KPJ Healthcare sets aside RM500mil capex on new hospital, upgrades
21 May 2023
KPJ Healthcare Bhd (KPJ), one of the main healthcare service operators in the country, has allocated capital expenditure (capex) of RM500 million for this year.
Its chairman Datuk Md Arif Mahmood said the capex included the construction of a new hospital in Kuala Selangor and improvement of its 29 existing hospitals.
Md Arif said its new Kuala Selangor hospital was expected to open at early 2024.
“The capex for this year will not only include the upgrading of the existing hospitals but also be use to buy new equipment and managing the data infrastructure,” he said at a press conference after the launch of KPJ Damansara Specialist Hospital 2 (DSH2) by the Sultan of Johor Sultan Ibrahim Sultan Iskandar today.
Md Arif said DSH2 was part of the overall KPJ Healthcare’s continuing effort to set the benchmark in healthcare services.
He indicated that business activities in DSH2 had been steadily gaining traction since its opening in September 2022.
“The hospital, which has a full capacity of 300 beds, currently operates 60 beds with an occupancy rate of 60 per cent.
“We see the of occupancy rate will remain at 60 per cent with the number of beds at DSH2 will be doubled to 120 beds by the end of this year,” he said.
Meanwhile, Md Arif said the company was optimistic about the outlook of health tourism industry this year underpinned by the returning medical tourists.
He said since the borders repening and resurgence of the global and regional economy, the industry had provided new opportunities to the country’s healthcare service sector including KPJ.
“Not only to KPJ but the entire sector has the potential to grow in health tourism.
“The opening of borders has made it possible for this sector to regain dominance, especially involving health tourists from regional countries such as Indonesia and Singapore.
“Currently, about 30 per cent of DSH2’s customers are from abroad, especially from Indonesia. We target to achieve 50 per cent by this year,” he added.