KUALA LUMPUR: The weakening of the ringgit has so far not affected KPJ Healthcare Bhd's financial performance, said chairman Datuk Md Arif Mahmood.
Despite the challenging economic environment, Md Arif said KPJ Healthcare has managed its operations effeciently, enabling it to navigate the effects of the weakened ringgit.
With increasing healthcare awareness post-pandemic, he said KPJ Healthcare foresees continued growth in healthcare demand with another strong growth in the financial year 2023 (FY23).
"We anticipate a resurgence in elective medical procedures and the recovery of the health tourism sector, both of which are expected to contribute to its sustained growth in the current year," Md Arif said at a virtual briefing after its 30th annual general meeting (AGM) today.
On the unimpeded price increases in the pharmaceutical market, KPJ Healthcare officer in charge Norhaizam Mohammad said like other medical industry players, it has been practicing a pass-on-cost approach.
In terms of drug purchases, she said KPJ Healthcare has other suppliers other than Chemical Company of Malaysia Bhd and Pharmaniaga Bhd.
"Everyone needs to know how the healthcare business works, we practice pass-on-cost. So any increases in cost of drugs or supply will be passed on to the patients.
"However, we will not simply increase the price because any charges by doctors are regulated under the 13th Schedule. So this point has not changed in quite a number of years. Thus in KPJ we actually managed this cost as well.
"And being the biggest group of hospitals in Malaysia, we have enough volume and will be able to manage in terms of central procurement in buying the drugs, where we can buy the drugs as well as our medical equipment in bulk," she added.
KPJ Healthcare reported a record-breaking revenue of RM2.9 billion for FY2022, a notable 13 per cent increase from RM2.6 billion in the previous fiscal year.
Its net profit surged over 100 per cent, nearly tripling year-on-year to RM190.3 million compared to RM72.4 million in FY2021.
Md Arif said the reopening of the country's borders made it possible for the medical tourism sector to regain its dominance.
With a remarkable 63 per cent year-on-year increase compared to 2021, he said KPJ Healthcare's health tourism business has rebounded.
"We are seeing medical tourism numbers going up in the first quarter (Q1) 2023. With the opening of borders and more flights, we are equipped to cater for medical tourism.
"We will aggressively promote our services to international markets, including Indonesia, Indo-China, Singapore, the Middle East and North Africa," he said.