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KPJ Healthcare Berhad (KPJ) is Malaysia’s leading provider of private healthcare services. ,
the company manages 20 hospitals and another two in Indonesia. In demand for KPJ's
hospital services, which mainly targeted affluent segment of the market and tourism sector,
the number was expected to shrink by approximately 10 percent due to the targeted medical
tourism segment of the market, could be expected to decrease. KPJ Healthcare Group could
expand its business by focusing on the medical tourism,expand its college business in
particular because of the need to provide and further expand its international market. In issue
of funding the business expansion, KPJ initiated a major shift in its corporate strategy from
being an entirely which had played an important role in facilitating KPJ's strategic expansions
(KPJ Healthcare, 2005).
The Malaysian healthcare industry was divided into two sectors, the public and the private.
Healthcare services was not significant as the Malaysian Government was the main which
promote healthcare heavy investment in strategic industries among the private sectors, and
the healthcare. Private invest in other public amenities such as power, water,
telecommunication, and healthcare. About 70 percent of the healthcare services in the country
were provided by the public healthcare system, the 30 percent was provided by the private
healthcare correspondingly which private healthcare expenditures continue to rise over the
years.Health professionals between public and private hospital was high. However, better pay and
work environment in the private hospitals. By 2009, Malaysian hospitals were also treating a
significant number of foreign patients.In 2008, an estimated 400,000 foreign patients were treated at
Malaysian hospitals which most Malaysians sought treatments at the hospital for curative type
service.Medical tourism can be defined as ''patient movement from highly developed nations to
less'.The promotion of Malaysia is a healthcare hub for traditional remedies and modern medical.
Even though medical tourism in Malaysia was lagging behind the established neighboring medical
tourism countries such as Singapore and Thailand, it had evolved into an global economy, medical
tourism in Malaysia had emerged as one of the fastest growing visiting Malaysia for medical tourism
which had grown three times since 2003 and reaching a total of about 340,000 tourists in 2007 with
revenues of about RM250 million.In 2009, the medical tourism revenue had increased to about
RM290 million (USD97 million). The industry aimed to receive around two million medical tourists. In
2006, Malaysia still faced a critical shortage of nurses (Ministry of Health In the effort to overcome
the shortage of nurses, Malaysian authority had identified nursing as a critical field and encouraged
public and private institutions to provide nursing courses fund which provided almost a 100 percent
loan to nursing students (eTawau, 2013). About 50 higher education institutions provide nursing
education and about 30 private Malaysia (Nursing School, 2010).
The history of KPJ Healthcare Berhad began in 1979 as a healthcare division of the Johor . In 1988, the
company acquired the Tawakal Hospital in Kuala Lumpur which was facing serious financial problems
(KPJ Healthcare, 2009b). In 1990, KPJ acquired the Kuantan Specialist Hospital in Pahang. In 1993, KPJ
acquired a medical centre in Johor which later changed its its first hospital in East Malaysia, the
Kuching Specialist Hospital (KPJ Healthcare, 2005). KPJ jointly operated the Seremban Specialist
Hospital with Majlis Islam Negeri Sembilan. By the end of 2009, all of KPJ's hospital operations
provided general medical and specialists. Hospital properties allowed KPJ to unlock its asset values
and ease up Since 2006, KPJ continued its effort to include five more hospital properties into Al-'Aqar
REIT.At the end of 2009, the CEO of KPJ Group, Siti Sa'diah, and her management team needed for
the group's upscale medical services. The group's plan to become the leading regional player in the
healthcare business at risk.