KPJ Healthcare Berhad

KPJ Healthcare sets aside RM2bil capital expenditure to boost position

KPJ Healthcare Bhd is allocating RM2bil in capital expenditure (capex) over the next five years to further strengthen its position in the country's private healthcare sector.

JOHOR BARU: KPJ Healthcare Bhd is allocating RM2bil in capital expenditure (capex) over the next five years to further strengthen its position in the country's private healthcare sector.

Chairman Kamaruzzaman Abu Kassim said the capex included RM867mil to be spent over the next three to four years to open new hospitals nationwide.

He said RM100mil to RM150mil would also be allocated yearly to upgrade the existing outlets, including building new wings at the existing hospitals and buying new medical equipment.

“All this will put us in a better position to continue serving our patients and attracting new ones in the process,'' Kamaruzzaman said told a press conference after the company's AGM yesterday.

He said the expansion programme would also see the number of beds at all 21 hospitals under its stable in the country increasing from 2,600 now to 3,400 by 2016.

Kamaruzzaman said the new hospitals to be opened in Malaysia included KPJ Sabah Specialist Hospital, KPJ Pasir Gudang Specialist Hospital, KPJ Pahang Specialist Hospital, KPJ Specialist Hospital Bandar Dato' Onn, KPJ Perlis Specialist Hospital and KPJ Muar Specialist Hospital.

There was still room for expansion in the country's private healthcare business, he said, adding: “We have received a lot of enquiries from interested parties in Malaysia who wanted us to be their partners in managing their hospitals or acquiring their operations.”

Meanwhile, managing director Datin Paduka Siti Sa'diah Sheikh Bakir said apart from local parties, it also received enquiries from foreign parties who wanted the company to have a presence in their countries.

She said the company would not dismiss the possibility of expanding overseas if the opportunities arose and would contribute to the betterment of the company's earnings.

Presently, at the international level, the company has two hospitals in Jakarta and a retirement resort and aged care centre, Jeta Garden, in Brisbane, Australia.

Siti Sa'diah said the company wanted to replicate the success story of Jeta Garden into its operations in Malaysia as demand for retirement and aged care centres was on the rise.

“We will probably open a similar concept in Iskandar Malaysia banking on Johor's close proximity with Singapore,'' she said, adding that Iskandar Malaysia would offer good growth prospects in the elderly care segment catering to Singapore's senior citizens due to high cost of operating nursing homes in the republic.

For the financial year ended Dec 31, 2011 (FY11), KPJ recorded a net profit of RM154.25mil on revenue of RM1.90bil compared with RM126.22mil and RM1.65bil respectively in FY10.