KLCC Holdings sets its sights on healthcare

KUALA LUMPUR: KLCC (Holdings) Sdn Bhd has set out growth strategies for 2024 that will include it venturing into the healthcare sector.

Group chief executive officer Datuk Md Shah Mahmood said this was something the group is exploring without setting a time frame for its implementation.

“We are looking at developing a full-fledged sector which will incorporate a hospital, senior living and the infrastructure that comes with it.

“This will be a big thing for the group and a long-term project,’ he told StarBiz.

Md Shah said he would ensure that cash flows are ongoing and whatever projects being taken on by the group would be driven by the market.

He is also CEO of KLCCP Stapled Group consisting of KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (REIT).

“As an established group, there are stringent criteria when it comes to acquisition and investments particularly for the REIT segment.

“We look at both potential and performing assets because these will only be acquired by the REIT once they mature,” he said.

For now, he said the group is looking at what it might inject into its portfolio.

“Overall, our assets amount to RM18bil for KLCCP. Nevertheless, we plan on looking at new spaces that we are not in yet, something we like to call ‘white spaces’,” he said.

Md Shah said the group has been doing well with its office segment the most stable as it tripled its net lease for its long-term tenants.“We are fully occupied for the office buildings, we also managed to secure more occupancy for our retail which is Suria KLCC.

“At the moment we have about 96% in occupancy for retail,” he said.

As for its hotel segment, the Mandarin Oriental hotel did very well, he said.

“We’re back in the black, the hotel business has been challenging particularly in the last few years but we have been pushing for occupancy and we have a new general manager to drive our business forward,” he said.

He added the fourth quarter results looked promising for the group as it looks to raise the bar and give out better dividends to shareholders.

“For us to be better, a good support system must be in place.

“Ultimately, we are in the business of working with customers so understanding those dynamics are really important.

“Particularly, providing a customer experience that is of good quality and worth remembering.

“I believe we have crafted a winning formula already,” he said.

Md Shah said the formula is part of the group’s blueprint which covers a three-pronged strategy – to maximise cash flow, expand the core business and step up in all areas where possible.

“Right now the goal is to have the discipline to execute this in the next five years.

“We will renew it and tweak it from time to time and our focus will remain on being as customer-centric as possible,” he pointed out.

On a personal level, Md Shah said as part of his legacy, he planned to build up the next generation of leaders that would be able to drive growth not only for the group but for nation-building as well.

“We need to build more resilient and authentic leaders and to do this, equipping yourself is critical.

“This is why we have training and programmes for all our employees, from the top down. I want to bring this generation of people to a different level,” he said.

Despite other malls and attractions popping up like The Exchange TRX and 163 Retail Park, Md Shah said he is positive about the growth momentum.

“Additionally the visa free travel for tourists from India and China is expected to contribute to our retail and hospitality segments. We will continue aiming for bigger things this year,” he said.