Sime Darby promises to fulfil social obligations at IJN

Conglomerate Sime Darby Bhd, which yesterday received the nod in principle from the government to acquire a 51 per cent stake in the National Heart Institute's (IJN) holding company, has pledged to continue the heart specialist centre's social obligation to low-income earners.

Its president and group chief executive Datuk Seri Ahmad Zubir Murshid said that was one of the conditions the Sime Darby board members themselves had insisted on before the group proposed the acquisition to the government.

The heart institute's holding company, IJN Holdings Sdn Bhd, incorporated in 2005, is wholly-owned by the Finance Ministry.

He said the government stipulated three conditions in its response to the proposal, namely, the value of the proposed acquisition, the group's business plan for IJN and the group's commitment to continue the social obligation as being provided by the Health Ministry currently.

"When we expressed our intention, the government had asked us about the people.

"We will continue the commitment to the people, to the middle and low-income group. Sime will continue to fulfil the obligation," he told a media briefing.

He shrugged off suggestions that the social obligation would get in the way of its revenue.

"Part of the IJN is for the people, but there is also part of it that looks at the full-paying patients," he noted.

He explained that it would look at how best to enhance business for IJN's almost completed new wing, saying that subsidised patients would also be given treatment at the new wing proportionately.

Describing the proposal as a "win-win" situation, Zubir said it would allow Sime Darby to better synergise IJN and the group's existing healthcare centre, Subang Jaya Medical Centre (SJMC), in terms of expertise and technology.

"If required, we can send patients to SJMC too. By the way, SJMC does its corporate social responsibility on its side too. And if there is lack of operation theatres and doctors, we can rotate between the two hospitals," he said.

Expecting the business plan to be ready in about five months, Zubir said Sime Darby would also retain whatever charges IJN was committed to at present.

He however did not disclose the value of the 51 per cent stake but said it would pay in cash to the government.

He also noted that it would not be a full takeover but a partnership and did not think there would be a revamp of management and staff.

"But first I will have to meet with Datuk Mohd Radzif Mohd Yunus (IJN Holdings Sdn Bhd chief executive officer). And then we have to see the staff and discuss with the management," he said.

"At the moment, there is no detailed plan. We have to go in and do due diligence," he said.

Asked if the doctors at IJN could expect better salary with this acquisition, Zubir said: "Yes, but we also don't know how much they are getting paid now."

To a question on whether the acquisition would be fair to Sime Darby's shareholders, Zubir said they would get their value.

He said this was a golden opportunity for the group as the acquisition would enhance Sime Darby's expanding healthcare division and would attract more doctors and specialists.

"We felt that going into a brownfield was the best option. If we are going to start new, the reputation and branding would take some time. IJN already has those and we can bring in more doctors," he said.

Zubir said the bigger picture was to look at the existing specialist centres.

"But if there is none, we will set up our own. That is part and parcel of our strategy as what we have at SJMC is limited," he said.

Zubir explained that Sime Darby was looking to develop an integrated city in Labu, Negri Sembilan, with five different townships that would cater to education, health, sports, high technology, recreation and entertainment.

Thus, replicating IJN there would fit in perfectly with the proposed medical city, especially with plans to have training centres and hospitals for nurses and doctors, he said.

"We are not going to disturb the operations of the old IJN but would replicate it as a centre of excellence in the proposed medical city. With another IJN in Labu, people will associate with it instantly.

"We are also scanning for other health centres like treatment for cancer to be there. But if there is none, we will build it," he said.

He said it was also looking to expand its healthcare division to Penang and Malacca in addition to the 300-bed hospital at Desa Park City here.

Zubir said the group was also in talks with a few hospitals in the region but they were still in the preliminary stage.

"We are also looking at growing regionally and this is where we are looking to enhance our value. IJN also trains doctors around the region and we are looking at Indonesia, Thailand and China as part of our healthcare strategy," he added.