NATIONAL SEMINAR AND WORKSHOP ON

TRADE AND SERVICES

19 NOVEMBER 2014
Opportunities and Challenges in Services
Liberalisation in :
Workshop 3 :Healthcare and Medical
Tourism
Rafeah Ariffin
Senior General Manager
Group Marketing & Corporate Communication
of KPJ Healthcare Berhad
Driving Transformation, Powering Growth

ASEAN ECONOMIC COMMUNITY (AEC) 2015

ASEAN S OWN REGIONAL ECONOMIC INTEGRATION.

11/21/2014

ASEAN ECONOMIC COMMUNITY (AEC) 2015

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

EQUITABLE DEVELOPMENT
- Narrowing of
Development Gap
- Knowledge sharing
- Boost Health Tourism
Driving Transformation, Powering Growth

COMPETITIVE REGION
- Competition Policy

- Consumer Protection
- Infrastructure
- Taxation
- E-Commerce

INTEGRATION INTO GLOBAL ECONOMY

- Potential multiplier benefits to

the economy
3

ASEAN ECONOMIC COMMUNITY (AEC) 2015

Healthcare Expenditure

Driving Transformation, Powering Growth

MALAYSIAN HEALTHCARE INDUSTRY :

COMPETITIVE ADVANTAGES
Hospital facilities
- modern & high
international
standards

Medical Equipment
- Modern, state of the art
diagnostic &
therapeutic resources

Healthcare Cost

- Affordable cost
- very competitive pricing
- lower than neighboring
countries
11/21/2014

Medical
Professionals
-Highly qualified
and experienced

Tourism Destination
- Malaysia is among the
worlds most favored
destinations
5

NUMBERS OF HEALTH TOURISM PATIENTS :

MEDICAL OUT
No

Country

600,000

14

Myanmar

35,000

USA

450,000

16

Dubai

30,000

Germany

200,000

16

Netherlands

30,000

Russia

200,000

16

Qatar

30,000

Saudi Arabia

200,000

16

Vietnam

30,000

Lesotho

140,000

China

100,000

20

Ireland

20,000

UK

70,000

20

Luxembourg

20,000

Libya

60,000

20

Nigeria

20,000

10

Swaziland

47,000

23

Zimbabwe

17,000

11

Canada

46,000

24

Australia

15,000

12

Bangladesh

40,000

25

Oman

14,000

12

Ukraine

40,000

26

Iraq

10,000

14

Mozambique

38,000

26

Yemen

10,000

No

Country

Indonesia

Number OUT

Number OUT

World Health Travel Congress 2014

NUMBERS OF HEALTH PATIENTS : MEDICAL IN

No

Country

Thailand

No

Country

700,000

18

Belgium

55,000

Malaysia

650,000

19

Hong Kong

50,000

USA

550,000

19

Jordan

50,000

Mexico

400,000

21

Brazil

30,000

South Africa

325,000

21

Iran

30,000

Poland

300,000

21

Israel

30,000

South Korea

230,000

21

Slovenia

30,000

Singapore

200,000

21

Switzerland

30,000

Turkey

200,000

26

Costa Rica

20,000

10

Germany

150,000

26

Cuba

20,000

11

India

140,000

28

Colombia

18,000

12

Hungary

100,000

29

Argentina

15,000

12

Taiwan

100,000

29

Australia

15,000

12

UK

100,000

29

Mauritius

15,000

15

Tunisia

90,000

32

Finland

12,000

16

Dubai

Number IN

80,000

33

Czech Republic

Number IN

10,000

MALAYSIAN HEALTHCARE INDUSTRY :

COMPETITIVE ADVANTAGES
Malaysia ranked Asias 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

MALAYSIAS HEALTHCARE INDUSTRY

WHERE WE STAND NOW
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

Malaysias health systems 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
11/21/2014

HEALTHCARE IN MALAYSIAS TRANSFORMATION

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
11/21/2014

Economic Transformation Programme

12 Aug 2014
etp.pemandu.gov.my/Healthcare-@-Healthcare.aspx

10

KPJ HEALTHCARE BERHAD

11/21/2014

11

KPJ HEALTHCARE : MALAYSIAS LARGEST PROVIDER

OF PRIVATE HEALTHCARE SERVICES

INDONESIA :
2 hospitals

THAILAND :
1 hospital

MALAYSIA
26 hospitals,
1 university college
& 2 branches,
2 aged care centers,

8 more hospitals
under development

11/21/2014

BANGLADESH
1 hospital &
1 nursing school

AUSTRALIA :
1 aged
care center

12

11/21/2014

13

KPJS HIGHLIGHTS
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)
11/21/2014

14

KPJS HIGHLIGHTS
Nationwide Presence
Largest integrated network
of private specialist
hospitals in Malaysia

High standards of
patient safety
- Accreditation

Healthcare Innovation
- IT, equipment
& treatment

Aged Care Services

Innovative services raising
industry benchmarks

Transformational
Leadership

Most number of specialists

& sub-specialists [including
Award-winning Consultants]

Healthcare Education The first private

higher education institution
approved to offer
post graduate medical program

SUCCESS FACTOR #1 : LARGEST INTEGRATED NETWORK

OF SPECIALIST HOSIPTALS

KPJ has 26 hospitals nationwide with various

Centers of Excellence
1. Orthopedics
2. Cardiology
Specialist
3. Oncology
Treatment
4. Eye Center
5. Weight Management
6. IVF Center
7. Reconstructive & Cosmetic surgery
8. Rehabilitation Center

KPJ HOSPITALS - MALAYSIA

..catering to a growing number of regional patients

KPJ Johor

KPJ Tawakkal

KPJ Ipoh

KPJ Puteri Specialist

KPJ Ampang Puteri

KPJ Damansara

KPJ Seremban

KPJ Selangor

KPJ Perdana, KB

KPJ Penang

KPJ Sabah

KPJ Kajang

.and continuously building / acquiring others..17

KPJS NEW HOSPITALS OPENED IN 2014

KPJ RAWANG
SPECIALIST HOSPITAL

11/21/2014

KPJ MUAR
SPECIALIST HOSPITAL

18

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
11/21/2014
10
November 2011

19

KPJ HOSPITALS IN ECONOMIC TRANSFORMATION PROGRAMME

Opened May 2013

Opened Dec 2013

KPJ KLANG
SPECIALIST HOSPITAL

KPJ PASIR GUDANG

SPECIALIST HOSPITAL

KPJ SABAH
SPECIALIST HOSPITAL

To open in 2015

To open in 2015

To open in 2016/2017

KPJ PAHANG
SPECIALIST HOSPITAL

KPJ PERLIS SPECIALIST

HOSPITAL

KPJ SPECIALIST HOSPITAL

BANDAR DATO ONN, JOHOR

Opened May 2012

11/21/2014

20

KPJ HOSPITALS - ABROAD

Foreign ventures in Indonesia, Thailand, Bangladesh & Australia

KPJ HOSPITALS IN JAKARTA, INDONESIA

KPJ HOSPITAL IN DHAKA,

11/21/2014
BANGLADESH

VEJTHANI HOSPITAL, BANGKOK,

THAILAND

AGED CARE & RETIREMENT RESORT,

21
IN BRISBANE, AUSTRALIA

SUCCESS FACTOR #2 : TRANSFORMATIONAL LEADERSHIP

Board of Directors & Senior Management

- Well balanced Board of Directors :
Deliberation & implementation of strategic,

competitive transformational strategies

Ensure sustainability of KPJs high performance
- Unity & cohesiveness : the leaders & team members

raise each other to

increasingly higher
levels of motivation

& morality
22

SUCCESS FACTOR #2 : TRANSFORMATIONAL LEADERSHIP

Development of Leaders
-

Strong emphasis on embracing Transformational

leadership style : creating high standards throughout

the Group
-

Leaders themselves

LEADER

take on responsibility
to identify & develop
future Leaders

NURTURES

Future leaders
23

SUCCESS FACTOR #3 : INNOVATIVE HEALTHCARE EDUCATION

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

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 KPJs Medical Consultants
Community Outreach Programmes
Out-of-Home (OOH) media

Innovative Entrepreneurial services:

Home Nursing Services
Strategic sponsorship &
collaboration
Health tourism

11/21/2014

HOME NURSING CARS

25

SUCCESS FACTOR #5 :
INTEGRATED IT NETWORK
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 #6 : CONSISTENT HEALTH TOURISM EFFORTS

KPJs Medical Tourism
hub 4 presently + 2 in
the pipeline

Government initiatives via :

- MHTC & MOH

- MATRADE, MIDA & MIDF
- Tourism Malaysia, ITC

Peninsular
Malaysia

Introduction of new
facilities & services

- State Tourism Agencies

Participate in:

Sabah

KPJ owns 2 out of 3

private hospitals in
Kota Kinabalu

- International exhibitions

RM200m multidisciplinary hospital

(relocation)

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

Currently 2 hospitals :
Kuching & Sibu
Conduct promotional visits ,
Sales Trips with Doctors Health
Talks in Key Markets.
11/21/2014

Sarawak

Plan to develop new

hospital in Miri
27

KPJ Opportunities
in Services
Liberalisation

Driving Transformation, Powering Growth

28

KPJS INNOVATIVE INITIATIVE

1. REVERSE MEDICAL TOURISM

KPJ Medical Consultants provide consultancy to
patients @ foreign hospitals
Patients needing further care can be referred to
KPJ Groups Hospitals in Malaysia
To date, successful efforts in Pun Lliang
International Hospital in Myanmar where KPJ
has been granted 15 medical licenses for KPJs
medical specialists to work there.

KPJS INNOVATIVE INITIATIVE

2. MANAGEMENT ABROAD
Continuous collaboration with regional partners:
a) Experienced managers posted in specialist
hospitals abroad : based on KPJs 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.

KPJS INNOVATIVE INITIATIVE

3. HEALTHCARE EDUCATION

Educational programmes

a) Programmes in Malaysia : KPJ Healthcare

University College (KPJUC) - train
specialist doctors, healthcare professionals
b) Training programme : expanded overseas,
e.g. KPJUCs nursing training programme
as a basis for overseas training modules

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

Most Trusted Brand (Readers Digest)

2012 - 2014

2011
2011

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)
11/21/2014

2014
2014
2014

more awards & recognition (Group & Hospitals)32

KPJ: 19th PLACEMENT IN

MALAYSIAS TOP BRAND
&
IS THE ONLY HEALTHCARE
COMPANY

Developing a Medical Hub for Health Tourism

KPJ Specialist Hospital Bandar Dato Onn

34

KPJ HEALTHCARE BERHAD

Level 12, Menara 238, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
+603 2681 6222
+603 2681 6888
www.kpjhealth.com.my