Harimau Capital

Auto and plantation group Oriental Holdings Bhd (OHB)(4006) plans to open a RM200 million specialist hospital in Malacca in 2012 to strengthen its healthcare division.Called the Melaka Straits Medical Centre, OHB will hold a controlling 51 per cent stake in the hospital that will be located in the new reclaimed coastal tourist township of Klebang in Malacca.Boon Siew Sdn Bhd, the controlling shareholder of OHB, will hold another 20 per cent, followed by Bagan Specialist Centre with 29 per cent.Boon Siew also holds the majority stake in Bagan Specialist Centre which is located in Seberang Prai, Penang."This 300-bed hospital will offer multi-diciplinary specialist healthcare services with niche specialisation in heart, lung and cancer treatment," OHB director Datuk Dr Tan Chong Siang told Business Times.Dr Tan said Malacca was chosen because land was available. The reclamation project there is handled by Ultra Green Sdn Bhd, a construction and property development subsidiary of OHB.The hospital is expected to create 500 new jobs. Construction is due to start in November this year."We choose to expand at this time of challenging economic situation because we see the synergistic opportunity presented in a field we have been involved in for the past 22 years," said Dr Tan, who is also the medical superintendent of Bagan Specialist Centre."It is a concept well received by the public from our track record, we believe we are ready now for expansion," he added.According to Dr Tan, the existing hospital, Bagan Specialist Centre in Seberang Prai in Penang, operates on the basis of good quality at minimum cost, minimum discomfort and optimum speed. It plans to do the same for the new hospital. In the year ended December 31 2007, Bagan Specialist Centre made a net profit of RM6.83 million on revenue of RM39.23 million.As for OHB, its net profit eased 3 per cent to RM314 million in 2008 while revenue was up 14 per cent to RM5.1 billion.