result, Sime Darby may need to take extra consideration when deciding on the mark-up margin for their services.

Apart from that, there are laws regulating the board of management in private healthcare company. Under section 77 (Law of Malaysia, 1998), minister specify that two members of Board of Management shall be from the Medical Advisory Committee established under paragraph 78 (b) or 79 (b). Thus, those who are involved in private healthcare industry need to make sure that they find someone who is qualified to become the members of Board of Management (Law of Malaysia, 1998). As a result, the board of management of Sime Darby Healthcare cannot makeup of shareholders themselves but need the involvement of other parties.

2.7 Geographic Segmentation

Currently, Sime Darby Healthcare owns and operates the Sime Darby Medical Centre, the Sime Darby Specialist Centre and Sime Darby Nursing & Health Science College. They all are located in Malaysia, particularly in Kuala Lumpur, and Sime Darby Healthcare Group is planning third hospital by 2012 in Kuala Lumpur which is also in Malaysia (Ismail, 2009). It tells that Sime Darby Healthcare focuses on Kuala Lumpur, which is capital city of Malaysia with high degree of population and its density. Since Sime Darby provides world class services to the customers and most of customers are high-salary paid, they have segmented their customers within urban areas. Here, i