UEM Edgenta expects much higher revenue from healthcare next year

Moody's outlook on the Korean banking system has been negative since May 2016.

PETALING JAYA: UEM Edgenta Bhd, which is acquiring Asia Integrated Facility Solutions Pte Ltd (AIFS) for RM563.2mil, expects the healthcare segment’s contribution to total group revenue to increase to 20% in 2017 from 11% this year. 

UEM Edgenta shareholders on Friday approved the proposed acquisition, which is expected to be completed by the middle of this month.

“The acquisition will contribute an additional RM310mil to the current contribution of RM350mil from the healthcare sector. This will total RM660mil, representing 20%, of total group revenue.

“This will be reflected in 2017 and upon the successful conclusion of the acquisition on Dec 15, 2016,” UEM Edgenta managing director and chief executive officer Azmir Merican told reporters after the company’s EGM in Petaling Jaya on Tuesday.

He said the healthcare segment was fundamental to the company’s core business, besides transportation, hence the transaction is important.

UEM Edgenta, the fourth core division of UEM Group Bhd, is one of the total asset solutions players in the region, providing services to various segments such as asset consultancy, healthcare, infrastructure, facilities, property and energy.

Meanwhile, Singapore-based AIFS is the holding company of UEMS Pte Ltd, a facilities management provider with a track record of over 25 years currently servicing over 90 hospitals and healthcare institutions in the republic, Taiwan and Malaysia, with a total of 26,000 beds.

Azmir said over the next five years, UEMS’ growth strategy included expansion into other South-East Asian countries such as Indonesia and Cambodia.

In Malaysia, UEMS services the private healthcare and hospital segments such as Prince Court Medical Centre, Pantai Hospital Kuala Lumpur, Gleneagles Penang and Assunta Hospital. 

In Taiwan, it manages hospital facilities for public and private hospitals such as Saint Paul’s Hospital, National Taiwan University Hospital, Pingtung Christian Hospital and Yuan’s General Hospital. 

As for Singapore, it provides housekeeping and patient management services for clients including Changi General Hospital, St Luke’s Hospital, Tan Tock Seng Hospital, as well as Sengkang Health@Alexandra Hospital. - Bernama