IHH Healthcare Berhad | Annual Report 2024 38 Strategic Report Operations Review Malaysia IHH is one of the largest private healthcare providers in Malaysia. We have an extensive network of trusted hospital brands, including Gleneagles, Pantai, Prince Court and Island. 17 hospitals are accredited by the Malaysian Society for Quality in Health (MSQH); of these, three are also accredited by the Joint Commission International (JCI). In addition to clinical services, IHH Malaysia offers ancillary care via Pantai Integrated Rehab, Premier Integrated Labs and primary care clinic Twin Towers Medical Centre. Key Growth Areas • Bed capacity expansion through brownfield growth • Strategic and tactical acquisitions to meet growing healthcare demands from both local and foreign patients • Higher inpatient admissions and revenue intensity from acute cases • Ongoing drive to future-proof and refresh hospitals Performance Highlights • Completed the acquisition of the 600-bed Island Hospital in Penang in November 2024, reinforcing IHH’s leadership position in Penang and providing a significant platform for further growth. A key factor in this strategic acquisition is Island Hospital’s strong position in medical tourism, which accounts for around 60% of its revenue. This acquisition has nearly doubled IHH Malaysia’s medical tourism market share, as Island Hospital handles approximately one in three of all inbound medical tourist patients to Malaysia. Post-acquisition, IHH now has over 1,000 operational beds in Penang. • Completed the acquisition of Timberland Medical Centre with a vacant plot of land in Central Kuching in Feb 2024. The land will be used to build Gleneagles Hospital Kuching, a 200-bed facility, expanding IHH’s high-quality and valuebased healthcare services in East Malaysia to both locals and medical tourists. • Opened a new ward, D7, at Pantai Hospital Kuala Lumpur on 1 August 2024. The ward boasts greater comfort, personalised room controls and upgraded safety systems to improve patient experience, safety and overall well-being. • Became the first private healthcare provider in Malaysia to transit to solar power, with the installation of solar panels at our hospitals. Full roll-out across all hospitals will be completed by 2025, in line with the nation’s net-zero aspiration. Performance Indicators Financial FY2023 FY2024 Revenue RM3.7 billion RM4.2 billion EBITDA RM0.9 billion RM1.1 billion Operational Average Occupancy 72% 70% Inpatient admissions 241,123 256,745 Average revenue per inpatient admission RM9,925 RM10,667 Outlook With one of the fastest-growing healthcare expenditures among ASEAN nations, Malaysia poses immense potential for revenue growth and expansion for IHH. We are well-placed to capture incoming opportunities by continuing to grow at a steady pace. We are on track to add 1,300 beds in Malaysia by 2028 to meet increasing local and foreign demand for quality healthcare services. IHH Malaysia also looks to further enhance medical tourism revenue through the ramp- up of Island Hospital and the building of 200-bed Gleneagles Hospital Kuching, which will benefit from Sarawak’s strong regional connectivity and aspiration to be a key medical tourism destination. In order to future-proof ourselves, optimise operations and enhance patient care and outcomes, we will modernise our hospitals in the market through planned refurbishments and adding the appropriate medical technologies and equipment. IHH Malaysia will continue to explore earnings-accretive opportunities that drive greater synergies within clusters. Collectively, these efforts will allow IHH to increase beds, strengthen medical tourism contribution, improve healthcare quality and accessibility to locals and ultimately reinforce our standing as the private healthcare provider of choice.
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