2018 UEM Edgenta Annual Report

Key Initiatives Results Mechanisation and modernising traditional hospital support services via technology • Healthcare Support - Concession & Commercial have carried out various initiatives in elevating traditional hospital support services via technology . • Edgenta Mediserve has implemented mechanisation and UE Track™ system in three (3) public hospitals - Hospital Sultanah Bahiyah, Alor Setar, Hospital Tuanku Fauziah, Kangar and Hospital Teluk Intan which resulted in total estimated cost savings of RM0.88mil in 2018 . These include the deployment of motor scrubber and KAIVAC cleaning system, Toilet Demand Inspection System (“TDIS”), Housekeeping Performance Based System (“HPBS”), Unified Clocking System (“UCS”) and Feedback Management System (“FMS”). • Langkawi Hospital – the 1 st in Malaysia to be recognised as Green Hospital . We undertook a redesign that led to a reduction in the hospital’s carbon emission by installing Solar Photovoltaic System (PV) for electricity usage, Rain Water Harvesting for watering the plants; and Food Waste Composter to convert waste to bio-organic fertilizer. • UEMS has a Centre of Excellence (“CoE”), of which objectives are to elevate service delivery for all 3 operating countries via sharing and implementation of best practices, align operational needs with strategic technology development, as well as spearhead collaborate with industry partners and government agencies. • The CoE will focus on different aspects of innovation such as mechanisation at the workplace , collaboration through technology solutions, work process design & reengineering, Robotics, IoT and analytics . Client solutions and business development • Edgenta Mediserve secured an inaugural contract for clinic support services contract for nine (9) state clinics in Pulau Pinang . • UEMS won environmental and portering services contract for Khoo Teck Puat Hospital , Tan Tock Seng Hospital and Sengkang General and Community Hospital respectively in Singapore, and secured housekeeping and portering contracts for Tri-Service General Hospital, National Taiwan University Cancer Centre and Far East Memorial Hospital in Taiwan. • Other key contracts secured include, amongst others, the support services contracts for EDA Hospital in Taiwan, Singapore’s Ministry of National Development, Singapore Examination and Assessment Board, Buddha Tooth Relic Temple and Museum in Singapore and INTI International University and Colleges in Malaysia. InMalaysia, the Government’s 7.8% year-on-year increase in the budget allocation for public healthcare spending to RM28.7 billion in 2019 will augur well for the concession business. This allocation includes a RM10.8 billion to restore clinics and hospitals, as well as for the purchase of medicine andmedical equipment. In Singapore, the Healthcare 2020Master Plan aims to double Healthcare expenditure to cater to increasing ageing population as healthcare needs will grow as the population greys. The initiatives, amongst others, include the opening of one new acute hospital or community hospital per year until 2020. In Taiwan, the Healthcare sector is expected to be boosted by higher demand for service quality and the Government’s promotion as amedical tourismdestination. Amid increased competition, the Company will continue to focus on protecting its market share, expand its value chain offerings and expand profit margins in the public and private healthcare sectors. This will bemade possible via the use of technology, mechanising operation process and deploy applications to deliver Hospital Support Services that have shown potential to improve outcomes and reduce costs, enhancement of in-house built UE Track™mobile application and systems, cross-selling and sharing of operational best practices between its concession and commercial businesses. OUTLOOK AND PROSPECTS Financial Review Stakeholder Information AGM Information 89 Governance Review of Sustainability Activities