TMC Life Sciences allocates RM142m for 2019 capex

By SHAZNI ONG / pic by MUHD AMIN NAHARUL

INTEGRATED healthcare platform provider TMC Life Sciences Bhd (TMCLS) has allocated RM142 million for its capital expenditure (capex) for this year.

Its outgoing group CEO Roy Quek Hong Sheng (picture) said 70% of the allocation would be for the expansion of Kota Damansara Hospital, 20% for the works that are being done for its new hospital in Johor Baru (JB), while the remaining 10% would be for its existing hospitals.

“The next few years will see significant growth and development for TMCLS as expansion projects in Kota Damansara and JB will be completed by then.

“This, as we continue to seek opportunities for partnerships and acquisitions,” he told a press conference after the company’s AGM yesterday.

Quek added that TMCLS recently embarked on a major expansion across its current facilities with an additional of 1,100 beds in the pipeline.

“Our flagship hospital, Thomson Hospital Kota Damansara is expected to triple its current capacity to 600 beds by 2020, making it one of the largest private hospitals in the region.

“The group has also started construction work on Thomson Iskandar Medical Hub in JB, which includes the 500-bed Hospital Iskandariah. The expansions of two of our fertility centres — TMC Fertility Kota Damansara and TMC Fertility Puchong — are on track and slated to be completed by yearend,” he said.

Quek, who will relinquish his role today but retains dual roles as CEO and ED of Thomson Medical Group, the parent company of TMCLS, said the group is reviewing certain options on mergers and acquisitions but refused to divulge further.

However, he said the group is looking to expand further besides in Malaysia, Singapore, Vietnam, Myanmar and China, as well as potentially in Australia.

Quek said he hoped that a deal could be landed at least by the end of its financial year ending Aug 31, 2019.

Meanwhile, incoming group CEO Wan Nadiah Wan Mohd Abdullah Yaakob said the fertility business, which has been part of the medical tourism promoted by the government, has contributed to 20% of the group’s revenue.

“That is because we have centres in different parts of the country such as in Penang, JB and Kuala Lumpur, which has been helpful in giving tourists the options as to where they want to seek treatment.

“We are also looking at upgrading some of our facilities and to collaborate with partners to bring up the levels of service,” she said, adding that there is still untapped market which can be explored, particularly in East Malaysia.

TMCLS is currently an industry leader in assisted fertility treatment in the country.

In October last year, it was recognised by the Malaysia Book of Records for the highest number of in vitro fertilisation (IVF) babies produced by a single IVF practice, with 5,388 babies.

TMCLS also posted an increase of 13% year-on-year for both of its revenue (RM47.2 million) and profit (RM7.1 million) in the first quarter of financial year 2019 ended Nov 30, 2018.

TMCLS shares closed 0.68%, or one sen, higher to 73 sen yesterday with a market capitalisation of RM1.28 billion.