Columbia Asia opens its 12th hospital in Klang

By KEVIN WONG /Pic Source : columbiaasia.com

Columbia Asia Sdn Bhd has spent RM100 million on its new 85-bed hospital in Klang, which brings the group’s portfolio of hospital in the country to 12.

Columbia Asia South-East Asia CEO Kelvin Tan said the funding for the hospital came from the issuance of bonds and syndicated loans.

“It was not difficult to get their (banks) support as they believe in our healthcare model,” he said.

He added the projected total return on investment will be within the next five to six years.

The new hospital is built on a two-acre (0.81ha) land and will offer its services to the population around growing towns along the coast, such as Banting and Kuala Selangor.

“We have no plans to expand this hospital to ensure the efficiency of our operations, as well as to not increase our capital expenditure.

“However, if the demand of the Klang community grows, then it will make sense for an expansion.

We may then expand to the land next door to us, if it is still available,” he said yesterday.

Established in 1996, Columbia Asia has grown its presence across the region with 29 hospitals including in Malaysia.

In Malaysia, the group has hospitals in Bintulu, Bukit Rimau, Cheras, Iskandar Puteri, Miri, Petaling Jaya, Puchong, Seremban, Setapak, Shah Alam and Taiping.

The private healthcare group is 30% owned by the Employees Provident Fund, while the remaining 70% is held by International Columbia USA LLC, a US-based investment fund.

Tan added that 70% of the group’s hospital revenue came from insurance providers and other third parties with linkages to corporates.