| Local News |
MAY , 2021 | THE HEALTH
05
TE Asia steps up investment in KL
TE Asia Healthcare Partners , backed by private equity firm TPG Capital , expects to achieve a valuation of US $ 1 billion in five years as it expands in Southeast Asia , according to its CEO .
The Singapore-based company plans to invest US $ 90 million mainly in Malaysia and Indonesia this year , building new cardiac hospitals and repurposing an existing medical facility in Kuala Lumpur into an orthopedic centre , Eng Aik Meng said .
According to Bloomberg , that would take TE Asia ’ s total investment to US $ 260 million by the end of this year , he said .
The healthcare firm plans to double that investment in the next three to five years as it seeks to set foot in more countries and offer a broader range of specialised medical services , Eng said .
“ If we continue at this pace , this is easily a US $ 1 billion company ” in five years , he said .
LUSTER Industries Bhd has inked an agreement to provide engineering , procurement , construction and commissioning ( EPCC ) for 12 rubber glove production lines in the US .
The agreement was inked between American Nitrile LLC with Glovconcept Sdn Bhd , a 60 per cent-owned unit of Glovmaster Sdn Bhd , which is in turn 56 per cent-owned by Luster .
Luster said Glovconcept will undertake the designing , building and delivery of a glove manufacturing factory on a turnkey basis , with glove output of not less than 38,000 units per line per hour .
“ The estimated cost to be borne by American Nitrile in building the glove production plant is around US $ 3.6 million or RM14.9 million per line ,” it added .
In turn , Glovconcept is entitled to a percentage of sales proceed from the 12 production lines with a minimum of US $ 2 million per year .
“ Glovconcept ’ s entitlement herein provided shall cease once an aggregate total sum of US $ 50 million has been duly received by Glovconcept from American Nitrile .”
Luster added that American Nitrile “ aspires ” to purchase up to 72 additional production lines
Demand for healthcare services , especially in specialised fields , is set to rise as countries in Southeast Asia become more affluent . The average healthcare spending in the region was at four per cent of gross domestic product in 2018 , compared to 5.4 per cent in China and about 10 per cent globally , according to a report by the World Bank .
TE Asia , which has an annual revenue of more than US $ 150 million , focuses on oncology , cardiology and orthopedics . It will raise funds for its future investment from external investors when needed , Eng said , adding that he does not rule out the possibility of a listing .
Luster inks US glove line contract
through the MyUBAT system . This number is expected to increase further after the expansion of the MyUBAT system to public health facilities nationwide .
To date , the MyUBAT system offers two VAS options , namely follow-up medication by appointment and Medication by Post ( UMP ). To increase the efficiency of UMP implementation , the MyUbat system has been integrated with the Ezisend system operated by Pos Malaysia Berhad .
Apart from that , this system is also in the process of integration with the Pharmacy Information System ( PhIS & CPS ) in two ( 2 ) MoH facilities , namely at Tuanku Ampuan Rahimah Hospital , Klang and Kelana Jaya Health Clinic . The extension of this function is so that users can access the correct information according to the user ’ s time and in turn can speed up the dispensing process .
within the next two years . The total estimate of 84 lines including the recent agreement , while non-binding , could bring in earnings of US $ 350 million in total .
The company said this project marks its maiden foray into North America . It also said it is among the first Malaysian company to offer EPCC works for a glove manufacturing plant in the US . The glove production facility will be located at 3500 Southwest Blvd / Grove City in Ohio , US , it said .
“ The Group has taken the opportunity to tap into the US market , following the rising interest in the country to reduce its reliance on Asia ’ s personal protective equipment ( PPE ), including masks , gloves and ventilators ,” said Luster Deputy Managing Director Liang Wooi Gee .
“ Currently , about 68 per cent of the world ’ s gloves supply comes from Malaysia ,” Liang said .
Briefs
GDEX in tie-up for medicine delivery tracking
GD Express Carrier Berhad ( GDEX ) will collaborate with DOC2US and Alpro Pharmacy to implement secure and realtime tracking of medication delivery .
DOC2US , which is a telemedicine provider approved by the Health Ministry to provide digitally signed e-prescription services , said the strategic tie-up would enable the group to provide a one-stop solution for patients ; from digital healthcare and pharmaceutical supplies to logistics .
“ This strategic collaboration between DOC2US , Alpro Pharmacy , and GDEX will not only enhance our back-end processes and productivity , but most importantly , provides a better patient experience when it comes to medication delivery services ,” CEO of DOC2US Raymond Choy said in a statement .
Homage expands home care services
HOMAGE , the on-demand home caregiving services platform combining qualified care professionals with proprietary technology , has begun providing its services to families and seniors in Johor , Malaysia .
Based on the senior ’ s requirements , Homage develops a personalised care plan with the person requesting for care and uses a proprietary matching engine to pair the senior with the Care Professional that best matches their needs .
“ With our entry into Johor , the second most populous state in Malaysia , even more families will have access to our professional home care services , which will help reduce hospitalisations and improve the quality of their lives - which is especially important with the ongoing pandemic and especially for families living across the causeway who may not be able to be there physically for their loved ones ,” says PC Gan , Country Manager of Homage Malaysia .
Govt taps RM5bil from National Trust Fund
THE government caused a stir when it said it will use RM5 billion from the National Trust Fund ( KWAN ) for the purchase of Covid-19 vaccines .
However , Finance Minister Datuk Seri Tengku Zafrul Aziz explained the money would be taken from its RM9bil in returns and the government would not touch KWAN ’ s RM10 billion principal funds .
He said that the money would only be used for the purchase of vaccines needed to fight the Covid-19 pandemic .
“ When we announced Budget 2021 , we estimated that the cost to purchase vaccines was RM3bil and it was not included in the budget . This was only an estimation ,” he told the media on April 26 .
He said the additional RM2 billion would be for vaccine “ buffer stock ” and other expenditure to expedite the vaccination process , which is targeted to be completed by December 2021 . — The Health