IHH HEALTHCARE EXPECTS HEADWINDS POST-COVID19

KUALA LUMPUR, April 29 (Bernama) -- IHH Healthcare Bhd is expecting to face some short-term headwinds, including rising staff costs and inflationary pressures as the world emerges from the COVID-19 pandemic.

In its 2021 annual report, the private healthcare provider said nevertheless, it would remain committed to providing sustainable growth and improving returns for its stakeholders.

It noted that inflation has been higher and more broad-based than expected -- especially in emerging and developing economies -- due to escalating energy prices, supply chain disruptions and widespread wage pressures.

“Inflation is expected to remain elevated, leading to higher operational costs at IHH, partly due to competitive salary pressures,” said IHH Healthcare.

However, the private healthcare provider expects medical tourist arrivals to rise with the easing of border restrictions, and anticipates government healthcare spending to increase in Malaysia and Singapore amidst the transition into the COVID-19 endemic stage.

“Healthcare expenditure in Malaysia could reach RM91.1 billion by 2025, with a five-year compound annual growth rate of 7.6 per cent, and Singapore is anticipating an increase in healthcare expenditures as it transitions towards living with COVID-19.

“Although private healthcare will remain in high demand, affordability of healthcare will continue to be a priority,” it said.

The group is also aware of the increased pressure on employees, especially frontline workers, due to the pandemic.

“Given the rapid increase in the number of people and their growing needs, we must find the right solution to reduce labour-intensive tasks and improve overall productivity in the healthcare industry,” it added. 

-- BERNAMA