Wednesday, 14 June 2017

(NST) Sunway to open 5 hospitals within 5 years at the cost of RM1b

SUBANG JAYA: Sunway Bhd is betting big on its healthcare unit, which is being primed for an initial public offering in a few years, with five more hospitals planned within the next five years at a cost of RM1 billion.

As part of that thrust, Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah told the media today that the company will be spending up to RM400 million in ramping up the present 630-bed Sunway Medical Centre into a 1,000-bed hospital by 2020.

The RM400 million is in addition the RM1 billion to be allocated for the planned five hospitals.

Cheah said that this year, the Sunway Group estimates that its Sunway Medical Centre alone will be contributing RM50 million in net profit to the group in FY2017.

He is upbeat that once the other five hospitals are completed, they will be highly profitable as the demand for medical care is increasing in the country and will attract medical tourism.

In May this year, the group announced it 1Q2017 results where its quarterly net profit hit RM107.9 million on the back of a quarterly revenue of RM1.10 billion.