KUALA LUMPUR (Feb 27): Sunway Healthcare Holdings Bhd (SHH) is assessing potential expansion into Southeast Asia as part of its long-term regional growth ambitions, according to executive chairman Jeffrey Cheah, founder of Sunway Group.
Speaking at the company’s prospectus launch, Cheah said the group has built a solid foundation in Malaysia but will approach overseas ventures cautiously due to differing regulatory systems, work cultures and business environments.
“While the intention to expand regionally exists, there is no fixed timeline. We must proceed prudently,” he noted, adding that many corporations have faced significant challenges when entering foreign markets.
For now, SHH will focus on strengthening its Malaysian operations. President Datuk Lau Beng Long shared that the group is actively exploring land acquisitions in East Malaysia and Pahang to support new hospital developments.
As one of the largest private healthcare providers in the country, SHH operates 1,805 licensed beds across five hospitals, with total bed capacity reaching 1,982. Its flagship facility, the 848-bed Sunway Medical Centre in Sunway City Kuala Lumpur, anchors its nationwide presence, complemented by hospitals in Penang and Ipoh.
The continued expansion of major healthcare institutions often has positive spillover effects on surrounding real estate markets. In the Klang Valley, demand for commercial property in KL, office space in Bukit Jalil, and supporting medical suites has remained resilient, particularly near established healthcare hubs.
On the potential impact of the government’s upcoming diagnosis-related group (DRG) payment model, chief financial officer Chelsea Cheng said it remains too early to assess financial implications.
She explained that the regulatory framework is still evolving, with the Ministry of Health currently collecting industry data. The group is cooperating fully as the new model is being finalised.
Healthcare regulatory reforms can influence investment decisions, hospital expansions and related infrastructure needs — all of which affect land acquisition trends, including industrial land in Selangor for medical supply chains and specialised logistics facilities.
SHH is set to raise up to RM2.86 billion through its initial public offering (IPO), priced at RM1.45 per share, ahead of its scheduled Main Market listing on March 18. The exercise marks Malaysia’s largest listing in nine years.
The IPO involves up to 1.97 billion shares, comprising:
An offer for sale of up to 1.39 billion existing shares
A public issue of 575 million new shares
Of these, 1.62 billion shares are allocated to institutional investors, while 345 million shares are reserved for retail investors.
At the IPO price and enlarged share base, SHH is expected to command a market capitalisation of approximately RM16.7 billion. Based on its FY2024 net profit of RM257.5 million, the listing implies a price-earnings ratio of 64.8 times and an enterprise value-to-Ebitda multiple of 36.1 times.
The expansion of large-scale healthcare groups typically supports broader ecosystem growth, including:
Medical office space in Bukit Jalil and Greater Kuala Lumpur
Commercial property in KL catering to specialist clinics and healthcare services
Factory facilities in Puchong supporting pharmaceutical and medical device manufacturing
Industrial property in Subang area for distribution and medical supply logistics
As healthcare demand rises alongside population growth and medical tourism recovery, supporting real estate segments — particularly industrial land in Selangor — are expected to remain integral to the sector’s long-term infrastructure needs.
For investors active in Kuala Lumpur and Selangor’s industrial and office markets, the listing and expansion strategy of Sunway Healthcare highlights the increasing interconnection between healthcare growth and property demand within Malaysia’s evolving urban landscape.
Indonesia