Sizeable FDI in Sunway shows confidence in conglomerate, Malaysian economy, says PM
23 Jun 2021
The sizeable foreign direct investment (FDI) in Sunway Bhd’s unit, Sunway Healthcare Holdings Sdn Bhd, is a demonstration of confidence in both the conglomerate and the Malaysian economy, and a testament to the excellent track record in the country’s healthcare sector, Prime Minister Tan Sri Muhyiddin Yassin said.
He said in the wake of the global Covid-19 pandemic and its devastating impact on lives and livelihoods across the world, the importance of investments in healthcare cannot be understated.
“I am delighted that Singapore’s Sovereign Wealth Fund, GIC Ventures Pte Ltd, is investing RM750 million for an eventual 16 percent stake in the healthcare division of Malaysia’s leading conglomerate, Sunway Group,” he said in his pre-recorded speech for the investment signing ceremony between Sunway Bhd and GIC (Ventures).
Singapore-based Greenwood Capital Pte Ltd, a wholly-owned unit of GIC (Ventures), will inject a RM750 million investment in Sunway Healthcare via a 16 percent stake acquisition, with proceeds to be utilised for the expansion of existing hospitals and working capital purposes.
Muhyiddin said in 2019, in the pre-pandemic era, the country attracted 1.3 million international healthcare tourists with a total of RM1.7 billion in hospital receipts.
Most of the country’s healthcare travellers come from Indonesia, China, India, Bangladesh, Japan, the United Kingdom, Philippines, Australia, Singapore, and the United States.
“Owing to its world-class private healthcare services and sophisticated infrastructure, Malaysia was also ranked first in the Best Healthcare in the World Category in the 2019 International Living Annual Global Retirement Index, ahead of the likes of France and Thailand.
“All these have made Malaysia increasingly open and welcoming to both domestic and foreign investments in the healthcare sector,” he said.
He added that the long-established private healthcare facilities supported by experienced and internationally recognised doctors as well as well-trained medical staff have helped made Malaysia one of the destinations for medical tourism in the region.
Malaysia’s healthcare market is expected to grow by 127 percent to RM127.9 billion in 2027 from RM56.3 billion in 2017, according to Fitch Solutions Macro Research.
This latest investment by Singapore showed that Malaysia remains attractive to investors despite the challenging economic landscape brought about by the pandemic.
Separately, Iskandar Malaysia yesterday announced investment worth RM7.33 billion between January and April this year, while Austria-based AT&S previously announced its plan to invest RM8.5 billion in the country for its first production facility in the region.