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Kpj Annual Report (2008)

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A Journey of Continuous Caring
The butterfly on the front cover symbolises the transformation that KPJ has undergone in its colourful and exciting corporate journey. A butterfly does not begin as such, but must evolve and transform in order to reach its true potential. Like the butterfly, KPJ has gone through various phases on its transformational journey. From the formative stage, strengthening stage to consolidation phase and now the transformation stage, KPJ is transforming into a regional leader in healthcare management and services. A butterfly continuously journeys from flower to flower, and KPJ journeys from location to location, and strength to strength. Along the journey, it creates a legacy of warmth and caring, wellness and healing. KPJ has taken the journey from Johor to Kuala Lumpur to Ipoh, on to other states of Malaysia and further and beyond, to the other parts of the world. Along the way, KPJ has established its hospitals with similar commitment, providing the best of healthcare services. All these are the result of the Journey of Continuous Caring taken by its committed team made up of professional managers, doctors, nurses, support staff and stakeholders in line with its Vision and Mission.

KPJ CARES
For the last 27 years, KPJ has remained as an organisation with a heart touching the lives of many people. Embracing Corporate Responsibility (CR) throughout KPJ’s business has been the hallmark of its services. Professional managers, doctors, nurses, support staff and stakeholders have moved beyond merely giving medical services towards striving for greater visibility and prominence in compassion through strong community outreach programmes based on the spirit of…

Continuous Sharing and Caring

E

nsuring the GROWTH AND STRENGTH of KPJ over the years through creative and innovative strategies has enabled the organisation to move

forward in DRIVING STANDARDS AND CONTINUOUS INNOVATION and in DEVELOPING THE COMMUNITY as KPJ’s contribution towards the well-being of society. DEVELOPING THE GROUP’S OWN HUMAN CAPITAL STRENGTH allows KPJ to be the best in all it does, particularly in CARING FOR HEALTH, SAFETY AND THE ENVIRONMENT. With its unwavering commitment, KPJ is known for INSPIRING TRUST AND ACCOUNTABILITY and standing firm on the principles of BUSINESS JIHAD: • Integrity • Uprightness • Community Spirit The Group’s JIHAD is the adherence to the RIGHT CONDUCT AND ETHICS to achieve BUSINESS EXCELLENCE. At the same time, KPJ remains focussed on: KPJ’s CORPORATE VISION The Preferred Provider in Healthcare Services KPJ’s CORPORATE MISSION Delivering Quality Healthcare Services to our Customers As KPJ continuously strives to achieve the Vision and carrying out the Mission, it will also continue to build on its CORE VALUES: • Ensuring SAFETY • Delivering service with COURTESY • Performing the duties with INTEGRITY • Exercising PROFESSIONALISM at all times • Striving for CONTINUOUS IMPROVEMENT

Contents
3 5 6 Vision/Mission/Core Values Corporate Profile Corporate Information 54 Inspiring Trust and Accountability
55 Statement on Corporate Governance 61 Statement on Internal Control 65 Audit Committee Report 68 Medical Advisory Committee Report 73 Hospital Medical Directors 74 Announcements to Bursa Malaysia

10 Corporate Structure 11 Key Performance Statistics 12 At the Helm of the KPJ Group
13 14 Board of Directors Directors’ Profile

76

Financial Statements

142 Shareholdings Statistics 144 Compliance Information 146 List of Properties 148 Notice of Annual General Meeting 151 Statement Accompanying Notice of
Annual General Meeting

22 Statement to Shareholders 32 Making It Happen – A Strong Management Team 38 Realising Operational Excellence
39 41 44 46 48 50 Growth and Strength Driving Standards and Continuous Innovation Developing the Community Developing KPJ’s Own Human Capital Strength Caring for Health, Safety and the Environment Events & Happenings of KPJ Hospitals

153 Proxy Form 155 Media and Communications

Corporate Profile

Leading and Delivering the Best in Healthcare
KPJ Healthcare Berhad (KPJ) is the healthcare division of Johor Corporation (JCorp) and a leader in Malaysia’s challenging healthcare service industry. Since the establishment of its first hospital in 1981, KPJ has grown from strength to strength and currently has 42 subsidiary and associate companies, which principally provide medical and specialist healthcare services, making it one of Malaysia’s largest healthcare enterprises. Its portfolio of businesses includes hospital management, healthcare technical services, hospital development and commissioning, nursing, health sciences and continuous professional healthcare education, pathology services and central procurement. KPJ is committed to its customers to deliver quality care KPJ is the first homegrown healthcare group in Malaysia listed on the Main Board of Bursa Malaysia on 29 November 1994. With more than RM1.1 billion in assets and shareholders’ funds in excess of RM508.9 million, KPJ is now one of the leading and largest listed private healthcare providers in the country with paid up capital of RM207 .8 million. Standing firmly behind its corporate vision, “The Preferred Provider in Healthcare Services”, KPJ since its establishment, continuously seeks new opportunities to ensure a commendable performance. KPJ’s achievements are largely KPJ’s extensive network now includes 25 private specialist hospitals consisting of 19 in Malaysia, 3 in Indonesia, 1 in Bangladesh and 2 in Saudi Arabia. KPJ, with its firm foundation, more than 27 years experience and strong dedication and commitment is poised to greet the challenges of the globalised market. with unsurpassed service provided by a professional team of specialists and support staff using state-of-the-art technology. KPJ is anchored by a pool of expert clinical professionals and experienced healthcare managers, giving KPJ a strong position within the healthcare industry. This is further strengthened through the corporate mission, which is to “Deliver Quality Healthcare Services to Our Customers”, in line with its five core values: Safety, Courtesy, Integrity, Professionalism and Continuous Improvement. the result of its firm corporate philosophy which inspires excellence, encourages individual initiative and teamwork, harnesses strategic synergy and instills high integrity and entrepreneurial spirit to be in the forefront of national and international healthcare delivery and development.

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Annual Report 2008

Corporate Information
REGISTERED OFFICE Level 2, Persada Johor International Convention Centre Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor. Tel : (607) 219 2692 Fax : (607) 223 3175 Email : pdnjohor@jcorp.com.my CORPORATE OFFICE 7, Persiaran Titiwangsa 3, 53200 Kuala Lumpur, Wilayah Persekutuan. Tel : (603) 4022 6222 Fax : (603) 4022 7237 AuDITOR PRICEWATERHOUSECOOPERS Level 10, 1 Sentral, Jalan Travers, Kuala Lumpur Sentral, P.O. Box 10192, 50706 Kuala Lumpur, Wilayah Persekutuan. PRInCIPAl BAnkERS MALAYAN BANKING BERHAD 343, Jalan Pahang, Setapak, 53300 Kuala Lumpur, Wilayah Persekutuan. CIMB BANK BERHAD Ground Floor, No 338, Bangunan AMAL, COmPAny SECRETARIES * Salmah Abd Wahab (LS 02140) * Idham Jihadi Abu Bakar ACIS (MAICSA 7007381) Jalan Tuanku Abdul Rahman, 50100 Kuala Lumpur, Wilayah Persekutuan. HSBC BANK MALAYSIA BERHAD No. 2, Lebuh Ampang, P.O.Box 10244, 50912 Kuala Lumpur, Wilayah Persekutuan. STOCk ExChAnGE lISTInG BURSA MALAYSIA SECURITIES BERHAD REGISTRAR PRO CORPORATE MANAGEMENT SERVICES SDN BHD Suite 2, 17th Floor, KOMTAR, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor Darul Takzim. Postal Address : KB No 735, 80990 Johor Bahru, Johor Tel : (607) 222 5044 / 222 4044 Fax : (607) 222 3044 Main Board (Since 29 November 1994)

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Email : kpj@kpjhealth.com.my

KPJ Healthcare Berhad (Company No. 247079 M)

KPJ’s Strong Network of Hospitals

hEAD OFFICE KPJ HEALTHCARE BERHAD 7, Persiaran Titiwangsa 3, 53200 Kuala Lumpur. Tel : (603) 4022 6222 Fax : (603) 4022 7237/4024 4812 Email : kpj@kpjhealth.com.my Website : www.kpjhealth.com.my

mAlAySIA

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

KPJ JOHOR SPECIALIST HOSPITAL 39-B, Jalan Abdul Samad, 80100 Johor Bahru, Johor. Tel : (607) 225 3000 Fax : (607) 224 8213 Email : jsh@jsh.kpjhealth.com.my

KPJ IPOH SPECIALIST HOSPITAL 26, Jalan Raja Dihilir, 30350 Ipoh, Perak. Tel : (605) 241 8777 Fax : (605) 254 1388 Email : ish@ish.kpjhealth.com.my

KPJ AMPANG PUTERI SPECIALIST HOSPITAL 1, Jalan Mamanda 9, Taman Dato’ Ahmad Razali, 68000 Ampang, Selangor. Tel : (603) 4270 2500 Fax : (603) 4270 2443 Email : apsh@apsh.kpjhealth.com.my

KPJ DAMANSARA SPECIALIST HOSPITAL 119, Jalan SS 20/10, Damansara Utama, 47400 Petaling Jaya, Selangor. Tel : (603) 7722 2692 Fax : (603) 7722 2617 Email : dsh@dsh.kpjhealth.com.my

KPJ SELANGOR SPECIALIST HOSPITAL Lot 1, Jalan Singa 20/1, Section 20, 40300 Shah Alam, Selangor. Tel : (603) 5543 1111 Fax : (603) 5543 1722/2222 Email : kpjselangor@kpjselangor. kpjhealth.com.my

Annual Report 2008

Corporate Information

mAlAySIA

TAWAKAL HOSPITAL 202-A, Jalan Pahang, 53000 Kuala Lumpur, Wilayah Persekutuan. Tel : (603) 4023 3599 Fax : (603) 4022 8063 Email : tawakal@tawakal.kpjhealth.com.my

KUANTAN SPECIALIST HOSPITAL 51, Jalan Alor Akar, Taman Kuantan, 25250 Kuantan, Pahang. Tel : (609) 567 8588 Fax : (609) 567 8098 Email : ksh@ksh.kpjhealth.com.my

PUTERI SPECIALIST HOSPITAL 33, Jalan Tun Abdul Razak (Susur 5), 80000 Johor Bahru, Johor. Tel : (607) 225 3222 Fax : (607) 223 8833 Email : psh@psh.kpjhealth.com.my

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BUKIT MERTAJAM SPECIALIST HOSPITAL 565, Jalan Sungai Rambai, 14000 Bukit Mertajam, Seberang Perai,Pulau Pinang. Tel : (604) 538 7577 Fax : (604) 538 7620 Email : bmsh@bmsh.kpjhealth.com.my

KEDAH MEDICAL CENTRE Pumpong, 05250 Alor Setar, Kedah. Tel : (604) 730 8878 Fax : (604) 733 2869 Email : kmc@kedahmedical.com.my

PERDANA SPECIALIST HOSPITAL Lot PT 37 & 600, Seksyen 14, Jalan Bayam, 15200 Kota Bharu, Kelantan. Tel : (609) 745 8000 Fax : (609) 747 2877 Email : perdana@perdana.kpjhealth.com.my

KUCHING SPECIALIST HOSPITAL Lot 10420, Block 11, Tabuan Stutong Commercial Centre, Jalan Setia Raja, 93350 Kuching, Sarawak. Tel : (6082) 365 777 Fax : (6082) 364 666 Email : kcsh@kcsh.kpjhealth.com.my

SEREMBAN SPECIALIST HOSPITAL Lot 6219 & 6220, Jalan Toman 1, Kemayan Square, 70200 Seremban, Negeri Sembilan. Tel : (606) 767 7800 Fax : (606) 767 5900 Email : ssh@ssh.kpjhealth.com.my

DAMAI SPECIALIST HOSPITAL DSC Building, Lorong Pokok Tepus 1,Off Jalan Damai, 88300 Kota Kinabalu, Sabah. Tel : (6088) 222 922 Fax : (6088) 243 540 / 237 923 Email : dsc@dsc.kpjhealth.com.my

SENTOSA MEDICAL CENTRE No.36, Jalan Chemur, Kompleks Damai, 50400 Kuala Lumpur. Tel : (603) 4043 7166 Fax : (603) 4043 7761 Email : sentosa@sentosa.kpjhealth.com.my

KPJ KAJANG SPECIALIST HOSPITAL Jalan Cheras, 43000 Kajang, Selangor. Tel : (603) 8769 2999 Fax : (603) 8769 2808 Email : kpjkajang@kpjkajang.kpjhealth.com.my

TAIPING MEDICAL CENTRE 45-49, Jalan Medan Taiping 2, Medan Taiping, 34000 Taiping, Perak. Tel : (605) 807 1049/ 807 1971 Fax : (605) 806 3713 Email: tmc@tmc.kpjhealth.com.my

KPJ Healthcare Berhad (Company No. 247079 M)

PUSAT PAKAR KLUANG UTAMA No. 1, Susur 1, Jalan Besar, 86000 Kluang, Johor Tel : (607) 771 8999 Fax : (607) 772 8999 Email: utamaklu@streamyx.com

HOSPITAL PENAWAR 17 & 18, Pusat Perniagaan Pasir Gudang, 81700 Pasir Gudang, Johor. Tel : (607) 252 1800 Fax : (607) 251 8199 Email : hospen@hospitalpenawar.com

InTERnATIOnAl hOSPITAlS

RS MEDIKA PERMATA HIJAU Jalan Raya Kebayoran Lama 64, 11560 Jakarta Barat, Indonesia. Tel : (6221) 534 7411 Fax : (6221) 530 5291 Email : rsmph@rad.net.id

RS SELASIH Jalan Khatib Sulaiman, No.72 Padang, 25317 Indonesia. Tel : (62751) 51405 Fax : (62751) 51395 Email : rsselasih@yahoo.com

RS BUMI SERPONG DAMAI Jalan Letnan Sutopo Kav Kom 111A, No. 1, Bumi Serpong Damai, Serpong Tangerang, 15321, Indonesia. Tel : (6221) 537 8263 Fax : (6221) 537 8131

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UNITED HOSPITAL LIMITED Plot 15, Road 71, Gulshan, Dhaka 1212, Bangladesh. Tel : (8802) 883 6000 Fax : (8802) 883 6446 Email : info@united.com Website : www.uhlbd.com

JEDDAH CLINIC HOSPITAL Al-Kandara, Airport Street, P.O. Box 115, Jeddah 21411, Kingdom of Saudi Arabia. Tel : (966) 2631 3131 Fax : (966) 2632 3142 Email : njc@njchospital.com

NEW JEDDAH CLINIC HOSPITAL Madinah Road, Palasteen Square, P.O. Box 7692, Jeddah 21472, Kingdom of Saudi Arabia. Tel : (966) 2667 5000 Fax : (966) 2669 5541 Email : njc@njchospital.com

hEAlThCARE RElATED COmPAnIES
KPJ INTERNATIONAL COLLEGE OF NURSING AND HEALTH SCIENCES Lot PT 17010, Persiaran Seriemas, Kota Seriemas, 71800 Nilai, Negeri Sembilan. Tel : (606) 794 2629 Fax : (606) 794 2662 Email: pnc@kpjic.edu.my Website : www.kpjic.edu.my LABLINK (M) SDN BHD Suite 1, 3rd Floor, Bangunan PharmaCARE, Lot 129, Jalan Pahang Barat, 53000 Kuala Lumpur. Tel : (603) 4023 4588 Fax : (603) 4023 4298 PHARMASERV ALLIANCES SDN BHD No. 22 & 24, Jalan 225, Section 51A, Petaling Jaya, Selangor. Tel : (603) 7876 2692 Fax : (603) 7874 4151 TERAJU FARMA SDN BHD Level 1, No. 22, Jalan 225, Section 51A, 46100 Petaling Jaya, Selangor. Tel : (603) 7874 4212 Fax : (603) 7874 4126 FABRiCARE LAUNDRY SDN BHD No.11A, Jalan Petaling, Kawasan Perindustrian Dato’ Onn, Larkin, 80350 Johor Bahru, Johor. Tel : (607) 232 7231/3 Fax : (607) 232 7235 HEALTHCARE TECHNICAL SERVICES SDN BHD Suite 1, Mezzanine Floor, Bangunan PharmaCARE, Lot 129, Jalan Pahang Barat, 53000 Kuala Lumpur. Tel : (603) 4021 2331 Fax : (603) 4021 2337
Annual Report 2008

Corporate Structure
Ampang Puteri Specialist Hospital Sdn Bhd
(KPJ Ampang Puteri Specialist Hospital)

100%

70%

Kuching Specialist Hospital Sdn Bhd
(Kuching Specialist Hospital)

100%

Damansara Specialist Hospital Sdn Bhd
(KPJ Damansara Specialist Hospital)

61%

Perdana Specialist Hospital Sdn Bhd

(Perdana Specialist Hospital, Kota Bharu)

100%

Johor Specialist Hospital Sdn Bhd

(KPJ Johor Specialist Hospital)

100%

(Sentosa Medical Centre, Kuala Lumpur)

Sentosa Medical Centre Sdn Bhd

60%

Selangor Specialist Hospital Sdn Bhd

(KPJ Selangor Specialist Hospital)
51%

100%

RenalCare Perubatan (M) Sdn Bhd

100%

Renal-Link Sentosa Sdn Bhd
46%

Hospital Pusrawi SMC Sdn Bhd

10

100%

Kumpulan Perubatan (Johor) Sdn Bhd

100%

Kajang Specialist Hospital Sdn Bhd
(KPJ Kajang Specialist Hospital)

Kedah Medical Centre Sdn Bhd

(Kedah Medical Centre)

30% 100%

Hospital Penawar Sdn Bhd
(Hospital Penawar, Pasir Gudang)

Prai Specialist Hospital Sdn Bhd

100%

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

(KPJ Penang Specialist Hospital)

Taiping Medical Centre Sdn Bhd

100%

Puteri Nursing College Sdn Bhd

(Taiping Medical Centre)

(KPJ International College of Nursing and Health Sciences)

100%

Tawakal Holdings Sdn Bhd

100%

Pusat Pakar Tawakal Sdn Bhd
(Tawakal Hospital)

100%

Pusat Pakar Kluang Utama Sdn Bhd

100%

Pharmaserv Alliances Sdn Bhd
100%

(Pusat Pakar Kluang Utama)

FP Marketing (S) Pte Ltd Medical Supplies (Sarawak) Sdn Bhd

98%

Ipoh Specialist Hospital Sdn Bhd
(KPJ Ipoh Specialist Hospital)

95%

Kota Kinabalu Specialist Hospital Sdn Bhd
(Damai Specialist Hospital)
75%

77%

Kuantan Specialist Hospital Sdn Bhd

(Kuantan Specialist Hospital)

100%

PharmaCARE Sdn Bhd

49%

Al-'Aqar KPJ REIT

75%

PT Khasanah Putra Jakarta Medica

(Rumah Sakit Medika Bumi Serpong Damai, Jakarta)

90%

FABRiCARE Laundry Sdn Bhd

72%

Seremban Specialist Hospital Sdn Bhd
(Seremban Specialist Hospital)

84%

Lablink (M) Sdn Bhd

75% 70%

Teraju Farma Sdn Bhd

Bukit Mertajam Specialist Hospital Sdn Bhd
(Bukit Mertajam Specialist Hospital)
30%

Healthcare Technical Services Sdn Bhd

KPJ Healthcare Berhad (Company No. 247079 M)

Key Performance Statistics
Year No. of Hospitals in Malaysia Outpatients Inpatients Turnover (RM’000) Profit Before Taxation (RM’000) Net Profit Attributable to Equity Holders (RM’000) Earnings per Share (sen) Dividend Rate (%) Share Capital (RM’000) Shareholders’ Fund (RM’000) Net Tangible Assets (RM’000) Economic Value Added (RM Million) 2004 13 1,078,933 108,898 583,397 40,646 31,836 15.84 7 201,010 359,270 291,248 4.2 2005 15 1,162,585 117,539 659,643 42,301 32,657 16.25 11 201,050 410,292 343,536 5.6 2006 17 1,556,172 158,412 831,455 60,060 40,962 20.30 14 203,999 442,590 342,068 9.1 2007 17 1,733,500 179,227 1,108,024 85,255 74,237 36.02 20 207,745 508,828 398,877 23.4 2008 19 1,956,303 196,291 1,267,305 114,052 85,644 41.41 38 209,461 581,041 470,797 43.2

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Annual Report 2008

At the Helm of the KPJ Group

12

ChAIRmAn
1

Tan Sri Dato’ Muhammad Ali Hashim

10

4

8

6

2

1

3

7

5

11

9

mAnAGInG DIRECTOR
2

Datin Paduka Siti Sa’diah Sheikh Bakir

KPJ Healthcare Berhad (Company No. 247079 M)

Board of Directors

13

BOARD mEmBERS
3

Tan Sri Datuk Arshad Ayub
Independent Non-Executive Director

7

Zainah Mustafa
Independent Non-Executive Director

11

Dr Yoong Fook Ngian
Independent Non-Executive Director

4

Tan Sri Dato’ Dr Abu Bakar Suleiman
Independent Non-Executive Director

8

Ahamad Mohamad
Non-Independent Non-Executive Director

Rozan Mohd Sa’at
(not in picture)

9 5

Datuk Azzat Kamaludin
Independent Non-Executive Director

Kamaruzzaman Abu Kassim
Non-Independent Non-Executive Director (Resigned on 1 January 2009)

Non-Independent Non-Executive Director (Appointed on 1 January 2009)

6

Datuk Dr Hussein Awang
Independent Non-Executive Director

10

Dr Kok Chin Leong
Independent Non-Executive Director

Annual Report 2008

At the Helm of the KPJ Group

TAN SRI DATO’ MUHAMMAD ALI HASHIM
Aged 62, Tan Sri Dato’ Muhammad Ali Hashim was appointed as the Non-Independent Non-Executive Chairman of KPJ Healthcare Berhad (KPJ) since 15 September 1993. Tan Sri is the President and CEO of Johor Corporation (JCorp), the ultimate holding corporation of KPJ, and has held that position since January 1982. He graduated from the University of Malaya with a Bachelor of Economics (Honors) Degree in 1969 and participated in the Senior Executive Programme, Stanford University, United States of America in 1985. Tan Sri was conferred the Honorary Doctorate of Management by Universiti Teknologi Malaysia on 19 August, 2000; Honorary Doctorate in Entrepreneurship by Universiti Teknologi MARA (UiTM) on 24 May 2007; and Honorary Doctorate in Technology Management by Universiti Tun Hussein Onn Malaysia (UTHM) on 2 September 2007. Tan Sri’s tenacity, business acumen and entrepreneurial leadership had enabled JCorp to grow into one of Malaysia’s leading conglomerates with more than 250 companies, 8 of which are listed on Bursa Malaysia and another on the London Stock Exchange. Market capitalisation of JCorp’s portion of PLC shares stood at RM3.7 billion at end of 2008. This highly diversified Group offers meaningful career opportunities to more than 50,000 employees. As President and CEO of JCorp Group, Tan Sri had also successfully steered the Group through extreme business challenges, especially when the JCorp Group was hard hit by the 1997 Asian Financial Crisis. In 2006 – 2007, JCorp, through Kulim (Malaysia) Berhad had also successfully acquired two PLCs namely QSR Brands Bhd and KFC Holdings (Malaysia) Bhd, overcoming a protracted hostile challenge. This had led to the exercise becoming one of Malaysia’s landmark corporate acquisitions. JCorp, has also successfully managed Malaysia’s one and only ‘market-driven’ local authority, namely the Pasir Gudang Local Authority (PGLA) now known as Pasir Gudang Municipal Council (PGMC), with Tan Sri Ali as President with mayorial responsibilities from January 1982 up to July 2008.

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JCorp was the single most important agency responsible for Pasir Gudang’s development into one of Malaysia’s vibrant and dynamic industrial townships. PGMC made history by becoming the first business-driven local authority in Malaysia to issue a Mudharabah Bond rated triple ‘A’ by Rating Agency Malaysia Berhad. Tan Sri is the Chairman of Kulim (Malaysia) Berhad, QSR Brands Bhd, KFC Holdings (Malaysia) Bhd, Sindora Berhad, Johor Land Berhad and Damansara Realty Berhad, which are JCorp’s subsidiaries listed on the Main Board of the Bursa Malaysia. Tan Sri is also active as a Council Member of Malaysian Industrial Development Authority (MIDA), President of the Malaysian Kite Council, President of Malaysian Yachting Association, Vice President of the Malaysian Islamic Chamber of Commerce (MICC), Chairman of the MICC Corporate Bureau, and Chairman of Kumpulan Waqaf An-Nur Berhad, an Islamic endowment institution that spearheads JCorp Group’s Corporate Responsibility programmes, including the unique Corporate Waqaf Concept initiated by JCorp. Other than as disclosed, Tan Sri does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ Healthcare Berhad. He has not been convicted for any offence within the past 10 years and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

KPJ Healthcare Berhad (Company No. 247079 M)

Directors’ Profile
DATIN PADUKA SITI SA’DIAH SHEIKH BAKIR
Aged 57, Datin Paduka Siti Sa’diah is the Managing Director of KPJ Healthcare Berhad (KPJ) since 1 March 1993. She graduated with a Bachelor in Economics degree from the University of Malaya in 1974, and holds an MBA from Henley Management College, London, United Kingdom. Her career with JCorp commenced in 1974 and she has been directly involved in JCorp’s Healthcare Division since 1978. Datin Paduka was appointed as the Chief Executive of Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB), the holding company of KPJ, in 1989 and held the post until the listing of KPJ. Datin Paduka currently serves as the Chairman of various hospitals in the KPJ Group. She also is the Chairman of Willis (Malaysia) Sdn Bhd, and a Director of Kulim (Malaysia) Berhad, Damansara REIT Managers Sdn Berhad, Puteri Hotels Sdn Bhd and Kumpulan Waqaf An-Nur Berhad, all of which are companies within the JCorp Group. Committed to promoting excellence in healthcare, Datin Paduka is the President of the Malaysian Society for Quality in Health (MSQH), elected since its inception in 1997 until today.

Datin Paduka is a Board member of MATRADE since 1999, a member of the Malaysia Productivity Corporation’s (MPC) Consultative Panel on Healthcare since 2001, and a member of the National Patient Safety Council, Ministry of Health since 2003. Datin Paduka is an elected Independent Director of Bursa Malaysia since 2004. Other than as disclosed, Datin Paduka does not have any family relationships with any director and/or major shareholder of the Company. She has no personal interest in the business arrangement involving KPJ. She has not been convicted for any offence within the past 10 years, and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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ZAINAH MUSTAFA
Aged 55, Puan Zainah has served as a Director of KPJ since 21 February 1994 and is also a member of the KPJ Audit Committee. She has been an Independent NonExecutive Director since 1 December 2004. She also sits on the board of four other companies in the JCorp Group of Companies namely Damansara Realty Berhad, Puteri Hotels Sdn Bhd, Damansara REIT Managers Sdn Berhad and Al`Aqar Capital Sdn Bhd. She started her career as an Assistant Senior Auditor in Perbadanan Nasional Berhad in 1977 after graduating from Institut Teknologi MARA (presently UiTM). She obtained her Association of Chartered Certified Accountants (ACCA) United Kingdom in 1976. She joined JCorp in October

1978 and rose through the ranks to become the Group Chief Financial Officer before retiring on 31 October 2002. Other than as disclosed, she does not have any family relationship with any director and/or major shareholder of the Company. She has no personal interest in any business arrangement involving KPJ. She has not been convicted for any offence, and has attended all four (4) Board of Directors’ Meetings of the Company year in the financial ended

31 December 2008.

Annual Report 2008

At the Helm of the KPJ Group

TAN SRI DATUK ARSHAD AYUB
Aged 81, Tan Sri Datuk Arshad Ayub was appointed to the Board of KPJ on 1 September 1994. He is currently an Independent NonExecutive Director and Chairman of the Audit Committee of KPJ. Tan Sri graduated with a Diploma in Agriculture in 1954 from Serdang Agricultural College, Selangor and with a Bachelor of Science (Honours) in Economics and Statistics in 1958 from University College of Wales Aberystwyth, United Kingdom. He graduated with a post graduate Diploma in Business Administration IMEDE now IMD Lausanne, Switzerland. He has had a distinguished career in the Malaysian Civil Service, serving as Deputy Governor of Bank Negara Malaysia (1975 – 1977), Deputy Director General in the Economics Planning Unit of the Prime Minister’s Department (1977 – 1978) and as Secretary General in the Ministry of Primary Industries (1978), Ministry of

Agriculture (1979 – 1981) and Ministry of Land and Regional Development (1981 – 1983). He also holds Directorship in Kulim (Malaysia) Berhad, Sindora Berhad, LBI Capital Berhad, Audrey International (M) Berhad, Tomypak Holdings Berhad, Top Glove Corporation Berhad, and Malayan Flour Mills Berhad. Tan Sri is the Chairman and/or Director of several other non-listed companies including Bata Sdn Bhd, CSR Building Materials Sdn Bhd, Pelaburan Johor Berhad, Bistari Johor Berhad, PFM Capital Holdings Sdn Bhd and Chairman of AmanahRaya JMF Asset Management Sdn Bhd. He is presently the President of the Malaysian Rubber Products Manufacturers Association (MRPMA) and Chairman of Malaysian Rubber Export Promotion Council (MREPC). He is a member of the Co-operative College Council and Chairman of the Board of Directors of University of Malaya. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. Tan Sri has not been convicted for any offence, and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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TAN SRI DATO’ DR ABU BAKAR SULEIMAN
Aged 65, Tan Sri Dato’ Dr Abu Bakar Suleiman was appointed to the Board of KPJ on 15 March 2001. He is currently an Independent Non-Executive Director of KPJ. He also sits on the Board of CCM Duopharma Biotech Berhad and Chemical Corporation of Malaysia Berhad. A medical practitioner by profession, he obtained his Bachelor of Medicine and Bachelor of Surgery from Monash University, Australia in 1968 and a Master of Medicine from University of Singapore in 1974. He is a member of Royal Australasian College of

KPJ Healthcare Berhad (Company No. 247079 M)

Directors’ Profile
Physicians, and an honorary fellow of the American College of Physicians. He began his career as a Medical Officer with the Ministry of Health in 1969 and subsequently completed training in Internal Medicine before he became a Consultant Physician with the Department of Nephrology of Hospital Kuala Lumpur. In 1975, he served as visiting fellow to the Division of Nephrology of Georgetown University Hospital, Washington DC as well as Prince Henry’s Hospital of Melbourne, Australia. In 1976, he returned to be the Consultant Nephrologist and Head of Department of Nephrology of Hospital Kuala Lumpur. In 1987, he held the position of Director of Medical Services of Ministry of Health and became Deputy Director General of Health in 1989 before rising to the rank of Director General of Health of the Ministry in 1991 to 2001. He attended the advanced management course in Harvard Business School in 1991. Upon his official retirement, he was appointed as the President of the International Medical University. He is President of the Malaysian Health Informatics Association, President of National Kidney Foundation, Chairman of the Consultative Panel on Healthcare, Malaysia Productivity Corporation (MPC), Chairman of the Ministry of Health Committee on L i v ing Unre lat e d Donor Transplant at i on, a Member of the National Health Welfare Fund, a Committee Member of the Malaysia-Indonesia Business Council and a past President of the Association of Private Hospitals. He is also currently the Chairman of the Medical Advisory Committee of KPJ. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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DATUK DR HUSSEIN AWANG
Aged 68, Datuk Dr Hussein Awang was appointed to the Board of KPJ on 21 February 1994 and was appointed as a member of the Audit Committee on 12 December 2005. He received his Bachelor of Medicine and Bachelor of Surgery (MBBS) in 1964 from University of Melbourne, Australia. He was made a Fellow of the Australasian College of Surgeons in 1972. He was the Senior Consultant Urological Surgeon and Head of Department of Urology, General Hospital, Kuala Lumpur from 1976 to 1984. He was also the Honorary Professor of Surgery (Urology) Department of Surgery, Universiti Kebangsaan Malaysia, Selangor, from 1978 to May 1984. Datuk is a Foundation Fellow of the Academy of Science Malaysia. He is presently the Consultant Urological Surgeon and Medical Director at Hospital Tawakal, a position he has held since May 1984. His directorship in other public listed companies includes Hong Leong Bank Berhad and Tasek Corporation Berhad.

Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

Annual Report 2008

At the Helm of the KPJ Group

AHAMAD MOHAMAD
Aged 56, Ahamad Mohamad was appointed to the Board of KPJ on 1 January 2005. He is currently a Non-Independent and Non-Executive Director of KPJ. He graduated with a Bachelor of Economics (Honours) degree in 1976 from the University of Malaya. He joined JCorp in 1976 as a Company Secretary for various companies within the JCorp Group. He has been involved in many of JCorp’s projects, among them, the early development of the Johor Specialist Hospital, prefabricated housing project and the Kotaraya Complex in Johor Bahru.

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At present, he is the Chief Executive of the Palm Oil Division of JCorp. He is currently the Managing Director of Kulim (Malaysia) Berhad, Deputy Chairman of QSR Brands Bhd and KFC Holdings (Malaysia) Bhd and a director of Johor Land Berhad and New Britain Palm Oil Limited (Papua New Guinea) and also in several other companies within the JCorp Group. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended three (3) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

DATUK AZZAT KAMALUDIN
Aged 64, Datuk Azzat Kamaludin was appointed to the Board of Directors of KPJ on 1 September 1994. He is currently an Independent Non-Executive Director and is also a member of the Audit Committee of KPJ. A lawyer by training, he was admitted as an advocate and solicitor of the High Court in 1979 and has been in practice since then as partner of Azzat and Izzat, a law firm. Prior to that, from 1970 to 1979, he served as an administrative and diplomatic officer with the Ministry of Foreign Affairs. He currently serves as Director of several public-listed companies,

KPJ Healthcare Berhad (Company No. 247079 M)

Directors’ Profile

namely, Visdynamics Holdings Berhad, Affin Holdings Berhad, Pulai Springs Berhad, Boustead Holdings Berhad, BHIC Berhad and TM International Berhad. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of

the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

KAMARUZZAMAN ABU KASSIM
Aged 45, Kamaruzzaman Abu Kassim was appointed to the Board of KPJ on 1 August 2006 as a Non-Independent Non-Executive Director. He is the Vice President Corporate Services, International Business & Finance/Chief Operating Officer of JCorp. He subsequently resigned as Director on 1 January 2009. He graduated with a Bachelor of Commerce majoring in Accountancy from the University of Wollongong, New South Wales, Australia, in 1987. He embarked on his career as an Audit Assistant with Messrs K.E Chen & Associates in May 1988 and later joined Coopers & Lybrand (currently known as PricewaterhouseCoopers) in Johor Bahru. In December 1992, he left the firm to join JCorp as Deputy Manager, Corporate Finance Department. He left JCorp as the General Manager to join Damansara Realty Berhad as Executive Director in September 1999 until September 2006. He is currently the Deputy Chairman of Damansara Realty Berhad and a Director of Kulim (Malaysia) Berhad, both are JCorp’s companies listed on the Main Board of Bursa Malaysia. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended three (3) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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Annual Report 2008

At the Helm of the KPJ Group

DR YOONG FOOK NGIAN
Aged 68, Dr Yoong Fook Ngian is a Director of KPJ and was appointed to the Board of KPJ on 7 July 2005. He is an Independent Non-Executive Director of KPJ and a member of the Medical Advisory Committee and Chairman of the Clinical Governance Action Committee of KPJ.

In 1972, he established the ENT Department in Hospital Ipoh. His last posting with the Ministry of Health was as Head of ENT Surgery in General Hospital Kuala Lumpur before venturing into private practice in 1975. In private practice, he was ENT Consultant at Our Lady’s Hospital in Ipoh from 1975 to 1982. He has been Resident ENT Consultant in Ipoh Specialist Hospital since 1983 and is one of its founding-doctors. He has been the Medical Director of Ipoh Specialist Hospital since 1994 until December 2006. He is a Life Member of the Malaysian Medical Association and a Past-Chairman of the Perak branch. He is also a PastPresident of the Perak Medical Practitioners’ Society. He is an active member of the Rotary Club of Greentown and a Past-President of the club. Dr Yoong is a Trustee of the Hope Haemodialysis Society, an NGO which provides subsidised haemodialysis for poor patients. In 1997, Dr Yoong was conferred the Perak State Award of Darjah Paduka Mahkota Perak (PMP). Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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He received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from the University of Sydney in 1966. He obtained his post-graduate qualification in Otolaryngology in 1972 and was conferred a Fellow of the Royal College of Surgeons of Edinburgh. He is also a Fellow of the College of Surgeons of Malaysia and a member of the Academy of Medicine of Malaysia. He was employed by the Ministry of Health from 1966 to 1975. During this period, he worked as a Medical Officer in the field of Anaesthesiology, Accident and Emergency Medicine, General Surgery and as Registrar in Ear, Nose and Throat (ENT) Surgery. He left for Britain in 1970 for further training in ENT Surgery.

DR KOK CHIN LEONG
Aged 52, Dr Kok Chin Leong is a Director of KPJ and was appointed to the Board of KPJ on 7 July 2005. He is an Independent Non-Executive Director of KPJ and a member of the KPJ Clinical Governance Policy Committee since 2001 and presently the Chairman for the Committee since 2005 and the Advisor for KPJ’s Clinical Information System since January 2003. He received his Bachelor of Medicine and Bachelor of Surgery (MBBS) in 1982 from University of Malaya and completed his post-graduate studies in Paediatrics (Master of Medicine Paediatrics) in 1990 from Universiti Kebangsaan Malaysia. He was conferred a Fellow of the Royal College of Physician of United Kingdom in 1990 and registered as full medical practitioner with the Malaysian Medical Council in 1983. His medical

KPJ Healthcare Berhad (Company No. 247079 M)

Directors’ Profile career started in 1986 at Kuala Lumpur General Hospital in Clinical Paediatrics, and he has worked as Senior House Officer/Registrar at Derby Children’s Hospital, United Kingdom in 1990. He served as the Clinical Specialist in Paediatrics at Hospital Sultanah Aminah, Johor Bahru from 1991 to 1992 and was the Head of Department of Paediatrics at Batu Pahat Hospital from 1991 to 1993 and Senior Consultant Paediatrician at Hospital Sultanah Aminah, Johor Bahru from 1993 until 1994. He was the Project Co-ordinator/Chairman for the Batu Pahat Rotary Club Haemodialysis Centre from 1992 to 1993 and was the Southern Representative for Malaysian Paediatric Association from 2000 to 2004 and the Southern Co-ordinator for Infant Touch Therapy. He has been the Resident Consultant Paediatrician at Puteri Specialist Hospital since 1994 and was appointed as the Medical Director in February 2000 until June 2006. His main interests are delivering Healthcare via Information and Communication Technology (ICT), Patient Safety and Physicians’ Performance and Appraisal assessment. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence, and has attended three (3) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2008.

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ROZAN MOHD SA’AT
Aged 49, Rozan Mohd Sa’at is a Director of KPJ and was appointed to the Board of KPJ on 1 January 2009. He is a Non-Independent Non-Executive Director of KPJ. He is the Managing Director of Sindora Berhad. He holds a Bachelor of Economics (Honours) majoring in Statistics from Universiti Kebangsaan Malaysia. He started his career in 1983 as an Administrative Officer in Planning and Research Department of JCorp before being seconded as an Operations Manager in Sergam Berhad, a subsidiary of JCorp in 1986. From 1987 – 1988, he served in the Corporate Communications Department, JCorp as an Administrative Officer. From 1988 to 1993, he was appointed as the Executive Director of several subsidiaries in JCorp Group. In 1994, he was appointed as the General Manager of JCorp’s Tourism Division before assuming the post of Chief Executive of the same Division on 15 June 1996, a post which he held until his appointment as the General Manager, Business Development, JCorp beginning January 1999. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of the Company. He has no personal interest in any business arrangement involving KPJ. He has not been convicted for any offence. He served as the Senior General Manager, Business Development of JCorp from 2000 until August 2002. He is currently the Senior Vice President, Intrapreneur Development of JCorp. He is also a Director of Kulim (Malaysia) Berhad and Kumpulan Wa q a f A n - N u r Berhad.

Annual Report 2008

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Standing:

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

KPJ Healthcare Berhad (Company No. 247079 M)

Statement to Shareholders
KPJ embraces the notion of Caring for Life. Hence, KPJ has chosen “A Journey of Continuous Caring” as the theme for the 2008 Annual Report. Beneath this theme lies KPJ’s deep devotion to continuously care for its patients as well as its team of dedicated medical consultants and personnel at all levels. KPJ values its people and build trusted teams to deliver its services to the customers with much care. At the same time, KPJ constantly improves and transforms its services and facilities. Acting with credibility, professionalism and integrity, KPJ instils public trust and confidence as it continues with its journey to deliver the best in healthcare services.

Although 2008 was a challenging year for the global economy, KPJ Healthcare Berhad (KPJ) managed to emerge in stronger shape and the business was better positioned for future growth. There were several significant developments in 2008 and on behalf of the Board, we are pleased to present the Annual Report and Financial Statements of the company for the financial year ended 31 December 2008.

STRENGTHENING CORPORATE GOVERNANCE THROuGH BuSINESS JIHAD
KPJ has in place a sound corporate governance framework throughout its extensive network of 19 hospitals within the country. This is aligned to Johor Corporation as the ultimate holding Group’s “Business Jihad” principles of advocating peace and prosperity through enterprise. Based on the values and principles of Business Jihad, KPJ applies good practices and ethics, as well as adheres to the right conduct in serving the customers. This philosophy is embodied in continual emphasis on excellent customer care through the “KPJ Experience”, a level of quality healthcare services that is associated nationally and globally with the Group’s brand. The fulfilment of Business Jihad will see all KPJ hospitals in Malaysia and overseas becoming the “Preferred Hospital” in their respective localities. The Group adopts four key corporate governance practices: compliance with the law and commercial legitimacy; fair treatment of employees and business partners; responsibility to the environment and the community in which it operates; and probity, integrity and business ethics in operational practices. Adherence to the Group’s corporate governance practices, supported by the Business Jihad principles, has enabled KPJ to attain a financial milestone and record a number of significant developments in 2008, especially in growing the company’s business. Strong and sound strategies have enabled it to maintain its financial form as well as strengthened its position as a market leader in the private healthcare sector. It would be prudent

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CONTINUOUS JOURNEY
From its maiden achievement of operating just one hospital in 1981, KPJ has today become a key player in Malaysia’s healthcare industry. The company now operates 19 hospitals in the country and six overseas, making it the owner of the largest network of hospitals in Malaysia. Through the years, KPJ has consistently been able to maintain a harmonious balance between the need to remain as a viable and profitable business venture with that of delivering quality healthcare to all the customers. KPJ’s ability to achieve this balance hinges on the consistent emphasis on selfless and dedicated service in line with the motto of “Caring for Life” which has become very much a part of the Group’s corporate culture. With this culture deeply ingrained, KPJ persistently embarked on A JOURNEY OF CONTINUOUS CARING, guided by its corporate values and principles. Throughout its 27 years in the business, KPJ has undergone four phases, thriving through each one. These four stages – the formative stage, strengthening stage, consolidation phase and now the transformation stage – are evidence of the long and sometimes arduous journey forward, from an unknown to key industry player.

Annual Report 2008

Statement to Shareholders

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to look at the Group’s performance vis-à-vis the Malaysian economy and the healthcare industry scenario in 2008.

becoming a state-of-the-art medical hub in the region offering a wide range of medical procedures of preventive, curative and promotive to both local and international patients.

MALAySIAN ECONOMy yEAR 2008 24
The year 2008 would be remembered as the year when the world at large was impacted by the global economic slowdown. Malaysia was no exception. Following this worldwide turmoil, Bank Negara announced that the growth of the Malaysian economy had slowed to 0.1% in the fourth quarter of 2008 (3Q’08 : 4.7%), as global economic conditions deteriorated. Growth was affected by the sharply weaker external demand, resulting in a further decline in net real exports of goods and services. Domestic demand continued to provide support to the nation’s economic growth, fuelled primarily by private consumption and public spending. For the year as a whole, the Malaysian economy expanded by 4.6% (2007: 6.3%).

KPJ’S FINANCIAL PERFORMANCE 2008
KPJ crossed, for the first time, the one-hundred-million-ringgit profit-before-tax benchmark with a figure of RM114.1 million (2007: RM85.3 million). This was realised on a turnover of RM1.3 billion, compared to RM1.1 billion in year 2007, when KPJ had passed its first one-billion-ringgit turnover benchmark. The earnings per share for the year under review were 41.41 sen (2007: 36.02 sen). The KPJ network of hospitals saw an increase in the number of outpatients treated from 1,734,000 in 2007 to 1,956,000 in 2008, an increase by 11.6%. There was also a rise in the number of inpatients from 179,000 in 2007 to 196,000 in 2008, which translates to an increase by 9.5%. KPJ also created an Economic Value Added (EVA) of RM43.2 million for the financial year ended 2008, an increase of RM19.8 million or 84.6% over RM23.4 million in 2007.

HEALTHCARE INDuSTRy IN MALAySIA
The outlook for the healthcare industry in Malaysia remained cautiously optimistic, with analysts and industry watchers expressing belief that although the hospital business is not recession proof, it is more resilient than other businesses as services rendered by hospitals are considered nondiscretionary and often necessary. KPJ benefited from the continued growth momentum of the healthcare industry in 2008. Domestically, the demand for healthcare services continued to be driven by heightened consumer awareness of the importance of quality healthcare, an aging population and rising incomes. The Group has also moved in tandem with the nation’s transition, from providing basic healthcare services, to

DIVIDEND
For the financial year ended 31 December 2008, KPJ has declared an interim and final dividend of 7 sen in cash (2007: 10 sen) and 31 sen in dividend in specie, bringing the total dividend to 38 sen, totaling RM58.5 million, which is an increase of 97% over dividends paid out in 2007.

INVESTOR RELATIONS
Good rapport with investment houses has been maintained through KPJ’s Investor Relationship Programme. KPJ is

KPJ Healthcare Berhad (Company No. 247079 M)

1. KPJ is a state-of-the-art medical hub in the region. 2. KPJ’s doctors and nurses are dedicated in delivering the best services to patients. 3. KPJ’s medical team is committed in providing quality healthcare.

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monitored by both local and international houses. Through this programme, the Group is able to provide better understanding to the financial fraternity on KPJ’s corporate role in the Malaysian healthcare industry.

would further give KPJ more than RM292 million in terms of purchase consideration. Al-Aqar KPJ’s Healthcare REIT has undoubtedly been one of the key strategic thrusts that had positioned KPJ Group with an extraordinary competitive advantage. At the same time, in times of crises and economic challenges, a REIT that is linked to a resilient healthcare sector offers tremendous value to investors. The REIT will continue to be one of the Group’s main strategies, enabling the unlocking of the true value of its properties and thereby reducing overall gearing. The funds raised will also help KPJ seize upon any strategic investment opportunities that may be presented to it.

AL-‘AqAR KPJ REAL ESTATE INVESTMENT TRuST (REIT)
KPJ’s innovative Al-‘Aqar KPJ REIT continued to perform well in 2008. The Group was the first healthcare organisation in Malaysia to set up a REIT in 2006, and Al-‘Aqar was the first healthcare REIT registered in Asia, the first global Islamic REIT as well as the first Islamic healthcare REIT. Two exercises undertaken by end-December 2008 have enabled the company to unlock total assets worth RM651.5 million. In the initial launch, six hospitals, i.e. KPJ Johor Specialist Hospital, Puteri Specialist Hospital, KPJ Ampang Puteri Specialist Hospital, KPJ Damansara Specialist Hospital, KPJ Selangor Specialist Hospital and KPJ Ipoh Specialist Hospital, were injected into the REIT. Subsequently, five more hospitals have been included, namely Kuantan Specialist Hospital, Perdana Specialist Hospital, Kedah Medical Centre, Sentosa Medical Centre and KPJ Kajang Specialist Hospital. The 3rd exercise, approved by the Securities Commission on 16 December 2008, comprises 9 properties, namely the Seremban Specialist Hospital building, Taiping Medical Centre building, Kota Kinabalu Specialist Hospital building, Bukit Mertajam Specialist Hospital building, KPJ Penang Specialist Hospital building, Tawakal Hospital’s existing building, KPJ Tawakal Specialist Hospital’s building, as well as two non-hospital properties, namely the Selesa buildings, comprising the Selesa Hotel and Metropolis Tower that houses the KPJ International College of Nursing And Health Sciences. Upon completion in 2009, the 3rd injection

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GROwING THE BUSINESS
During the year, KPJ also expanded its network of hospitals with the acquisition of Pusat Pakar Kluang Utama, in Kluang, Johor, bringing the total number of hospitals in the Group to 19 in Malaysia. Together with three hospitals in Indonesia, one in Bangladesh and two in Saudi Arabia, KPJ reaffirmed its position as the leading private healthcare provider in the region. With the latest addition, the Group now has more than 650 medical consultants offering a full range of medical and surgical services from all disciplines. It has also benefited tremendously from the presence of 6,800 team members made up of management, nursing, allied and support services.

HOSPITAL ExPANSION AND FACILITIES DEVELOPMENT
In line with its “Preferred Hospital” public image, KPJ believes in providing the very best not only in terms of treatment but

Annual Report 2008

Statement to Shareholders

1. KPJ Ipoh Specialist Hospital’s five-storey new wing. 2. Official launching of KPJ Ipoh Specialist Hospital’s new building by the Sultan of Perak, DyMM Paduka Seri Sultan Azlan Muhibbuddin Shah ibni Almarhum Sultan yussuf Izzuddin Shah Ghafarullahu-lah. 3. The 12th Convocation Ceremony of KPJ International College of Nursing and Health Sciences.
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4. Graduates of KPJ International College of Nursing and Health Sciences.

also in the aspects of hospital ambience and facilities. Hence, KPJ is committed in making constant improvements so as to make the hospitals more customer friendly. These include renovating and upgrading the existing buildings, as well as continuously improving the facilities. The official opening of KPJ Ipoh Specialist Hospital’s new building by HRH the Sultan of Perak on 7 October 2008 was an example of its commitment towards improving facilities. The hospital, one of the first private specialist facilities in Ipoh, has been at the forefront of the industry in offering the latest medical facilities. The five-storey wing adjacent to the existing hospital added 50 new consultant suites and new wards that increased the total number of beds to 280, making the hospital the largest private hospital in Perak. The year 2008 also saw the development of a new, modern KPJ Tawakal, which will accommodate the relocation of the existing Tawakal Hospital. It is anticipated that KPJ Tawakal, with its latest facilities and services, will ultimately be transformed into a well-accepted icon for the Klang Valley’s healthcare industry. Another hospital being built is KPJ Penang in Bandar Perda, Bukit Mertajam, to be opened in 2009. Its opening will provide KPJ with an even bigger platform to cater to the customers in the northern part of the Peninsula, thus contributing to the Group’s strategic growth in this market. Other hospitals in the Group are also aggressively undergoing renovation and expansion, to further improve their facilities for patients’ comfort.

adding workforce that is willing to go the extra mile. Group success relies on the teamwork and talents of the team, both in the clinical and administrative segments of the organisation.

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Building and Retaining Trained Staff and Professionals
A firm believer in the fact that “people” drive the Group’s success, KPJ has in place very strategic human resource (HR) development programmes that seek to enhance the team’s expertise, skills and competencies at all levels – from the management, medical consultancy, nursing care, allied health services as well as support services. The programmes include formal training and on-the-job training as well as seminars and conferences, including the Annual KPJ Healthcare Conferences / Workshops which allow the Group’s medical professionals and managers to deliberate, discuss and improve the company’s standards of clinical and customer service excellence. In addition, medical consultants are also encouraged to share their knowledge within the Group, and to have their analytical works published. As a visionary organisation, KPJ has also always given strong focus on the development and growth of career opportunities of team members with the Group. The general organisational climate has been oriented towards releasing people’s energies and not to stifle them. Qualified individuals are provided the exposure to fully explore their inherent talents. Professionally trained staff members are important to the hospital teams and therefore, it is crucial that they are maintained through continuous training and retraining. KPJ believes in training and managing people well, which over the years, has helped KPJ to be a market leader. The Group also regularly identifies talented and high potential staff members, including Heads of Services, to

HuMAN CAPITAL DEVELOPMENT
As a service provider, KPJ fully understands the importance of having a professional, highly skilled, dedicated and value-

KPJ Healthcare Berhad (Company No. 247079 M)

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undergo professional programmes that lead towards formal academic qualifications. This also serves to enrich careers, curb “brain drain” and ensure that the Group’s professionals be retained.

John Moores University and University of Hertfordshire of the United Kingdom. The continuous demand for qualified nurses has also prompted KPJ to invest RM26.0 million in 2008 to purchase 6.8 hectares of land adjacent to the current college and to expand its nursing and health science educational facilities. When fully utilised in the future, KPJ IC will be able to train 10,000 nursing and allied health students, which could make it the largest nursing and health sciences educational centre in the region. During the year too, a branch campus was opened in Johor Bahru, Johor, to cater to nursing requirements in the southern region of Malaysia. It is anticipated that KPJ IC will continue setting up other new branches in the near future.

Preparing Tomorrow’s Leaders
Leadership skills are prized and are a well-nurtured element of the Group, driven by KPJ’s strong corporate culture and further strengthened by the values espoused by Transformational Leadership. This positive scenario is especially reflected in KPJ’s emphasis on hands-on management, where both leaders and team members work together to ensure all-round drive and performance, thus raising each other to higher levels ethically as well as motivationally.

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Catering to the Country’s Increasing Need for Nurses
KPJ, being committed to training of nurses, had set up its own nursing college, Puteri Nursing College (PNC) in 1991 which is today known as KPJ International College of Nursing and Health Sciences (KPJ IC). The College’s establishment was truly an important milestone, an internally strategic move for KPJ and a turning point in the nation’s healthcare and nursing education fields, as PNC was the first Nursing Training Institution in Malaysia to be named a “College” and the first to provide the Diploma in Nursing Programme recognised by the Ministry of Health. KPJ IC, with its campus in Kota Seriemas, Nilai, Negeri Sembilan, has produced more than 2,500 graduates encompassing nurses and other allied health professionals since its formation 17 years ago. It also has established collaborative programmes with reputable overseas universities, such as the University of South Australia, Liverpool

CuSTOMER SERVICE ExCELLENCE
Service excellence is a journey and not a destination. Throughout the years, KPJ has consistently been able to maintain a harmonious balance between the need to remain as a viable and profitable business venture with that of delivering quality healthcare services to all its customers. Implementation of the “Service Excellence - The KPJ Way” initiative in most of the Group’s hospitals ensure that courtesy and professional standards are consistently sustained at the highest levels. This is a reflection of a commitment to care towards customers and further accentuates KPJ’s emphasis on service excellence.

ADOPTING WORLD CLASS STANDARDS
In ensuring quality care for KPJ’s patients, KPJ adopts and implements world standards and best practices. As it

Annual Report 2008

Statement to Shareholders

1. Tan Sri Dato’ Muhammad Ali Hashim receiving a donation on behalf of Klinik Waqaf An-Nur Sarawak. 2. A touch of care from Datin Paduka Siti Sa’diah Sheikh Bakir. 3. KPJ won the inaugural StarBiz–ICR Malaysia Corporate Responsibility Awards 2008.

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expands its hospital network, KPJ is set to pursue its aspiration of becoming an excellent healthcare provider of international standard. In line with this, the Group considers safety and security requirements of patients, customers and employees to be of paramount importance. KPJ has put in place the best quality systems and patient care management. Its commitment to ensuring quality has earned KPJ hospitals quality certifications, primarily Hospital Accreditation by the Malaysian Society for Quality in Health (MSQH). Five of KPJ’s hospitals in the country are already accredited by MSQH, and others are striving to achieve the Accreditation status in the near future, which attest to their conformance to quality standards. All KPJ hospitals are also implementing the 7 Patient Safety Goals, introduced by the World Health Organisation, in order to ensure patients’ safety and health are properly safeguarded and continuously improved upon. The other quality achievements and benchmarks

Frost & Sullivan for being recognised as the best in class for innovation and perseverance. On 1 July 2008, KPJ received The BrandLaureate Award in Healthcare (Best Brand), for maintaining exemplary brand performance, contributing to the country’s brand equity and being a role model for aspiring brands, in line with the specifications of the Asia Pacific Brand Foundation (APBF). The highlight of the year was when KPJ was honoured for its exemplary corporate responsibility initiatives, at the inaugural StarBiz-ICR Malaysia Corporate Responsibility Awards on 22 August 2008, in the category for companies with market capitalisation below RM1.0 billion (Marketplace Category). The Award was in recognition of main activities which the Group undertakes, namely efforts through JCorp’s Klinik Waqaf programme for the poor and underprivileged, as well as sponsorship of medical treatment for the needy. On 31 October 2008, KPJ was named the winner of the Excellence in the Health Sector (Healthcare Services) for being the most prominent healthcare provider in the industry at Technology Business Review Awards and Technology Business Review ASEAN Awards.

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earned by the various hospitals include MS ISO 9001: 2000, ISO 14001, ISO/IEC Guide 62: 1996, OHSAS 18001, SIRIM Quality System, Hazard Analysis Critical Control Points (HACCP) for Food Safety, Baby Friendly Hospital initiative and the Integrated Management System (IMS) for quality, environmental safety and health management.

HeAlTH TouRISM
KPJ is also tapping on the lucrative medical tourism market in light of Malaysia fast becoming known as an affordable healthcare hub in Asia. According to the online investment news service NuWire Investor, Malaysia ranks third amongst the world’s top medical tourism destinations, after Panama and Brazil. The number of medical tourism patients has tripled since 2003 to 341,288 patients in 2007, while for the first nine months of 2008, more than 282,000 foreigners sought medical treatment in Malaysia.

ReCogNITIoN AND AWARDS
KPJ’s accomplishments were also given due recognition by noted bodies and publications in 2008. On 13 June 2008, KPJ was presented with the Southeast Asia Private Hospital Group Growth Strategy Leadership Award by

KPJ Healthcare Berhad (Company No. 247079 M)

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KPJ is benefiting from this increasing interest from foreigners who are attracted to seek medical treatment in Malaysia because of the quality of the country’s private hospitals, competitive costs, regulated medical charges and welltrained medical consultants and staff. The majority of medical tourists in KPJ’s hospitals come from Indonesia, with others hailing from neighbouring Southeast Asian countries, Australia, Great Britain, Japan, South Korea and the Middle East.

to make decisions based not only on financial factor, such as profit, but also to consider the immediate and long-term social and environmental consequences of their activities, KPJ believes that CR and doing business have to be mutually inclusive. Fully comprehending the far-reaching impact of the mass media, KPJ contributed extensively to efforts by its parent company, Johor Corporation, to sponsor community-oriented television programmes such as the At-Tijarah and the AtTijarah Ramadan programmes. In KPJ, CR programmes enhance its ability to recruit, develop and retain staff and this is the direct result of pride in the company’s services and practices. It is also the indirect result of programmes and activities that improve employee morale and loyalty. CR also creates more robust “social licence” to operate in the community as the stakeholders’ understanding of the company’s objectives and activities translate into improved stakeholder relations as well as relation with the public and regulators. CR activities go beyond those required by regulation or any statutory bodies and they are undertaken completely on KPJ’s own initiative. KPJ’s approach to CR also allows the Medical Directors and Consultants to strive for greater visibility and prominence within professional bodies, societies and the general community. In this respect, the KPJ Consultants’ Charity Fund has been set to enable projects to be undertaken for the benefit of the community.

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CORPORATE RESPONSIBILITy (CR) ~ CARING FOR THE COMMuNITy
KPJ is determined to be of greater service to the community, driven by a strong sense of corporate responsibility which has always been an important part of its values and a key component of its Business Jihad aspiration. The Group’s main CR contribution has been through the provision of medical and professional support to the charity clinics under JCorp’s Klinik Wakaf An-Nur (KWAN) initiative, which was first launched in 1998. By 2008, KPJ was managing KWAN’s existing 8 clinics (4 in Johor, 2 in Selangor, 1 in Negeri Sembilan, 1 in Sarawak) and the Hospital Waqaf in Pasir Gudang, Johor. More than 400,000 underprivileged patients earning less than RM1,000 a month have been treated since KWAN’s inception, with the clinics providing medical care at a standard rate of only RM5.00. Measures are in place to open more clinics in 2009, and their establishment is part of the Group’s efforts in making quality healthcare affordable to all walks of life. KPJ also gives back through community outreach programmes. As the concept of CR is closely linked with the principles of sustainable development, which encourages corporations

RISING ABOvE FUTURE CHALLENGES
The year ahead will be one of extreme challenges for the business sectors and for all organisations not only in

Annual Report 2008

Statement to Shareholders

1. The new premier ward at KPJ Damansara Specialist Hospital. 2. Nursing students from KPJ IC undergoing practical training in a KPJ hospital. 3. quality healthcare provided by warm and caring staff at KPJ.
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the country but also globally. The fallout from the current economic downturn is expected to bring Malaysia’s GDP growth down to about 0.6 per cent in 2009. However, these same challenges create opportunities for organisations that are flexible and adept at responding proactively to changes in the environment. KPJ strongly believes that it is such an organisation. With a proven business model and extraordinary strategic positioning, the Group expects to withstand the impact of the economic downturn and sustain its growth momentum. The main strategies in 2009 and beyond are to increase its existing capacity through prudent measures and tap on its internal creativity for smart and innovative ways to sustain and grow its business. Among the major plans for the future include growth through acquisition of stand-alone hospitals, and this is expected to be facilitated by moves, regulatory or otherwise, towards consolidation as stand-alone private hospitals may find it more difficult to operate. This is anticipated to provide KPJ with more merger-and-acquisition opportunities that will strengthen its position as the market leader in the private healthcare sector. Organically, there are also plans for expansion through new development projects, and three sites in Johor Bahru, Johor, others in the Klang Valley, Kuala Lumpur, Kuantan, Pahang and Kuching, Sarawak have been identified. With these in place, KPJ is optimistic that it shall be able to expand its network, enlarge the customer base and further establish itself as a key service provider in Malaysia. The company is also in a strong position to operate in an environment with increasingly stringent quality and

regulatory frameworks imposed on service providers. These actually will augur well for KPJ as they help to control and safeguard the standard of service and gain more trust from patients locally and internationally. In line with Johor Corporation’s philosophy of its companies being members of a “Community of Enterprises”, more “intrapreneurs” will be created in the KPJ Group to drive its diversified businesses further. The development of these “intrapreneurs” will also contribute to the creation of value and economic wealth, especially when undertaken through transforming cost centres into profit centres. Towards this end, KPJ will identify the appropriate services to be outsourced and find the right people within the organisation prepared to take up the challenge in areas such as food services, ambulance services, home nursing, health tourism, information technology (IT) and other healthcare-related services. Given medium-term uncertainties globally, the company will be cautious in venturing abroad but intend to capitalise and build upon its years of experience in the healthcare industry to provide very specialised services to both local and overseas hospitals. KPJ will continue to offer services in hospital management and nursing management, including professional nursing manpower, to overseas hospitals. The company will further develop nursing and allied health education and training as well as other technical and nontechnical support.

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APPRECIATION FOR INvALUABLE SUPPORT
KPJ has succeeded in becoming a preferred provider in healthcare services due to the invaluable support of so many people. Therefore KPJ wishes to thank the shareholders for their trust in the company’s management and the medical

KPJ Healthcare Berhad (Company No. 247079 M)

2

3

teams for their highly professional contributions as well as their co-operation with our professional managers and overall confidence in the staff to bring this organisation to the forefront of the healthcare industry. In this regard, thanks are also due to all members of the Board of Directors who have been most forthcoming in providing their expertise, experience and wisdom towards achieving the company’s corporate vision and mission. KPJ would like to record its deep appreciation for the contributions of Encik Kamaruzzaman Abu Kassim, Vice President and Chief Operating Officer (Corporate) of JCorp, who had relinquished his Directorship in the company on the 1 January 2009, and welcomes Tuan Haji Rozan Mohd Sa’at, Vice President and Chief Operating Officer (Intrapreneur) of JCorp who was appointed to the Board on 1 January 2009. Heartfelt appreciation is also extended to YBhg Tan Sri Datuk Arshad Ayub, Chairman of the Audit Committee and the Audit Committee members, who have played significant roles in ensuring KPJ’s continued compliance to regulatory frameworks. Also, recognition is given to the continuous contributions of YBhg Tan Sri Dato’ Dr. Abu Bakar Suleiman, Chairman of the Medical Advisory Committee (MAC), the Committee’s members, as well as all its sub-Committees,

who have proactively safeguarded the high standards of clinical excellence within the Group’s hospitals, thereby ensuring quality patient care. The Board also wishes to express its gratitude to all the Ministries, Government agencies and authorities for their guidance in helping the team conduct its business in a conducive environment. To partners and business associates, much appreciation goes to all of them for their belief in the company’s capabilities. There is a group of people without whom the company would not have been able to go as far as it has. This comprises the medical consultants, nurses, allied health members and all managers, executives and employees of KPJ. They all have continually strived to deliver the highest level of professional care to patients and customers. We also wish to record our appreciation to them for their dedication and commitment in fulfilling their duties and responsibilities. Many thanks also to each patient and customer, who are the reason for the company’s existence. KPJ is eternally grateful to the many thousands who have been loyal since the beginning and hopes to live up to their trust and to provide them and their friends, children and families with the very best healthcare possible.

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Tan Sri Dato’ Muhammad Ali Hashim
Chairman

Datin Paduka Siti Sa’diah Sheikh Bakir
Managing Director

Annual Report 2008

Making It Happen – A Strong Management Team

32

Sitting from left to right :

Alvin Lee Swee Hee, Datin Paduka Siti Sa’diah Sheikh Bakir, Amiruddin Abdul Satar and Jasimah Hassan
Standing from left to right :

yusof Ismail, Mohd Sahir Rahmat, Aminudin Dawam, Abdol Wahab Baba and Norhaizam Mohammad

KPJ Healthcare Berhad (Company No. 247079 M)

Executive Committee

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Chairman Datin Paduka Siti Sa’diah Sheikh Bakir Managing Director Alvin Lee Swee Hee Chief Financial Officer Amiruddin Abdul Satar Senior Group General Manager – Hospital Operations

Jasimah Hassan Senior Group General Manager – Clinical & Professional Services Aminudin Dawam Group General Manager – Business Development (International) & Marketing Mohd Sahir Rahmat Group General Manager – Business Development (Malaysia) & Intrapreneur

Yusof Ismail General Manager – Human Resource Management Abdol wahab Baba General Manager – Risk Management Norhaizam Mohammad Senior Finance Manager

Annual Report 2008

Making It Happen – A Strong Management Team

34

From left to right

Divisional Committee EXCO
Abdol wahab Baba Mohd Sahir Rahmat
General Manager – Risk Management Group General Manager – Business Development

Amiruddin Abdul Satar
Operations

Senior Group General Manager – Hospital

Jasimah Hassan
Professional Services

Senior Group General Manager – Clinical &

(Malaysia) and Intrapreneur

Chairman Datin Paduka Siti Sa’diah Sheikh Bakir
Managing Director

Yusof Ismail

General Manager – Human Resource Management

Aminudin Dawam

(International) & Marketing

Group General Manager – Business Development

Alvin Lee Swee Hee
Chief Financial Officer

Norhaizam Mohammad
Senior Finance Manager

KPJ Healthcare Berhad (Company No. 247079 M)

Divisional Committee

From left to right

Clinical, Professional & Operational Services
Zaharah Osman
Corporate Manager – Clinical & Professional Services

35
Elman Mustafa El Bakri
Corporate Manager – Biomedical Engineering

Naziah Ismail

Senior Corporate Manager – KPJ International College of Nursing and Health Sciences

Dr. Abdul Rahim Rahman Hamzah
& Health

Corporate Manager – Clinical, Occupational Safety

wan Rusliah Md Daud Marhalis Hasan

Corporate Manager – Clinical & Professional Services Deputy Manager – Clinical & Professional Services

Dr. K v Anitha

Corporate Manager – Clinical & Professional Services

From left to right

Corporate Services
Andrew william Burr
Corporate Manager – Group Marketing

Rafeah Ariffin

Senior Corporate Manager – Business Development &
Corporate Communications

Hanida Mohd Hassan Mohd Taufik Ismail

Deputy Manager – Customer Service Senior Corporate Manager – Strategic Planning

Khairol Badariah Basiron

Senior Corporate Manager – Internal Audit

Noreen Abdul Rashid

Corporate Manager – Legal cum Secretary

Annual Report 2008

Making It Happen – A Strong Management Team

From left to right

36

Aminudin Dawam

KPJ Damansara Specialist Hospital and Tawakal Hospital

Executive Director – KPJ Ampang Puteri Specialist Hospital,

Amiruddin Abdul Satar and Kedah Medical Centre

Executive Director – KPJ Selangor Specialist Hospital

Jasimah Hassan

Director-in-Charge – Indonesia Hospitals Executive Director – Bukit Mertajam Specialist Hospital, Seremban Specialist Hospital, Perdana Specialist Hospital, Kuching Specialist Hospital and Damai Specialist Hospital

Yusof Ismail

Kuantan Specialist Hospital

Executive Director – KPJ Ipoh Specialist Hospital and

Chairman Datin Paduka Siti Sa’diah Sheikh Bakir
Managing Director

Abdol wahab Baba

Mohd Sahir Rahmat

Specialist Hospital and Pusat Pakar Kluang Utama

Executive Director – KPJ Johor Specialist Hospital, Puteri

Alvin Lee Swee Hee
Chief Financial Officer

Norhaizam Mohammad
Senior Finance Manager

From left to right

Roslan Ahmad

General Manager – KPJ Johor Specialist Hospital

Zabidi Abdul Razak

General Manager – RS Selasih, Padang Indonesia

Mohd Azhar Abdullah
Dhaka, Bangladesh

Chief Executive Officer – United Hospital Limited,

Mohd Farid Salim Zaiton Sulaiman

General Manager – Puteri Specialist Hospital General Manager – Pusat Pakar Kluang Utama

Mohammad Badri Hussin

General Manager – RS Permata Hijau, Jakarta, Indonesia

Abdul Aziz Abdul Rahman

General Manager – Seremban Specialist Hospital

KPJ Healthcare Berhad (Company No. 247079 M)

Hospital Management Committee

From left to right

Maisarah Omar

General Manager – KPJ Kajang Specialist Hospital

Datin Sabariah Fauziah Jamaluddin
KPJ Kajang Specialist Hospital

Director-in-Charge – Sentosa Medical Centre and Senior General Manager –
KPJ Damansara Specialist Hospital

Dr. Munirah Khudri Tay Chee Kim
Specialist Hospital

General Manager – Tawakal Hospital Deputy General Manager – KPJ Ampang Puteri

37

Mohd Johar Ismail Gunavathy Kalee

General Manager – KPJ Selangor Specialist Hospital General Manager – Sentosa Medical Centre

Mohd Nasir Mohamed
Specialist Hospital

Senior General Manager – KPJ Ampang Puteri

From left to right

Ahmad Nasirruddin Harun

Director-in-Charge – Taiping Medical Centre General Manager – KPJ Ipoh Specialist Hospital

R Gunasingam

General Manager – Kuantan Specialist Hospital

Mah Lai Heng

General Manager – Kuching Specialist Hospital

Yasser Arafat Ishak Mahazan Khamis

Khairun Ahmad

General Manager – Bukit Mertajam Specialist Hospital General Manager – Taiping Medical Centre

General Manager – Kedah Medical Centre

Alice Liu Ghee voon

General Manager – Damai Specialist Hospital

Asmadi Mohd Bakri

General Manager – Perdana Specialist Hospital

Annual Report 2008

Realising Operational Excellence
KPJ Group continued to record excellent performance in
2008. This could not have been achieved without the full commitment of all the people of KPJ. Successful risk-taking, together with skilful and innovative management as well as highly professional medical consultancy services, supported by loyal shareholders, have enabled KPJ to sustain its position as Malaysia’s leading healthcare service provider.

KPJ Healthcare Berhad (Company No. 247079 M)

Growth and Strength

In an ever-changing healthcare industry landscape, KPJ continued to build its capability and capacity in 2008 to not only strengthen its position in the marketplace but also to ensure that it delivers its firm commitment towards safeguarding the interests of all its stakeholders, foremost of whom were its customers from all levels of society. By continuing to do so, KPJ also provided significant input in helping the nation advance public health. KPJ’s growth from strength to strength has been made possible by its innovativeness and farsightedness in taking many approaches in 2008 including the following:

of its customers. This is based on its strong conviction that excellent customer service is the very foundation for expanding and maintaining its leading position in the healthcare industry.

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• Expanding its Hospital Network and Range of Healthcare Services
The move to continue with expansion enabled KPJ to meet the growing demand of its patients for quality healthcare delivery. Upgrading and expanding facilities by adding stateof-the-art equipment and modernising hospital buildings as well as introducing a comprehensive range of services allowed for much better care
(Above) Datin Paduka Siti Sa’diah Sheikh Bakir launching the Comprehensive Pain Management Services at KPJ Ampang Puteri Specialist Hospital. (Left) Pusat Pakar Kluang utama, the latest addition to KPJ’s network.

Annual Report 2008

Realising Operational Excellence

safeguarding the company’s assets and utilising them well so as to derive optimum benefits. Among others, KPJ has introduced flexible hours, staff multi-tasking and extended operational hours.

• Sharpening Competitiveness through Maximising Synergies within the Group
Creating and maximising synergies have enabled KPJ to tap unlimited possibilities. KPJ continued to sharpen its competitiveness by forging synergies across all its corporate and business services as well as professional and operational delivery. It also consistently encouraged its people to scale new heights and move forward together as one solid organisation. Many of KPJ’s key tasks and targets were inter-connected and all of these have contributed towards achieving the same core objectives of the Group. KPJ has also long recognised the value of smart partnerships, which it has undertaken with many organisations and individuals. The relationships with them have been nurtured in line with KPJ’s objective of developing entrepreneurial organisations providing different services, from procurement, project management services and laboratory management to highly specialised therapies such as stem cell treatment, bariatric surgery, among others. At the same time, KPJ also continued to actively develop “intrapreneurs” who ran businesses which complemented and strengthened the Group’s overall services in 2008.

• Tapping Greater Opportunities in Medical Tourism
Another area in which KPJ aims to make greater inroads is health tourism based on the encouraging performance in 2008. The number of patients seeking treatment in this sector in 2008 was 8,239, an increase of 11.96% over 7,359 patients registered in 2007. In terms of the number of treatments/procedures (patient episode), the total of 18,667 in 2008 exceeded the total of 15,689 in 2007 by 18.98%. The sector still has the potential for bigger growth as Malaysia is aggressively promoting the country as an attractive destination for medical tourism. KPJ will be in existence for 39 years by 2020, the year that Malaysia sees herself as becoming a developed nation. By then, it is envisaged that KPJ will remain in the lead position in the country and at the same time become the largest healthcare group in the region. Its performance in 2008 is a testimony to its ability to achieve this vision.

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• Optimising the Use of Assets and Resources
KPJ fully subscribes to the view that a company’s growth fundamentally depends on its employees’ ability to maximise their potential through continuous learning, upgrading skill and enriching experience which contribute towards the building of their overall competency. Coupled with commitment and discipline, KPJ’s competent employees are entrusted with

before

after
(Above) The before and after results of a successful severe obesity surgery. (Left) The high end diagnostic ultrasound machine at Damai Specialist Hospital.

KPJ Healthcare Berhad (Company No. 247079 M)

Driving Standards and Continuous Innovation

KPJ’s commitment towards quality and excellence in the delivery of healthcare services continued to be its driving force in its ongoing journey towards becoming the Hospital of Choice in the communities it serves. As a network of hospitals carrying the KPJ name, it was of paramount importance that all patients continued to enjoy the same standard of care, “The KPJ Experience”, in each and every hospital. This required a high level of clinical governance and the standardisation of policies and procedures across all hospitals within the Group. In addition, the achievement of accreditation standards ensured a continuing commitment in the areas of Organisational Management, Human Resource Management, Policies and Procedures, Facilities and Equipment, and Quality Improvement Activities. By embarking on these, KPJ was able to face an operating environment that was increasingly sophisticated and dynamic. A key success factor in 2008 was KPJ’s ability to innovate by defining new strategies and reinventing itself. Through continuous transformation, KPJ was better placed to progress forward. The result of its hard work to realise its commitment towards quality and excellence in its hospitals has earned KPJ many awards and accolades in 2008.
KPJ has earned several awards and accolodes in 2008: (Top Left) Gold and Silver Awards in Occupational Health and Safety. (Bottom Left) Excellence in the Healthcare Sector (Healthcare Services) Award from Technology Business Review. (Top Right) The BrandLaureate Award. (Bottom Right) Frost & Sullivan South East Asia Private Hospital Group Growth Strategy Leadership Award.

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Annual Report 2008

Realising Operational Excellence

Collection of KPJ’s Awards and Accolades

42

KPJ Healthcare Berhad (Company No. 247079 M)

State-of-the-Art Facilities and Specialist Services
STATE-OF-THE-ART FACILITIES 2 • 4-hour Accident & Emergency Unit • 24-hour Ambulance Services • 24-hour Outpatient Clinics • 3-D Ultrasound • Bone Densitometer • Coronary Intensive Care Unit (CICU) • Coronary Care Unit (CCU) • Cardiothoracic Centre • Convalescent Centre/Home Nursing • Diagnostic Imaging-MRI / Mammogram/ Multi-slice CT Scan/ X-Ray • Diagnostic Centre • Dental X-Ray • Day Care Ward • Haemodialysis Centre • High Dependency Unit (HDU) / Neonatal HDU • Intensive Care Unit (ICU) / Neonatal ICU • Lithotripsy Centre • Medical Screening Centre • Operation Theatre & Cardiac Operation Theatre • Oncology & Radiotherapy Centre • Ophthalmic Laser • Pharmacy & Laboratory • Physiotherapy & Rehabilitative Centre • Private Delivery Rooms • Special Care Nursery • Specialist Outpatient Clinics • Treadmill Stress Test • Women & Baby Centre SPECIALIST SERVICES • Anaesthesiology • Angiogram • Audiology • Bariatric Surgery • Cancer & Chemotherapy Services • Cardiology & Cardiothoracic Surgery • Child Psychiatry • Clinic Pathology • Cochlear Transplant Surgery • Colorectal Surgery • Cornea Transplant Surgery • Diet Counselling • Dermatology (Skin) • Day Surgery • Ear, Nose & Throat (ENT) • 3-D Ultrasound Services • Foetal Maternal Medicine • General Surgery • General / Internal Medicine • Gastroscopy / Colonoscopy / ERCP • Haemodialysis • Immunisation & Vaccination Services • Interventional Angioplasty • Interventional Chronic Pain Management Services / Centre • In-vitro Fertilisation • Laparoscopic Surgery • Maternity & Gynaecology Services • Neurology (EEG & EMG) • Neurosurgery • Neonatology • Nephrology • Occupational Health Services • Orthopaedic & Trauma Surgery • Ophthalmic Laser • Ophthalmic (Eye) Surgery • Ophthalmology • Orthodontic & Maxillofacial Surgery • Obstetrics & Gynaecology (O&G) • Outpatient Treatment • Paediatric Surgery/Urology • Plastic Surgery/Plastic & Reconstructive Surgery • Physiotherapy, Rehabilitative & Occupational Therapy Services • Psychiatry • Pharmacy & Laboratory Services • Radiotherapy & Oncology • Respiratory Medicine Services • Restorative Dentistry & Endodontics • Sleep Disorder Centre • Sports Medicine • Spinal Surgery • Stem Cell Therapy • Urology • Vascular Surgery

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Annual Report 2008

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