PETALING JAYA: While confident that demand for quality healthcare remains resilient, IHH Healthcare Bhd
believes that the healthcare landscape will continue to evolve amid persistent challenges.
It said ongoing cost and wage inflation, as well as higher energy and consumables costs, have kept up pressure on margins.
To manage costs, enhance productivity, and improve care delivery, the group said it has embarked on a transformation programme.
This programme leverages technology, data, and process optimisation to systematically improve productivity and cost efficiency.
Releasing its results for the first quarter ended March 31, 2026 (1Q26) yesterday of the financial year ending December, IHH saw net profit improve marginally by 2.7% year-on-year to RM528mil, as revenue also climbed 4.1% to RM6.55bil.
In a filing with Bursa Malaysia yesterday, IHH reported that revenue for its hospital and healthcare increased 3% to RM6.25bil, while earnings before interest, tax, depreciation and amortisation (Ebitda) increased 8% to RM1.4bil.
“The growth in revenue was driven by a sustained demand for quality healthcare services, a case-mix of more acute patients and price adjustments to counter inflation.
“The consolidation of Bayindir Healthcare, which was acquired in July 2025, also contributed to the increase in revenue,” it said.
At the same time, IHH said hospital inpatient admissions for Singapore in 1Q26 decreased 8% to 13,400, while revenue per inpatient admission decreased 3% to RM61,186.
It pointed out that the decrease for Singapore hospitals is attributed to structural shifts towards public healthcare utilisation and compounded by Middle East tensions which have dampened demand from certain medical travellers.
Simultaneously, hospital inpatient admissions in Malaysia for 1Q26 decreased 3% to 60,277, while revenue per inpatient admission increased 12% to RM13,446.
“The increase in 1Q26 hospital & healthcare Ebitda was mainly driven by higher revenue, offset by higher staff costs and other operating expenses," said the group.
IHH also revealed that total 1Q26 revenue for its Labs division decreased 10% to RM391mil, while Ebitda decreased 4% to RM82mil, while 1Q26 external revenue for its PLife real estate investment trust decreased 13% to RM39mil mainly due to the depreciation of the Japanese yen and lower rental income from its Japan portfolio due to tenant exits. However, Ebitda for PLife increased 8% to RM93mil with rental contributions from its Singapore hospitals.
Compared with the preceding quarter ended December, both turnover and bottom line stayed steady from RM6.58bil and RM528mil respectively.
Commenting on IHH’s 1Q26 results, group chief executive Dr Prem Kumar Nair said: “Our steady growth in 1Q26 is on the back of strong performances in Malaysia, Turkiye, Europe and India.
“This showcases the unique strength of IHH’s diversified footprint even as the industry navigates heightened volatility globally.
"Our continued strategic execution of organisation-wide transformation initiatives will empower us to build a future-ready IHH and deliver our target of double-digit return on equity by 2028.”
IHH explained that geopolitical developments, including tensions in the Middle East, have some near-term impact, such as the deferment of elective procedures by certain medical travellers.
“However, the impact is limited and largely mitigated by the group’s diversified geographic footprint and extensive network.
"This diversification enables the group to manage risks effectively while sustaining performance through differentiated growth strategies across its operating markets,” it said.
On the other hand, IHH acknowledges that it remains susceptible to foreign exchange fluctuations across its operating markets relative to the Malaysian ringgit, noting that a strengthening ringgit may moderate the group’s reported growth and margins in ringgit terms.
