Malaysia Securities Berhad and should not be used for any other purpose.

The total retained earnings of the Company as at 31 December 2011 amounting to RM18,722,000 (31 December
2010: RM459,000) is fully realised.

185 ANNUAL REPORT 2011

Shareholdings Statistics as at 30 April 2012

Authorised Share Capital : RM500,000,000 Name No. of Shares %

Issued & Fully Paid-Up Capital : RM309,248,508 less RM5,000 Treasury Shares = RM309,243,508
Class of Shares : Ordinary Share of RM0.50 each 25 HSBC Noms (A) Sdn Bhd - A/C Exempt An
for The Bank of New York Mellon (Mellon Acct) 2,834,212 0.46
Voting Right of Shareholders 26 Cartaban Noms (A) Sdn Bhd
Every member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of - A/C State Street Luxembourg Fund DW37
a poll shall have one vote for every share of which he/she is the holder. for DWS Invest Asian Small/Mid Cap (DWS INVST SICAV) 2,554,000 0.41
Break down of Shareholdings 27 HSBC Noms (A) Sdn Bhd - A/C Exempt An
for J.P. Morgan Bank Luxembourg S.A. 2,484,888 0.40
Size of Shareholdings No. of Shareholders % No. of Shares %
28 HSBC Noms (A) Sdn Bhd - A/C TNTC for Baring Pacific Fund 2,156,500 0.35
Less than 100 191 4.78 4,693 -
29 Maybank Noms (T) Sdn Bhd - A/C Etiqa Insurance Berhad (Life Par Fund) 2,086,600 0.34
100 1000 755 18.89 617,459 0.10
30 Zalaraz Sdn Bhd 1,985,000 0.32
1,001 10,000 2,092 52.34 8,742,349 1.41
10,001 100,000 669 16.74 24,586,879 3.98 Substantial Shareholders
100,001 to less than 5% of Issued Capital 286 7.15 287,542,955 46.49
Name Direct No. of Shares
5% and above of Issued Capital 4 0.10 296,992,681 48.02
No. of Shares % No. of Shares %
TOTAL 3,997 100.00 618,487,016 100.00
1 Maybank Noms (T) Sdn Bhd
- A/C Johor Corporation (45124911053B) 137,221,675 22.19 106,647,380 17.24
Top Thirty Securities Account Holders
(Without aggregating the securities from different securities accounts belonging to the same depositor) 2 Johor Corporation - 4 a/cs 88,756,505 14.35 155,112,550 25.08
4 Citigroup Noms (T) Sdn Bhd
Name No. of Shares %
- A/C Employees Provident Fund Board 50,366,774 8.14 25,475,200 4.12
1 Maybank Noms (T) Sdn Bhd - A/C Johor Corporation (45124911053B) 137,221,675 22.19 3 Waqaf An-Nur Corporation Berhad 46,487,602 7.52 - -
2 Johor Corporation 62,916,630 10.17
3 Citigroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board 50,366,774 8.14 Analysis of Shareholders
4 Waqaf An-Nur Corporation Berhad 46,487,602 7.52
No. of Shareholders % No. of Shares %
5 Johor Corporation 20,029,000 3.24
6 OSK Noms (T) Sdn Bhd - A/C Johor Corporation 17,500,000 2.83 Malaysian - Bumiputra 918 22.97 400,474,400 64.75

7 Citigroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board (Nomura) 11,492,400 1.86 - Others 2,860 71.55 142,051,669 22.97

8 AmanahRaya Trustees Berhad - A/C Public Islamic Select Treasures Fund 10,417,700 1.68 Foreigners 219 5.48 75,960,947 12.28

9 Citigroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board (CIMB Prin) 9,211,700 1.49 TOTAL 3,997 100.00 618,487,016 100.00

10 HSBC Noms (A) Sdn Bhd - A/C Exempt An for JPMorgan Chase Bank,
National Association (Norges BK Lend) 9,164,800 1.48
Directors Shareholding as at 30 March 2012
11 Cartaban Noms (A) Sdn Bhd - A/C SSBT Fund W4B3 for
Wasatch Emerging Markets Small Cap Fund 9,130,393 1.48 Name No. of shares %
12 Kumpulan Wang Persaraan (Diperbadankan) 9,019,300 1.46
1 Kamaruzzaman Bin Abu Kassim - -
13 AmanahRaya Trustees Berhad - A/C Public Islamic Optimal Growth Fund 6,528,950 1.06
14 AmanahRaya Trustees Berhad - A/C Public Islamic Dividend Fund 6,310,700 1.02 2 YB Datin Paduka Siti Sadiah Sheikh Bakir
- Direct (2 a/cs) 558,250
15 AmSec Noms (T) Sdn Bhd - AmTrustee Berhad CimSec Noms (T) Sdn Bhd
for CIMB Islamic Dali Equity Growth Fund (UT-CIMB-DALI) 6,175,800 1.00
- A/C CIMB Bank for Siti Sadiah binti Sh Bakir 560,000 1,118,250 0.18%
16 Johor Corporation 5,760,875 0.93 - Indirect (Amy Nadzlina binti Mohamed) 12,500 0.00%
17 Citigroup Noms (T) Sdn Bhd - A/C Kumpulan Wang Persaraan 3 Dr Yoong Fook Ngian 300,000 0.05%
(Diperbadankan) (CIMB Equities) 4,851,100 0.78
4 Dr Kok Chin Leong 138,000 0.02%
18 AmanahRaya Trustees Berhad - A/C Public Islamic Opportunities Fund 4,825,750 0.78
19 HSBC Noms (A) Sdn Bhd - A/C Best Investment Corporation 4,675,775 0.76 5 Datuk Azzat Bin Kamaludin 60,000 0.01%

20 AmanahRaya Trustees Berhad - A/C Public Islamic Sector Select Fund 4,645,900 0.75 6 Amiruddin bin Abdul Satar 7,000 0.00%
21 Maybank Noms (T) Sdn Bhd - A/C Etiqa Takaful Berhad (Family PFR EQ) 4,479,000 0.72 7 Ahamad bin Mohamad 750 0.00%
22 AmanahRaya Trustees Berhad - A/C Public Islamic Equity Fund 3,559,100 0.58 8 Rozan bin Mohd Saat 500 0.00%
23 HSBC Noms (A) Sdn Bhd - A/C BBH and Co Boston 9 Datuk Dr Hussein Bin Awang - -
for Matthews Asia Small Companies Fund 2,896,500 0.47 10 Abd Razak bin Haron - -
24 AmanahRaya Trustees Berhad - A/C PB Growth Fund 2,857,200 0.46 11 Zainah bte Mustafa - -

187 ANNUAL REPORT 2011 ANNUAL REPORT 2011 188

Warrantholdings Statistics as at 30 April 2012

Break down of Warrantholdings

Name No. of Shares %
Size of Warrantholdings No. of Warrantholders % No. of Warrants % 22 Chan Kan Hing 185,000 0.45
Less than 100 429 25.12 12,084 0.03 23 SBB Noms (T) Sdn Bhd - A/C HSBC Income Fund (CAFM) 176,800 0.43
100 1000 452 26.46 272,492 0.66 24 CimSec Noms (T) Sdn Bhd - A/C Tan Tuan Phin (Jalan Dedap-CL) 176,200 0.43
1,001 10,000 629 36.83 2,067,444 5.04 25 CIMB Group Noms (T) Sdn Bhd - A/C CIMB Bank Berhad (EDP 2) 160,000 0.39
10,001 100,000 166 9.72 4,521,169 11.02 26 Ong Eng Bin 157,902 0.38
100,001 to less than 5% of Issued Capital 30 1.75 12,673,489 30.88 27 Mohd Fauzy bin Abdullah 150,000 0.37
5% and above of Issued Capital 2 0.12 21,489,300 52.37 28 Mediqas Sdn Bhd 136,875 0.33
TOTAL 1,708 100.00 41,035,978 100.00 29 CimSec Noms (T) Sdn Bhd - A/C CIMB for Ting Kuok Ley @ David Kuok Leh Ting (PB) 130,000 0.32
30 Siti Sadiah binti Sh Bakir 116,687 0.28

Top Thirty Securities Account Holders

(Without aggregating the securities from different securities accounts belonging to the same depositor) Substantial Warrantholders
Name No. of Warrants %
Name Direct No. of Shares
1 Waqaf An-Nur Corporation Berhad 11,621,900 28.32
No. of Warrants % No. of Warrants %
2 Johor Corporation 9,867,400 24.05
1 Waqaf An-Nur Corporation Berhad 11,621,900 28.32 - -
3 AmanahRaya Trustees Berhad - A/C Public Islamic Opportunities Fund 1,462,687 3.56
2 Johor Corporation - 2 a/cs 9,879,900 24.08 1,097,718 2.67
4 Universal Trustee (M) Berhad - A/C CIMB Islamic Small Cap Fund 1,255,137 3.06
5 QSR Brands Bhd 1,125,000 2.74
Analysis of Shareholders
6 Kulim (Malaysia) Berhad 1,000,000 2.44
7 Maybank Noms (T) Sdn Bhd - A/C Maybank Trustees Berhad No. of Warrantholders % No. of Warrants %
for CIMB-Principal Small Cap Fund (240218) 853,750 2.08 Malaysian - Bumiputra 453 26.52 31,243,557 76.14
8 SBB Noms (T) Sdn Bhd - A/C Manulife Insurance (Malaysia) Berhad - Others 1,214 71.08 8,683,391 21.16
- (Managed Fund) 669,350 1.63
Foreigners 41 2.40 1,109,030 2.70
9 Public Noms (T) Sdn Bhd - A/C Phang Chia Ean (E-PPG) 640,000 1.56
TOTAL 1,708 100.00 41,035,978 100.00
10 Citigroup Noms (T) Sdn Bhd - A/C Exempt An
for American International Assurance Berhad 596,900 1.45
11 SBB Noms (T) Sdn Bhd - A/C Manulife Insurance (Malaysia) Berhad Directors Warrantholding as at 30 April 2012
- (Equity Fund) 503,175 1.23
Name No. of Warrants %
12 DB (M) Nom (A) Sdn Bhd - A/C Deutsche Bank AG London
1 Kamaruzzaman Bin Abu Kassim - -
for Doric Asia Pacific Small Cap Fund 412,500 1.01
13 Citigroup Noms (T) Sdn Bhd - A/C Employees Provident Fund Board 363,931 0.89 2 YB Datin Paduka Siti Sadiah Sheikh Bakir
- Direct (2 a/cs) 116,762 0.28%
14 Citigroup Noms (A) Sdn Bhd - A/C Exempt An for Citibank NA, Singapore - Indirect (Amy Nadzlina binti Mohamed) 3,125 0.01%
(Julius Baer) 347,000 0.85
3 Dr Yoong Fook Ngian - -
15 Maybank Noms (T) Sdn Bhd - A/C Maybank Trustees Berhad
4 Dr Kok Chin Leong - -
for CIMB-Principal Strategic Bond Fund (290077) 320,000 0.78
5 Datuk Azzat Bin Kamaludin - -
16 AmanahRaya Trustees Berhad - A/C Public Islamic Asia Tactical Allocation Fund 300,000 0.73
6 Amiruddin bin Abdul Satar - -
17 CimSec Noms (T) Sdn Bhd - A/C CIMB Bank
for Mohammed Amin bin Mahmud (MM1004) 287,725 0.70 7 Ahamad bin Mohamad 87 -
18 Employees Provident Fund Board 271,250 0.66 8 Rozan bin Mohd Saat 125 -
19 Caroline Ang Chai Boon 236,250 0.58 9 Datuk Dr Hussein Bin Awang - -
20 AmSec Noms (T) Sdn Bhd - A/C AmTrustee Berhad 10 Abd Razak bin Haron - -
for Hong Leong Strategic Fund 230,000 0.56
11 Zainah bte Mustafa - -
21 Lee Thian Chai 194,477 0.47

189 ANNUAL REPORT 2011 ANNUAL REPORT 2011 190

Compliance Information Listing of Properties

In conformance with the Bursa Malaysia Listing Requirements, the following additional information is provided:
Net book value Tenure & A Area
1. Utilisation of Proceeds Raised From Corporate Proposal Location Description (RM million) Expiry date (in sq metre)
The proceeds of RM249.0 million raised from the Commercial Papers/Medium Term Notes Programme have been
Tawakal Hospital Car Park 10.5 Term in 4,048
fully utilised in the following manner: Lot No 523, Seksyen 85A, perpetuity
Jalan Pahang Barat, Kuala Lumpur
CP/MTN RM000
Unit No. 14-5-1, Condominium 0.3 Freehold 114
At start of the financial year 249,000
The Palladium Condominium,
Issued during the financial year for working capital purposes 0
Jalan Gurney 2, 54000 Kuala Lumpur
At end of financial year 249,000
KPJ Selangor Specialist Hospital Vacant land 8.0 Leasehold 99 15,484
Lot No 2, Jalan 18/24, years expiring 2096
2. Treasury Shares Seksyen 18, Shah Alam, Selangor
During the financial year, the company did not make any purchase, re-sale and cancellation of shares.
No. 43, Jalan Mamanda 9, Commercial 2.2 Leasehold 99 1,650
3. Options, Warrants or Convertible Securities Ampang Point, 68000 Ampang, Selangor Building years expiring 2092
During the financial year, 25,077,310 new ordinary shares of RM0.50 each were issued by the Company for cash by
KPJ Damansara Specialist Hospital Vacant land 1.8 Freehold 945
virtue of the conversion of warrant at exercise price of RM1.70 per share. Lot No. PT 12058,
Jalan SS 20/17, Damansara Utama,
4. American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme 47400 Petaling Jaya, Selangor
During the financial year, the Company did not issue any ADR or GDR Programme.
No. 131, Jalan SS 20/10, Land and double 2.6 Freehold 916
5. Impositions of sanctions/penalties Damansara Utama, storey detached
There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management 47400 Petaling Jaya, Selangor house
by the relevant regulatory bodies.
No. 5 & 7, Persiaran Titiwangsa 3, Land and 3.9 Term in perpetuity 981.3 & 851.0
6. Non-audit Fees 53200 Kuala Lumpur office building
During the financial year, the Company only engaged audit services with the external auditor.
No. 3, Lorong San Ah Wing, Land and bungalow 4.6 Term in perpetuity 1,282
Off Lorong Gurney, 54100 Kuala Lumpur
7. Profit estimate , forecast or projections
The Company did not make any release on the profit estimate, forecast or projections for the financial year. 24-N, 24-P & 24D-1, Nurse Hostel 1.5 Freehold 2,027
Jalan Tarom, 81200 Johor Bahru
8. Profit guarantee
There is no profit guarantee given by the Company in respect of the financial year. KPJ Johor Specialist Hospital Land under 0.7 Freehold Land 1,002
No. 38B, Jalan Abdul Samad, development
9. Material contracts 80100 Johor Bahru, Johor
There is no material contract by the Company and its subsidiary companies, involving Directors and major
shareholders interest substituting at the end of the financial year. Hospital Pusrawi building Clinic and 1.0 Freehold 149
No. 19, Jalan USJ 9/3F, Subang Jaya, office building
10. Recurrent related party transactions statement 47620 Petaling Jaya, Selangor
At Annual General Meeting (AGM) held 16 July 2011, the Company obtained a shareholders mandate to allow the
Bangunan Pharmacare, Jalan Pahang Barat, Office Building 8.0 Term in perpetuity 1,204
Group to enter into recurrent related party transactions of revenue or trading nature with the following parties:
Off Jalan Pahang, 53000 Kuala Lumpur

Puteri Specialist Hospital Temporary car park / 1.1 Leasehold 99 1,596

Estimated aggregate
1, Jln Sentosa, Lrg 1, office years expiring
value from Kg Dato Onn, Johor Bahru, Johor 2053
25 May 2011 to date Frequency
5, Jln Sentosa, Lrg 1, Kg Dato Onn, Temporary office 1.0 Leasehold 99 1,414
Party transacted with Nature of transactions of next AGM RM000 of transactions Johor Bahru, Johor years expiring 2053
Metro Parking (M) Sdn Bhd Rental income for renting of land 1,517 Monthly
for carpark
Kluang Utama Specialist Hospital Land and private 3.5 Leasehold 99 985
1-11, Jln Susur 1, Jalan Besar, Kluang, Johor hospital building years expiring 2100
Teraju Fokus Sdn Bhd Security service fees payable 2,909 Monthly
Bandar Baru Klang Specialist Hospital Land and building 91 Leasehold 99 10,906
HC Duraclean Sdn Bhd Housekeeping contract fees payable 7,720 Monthly Persiaran Rajawali, Bandar Baru Klang, under development years expiring
Pro Corporate Management Services Secretarial fees payable 178 Monthly Klang, Selangor in 2093
Sdn Bhd
Pasir Gudang Specialist Hospital Land and building 7.8 Leasehold 99 13,142
Healthcare Technical Services Sdn Bhd Project Management and 12,807 Contract basis Lot PTD 204781, Mukim Plentong, under development years expiring 2108
Maintenance fee Johor Bahru, Johor
TMR Urusharta (M) Sdn Bhd Project and maintenance fees 806 Contract basis
Maharani Specialist Hospital Building Land and building 23.8 Freehold 6,944
of lab premises payable
Lot 2024, Bandar Maharani, under development
25,937 Muar, Johor

191 ANNUAL REPORT 2011 ANNUAL REPORT 2011 192

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Nineteenth (19th) Annual General Meeting (AGM) of KPJ Healthcare Berhad As Special Business
(KPJ or the Company) will be held at the Permata Ballroom, Level B2, The Puteri Pacific Hotel, Jalan Abdullah To consider and if thought fit, to pass the following resolutions:
Ibrahim, 80000 Johor Bahru, Johor on Monday, 25 June 2012 at 12.00 pm for the purpose of transacting the following
businesses:- 6. ORDINARY RESOLUTION 1
AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965 (Resolution 11)
1. To receive and adopt the Audited Financial Statements for the year ended 31 December 2011 and (Resolution 1) THAT pursuant to Section 132D of the Companies Act, 1965 (Act), the Articles of Association of
the Reports of the Directors and Auditors thereon. the Company and subject to the approvals of the relevant government and/or regulatory authorities,
the Directors be and are hereby empowered to issue shares of the Company, from time to time, upon
2. To re-elect the following Directors retire in accordance with the Articles of Association of the Company:- such terms and conditions and for such purposes as the Directors may, in their absolute discretion
i. Datin Paduka Siti Sadiah Sh Bakir (Article 96) (Resolution 2) deem fit, provided that the aggregate number of shares issued pursuant to this resolution does not
ii. Zainah Binti Mustafa (Article 96) (Resolution 3) exceed 10 percent (10%) of the issued share capital of the Company for the time being and that the
iii. Rozan Bin Mohd Saat (Article 96) (Resolution 4) Directors be and are also empowered to obtain the approval for the listing of and quotation for the
iv. Amiruddin Bin Abdul Satar (Article 97) additional shares so issued on the Bursa Malaysia Securities Berhad (Bursa Securities) and that
(Resolution 5)
such authority shall continue in force until the conclusion of the next Annual General Meeting of the
v. Abd Razak Bin Haron (Article 97) (Resolution 6) Company. (See Note f)

3. To consider, and if thought fit, to pass the following resolutions pursuant to Section 129(6) of the 7. ORDINARY RESOLUTION 2
Companies Act 1965:- PROPOSED RENEWAL OF THE SHARE BUY-BACK AUTHORITY (PROPOSED SHARE
i. That Datuk Dr Hussein Bin Awang, who is above the age of seventy (70) years, be and is BUY BACK)
hereby re-appointed as Director and to hold office until the next Annual General Meeting of (Resolution 12)
THAT, subject to Section 67A of the Act, Part IIIA of the Companies Regulations 1966, the
the Company. (Resolution 7) provisions of the Articles of Association of the Company, the Main Market Listing Requirements
ii. That Dr Yoong Fook Ngian, who is above the age of seventy (70) years, be and is hereby re-
(Listing Requirements) of the Bursa Securities and any other applicable laws, rules, regulations
appointed as Director and to hold office until the next Annual General Meeting of the Company. (Resolution 8)
and guidelines at any point in time in force, the Directors of the Company be and are hereby
authorised, to make purchase(s) of ordinary shares of RM0.50 each in the Companys issued and
4. To approve the payment of Directors fees in respect of the financial year ended 31 December 2011. (Resolution 9)
paid-up capital on Bursa Securities subject to the following:-
5. To re-appoint Messrs Ernst & Young as Auditors of the Company and to authorise the Directors to fix a. The maximum number of shares which may be purchased and/or held by the Company shall not
(Resolution 10) exceed ten percent (10%) of the total issued and paid-up share capital of the Company at any
their remuneration.
point in time subject to the restriction that the issued and paid-up capital of the Company does not fall
below the applicable minimum share capital requirement of the Listing Requirements;
b. The maximum fund to be allocated by the Company for the purpose of purchasing its shares shall not
exceed the retained profits and the share premium account of the Company; and
c. Upon completion of the purchase by the Company of its own shares, the Directors of the Company are
authorised to deal with the shares so bought-back in their absolute discretion in any of the following
manners:-
i. cancel the shares so purchased; or
ii. retain the shares so purchased as Treasury Shares and held by the Company; or
iii. retain part of the shares so purchased as Treasury Shares and cancel the remainder,
iv. distribute the treasury shares as dividends to shareholders and/or resell on Bursa
Securities and/or cancel all or part of them; or

in any other manner as prescribed by the Act, rules, regulations and guidelines pursuant to the Act
and the requirements of Bursa Securities and any other relevant authority for the time being in force;

AND THAT the authority conferred by this resolution shall continue to be in force until:-
a. the conclusion of the next Annual General Meeting (AGM) of the Company at which such resolution
was passed, at which time the authority would lapse unless renewed by ordinary resolution passed
either unconditionally; or
b. the expiration of the period within which the next AGM is required to be held pursuant to Section
143(1) of the Act (but shall not extend to such extension as may be allowed pursuant to Section
143(2) of the Act); or
c. revoked or varied by a resolution passed by the shareholders of the Company in general meeting,

whichever is earlier.
AND THAT the Directors of the Company be and are authorised to take all such steps to implement,
finalise and give full effect to the Proposed Share Buy-Back with full power to assent to any conditions,
modifications, revaluations and/or amendments as may be imposed by the relevant authorities and
with full power to do all such acts and things thereafter in accordance with the Act, the provisions of
the Memorandum and Articles of Association of the Company and the guidelines issued by Bursa
Securities and any other relevant authorities. (See Note g)

193 ANNUAL REPORT 2011 ANNUAL REPORT 2011 194

8. ORDINARY RESOLUTION 3
PROPOSED RENEWAL OF SHAREHOLDERS MANDATE FOR EXISTING RECURRENT NOTES:
RELATED PARTY TRANSACTIONS AND PROPOSED NEW SHAREHOLDERS MANDATE FOR a. A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend and vote
ADDITIONAL RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING instead of him. A proxy may but need not be a member of the Company and the provision of Section
NATURE ( PROPOSED SHAREHOLDERS MANDATE) (Resolution 13) 149(1)(b) of Companies Act, 1965 need not be complied with.
THAT subject always to the provisions of the Act, the Memorandum & Articles of Association b. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney
of the Company, Listing Requirements or other regulatory authorities, approval be and is hereby duly authorised in writing or if the appointor is a corporation, under its common seal or in other manner
given to the Company and/or its subsidiaries, to approved by its Board of Directors.
a. enter into new Recurrent Related Party Transactions of a Revenue or Trading Nature; and c. Where a member of the Company is an Authorised Nominee as defined under the Central Depositories
b. renew the shareholders mandate for recurrent Related Party Transactions of a Revenue or Act 1991, he may appoint at least one (1) proxy in respect of each Securities Account it holds with
Trading nature for any of the aforesaid companies to enter into and give effect to the specified ordinary shares of the Company standing to the credit of the said Securities Account.
Recurrent related Party Transactions; d. Any alteration made in this form should be initialed by the person who signs it.
all with the particulars of which are set out in the Section 2.3 and 2.4, Part B of the Circular to e. The instrument appointing a proxy, together with the power of attorney (if any) under which it is
Shareholders dated 1 June 2012 (Circular) with the Related Parties as described in the Circular, signed or a certified copy thereof, shall be deposited at the registered office of the Company at: KPJ
provided that such transactions are:- HEALTHCARE BERHAD, Suite 12B, Level 12, Menara Ansar, 65 Jalan Trus , 80000 Johor Bahru,
a. recurrent transactions of a revenue or trading nature; Johor at least forty-eight (48) hours before the time appointed for holding the meeting or any
adjournment thereof.
b. necessary for the day-to-day operations of the Company and/or its subsidiaries;
f. The proposed Resolution 11 if passed is primarily to give flexibility to the Directors to issue up to
c. carried out in the ordinary course of business of the Company and/or its subsidiaries, made on
a maximum amount not exceeding in total 10% of the issued share capital of the Company for the
an arms length basis and on normal commercial terms which those generally available to the
time being for such purposes as the Directors consider would be in the interest of the Company.
public ; and
This authority will, unless revoked or varied by the Company in a general meeting, will expire at the
d. not detrimental to the minority shareholders of the Company; conclusion of the next AGM or the expiration of the period within the next AGM required by law to be
held, whichever is earlier.
AND THAT such authority shall continue to be in force until :-
i. The mandate sought under Resolution 11 is a renewal of an existing mandate particularly on the
a. the conclusion of the next AGM of the Company following this AGM, at which time the authority conversion of KPJ warrants into ordinary shares of RM0.50 at the price of RM1.70 per share
shall lapse unless by a resolution passed at the AGM, such authority is renewed; or
ii. The proceeds raised from the previous mandate were RM85,307,047.20
b. the expiration of the period within which the next AGM after the date that is required by law to be held
iii. The proceeds were utilized for working capital purposes
pursuant to Section 143(1) of the Companies Act (but shall not extend to such extensions as may be
allowed pursuant to Section 143(2) of the Companies Act); or iv. The authority will provide flexibility to the Company for any possible fund raising activities, including
but not limited to further placing of shares, for purpose of funding future investment project(s), working
c. revoked or varied by a resolution passed by the shareholders of the Company at a general meeting;
capital and/or acquisitions.
whichever is earlier; g. The proposed Resolution 12 if passed will enable the Company to utilise any of its surplus financial
resources to purchase its own shares from the market.
AND THAT the Directors of the Company be authorised to complete and do all such acts and things
(including executing all such documents as may be required) as they may consider expedient or h. The proposed Resolution 13 if passed is primarily to authorise the Company and/its unlisted
necessary or give effect to the Proposed Shareholders Mandate. (See Note h) subsidiaries to enter into arrangements or transactions with Related Parties, particulars of which are
set out in Section 2.3 and 2.4 of the Circular to Shareholders dated 1 June 2012 circulated together
9. SPECIAL RESOLUTION with this Annual Report, which are necessary for the day-to-day operations of the Group and are
PROPOSED AMENDMENTS (Special Resolution) based on normal commercial terms that are not more favourable to the Related Parties than those
THAT the deletions, alterations, modifications, variations and additions to the Articles of generally made to the public.
Association of the Company as set out in the Circular to Shareholders be and are hereby i. The Special Resolution, if passed, will render the Articles of Association of the Company to be in
approved. (See Note i) line with the Listing Requirements of Bursa Securities and to update the Articles of Association
of the Company to be consistent with the prevailing laws, guidelines or requirements of the
10. To transact any other business of which due notice shall have been given. relevant authorities.

By Order of the Board,

KPJ HEALTHCARE BERHAD
SALMAH BINTI HJ ABD WAHAB (LS 0002140)
ROHAYA BINTI JAAFAR (LS 0008376)

Secretaries
Johor Bahru
Dated : 1 June 2012

195 ANNUAL REPORT 2011 ANNUAL REPORT 2011 196

Statement Accompanying Notice FORM OF PROXY
No. of ordinary shares held CDS account no.
of Annual General Meeting Company No. 247079-M)
(Incorporated in Malaysia under the Companies Act, 1965)

Pursuant to Paragraph 8.28(2) of the Listing Requirements of the Bursa Malaysia:-

I/We *
(Full name and NRIC No. / Company No. in block letters)
1. The Directors who are retiring pursuant to Article 96 of the Companys Articles of Association are as follows :-
of
i. Datin Paduka Siti Sadiah Sh Bakir (Full address in block letters)
ii. Zainah Binti Mustafa being a member(s) of KPJ HEALTHCARE BERHAD hereby appoint
iii. Rozan Bin Mohd Saat
(Full name in block letters)
2. The Directors who are retiring pursuant to Article 97 of the Companys Articles of Association are as follows :- of
(Full address in block letters)
i. Amiruddin Bin Abdul Satar
ii. Abd Razak Bin Haron or failing him/her
(Full name in block letters)
of
3. The Directors who are standing for re-appointment under Section 129(6) of the Companies Act, 1965 are :- (Full address in block letters)

i. Datuk Dr Hussein Bin Awang or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us* on my/our* behalf at the Nineteenth
ii. Dr Yoong Fook Ngian (19th) Annual General Meeting of the Company to be held at the Permata Ballroom, Level B2, The Puteri Pacific Hotel,
Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Monday 25 June 2012 at 12.00 pm and at any adjournment in
4. A total of five (5) Board Meetings were held during the financial year ended 31 December 2011. Details of attendance of respect of my/our holdings of shares in the manner indicated below:
Directors at Board Meetings held during the financial year ended 31 December 2011 are as follows :-
Resolution Description For Against
12 Jan 28 Feb 16 June 12 Sept 29 Nov
1 TO RECEIVE THE REPORT AND AUDITED ACCOUNTS
Non Executive Director
TO RE-ELECT DIRECTORS :
Kamaruzzaman Bin Abu Kassim p p p p p
Ahamad Bin Mohamad p p p p p 2 DATIN PADUKA SITI SADIAH SH BAKIR
Rozan Bin Moha Saat p p p p p 3 ZAINAH BINTI MUSTAFA
Abd Razak Bin Haron - - p p p 4 ROZAN BIN MOHD SAAT
5 AMIRUDDIN BIN ABDUL SATAR
Independent Non Executive Director
6 ABD RAZAK BIN HARON
Tan Sri Datuk Arshad Bin Ayub p p p - -
Datuk Azzat Bin Kamaludin p p p o p TO RE-APPOINT :
Datuk Dr Hussein Bin Awang p p p p p 7 DATUK DR HUSSEIN BIN AWANG
Zainah Binti Mustafa p p p p p 8 DR YOONG FOOK NGIAN
Dr Yoong Fook Ngian p p p p p
Dr Kok Chin Leong p p p p p 9 TO APPROVE DIRECTORS FEE
10 TO RE-APPOINT AUDITORS
Executive Director
Datin Paduka Siti Sadiah Sh Bakir p p p p p ANY OTHER BUSINESS
Amiruddin Bin Abdul Satar - - - p p
11 AUTHORITY TO ISSUE SHARES
12 PROPOSED SHARE BUY-BACK
13 PROPOSED RENEWAL OF RRPT MANDATE
Date of Meeting Day Time Venue
14 PROPOSED AMENDMENTS
12 January 2011 Wednesday 3.30 p.m. Persada Johor International Convention Centre, Johor Bahru
(Please indicate with a () in the appropriate box whether you wish your vote to be cast for or against the resolution. In the absence of specific direction, your proxy will vote or
28 February 2011 Monday 9.30 a.m. KPJ Tawakkal Specialist Hospital abstain as he/she thinks fit.)

16 June 2011 Thursday 9.30 a.m. Persada Johor International Convention Centre, Johor Bahru
12 September 2011 Monday 9.30 a.m. Johor Corporation (Kuala Lumpur Office)
29 November 2011 Tuesday 2.30 p.m. Persada Johor International Convention Centre, Johor Bahru
Signature(s)/Common Seal of Shareholder(s) Dated this........day of...............2012

NOTE:
5. Particulars of Directors seeking re-election at the Annual General Meeting are set out in the Directors Profile appearing in 1. A member of the Company entitled to be present and vote at the Meeting may appoint a proxy to vote instead of him. A proxy may but need not be a member of the
pages 35-40 of the Annual Report. Company and the provision of Section 149(1)(b) of the Companies Act, 1965 need not be complied with.
2. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or if the appointor is a corporation,
either under the hand of its common seal or under the hand of an officer or attorney duly authorised. The instrument appointing the proxy shall be deemed to confer
authority to demand or join in demanding a poll.
3. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, he may appoint at least one
(1) proxy in respect of each securities account he holds with ordinary shares of the Company standing to the credit of the said securities account.
4. Any alteration made in this form should be initialled by the person who signs it.
5. The instrument appointing a proxy, together with the power of attorney (if any) under which it is signed or a certified copy thereof, shall be deposited at the registered
office of the Company at Suite 12B, Level 12, Menara Ansar, 65 Jalan Trus, 80000 Johor Bahru, Johor at least forty-eight (48) hours before the time appointed for
holding the meeting or adjourned meeting at which the person named in such instrument proposes to vote; otherwise the person so named shall not be entitled to
vote in respect thereof.

197 ANNUAL REPORT 2011

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Fold this flap for sealing

Publications
Annual Report

Year 1994
Year 1996 Year 1998
Year 1995
Year 1997 Year 1999

Year 2000
Year 2004
Year 2001 Year 2002
Year 2003 Year 2005

Then fold here

AFFIX
STAMP

KPJ HEALTHCARE BERHAD (247079-M) Year 2006 Year 2008

Suite 12B, Level 12 Year 2007 Year 2009

Menara Ansar
65 Jalan Trus Medical Digest/Journal
80000 Johor Bahru Year 2010

Johor Darul Takzim

Malaysia

KPJ Medical Digest KPJ Medical Journal

Issue 2002 Issue 2003-2006, 2010

ANNUAL REPORT 2011 200

 Care for Life KPJ Healthcare Quarterly

Care for Life Care for Life Care for Life Care for Life Care for Life Care for Life
Jan - Jun 2010 Jul - Dec 2010 Vol 2 Issue 1 Vol 2 Issue 2 Vol 2 Issue 3 Vol 2 Issue 4

Nursing Bulletin
Issue 1 Issue 3 Issue 5

Issue 2 Issue 4

N i B
Nursing Bulletin
ll ti
Nursing Bulletin N i B
Nursing Bulletin
ll ti 5th Issue Nursing Bulletin
1st Issue 3rd Issue 6th Issue
Nursing Bulletin Nursing Bulletin
2nd Issue 4th Issue

Issue 6 Issue 8 Issue 10

Issue 7 Issue 9

Nursing Bulletin Nursing Bulletin

7th Issue 9th Issue
Nursing Bulletin
8th Issue Nursing Bulletin
10th Issue Nursing Bulletin 11th Issue

30th Anniversary 25th Anniversary

Issue 11 Issue 13 Issue 15

Issue 12 Issue 14

201 ANNUAL REPORT 2011 ANNUAL REPORT 2011 202

 www.kpjhealth.com.my

No. 1 Jalan Pahang Barat, 53000 Kuala Lumpur, Wilayah Persekutuan, Malaysia.
TEL 603 - 4022 6222 FAX 603 - 4022 7237 EMAIL kpj@kpjhealth.com.my