Non-Executive Chairman, IHH
Dear Stakeholders,
I am truly honoured to have stepped into the role of Chairman at IHH Healthcare in June 2024. As a leading healthcare network, our focus is on delivering world-class healthcare, growing sustainably and creating long-term value for our stakeholders. Several of our long-term large-scale initiatives have served well in driving strategic growth and transformation.
FY2024 has been another year marked by exceptional performance, even as healthcare institutions worldwide grapple with a global shortage of healthcare workers and high inflation. As One IHH, we once again rose to the occasion and met challenges with adaptability, innovation and resilience, proving that we are worthy of the trust that has been put in us by all stakeholders.
Our accolades affirmed our outstanding efforts across the year. We were ranked among Newsweek’s World’s Best Hospitals 2024 (Gleneagles Kuala Lumpur) and World’s Best Specialised Hospitals 2024 (Mount Elizabeth Hospital and Gleneagles Hospital in Singapore).
On the laboratories front, IHH’s Premier Integrated Labs won the prestigious UNIVANTS of Healthcare Excellence 2024, which is yet another testament to the Group’s unceasing drive to positively transform healthcare.
Putting Patients First
Our unwavering dedication to uplifting the patient experience cannot be overstated. We have put in place strong clinical frameworks to ensure the outstanding quality in all our hospitals, with practices that align with our rigorous code of conduct.
The renown and longevity of all our brands speak volumes of the high standards we bear in this regard. Each anniversary we celebrate and every new innovation we adopt underscore our commitment towards patientcentric care.
For instance, the newly upgraded Ward D7 in Pantai Hospital Kuala Lumpur provides a soothing and enhanced recovery area for patients. In Singapore, Mount Elizabeth Hospital has introduced technologies to improve patient care and experience, including an artificial intelligencedriven fall prevention and detection system and the LizWorld patient entertainment system.
These are but a handful of significant developments that took place across our vast network in FY2024. More than feathers in our cap, these achievements show our continuous evolution to meet the needs of our patients.
Empowering Our Healthcare Professionals
On top of tackling increasingly complex patient needs, IHH is faced with a competitive healthcare landscape. To adequately meet these demands and deliver the best possible value for patients, we must keep our organisation at the forefront of change. We do this by fostering an environment where our employees have equal access and opportunity to upskill and future-proof themselves.
Our award-winning IHH Global Leadership of Business Enterprise (I.GLOBE) Programme equips leaders with the skills and knowledge to drive change and nurture talents. Additionally, Project Nightingale helps attract, engage, retain, develop and promote nursing talents from within IHH – since 2022, IHH has had a 14% increase in nurses even amid global talent shortage.
Even while emphasising excellence in our output, ensuring the well-being of our staff is our top priority. We are dedicated to creating a workplace that champions care, open dialogue and mental wellness, offering resources that our people can tap on at any time.
To enhance employee well-being and address healthcare worker burnout, we extended our collaboration with Intellect to offer free and comprehensive mental health resources for over 24,000 employees in all our markets. There are also employee assistance programmes to help our co-workers feel supported and heard in times of need.
Our commitment to creating a positive work culture co-relates to staff retention. In 2024, we are happy to have given out 795 Long Service Awards to dedicated employees across Malaysia and Singapore. IHH’s positive work culture has also been acknowledged externally, with the Group earning spots on the Forbes World’s Best Employers 2024 and Times World’s Best Companies 2024 lists.
Towards a Sustainable Future for All
IHH remains steadfast in its commitment to sustainability not only to our patients and people, but also to the public and our planet. We remain committed to achieving net-zero emissions by 2050 and nurturing a healthier society.
Via our Life Renewed programme, we have provided 946 patients in Malaysia with free cancer treatment since 2023. In Singapore, we also have a two-year collaboration with the Para Athletics (Singapore) to offer complimentary healthcare services for para-athletes.
We are also mindful of the impact of medical inflation on the communities we serve. To ensure healthcare remains accessible, we work closely with regulators, healthcare providers, insurers and industry associations with the aim to balance affordability with quality, value-driven care for the long-term benefit of our patients.
In December 2024, IHH Healthcare also donated RM1.0 million to support Malaysia’s flood relief efforts.
On a wider scale, we continue to drive responsible healthcare practices, including the advancement of our Antimicrobial Stewardship Programme, which is now in Phase 2 to enhance infection monitoring and combat antibiotic resistance.
It is worth noting that IHH is the first private hospital network in Asia to implement antimicrobial resistance (AMR) interventions for all its hospitals in line with the Centers for Disease Control and Prevention (CDC) guidelines.
With regards to environmental efforts, since setting our baseline targets in 2022, we have made significant progress. IHH is on track to cap Scope 1 and 2 emissions at our 2022 baseline by 2025, and is establishing baseline emissions for Scope 3 emissions by 2027.
We are also stepping up our use of renewable energy. Most IHH hospitals in Malaysia are already fitted with solar panels, and our large-scale solar project in Türkiye is expected to power up 80% of Acibadem’s healthcare facilities – a significant milestone that we will be achieving.
Our sustainability efforts align with global frameworks such as the Global Reporting Initiative (GRI), and we are working towards alignment with IFRS Sustainability Disclosure Standards (IFRS S1 & S2), reinforcing our commitment to transparency and accountability.
In December 2024, IHH earned a spot on the FTSE4Good Bursa Malaysia (F4GBM) Index and the FTSE4Good Bursa Malaysia Shariah (F4GBMS) Index for the first time, a resounding affirmation of our commitment to sustainable and responsible business practices.
Robust Governance
We are happy to welcome Ms Chua Bin Hwee to our Board of Directors. Ms Chua has vast experience in statutory audits, corporate governance, corporate restructuring, fraud investigations as well as business and finance. She will undoubtedly be a valuable asset to the Board in the days to come, particularly in areas of corporate oversight.
The ability of all our people to excel in a trusted organisation hinges on IHH’s enforcement of a robust corporate governance framework. At IHH, we have in place a comprehensive range of policies relating to Anti-Bribery and Corruption to Diversity and Inclusion and Whistleblowing.
By achieving and maintaining the highest standards of governance practices, we enhance business integrity, maintain confidence of all stakeholders including staff, patients and investors and deliver sustainable value.
Sustained Performance and Shareholder Returns
Reflecting our commitment to delivering value to shareholders, IHH declared a final cash dividend of 5.5 sen per share, bringing the total ordinary dividend for FY2024 to 10.0 sen per share, an increase from 9.0 sen per share in FY2023. This represents a payout ratio of 40% of PATMI, exceeding our revised dividend policy requirement of 30%.
This steady growth in dividends underscores our dedication to rewarding shareholders while maintaining financial discipline. As we continue to strengthen our business and expand our capabilities, we remain committed to delivering sustainable returns and long-term value.
Looking Ahead
From telemedicine and artificial intelligence-powered treatments and diagnostics to clinical trainings supported by augmented and virtual reality, these technologies will only keep advancing to support the healthcare industry. Consequently, opportunities to elevate patient experience will continue to present themselves – and we are ready to embrace positive transformation in our aspiration to Care. For Good.
It is my honour to be able to steward IHH on the next phase of its growth journey, building on the strong foundation set by the Board and all employees.
Despite macroeconomic uncertainties and industry-wide labour challenges, IHH remains agile, resilient and committed to meeting the evolving needs of our stakeholders. By leveraging our collective strengths, we will march towards stronger presence in our core markets and further enhance our ability to touch lives and transform care.
With your confidence and trust, we will get there as One IHH. Thank you.
Tan Sri Dr Nik Norzrul Thani bin N Hassan Thani
Non-Executive Chairman
