Healthcare expansion plan in Asia Pacific

KUALA LUMPUR: Sime Darby Bhd plans to expand its healthcare business by doubling the number of beds in the next five years in the Asia Pacific.

Group chief executive officer Datuk Jeffri Salim Davidson said the company currently has 1,500 beds across six hospitals in Malaysia and Indonesia.

“Our healthcare business is small at the moment, contributing less than 10 per cent to the group revenue,” he said after Sime Darby’s annual general meeting.

He said the ageing population will result in increased demand for healthcare in the region, adding that it makes sense to focus on countries with big population growth such as Vietnam, India and the Philippines.

Further, he said the ageing population will generate new opportunities in healthcare, such as geriatrics, senior living solutions, medical tourism and nutrition and supplements.

Sime Darby is involved in the healthcare business via its 50:50 joint venture with Australiabased Ramsay Health Care Ltd.

Sime Darby group chief strategy officer Datuk Thomas Leong said the company’s healthcare expansion strategy is to acquire rather than to build.

“We still have to do organic growth, and the wellness centre in Subang Jaya is part of that. In terms of acquisition, we are looking for the right deal at the right price.”