CHALLENGES / MITIGATION Challenges Mitigation Actions Results • Rising staff costs due to minimum wage increase Review and redesign jobs specifications to evolve with the wages increase and re-skilling staff competencies • Increased productivity through multi-talented and specialised staff facilitate the workforce optimisation with minimal disruptions • Increasing cost of sales for maintenance and consumables Sub-contracts revision, utilisation of internal subject matter experts, and improvement of procurement and inventory processes • Improved cost efficiency and strengthen specialised staff capability • Uncompetitive clinical waste service rates for private healthcare Revision of clinical waste service rates • Increased competitiveness in the private healthcare sector • Profitability challenges in Asset Management Services (AMS) at Hospital Tunku Azizah (HTA) Exit from HTA AMS Operations • Successfully concluded the exit agreement with Konsortium ProHAWK Sdn Bhd Optimise service delivery to enhance efficiency, improve data accuracy, and reduce costs. Expand into private healthcare markets to diversify revenue streams beyond government contracts. Leverage pooled procurement with other concession companies to achieve economies of scale and cost reduction through collective bargaining power with suppliers. OPPORTUNITIES Healthcare Solutions BUSINESS REVIEW UEM EDGENTA BERHAD 88 Integrated Annual Report 2024
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