SEREMBAN: Construction of a RM110mil, 10-storey medical block at CMH Specialist Hospital is expected to start this November, says Negri Sembilan Chinese Maternity Association (NSCMA) president Datuk Seri Lee Tian Hock.
The project marks the second phase of the hospital’s ongoing redevelopment plan and is slated for completion by late 2029.
“The tender exercise has been completed. Some RM70mil of the funds will be in the form of bank financing and the remaining from private placement,” he said at NSCMA’s 92nd AGM here.
The group successfully launched its private placement exercise in August last year. The exercise, completed within a month, raised RM45mil.
NSCMA is the major shareholder of CMH Specialist Hospital, previously known as Negri Sembilan Chinese Maternity Hospital, which was set up by Chinese philanthropists in 1932.
Lee said that upon completion, the hospital’s bed capacity will increase from 66 to 166, while the number of specialist clinics will rise from 16 to 45.
In February, the hospital’s multi-storey car park, built at a cost of some RM10mil, was officially opened.
With an additional 310 parking bays, it has significantly improved convenience for patients and visitors, while also supporting the hospital’s future expansion.
He said the successful completion of the private placement not only provides a strong financial foundation for the hospital’s long-term growth, but also reflects the confidence and trust placed in the group by investors and the capital market.
Elaborating on the group’s performance for financial year 2026 (FY26), Lee said the year saw significant transformation in the healthcare sector.
“Continued geopolitical tensions, global supply chain disruptions, a shortage of skilled healthcare professionals, and rising medical costs have placed unprecedented pressure on the industry.
“Based on industry trends, medical costs are increasing by approximately 15% annually,” he said.
For FY26, the group recorded revenue of RM80.7mil, with gross profit of RM29mil and profit after tax of RM1.96mil.
“Our annual bed occupancy rate declined from 79% in the previous financial year to 71%, mainly reflecting the temporary operational impact arising from the ongoing expansion and construction activities.
“Despite these, we have set our target for FY27 at RM92mil in revenue, RM10mil in profit after tax and a 75% bed occupancy rate,” he said.
The group recorded revenue of RM90.9mil and profit after tax of RM3.4mil for FY25. He said that although revenue in FY26 was lower than the previous year, this reflected the group’s current strategic investment cycle, rather than any decline in its underlying potential.
Lee added that for the first five months of FY27, revenue reached RM40.2mil, about 5% above target for the same period.
“We firmly believe that with the continued commitment and efforts of everyone across the organisation, we will be able to progressively achieve our revenue and profit targets for FY27,” he said.
Lee said that, as part of its philosophy of sharing success with those who have supported them, it announced on July 22 a dividend of 17.5 sen per share, with a total payout of RM10.15mil.
“This RM10.15mil dividend was funded entirely from accumulated cash flows generated from our past operations.
“Not a single sen of the RM45mil raised through the private placement was used for the dividend payout,” he said.
Lee said NSCMA remains steadfast in providing community healthcare through various welfare initiatives, including its dialysis assistance programme.
“During FY26, the hospital provided some RM884,000 in financial assistance towards patients’ medical expenses.
“This brings our cumulative welfare contributions since 2014 to some RM8.3mil.”
At the event, the CMH Foundation also contributed RM550,000 to assist 12 schools, up from four previously.
These included Chung Hua High School, Seremban (RM150,000); Chung Hua High School, Port Dickson (RM100,000); SMK Chan Wa, Seremban, and SMK Chan Wa II, Seremban (RM75,000 each); SMK Chi Wen, Bahau, SMJK Chung Hua, Kuala Pilah, and SJK(C) Bahau (RM30,000 each); SJK(T) Tun Sambanthan, Pajam (RM20,000); and SK Dato’ Klana Maamor, Seremban, SJK(T) Bandar Sri Sendayan, SMK St Paul, Seremban, and SJK(C) Kampung Baru, Mambau (RM10,000 each).
Lee said that although FY26 was challenging, the group decided to share part of its achievements with employees.
“At the end of this month, every employee will receive a special incentive equivalent to an average of half a month’s salary, amounting to some RM1mil,” he added.
