Group CEO, IHH Healthcare
Dear Stakeholders,
As we reflect on 2024, I feel both proud and humbled to have completed my first year as the Group CEO of IHH Healthcare. It has been an immensely rewarding experience, working alongside all my colleagues as One IHH to touch lives and transform care.
A key driver of IHH’s progress in FY2024 was the transformation led by the ACE framework – Align, Challenge, Empower – introduced in late 2023. By aligning with the framework, challenging the status quo to innovate and empowering our people to lead change, we have optimised efficiency, growth, and enhanced value for patients and all other stakeholders. Our evolution is a shared long-term journey that has fostered empowerment, collaboration and resilience at every level.
I am heartened by the Group’s steadfast focus on patients and commitment to doing right by our people, the public and our planet. Our ‘Care. For Good.’ aspiration has been fundamental in building trust and shaping our growth with a clear purpose.
2024 in Review
Year after year, IHH Healthcare has proven its strength in both good and uncertain times. FY2024 was no different.
The Group’s revenue increased 16% to RM24.4 billion, and our EBITDA stands at RM5.4 billion, a 17% growth from FY2023. PATMI declined 10% to RM2.7 billion mainly due to the one-off gain from disposal of IMU in 2023.Excluding Extraordinary Items (EI), PATMI grew 32% from a year ago to RM1.7 billion. ROE growth remains a key focus for us. On the back of our strong financial performance, IHH declared a total of 10.0 sen per share in ordinary dividends in FY2024, an increase from 9.0 sen per share in FY2023.
We delivered strong financial growth, enhanced operational and clinical excellence, and solidified our market leadership, all while prioritising high-value, cost-effective patient care. This success stemmed from increased patient volumes, advanced treatments, and improved operational efficiency, driving significant revenue and EBITDA growth across our operations.
Moving forward, we are committed to expanding our capacity and pursuing sustainable growth, while ensuring continued medical excellence and long-term value. We are proud to share some key highlights from 2024 in the following sections.
Growing Our Capacity
Expanding access to world-class healthcare remains a central priority for IHH Healthcare. We are on track to adding 4,000 beds by 2028, with around 1,000 delivered in FY2024 alone.
FY2024 saw us making strategic acquisitions in Malaysia, strengthening not just our market presence but also our medical tourism segment. We opened a new hospital in India to address the rising demand for comprehensive medical treatments.
In land-scarce Singapore, we continue to implement our “out of hospital” strategy. By growing the number of ambulatory care centres to decant lower acuity cases from hospitals, we free up beds for more complex, higher acuity treatments.
Our Commitment to Excellence and Value
With a vast network of over 140 healthcare facilities, including over 80 hospitals across 10 countries, IHH maintains a robust clinical governance framework. This framework, which meets or exceeds international benchmarks, ensures consistent, high-quality care and optimal patient outcomes throughout our network.
In our pursuit of medical excellence, we strategically acquire cutting-edge technologies to meet the evolving needs of patients, reduce treatment times and improve care.
To mitigate medical inflation, we are transitioning towards providing more value-based healthcare in our core markets. Our Value-Driven Outcomes (VDO) initiative, which focuses on delivering high-quality and patient-centred care, optimises both health outcomes and cost effectiveness. By 2025, we aim to achieve 90% of VDO outcomes at or above international benchmarks.
Malaysia
We made a strategic acquisition of Island Hospital, a 600-bed facility in Penang. It boasts excellent clinical offerings, a sizeable land bank which offers future expansion opportunities, and is a key medical tourism destination for patients in the region. Island Hospital is expected to enjoy synergies with Gleneagles Penang and Pantai Penang hospitals.
Across Malaysia, we invested in seven robotic surgery machines supporting minimally invasive procedures across urology, gynaecology, and hepatobiliary specialities. These precision-driven surgeries result in shorter hospital stays and fewer complications, improving patient care and outcomes.
Singapore
The renovation at Mount Elizabeth Hospital (MEH) has been accelerated, with completion expected in Q3 2025. Several clinics, including the Parkway Cancer Centre, have shifted to their new location within the hospital. The newly renovated wards feature Digital Hospital initiatives like the LizFinder web application and LizWorld, empowering patients with real-time hospital information and enhancing MEH’s smart hospital capabilities.
Correspondingly, as part of our “out of hospital” strategy, Mount Elizabeth Fertility Centre is now located at the Heeren, adjacent to the hospital. We also launched Parkway Home Care to meet more community needs such as in nursing, rehabilitation, and preventive health.
IHH Singapore was also the first private healthcare operator in Southeast Asia to offer the advanced Proton Beam Therapy, a highly targeted treatment that destroys cancer cells while preserving healthy tissues. We also introduced Hyperthermia Therapy, further strengthening our radiation oncology capabilities.
India
The launch of our Gleneagles Hospitals brand in March 2024 marks a significant stride towards bringing world-class medical services to India.
In Q3 2024, we opened the 350-bed Fortis Hospital Manesar, housing state-of-the-art equipment and providing a wide range of clinical treatments to meet the burgeoning demand for private healthcare services in India.
Separately, we divested Fortis Richmond Road and Fortis Malar Hospital as part of our portfolio rationalisation strategy.
We reinforced our expertise in advanced oncological care, becoming the first in North and Central India to launch the MR LINAC at the Fortis Memorial Research Institute (FMRI). Radiation therapy is combined with MRI imaging during treatment to target tumours with pin-point precision. FMRI also became the first in South Asia to offer the non-invasive Gamma Knife Espirit for cancer patients.
At Gleneagles Hospital Bengaluru, we recently unveiled the state-of-the-art Advanced Interventional Radiology Cath Lab, where doctors can now perform complex procedures with greater precision and minimal invasion, thus reducing surgical risks and shortening hospital stays and recovery time.
Türkiye and Europe
We have extended our footprint and expanded our capabilities in this region, further strengthening our brand presence.
Acibadem Kartal commenced operations in early 2025, providing a wide range of medical treatments with cutting-edge medical equipment. The new Acibadem International Joint Centre at Acibadem Maslak Hospital in Istanbul provides diagnostics and treatments for joint disorders. It specialises in joint surgeries, with advanced equipment and medical treatments performed by esteemed experts. The Joint Centre also houses Türkiye’s first Photon-Counting CT scanner, which enhances diagnostic imaging.
Greater China
Gleneagles Hong Kong (GHK) has expanded its reach by opening new multi-disciplinary clinics, Gleneagles Healthcare Novum Place and South Horizon, providing greater access to quality healthcare for Hong Kong residents.
GHK also launched the Gleneagles Clinical Trials Centre (Gleneagles CTC), co-managed by GHK and Hong Kong University (HKU) Clinical Trials Centre. The Gleneagles CTC provides an important platform for innovative discovery, benefiting more patients and giving them a new hope.
Notably, our rebranded clinics in Shanghai have been gaining positive momentum. We plan to build an ambulatory care centre in 2025, which will also funnel more patients to Parkway Shanghai Hospital.
The Way Forward
We are confident that the focused execution of our growth expansion plan, coupled with the expansion across the healthcare continuum, will yield positive results. We will reinforce our healthcare leadership by prioritising clinical excellence and patient care, as well as transition to value-based healthcare. This will ensure sustainable profitable growth and strong returns for our shareholders.
At this juncture, I am pleased to welcome Tan Sri Dr Nik Norzrul Thani bin N Hassan Thani as our new Chairman. His extensive expertise in finance, banking, and law will be invaluable as we work together to drive continued excellence for IHH and all our stakeholders.
Ultimately, our growth is rooted in purpose. Be it enhancing patient outcomes, minimising our environmental footprint, or optimising the well-being of our employees, we remain committed to our aspiration to Care. For Good.
I extend my sincere gratitude to all our stakeholders – our patients, our dedicated people, and our valued shareholders – for your unwavering trust and confidence in IHH Healthcare. Your support fuels our commitment to continuously elevate patient care worldwide. It is a privilege to have you as part of our journey.
Dr Prem Kumar Nair
Group Chief Executive Officer
