New Healthcare Player In Malaysia Focusing On Lower Income Groups
Sinmah Capital Bhd (Sinmah) is venturing into the heathcare segment, earmarking MYR 100 million (USD 25 million), to be raised through internal funds and bank loans, for building a hospital in Nilai. Sinmah is an investment holding company, which divested its poultry business in 2017, to focus on its property development business and enter into healthcare. It teamed up with Amegajaya Medical Planning Group (AMP) to establish Sinmah Amegajaya Healthcare Sdn Bhd (SAH), 70% of which is owned by Sinmah and the remaining 30% by AMP.
Sinmah is seeking to acquire a property in Nilai for MYR 27 million and redevelop it into a 200-bed full service integrated public-private university hospital (IPPUH). Universiti Teknologi MARA as the clinical partner operating the IPPUH. The IPPUH will mark many firsts, including offering multi-tier services that meet the needs of different market segments and the setting-up of the country’s first integrated Centre of Excellence for Autism & Geriatric Care. The construction is targeted to be completed within 28 months, starting from Mach 2019.
Sinmah is looking to do a MYR 500 million (USD 122 million) Sukuk (Islamic bonds) issuance in a couple of tranches. In the near term, the company has plans for another IPPUH and nursing college in Cheng, Malacca.Through SAH, Sinmah aims to build around 20 to 25 IPPUHs over the next 10 years in a number of states across Malaysia including Negeri Sembilan, Malacca, Selangor, Perak and Kedah, to serve the bottom 40 (B40) and middle 40 (M40) income groups by providing affordable healthcare services. Improving healthcare services for the B40 is a focus area for the present government. The Malaysian government's National B40 Protection Scheme commenced on 1 Janaury, 2019, and will cover 36 critical illnesses including AIDS, Alzheimer's, blindness, cancer and heart attack. The scheme with an initial size of MYR 2 billion (USD 490 million) is expected to benefit around 4.1 million B40 households.
(Source: The Edge; New Straits Times; Star Online)