Singapore’s largest private healthcare provider Parkway said on Monday it aims to build hospitals in China and Vietnam to diversify from its home market which is close to saturation.
Parkway operates three hospitals in Singapore with a fourth under construction. It also manages another 13 across the region, including 11 in Malaysia. Its Singapore hospitals, which attract wealthy businessmen and royalty from neighbouring countries, account for about two-thirds of Parkway’s revenue.
“Once Parkway Novena Hospital is complete, I don’t think there will be many new landsites where we can open new private hospitals on as Singapore is a very mature market,” Chief Executive Tan See Leng told Reuters in an interview.
“Our target is that as the pie continues to grow, at some stage the international segment will grow to 45 percent of revenue,” Tan said.
Tan, who took over as CEO in April, identified China and Vietnam as priority countries due to their strong economic growth. Patients in these countries were also familiar with Parkway and the “Gleneagles” brand name used by many of the firm’s hospitals, he said.
Parkway currently operates specialist clinics in China but has no operations in Vietnam.
Parkway, which is about 25 percent held by India’s Fortis Healthcare, last week reported a 22 percent rise in first quarter net profit to S$26 million.