Citing public opposition, conglomerate Sime Darby Berhad today announced that it would not pursue its ambitious plan to take over the National Heart Institute (IJN).

In a statement issued later in the day, the multinational company said that the decision was made after taking into consideration the "public sentiment and feedback" on the matter.

The group's chief executive officer and president Ahmad Zubir Murshid said that the company has to respect the "wishes of the rakyat" for IJN to remain in its present structure

"We believe that continued investment in cardiovascular care is critical because it is a leading cause for hospital admissions and one of the major causes of deaths in Malaysia.

"A partnership with IJN would have been a winning proposition for us, IJN, stakeholders and the public and it was on this basis that we approached the government on a possible partnership with IJN,'' he added.

"But we are a company whose shareholders represent more than 10 million Malaysians and we have to respect the wishes of the rakyat for IJN to remain in its present structure," he said.

The company also said that it had written to the government in August expressing interest in a partnership that would be "mutually beneficial in extending the scope and scale of operations of Sime Darby Healthcare and IJN".

The government however, although initially agreed in principle with the proposal, said that it had deferred its decision to allow Sime Darby to begin negotiations with the Finance Ministry on taking a 51 percent stake in IJN.

A strong public outcry, including from the specialists working in IJN, is believed to have reversed the government's decision. Among the main concerns raised included the possibility of Sime Darby increasing the fee structure at the institute.

On Dec 19, deputy premier Najib Abdul Razak said the deal has been put on hold until an in-depth study is conducted by the relevant ministries.

The institute was carved out of the Kuala Lumpur general hospital in 1992. Specialising in cardiology and cardiothoracic surgery, it has provided speedy, efficient and affordable treatment.

Pledge to maintain fee structure

Sime Darby in its statement today said that the partnership with IJN would have brought together IJN's leadership in cardiovascular and thoracic care and Sime Darby Healthcare's expertise in private tertiary care.

"Sime Darby Healthcare's plan was to set up centres of excellence in various medical fields, such as cancer, heart and neurology, in Malaysia and overseas," it said.

It added that it was also well aware of IJN's role in providing excellent and affordable medical treatment, particularly to pensioners, low-income earners and the poor.

It said that the cornerstone of the proposal was aimed at ensuring that the rakyat would not be deprived of top-class medical care.

It also added that its proposal included a guarantee that poor patients, pensioners and those from the lower and middle-income groups would continue to enjoy excellent medical treatment without change to the status quo.

It revealed that based on its proposal and assurance, the government gave it the green light to conduct due diligence on IJN and put together a comprehensive business plan.

Ahmad Zubir said that he remained upbeat about the prospects of the healthcare sector and would continue to look for opportunities for expansion and to turn Sime Darby Healthcare into a gold standard healthcare provider in the region.

The company is nevertheless pursuing a plan with budget carrier AirAsia to build a new low-cost terminal, to be called "KLIA East @ Labu".

It will be built on a 2,800 hectare site (6,919 acres) under a private finance initiative, costing RM1.6 billion.

The project will also anchor Sime Darby's developments in Labu, Negri Sembilan, which include five new townships that will offer education, health, sports, high technology, recreation and entertainment services.