IHH Healhcare in transformation and expansion mode
KUALA LUMPUR: IHH Healthcare Bhd will continue to strengthen its presence across the healthcare continuum in key markets such as Singapore and Hong Kong, expanding into the ambulatory care segment alongside its existing primary care clinics.
On the inorganic growth front, the group is on the lookout for strategic acquisitions, including hospitals in Malaysia, India and Turkiye.
Group CEO Dr Prem Kumar Nair said while underperforming assets in China represent only a small fraction of IHH's overall portfolio, they have recently shown signs of improvement.
'In fact, the group remains optimistic about its prospects in China and is set to invest in a major ambulatory care centre in Shanghai,' he told reporters after the company's annual general meeting yesterday.
Prem said what is particularly significant at this stage is the recognition that IHH must undergo – a comprehensive transformation to achieve many of its strategic goals.
'As a well-established organisation, some of our hospitals have been serving communities for decades – Punggol East in Singapore, Gleneagles with a 65-year legacy, Mount Elizabeth approaching 50 years, as well as Gleneagles Penang and Pantai Hospital Kuala Lumpur, both with over half a century of service.
'Given this legacy, we are now shifting our focus towards key transformation areas.
'One of the most important is the introduction of a new care model, which we have already begun implementing in markets like Singapore and Hong Kong. We are also actively encouraging other countries within our network to adopt this forward-looking approach to healthcare delivery,' Prem said.
The group's revenue in FY24 increased 16% to RM24.4 billion, and earnings before interest, taxes, depreciation and amortisation) stood at RM5.4 billion, a 17% growth from FY23.
Profit after tax and minority Interest (Patmi) declined 10% to RM2.7 billion, mainly due to the one-off gain from the disposal of the International Medical University in 2023. Excluding extraordinary items, Patmi grew 32% from a year ago to RM1.7 billion.
Return-on-equity (ROE) growth remains a key focus, and on the back of the strong financial performance, IHH declared a total of 10 sen per share in ordinary dividends in FY24, an increase from 9 sen per share in FY23.
'Many have asked whether factors like tariffs and geopolitical uncertainty – including developments in Turkiye and the US presidency of Donald Trump – have had an impact on us.
'Despite these external challenges, we have demonstrated strong resilience, delivering double-digit revenue and profit growth and achieving an ROE of 9%, edging closer to our target of double-digit ROE,' Prem said.
He said IHH's success is defined by meeting or exceeding a comprehensive set of indicators for each value-driven care procedure.
Currently, the group is tracking eight high-volume procedures under this framework – including total knee replacement, colonoscopy, and breast cancer – monitoring over 360 indicators every month. These procedures account for about 20% of all inpatient admissions across the network, representing a significant portion of patient care and clinical activity.
'By next year, we plan to expand this programme to include two additional procedures, such as Caesarean sections, allowing more patients to benefit from outcome-driven care.
'To achieve and elevate the level of quality we aim for, we are making strategic investments in cutting-edge medical equipment and improved infrastructure,' Prem said.
As a group, he pointed out, IHH reinvests its profits into clinical research, quality improvement programmes and innovations aimed at enhancing patient outcomes.
The company has embraced technology-driven care, such as ProtonBeam therapy for cancer treatment, and is creating seamless digital experiences to elevate service quality, including through the MyHealth360 app, which gives patients direct access to their healthcare.
Equally important, Prem said, IHH is committed to empowering both patients and staff by investing in continuous learning, development and modern work tools to enable its people to deliver exceptional care and perform at their best.
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