NATIONAL SEMINAR AND WORKSHOP ON

TRADE AND SERVICES

19 NOVEMBER 2014

“Opportunities and Challenges in Services

Liberalisation in :

Workshop 3 :Healthcare and Medical

Tourism”

‘Driving Transformation, Powering Growth’

Rafeah Ariffin Senior General Manager

Group Marketing & Corporate Communication of KPJ Healthcare Berhad

ASEAN ECONOMIC COMMUNITY (AEC) 2015

11/21/2014 2 ASEAN ‘S OWN REGIONAL ECONOMIC INTEGRATION.

ASEAN ECONOMIC COMMUNITY (AEC) 2015

Driving Transformation, Powering Growth 3

Healthcare Expenditure

Healthcare is a priority sector for region-wide integration - driven by :

SINGLE MARKET

- Free Flow Of Goods, Services, Investment / Capital, Skilled Professionals / Labour

COMPETITIVE REGION

- Competition Policy - Consumer Protection - Infrastructure - Taxation - E-Commerce

EQUITABLE DEVELOPMENT

- Narrowing of Development Gap

- Knowledge sharing

- Boost Health Tourism

INTEGRATION INTO GLOBAL ECONOMY

- Potential multiplier benefits to the economy

ASEAN ECONOMIC COMMUNITY (AEC) 2015

Driving Transformation, Powering Growth 4

Healthcare Expenditure

MALAYSIAN HEALTHCARE INDUSTRY : COMPETITIVE ADVANTAGES

11/21/2014 5

Hospital facilities

- modern & high international

standards

Medical Equipment

- Modern, state of the art diagnostic &

therapeutic resources

Medical Professionals

-Highly qualified and experienced

Healthcare Cost

- Affordable cost - very competitive pricing - lower than neighboring

countries

Tourism Destination

- Malaysia is among the world’s most favored

destinations

6

NUMBERS OF HEALTH TOURISM PATIENTS : MEDICAL OUT

No Country Number OUT

1 Indonesia 600,000

2 USA 450,000

3 Germany 200,000

3 Russia 200,000

3 Saudi Arabia 200,000

6 Lesotho 140,000

7 China 100,000

8 UK 70,000

9 Libya 60,000

10 Swaziland 47,000

11 Canada 46,000

12 Bangladesh 40,000

12 Ukraine 40,000

14 Mozambique 38,000

No Country Number OUT

14 Myanmar 35,000

16 Dubai 30,000

16 Netherlands 30,000

16 Qatar 30,000

16 Vietnam 30,000

20 Ireland 20,000

20 Luxembourg 20,000

20 Nigeria 20,000

23 Zimbabwe 17,000

24 Australia 15,000

25 Oman 14,000

26 Iraq 10,000

26 Yemen 10,000

World Health Travel Congress 2014

7

NUMBERS OF HEALTH PATIENTS : MEDICAL IN No Country Number IN

1 Thailand 700,000

2 Malaysia 650,000

3 USA 550,000

4 Mexico 400,000

5 South Africa 325,000

6 Poland 300,000

7 South Korea 230,000

8 Singapore 200,000

9 Turkey 200,000

10 Germany 150,000

11 India 140,000

12 Hungary 100,000

12 Taiwan 100,000

12 UK 100,000

15 Tunisia 90,000

16 Dubai 80,000

No Country Number IN

18 Belgium 55,000

19 Hong Kong 50,000

19 Jordan 50,000

21 Brazil 30,000

21 Iran 30,000

21 Israel 30,000

21 Slovenia 30,000

21 Switzerland 30,000

26 Costa Rica 20,000

26 Cuba 20,000

28 Colombia 18,000

29 Argentina 15,000

29 Australia 15,000

29 Mauritius 15,000

32 Finland 12,000

33 Czech Republic 10,000

8

Malaysia ranked Asia’s Best Retirement Haven & 3rd Best Country To Retire In The World

Source: Global Retirement Index 2014

(http://Internationalliving.com)

9 new hospital developments over the next 4

years

Adding new capacity to established

hospitals where possible

High occupancy rate of > 70%

To tap Medical Tourism

opportunities

MALAYSIAN HEALTHCARE INDUSTRY : COMPETITIVE ADVANTAGES

11/21/2014 9

Malaysia's healthcare system is the 3rd best out of 24 countries

- beating out Spain, Italy, Ireland & New Zealand, among other

countries.

Global Retirement Index - International Living 2014

Malaysia’s health system’s remarkable achievements is often

referred to as a MODEL FOR OTHER DEVELOPING COUNTRIES …

Private sector provides an alternative choice of care & is

responsive to market forces

UN Development Programme

MALAYSIA’S HEALTHCARE INDUSTRY

WHERE WE STAND NOW……

Healthcare : crucial component of Economic Transformation Programme (ETP)

To date :

EPPs : 40

New jobs : 26,966

GNI : RM6.59b, & RM4.96b in new investments by 2020

HEALTHCARE IN MALAYSIA’S TRANSFORMATION

Economic Transformation Programme 12 Aug 2014

etp.pemandu.gov.my/Healthcare-@-Healthcare.aspx

11/21/2014 10

KPJ HEALTHCARE BERHAD

11 11/21/2014

KPJ HEALTHCARE : MALAYSIA’S LARGEST PROVIDER OF PRIVATE HEALTHCARE SERVICES

MALAYSIA 26 hospitals,

1 university college & 2 branches,

2 aged care centers,

…8 more hospitals under development

INDONESIA :

2 hospitals

THAILAND :

1 hospital

BANGLADESH

1 hospital &

1 nursing school

AUSTRALIA :

1 aged

care center 12 11/21/2014

11/21/2014 13

14

• Established in 1979 as Sdn. Bhd. & operational in 1981

• Listed on Main Board of the Malaysian bourse since 1994

• MSQH & JCI Accredited hospitals

• >1,000 medical consultants & 10,000 staff

• >2.5 million patients annually

• >RM2 billion revenue annually

• Market cap of >RM3.8 billion (As at Nov 2014)

KPJ’S HIGHLIGHTS

11/21/2014

Most number of specialists & sub-specialists [including

Award-winning Consultants]

Nationwide Presence Largest integrated network

of private specialist hospitals in Malaysia

High standards of patient safety - Accreditation

Aged Care Services Innovative services raising

industry benchmarks

Healthcare Innovation - IT, equipment

& treatment Healthcare Education - The first private

higher education institution approved to offer

post graduate medical program

Transformational Leadership

KPJ’S HIGHLIGHTS

KPJ has 26 hospitals nationwide – with various Centers of Excellence

1. Orthopedics

2. Cardiology

3. Oncology

4. Eye Center

5. Weight Management

6. IVF Center

7. Reconstructive & Cosmetic surgery

8. Rehabilitation Center

SUCCESS FACTOR #1 : LARGEST INTEGRATED NETWORK OF SPECIALIST HOSIPTALS

Specialist Treatment

KPJ Kajang

KPJ Johor

KPJ Ampang Puteri KPJ Seremban

KPJ Tawakkal KPJ Ipoh KPJ Puteri Specialist

KPJ Damansara

KPJ Perdana, KB

KPJ Selangor

KPJ Penang KPJ Sabah

17

KPJ HOSPITALS - MALAYSIA

…….and continuously building / acquiring others..

…..catering to a growing number of regional patients

KPJ’S NEW HOSPITALS OPENED IN 2014

KPJ MUAR

SPECIALIST HOSPITAL

11/21/2014 18

KPJ RAWANG

SPECIALIST HOSPITAL

19

KPJ HOSPITALS IN ECONOMIC TRANSFORMATION PROGRAMME

6 KPJ HOSPITALS LISTED –

TOTAL INVESMENT :

RM814 Million

GROSS NATIONAL INCOME

(GNI) IN 2020:

RM1.32 Billion

NEW JOBS IN 2020 :

>3,300 professionals,

>190 doctors 10 November 2011 11/21/2014

KPJ SPECIALIST HOSPITAL

BANDAR DATO’ ONN, JOHOR

KPJ PAHANG

SPECIALIST HOSPITAL

KPJ PERLIS SPECIALIST

HOSPITAL

KPJ KLANG

SPECIALIST HOSPITAL

KPJ PASIR GUDANG

SPECIALIST HOSPITAL

KPJ SABAH

SPECIALIST HOSPITAL

Opened May 2012 Opened May 2013 Opened Dec 2013

KPJ HOSPITALS IN ECONOMIC TRANSFORMATION PROGRAMME

To open in 2015 To open in 2015 To open in 2016/2017

20 11/21/2014

Foreign ventures in Indonesia, Thailand, Bangladesh & Australia

KPJ HOSPITALS IN JAKARTA, INDONESIA

KPJ HOSPITAL IN DHAKA, BANGLADESH

AGED CARE & RETIREMENT RESORT, IN BRISBANE, AUSTRALIA 21

VEJTHANI HOSPITAL, BANGKOK, THAILAND

11/21/2014

KPJ HOSPITALS - ABROAD

Board of Directors & Senior Management

- Well balanced Board of Directors :

Deliberation & implementation of strategic,

competitive transformational strategies

Ensure sustainability of KPJ’s high performance

- Unity & cohesiveness : the leaders & team members

raise each other to

increasingly higher

levels of motivation

& morality

SUCCESS FACTOR #2 : TRANSFORMATIONAL LEADERSHIP

22

Development of Leaders

- Strong emphasis on embracing Transformational

leadership style : creating high standards throughout

the Group

- Leaders themselves

take on responsibility

to identify & develop

future Leaders

SUCCESS FACTOR #2 : TRANSFORMATIONAL LEADERSHIP

23

Future leaders

NURTURES

LEADER

Knowledge programmes : in-house training as well as collaboration with renowned varsities (Malaysian & foreign universities)

1st in HEALTHCARE EDUCATION : in 1991, 1st in Malaysia to offer 3 year Dip. In Nursing programmes

Upgraded to KPJ Healthcare University College (KPJUC):

1st private higher institution approved by Ministry of Education to offer advanced medical degrees at its OWN School of Medicine - programmes for Specialist Doctors

SUCCESS FACTOR #3 : INNOVATIVE HEALTHCARE EDUCATION

KPJ HEALTHCARE UNIVERSITY COLLEGE NEW ACADEMIC

BLOCK - 2014

24

SUCCESS FACTOR #4 : STRATEGIC BRANDING

Position KPJ as Industry Leader

Media presence : conventional, digital, online (websites)

Participation in B2C, B2B initiatives (at home & abroad)

Books & Publications : KPJ Anniversary Book, Care for Life, KPJ Medical Journal, Spotlight on KPJ’s Medical Consultants

Community Outreach Programmes

Out-of-Home (OOH) media

Innovative Entrepreneurial services: Home Nursing Services

Strategic sponsorship & collaboration

Health tourism

HOME NURSING CARS

25 11/21/2014

Continuous development of innovative

Information Systems – efficient integrated

Group-wide networks :

Healthcare Information System (HITS)

KPJ Clinical Information System (KCIS)

Picture Archiving & Comm. System (PACS)

E- Clinical Governance : easy reference &

monitoring 26

SUCCESS FACTOR #5 : INTEGRATED IT NETWORK

SUCCESS FACTOR #6 : CONSISTENT HEALTH TOURISM EFFORTS

27

Government initiatives via :

- MHTC & MOH

- MATRADE, MIDA & MIDF

- Tourism Malaysia, ITC

- State Tourism Agencies

Participate in:

- International exhibitions

- Trade expos

- Seminars , Collaboration & Partnership with Banks, Insurance Companies & TPA.

Conduct promotional visits , Sales Trips with Doctors’ Health Talks in Key Markets.

Peninsular

Malaysia

Sabah

Sarawak

•KPJ’s Medical Tourism hub – 4 presently + 2 in the pipeline

•Introduction of new facilities & services

•KPJ owns 2 out of 3 private hospitals in Kota Kinabalu

•RM200m multi-disciplinary hospital (relocation)

•Currently 2 hospitals : Kuching & Sibu

•Plan to develop new hospital in Miri

11/21/2014

Driving Transformation, Powering Growth 28

KPJ -

Opportunities

in Services Liberalisation

KPJ’S INNOVATIVE INITIATIVE

1. REVERSE MEDICAL TOURISM

KPJ Medical Consultants provide consultancy to patients @ foreign hospitals

Patients needing further care can be referred to KPJ Group’s Hospitals in Malaysia

To date, successful efforts in Pun Lliang International Hospital in Myanmar where KPJ has been granted 15 medical licenses for KPJ’s medical specialists to work there.

Continuous collaboration with regional partners:

a) Experienced managers posted in specialist hospitals abroad : based on KPJ’s long standing track record as hospital managers e.g. in Indonesia, Bangladesh, Thailand, etc.

b) Overseas Placement of healthcare professionals to foreign hospitals : including nurses, allied health personnel etc.

2. MANAGEMENT ABROAD

KPJ’S INNOVATIVE INITIATIVE

Educational programmes

a) Programmes in Malaysia : KPJ Healthcare

University College (KPJUC) - train specialist doctors, healthcare professionals

b) Training programme : expanded overseas, e.g. KPJUC’s nursing training programme as a basis for overseas training modules

3. HEALTHCARE EDUCATION

KPJ’S INNOVATIVE INITIATIVE

KPJ : AWARDS & ACCOLADES 2011 – 2014 ….

Names of Awards Year

• Healthcare Service Provider of the Year (Frost & Sullivan)

• Innovative Leadership in Globalisation (Malaysian Institute Of Directors)

• Best Performing Stock : Highest Returns Over 3 years (The Edge 100 Billion Club)

2011 – 2013

2011

2011

• Most Trusted Brand (Readers’ Digest) 2012 - 2014

• Best Managed Co : Small Cap (AsiaMoney) • Excellence in IT (HR Magazine)

2013 2013

• Excellence In Global Economy - Best Company For Leadership in Private Healthcare In Malaysia

2014

• Largest Private Healthcare Chain In Malaysia (MBR) • Best Companies to Work For in Asia (Business Media

International HR Asia) • Top 100 Global Marketing Leaders 2014 (World Marketing

Congress)

2014 2014

2014

…more awards & recognition (Group & Hospitals) 11/21/2014 32

KPJ: 19th PLACEMENT IN

MALAYSIA’S TOP BRAND

&

IS THE ONLY HEALTHCARE

COMPANY

34

Developing a Medical Hub for Health Tourism KPJ Specialist Hospital Bandar Dato’ Onn

KPJ HEALTHCARE BERHAD

Level 12, Menara 238, Jalan Tun Razak,

50400 Kuala Lumpur, Malaysia

+603 2681 6222

+603 2681 6888

www.kpjhealth.com.my