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COMMUNITY HOSPITAL IMPROVEMENT MARKETING, PR OR ONLINE PRESENCE

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The MAA Medicare Charity Dialysis Centre in Jalan Sungai Besi was dedicated to YBhg Tan Sri Dato’ Lee Lam Thye, for his passion, commitment and dedication towards needy kidney patients. Tan Sri Lee has supported the good work of the Foundation the last 20 years.

3TAN SRI LEE LAM THYE HONOURED

The MAA Medicare Charitable Foundation was awarded the GOLD winner, Best Practice Award 2016 by the European Society of Quality and Research (ESQR). 75 awards from 63 countries were presented to various industries and MAA Medicare was the sole Foundation recognised for this prestigious award.

The event was in Brussels, Belgium on the 4th June 2016.

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CONTENTS

Printed by LC Premier Sdn Bhd (951217-M)A-2-8, Merchant Avenue, Bukit Serdang, Jalan BS14/1, 43300 Seri Kembangan, Selangor.

3 Tan Sri Lee Lam Thye Honoured

4 - 5 Chairman’s Message

6 Income 2015

7 Expenditure & Subsidies 2015

8 Abridged Income and Expenditure Statement

9 Abridged Balance Sheet

10 Statistics

11 Kids@Medicare & Care

12 - 13 Patient’s Welfare Fund

14 - 15 Events

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TUNKU DATO’ YAACOB KHYRACHAIRMAN

CHAIRMAN’S MESSAGE4CHAIRMAN’S MESSAGECHAIRMAN’S MESSAGE

Dear friends of MAA Medicare,

Firstly, a big THANK YOU to you - our corporate donors, partners, sponsors, government agencies and especially our dedicated staff - for your unwavering support. Because of you, over the last 21 years, we have managed to assist more than 10,000 kidney patients from the lower income groups in Malaysia, and their families, continue to live a dignified life that they truly deserve.

From our first centre in Jalan Ipoh, Kuala Lumpur, we have grown to 12 dialysis centres nationwide, and currently serve 830 patients in nine states. Today, there are approximately 37,000 patients on dialysis in Malaysia, and the latest figures show an additional 7,000 new patients a year, who are being diagnosed with renal problems. Our goal, of making dialysis treatment affordable and accessible, to the needy members of our society, is still relevant today, as it was 21 years ago.

That said, I would like to share a few recent achievements with you.

MAA Medicare was the first charity organisation from Malaysia to win the Gold Award under the ‘Corporate Social Responsibility’ category at the Asian Hospital Management conference in 2014. For the Year 2015, MAA Medicare won another two awards from the same organization; which are the Gold Award in the ‘Community Hospital Improvement’ category and the Excellence Award for ‘Marketing, PR or Online Presence’. With 361 entries from 101 hospitals from 12 countries vying for these awards, this is indeed a high honour for our charity.

In 2016, we were honoured with another historic award - the Gold Award for Best Practices 2016 organised by the European Society of Quality Research (ESQR) based in Belgium. With 63 countries representing five continents and 75 awards up for grabs, MAA Medicare was the sole charity to receive this prestigious accolade, on 4 June 2016 in Brussels.

Congratulations again to our teams on the ground, and to all our partners, for their commitment, in serving the underprivileged in our country. These awards motivate us to strive harder and give more.

In the following pages of this annual report, you will note that despite the increasingly challenging economic climate, we have managed to raise RM 3.8 million in donations (in the form of machines, equipment and cash) of which 82% was utilised to subsidise various medical programmes of the Foundation. As always, I am proud that we have kept our administrative costs to a conservative 3.7% of total revenue.

Our total income was RM 23.4 million and expenditure was RM 21.5 million, excluding subsidies, which amounted to RM 3.1 million.

For the year 2015, the Foundation was financially affected by two factors, namely the substantial fall of the Ringgit against the US Dollar, and the implementation of the Government Service Tax (GST). Since a great deal of medical products are imported, and transacted in US Dollars, the cost of medical supplies and equipment, have gone up substantially in Malaysia. As for in-house expenses such as our preventive maintenance, medical waste, rental of properties and upkeep, the GST had a roll-on impact on our numbers.

Fortunately, it would appear that the impact of these two factors, are expected to abate this year. We will, nevertheless, continue to look into more cost effective ways of managing our centres and supply chain, without sacrificing the quality of our medical care.

Despite these challenges, I am proud that we have continued to actively keep organising events to run our Patients Welfare Fund (PWF) and Kids@Medicare programmes (refer to pages 11-13). Our PWF programme continues to provide free groceries, medication, transportation and treatments for 80 patients, whose finances are so extreme, that they cannot even afford the bare minimum dialysis fees. Under the Kids@Medicare programme, we lend a helping hand to our patients’ children, with back-to-school assistance and school holidays activities.

Last year, we announced plans to start the MAA-Medicare Heart Charity Fund where we aim to play a leading role in the fight against heart diseases, stroke as well as premature sudden cardiac death. Our goal is to provide needy patients, with access to the highest quality and state-of-the-art cardiac and vascular treatment, at a highly subsidised cost. We also plan to actively educate the public, about the need to maintain a healthy lifestyle, to mitigate the risks of cardiac and vascular diseases.

In this respect, I am happy to say that we have finally received, all the necessary regulatory approvals from the government, to proceed with this very noble project. We have commenced work on the project, and that we expect to be able to start operations, by the first half of 2017.

MAA Medicare is a charity to help the underprivileged people of Malaysia, to gain access to, and receive high quality medical care and attention, in areas where the socio-economic system is unable to effectively assist them. I humbly ask for your continued support, as we carry on providing preventive education, as well as quality medical attention and care, to the deserving and the needy, for a better tomorrow for them, and for our society.

A man’s true wealth is the good he does in the world ~ Kahlil Gibran

6 7INCOME 2015 EXPENDITURE & SUBSIDIES 2015

SUBSIDIES

Sponsorship from PERKESO : 361 patients sponsored by PERKESO at RM130 per treatment. Subsidies by MAA Medicare between RM20 to RM50 per treatment (varies on type of dialyser used).

Sponsorship from others : Government Agencies, Statutory Bodies, Private Companies, Non- Government Organizations, etc.

Sponsorship from KKM : 183 patients sponsored by Ministry of Health (KKM) at RM50 per treatment. MAA Medicare subsidises between RM30 to RM100 per treatment (varies on type of dialyser used).

Note: 82% of total donations received (RM3,102,881) is allocated / utilised for subsidies and various programme for patients.

RM3,102,881Total Amount

Dialysis Treatment Fees - RM2,123,180

Bloodtest Charges - RM251,082

Nephrologist Fees - RM427,180

Patient’s Welfare Fund - RM281,539

Kids@Medicare - RM19,900

(8%)(8%)(68%)

(1%)

(9%)

(14%)

Sponsorship from PERKESO - RM7,828,350

Sponsorship from KKM - RM1,860,560

Sponsorship from others - RM3,416,438

Dialysis Machines / Medical Equipment Donation - RM1,551,840*

Interest/Dividend - RM1,059,079

Cash Donation - RM424,830*

Direct Mail Appeal (DMA) - RM841,547*

Other Income - RM1,480,658

Gift Programme - RM949,787*

Dialysis Fees from patients - RM2,834,585

Sponsoship from JPA - RM1,146,280

(33%)

(5%)(6%)

(12%)

(4%)

(2%) (4%)

(15%)

(8%) (7%)

(4%)

RM23,393,954Total Income

*Total donations received: RM3,768,004

RM21,561,806 Total Expenditure

Medical Disposable - RM8,282,956

Doctors & Nursing salary &Allowance/EPF & Socso - RM4,668,812

CAPEX - RM1,790,524

Dialysis Operations /Maintenance of Machine /Equipment / Premises - RM5,810,406

Fundraising Expenditure - RM141,499

Management &Admin Expenditure - RM867,609

(38%)

(22%)

(8%)

(27%)

(4%)(1%)

8 9Abridged Income and Expenditure Statement for the Financial YearEnded 31 December

Abridged Balance Sheetas at 31 December

2015 2014 RM RMINCOME

Dialysis fees 17,086,213 16,947,608 Direct expenses (8,282,956) (7,498,172)

8,803,257 9,449,436

Donations 1,976,670 1,399,561 Income from charity events 1,791,334 2,609,373 Other income 2,539,737 3,279,746

15,110,998 16,738,116

LESS: EXPENDITURE

Staff costs- Salaries, bonus and other staff related expenses 4,728,701 4,585,419 - Defined contribution retirement plans 667,582 643,980 Provision/(write back) for unutilised staff leave 129,481 (48,351) Auditors’ remuneration 7,008 7,012 Depreciation of property, plant and equipment 1,878,320 1,923,518Rental 936,759 892,069 Water and electricity 929,724 882,099 Property, plant and equipment written off 22,077 86,500 License 24,991 31,843 Maintenance expenditure 445,147 426,154 Fundraising project expenditure 70,787 203,725 Disposal of clinical waste 287,434 270,291 Insurance 72,491 92,151Secretarial fee - 1,800Write back of provision for doubtful debts (29,903) -Telephone and fax 66,089 67,737 Transportation charges 101,295 114,993 Sponsorship 678,262 350,286Quit rent and assessment 44,674 (4,817)Allowance for diminution in value 36,086 981,584Other charges 391,771 464,331

11,488,326 11,972,324

SURPLUS FOR THE FINANCIAL YEAR 3,622,672 4,765,792

2015 2014 RM RMNON-CURRENT ASSETS

Property, plant and equipment 17,590,101 17,763,986Investment 14,565,994 6,545,752Fixed deposits with licensed financial institution 4,000,000 4,000,000 36,156,095 28,309,738

CURRENT ASSETS

Inventories 1,121,029 1,045,618Dialysis fees receivables 2,527,974 2,265,901Rental deposits 245,137 229,685Other receivables and prepayments 1,390,902 1,219,894Fixed deposits with licensed financial institutions 15,049,028 18,012,618Cash and cash equivalents 2,843,532 2,813,690

23,177,602 25,587,406

LESS: CURRENT LIABILITIES

Amount due to suppliers 261,127 364,992Patients’ deposits 236,549 231,112Rental deposit 4,991 10,408Others payables and accruals 3,392,001 1,196,710

3,894,668 1,803,222

NET CURRENT ASSETS 19,282,934 23,784,184 55,439,029 52,093,922

TRUST FUND

Accumulated Funds 55,205,212 51,582,540Patient and Children Welfare Funds 233,817 511,382 55,439,029 52,093,922

10 11STATISTICS

PATIENTS AGE GROUP

PATIENTS GROWTH

CARE (Care And Respect the Environment)

Kids@Medicare

KIDS@MEDICARE & CARE

10%(81)

age31-40

20%(154)

AGE41-50

35%(277)

age

>60

2%(16)

AGE

12 1312PATIENT’S WELFARE FUND (PWF) PATIENT’S WELFARE FUND (PWF)

Groceries & Home Visit - RM13,494

EPO Injections & Venofer - RM114,452

Festive Celebration - RM7,759

Aid to flood victims/House burning/Gifts - RM7,650

Dialysers - RM40,860

Transportation - RM39,109

Dialysis Treatment Fees/Bloodtest - RM58,215

(40%)

(14%)

(21%)

(14%)

(3%) (3%)(5%)

RM281,539Total Amount

The PWF program assists 80 patients who are financially drained and need extra assistance. Groceries, transportation, extra dialysis and EPO injections are given FREE to ease their financial burden.

14 15EVENTS EVENTS

Various events and activities are held throughout the year involving the community to raise the much needed funds and the awareness.

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MAA Medicare Charitable Foundation2nd Floor, Wisma MAA MedicareNo. 183 Jalan Sultan Azlan Shah(formerly known as Jalan Ipoh)51200 Kuala LumpurT: 03-4044 4468F: 03-4043 4468Email: fundraising@maa.my

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We have launched our own app! Just go to google play store and download MAA MEDICARE. The app will assist you remembering your doctor’s appointments and keep

safe all your medical records. With one tab you can obtain all the emergency contact numbers and even

store your person of contact in case of an emergency.