KUALA LUMPUR (June 17): KPJ Healthcare Bhd (KL:KPJ) has awarded a total of RM31.97 million worth of hospital renovation works to a company linked to its major shareholder Johor Corporation (JCorp).

KPJ, via its wholly owned unit Rawang Specialist Hospital Sdn Bhd (RSH), has awarded two contracts to JLG & BP Design Sdn Bhd (JLGBP) — RM21.47 million for the design, build and commissioning of Levels 8 and 9 (Premier Ward) at Damansara Specialist Hospital 2 (DSH2), and RM10.50 million for renovation and façade upgrade works at KPJ Damansara Specialist Hospital (DSH).

JLGBP is 60%-owned by Damansara Assets Sdn Bhd, which is an indirect subsidiary of JCorp, the Johor state investment arm that holds a 35.86% direct and 9.13% indirect stake in KPJ.

In a filing with Bursa Malaysia, KPJ said the projects form part of its Strategic Planning 2025 initiative and aim to meet rising patient demand — particularly for premium single rooms — while enhancing the hospitals’ image, improving patient experience, and streamlining operations.

The DSH2 renovation is targeted for completion by end-2025, while works at DSH are expected to be completed by the second quarter of 2026.

KPJ noted that the timely delivery of the projects is crucial, as delays could result in operational disruptions, safety and environmental risks, and potential revenue loss. Nevertheless, RSH’s management will take all reasonable measures to ensure completion within the agreed timeframe.

Shares of KPJ closed down seven sen or 2.52% at RM2.71 on Tuesday, giving it a market capitalisation of RM12.13 billion. The counter has risen over 15% since the beginning of this year.