“World’s best hospital” turns unprofitable for Petronas, that’s RM1 billion gone, says DAP
National oil company Petronas lost RM1.1 billion in the last ten years by investing in luxury private hospital Prince Court Medical Centre, said a DAP lawmaker.
Questioning the need for the company to engage in non-core activities, Bukit Bendera MP Zairil Khir Johari (pic) said despite costing RM544 million to build, the healthcare centre in Kuala Lumpur has yet to reap any profits.
He said the hospital recorded a loss of RM111 million in 2008 and the figure nearly doubled to RM192 million in 2009 before haemorrhaging a further RM450 million in 2010.
"By year ending 31 December 2011, the accumulated losses stood at RM1.08 billion," he said in a statement today.
Despite being named the "World's Best Hospital" by Medical Travel Quality Alliance, Zairil said that Prince Court's is still bleeding financially compared to its competitors.
In citing IHH Healthcare 2012 financial report, Zairil noted healthcare provider Parkway Pantai – which owned a chain of hospitals in Malaysia and Singapore – recorded a revenue of RM4.75 billion in 2012, of which RM818 million was declared as profit.
"Even if it is indeed the 'world's best hospital,' it still remains a question whether Prince Court is able to eventually turn a profit, and if not, then why is the public effectively subsidising a loss-making luxury private hospital," he asked.
He said the billion-ringgit loss has escaped the attention of the Auditor General's Report as according to the law, Petronas is answerable solely to the Prime Minister.
"Even Members of Parliament have no access to its financial records besides a simple annual report that is published for public consumption," he said.
Zairil said the losses signalled an urgent need for greater oversight into Petronas financial matters, considering the importance of the national oil company to our country's coffers.
Formed by an Act of Parliament in 1974, Petronas is the custodian of our nation's entire oil and gas resources, and remains until today Malaysia's only Fortune 500 company.
In the last few years, it had contributed a yearly dividend of RM30 billion to the government. - October 18, 2013.
