GIC has entered the Malaysia private healthcare sector by acquiring a 16 percent stake in Sunway Healthcare for MYR750 million (USD180.4 million). This deal means the company is valued at MYR4.68 billion (USD1.1 billion) and concludes a search for an investor.
“This is a significant milestone for Sunway. The overwhelming interest from domestic and international investors is testament to their confidence in the Sunway brand and the track record of our healthcare division in a rapidly growing sector of Malaysia’s economic landscape,” Sunway Group Founder and Chairman, Tan Sri Jeffrey Cheah, stated.
Currently, Sunway Healthcare operates two tertiary hospitals along with ancillary healthcare businesses in both Singapore and Malaysia. It is already developing three new hospitals with a further two in the pipeline. The firm has 800 beds under its watch with expansion plans seeing that number rise to approximately 3,000 beds over the next few years.
“The participation of GIC augurs well to support the expansion of our existing hospitals and the setting up of new hospitals and ancillary healthcare businesses across the country,” Sunway Healthcare Managing Director Lau Beng Long said. “We look forward to tapping and learning from GIC’s regional healthcare knowledge and experience to further elevate our healthcare services in Malaysia.”
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The Singaporean sovereign wealth fund is active in healthcare and health-related sectors. It currently holds investments in the United States, Australia, Brazil, the Philippines, China and Vietnam with the Sunway Healthcare acquisition marking its entry into Malaysia.
“We believe the private healthcare in Malaysia will benefit from trends such as an aging population, the expanding and rising affluence of its middle class as well as a robust healthcare insurance penetration. In addition, medical tourism is expected to resume after COVID-19-related travel restrictions ease,” Amit Kunal, Head of Direct Investments Group (Southeast Asia) of Private Equity at GIC, explained. “Malaysia will remain an attractive medical tourist destination due to its good air connectivity and quality medical facilities in this region.”
