Kiat Lim, son of ‘Remisier King’ Peter Lim, has been tasked with running Thomson Medical Group . He has identified Vietnam as the place to be after the acquisition of a hospital for US$353 million. What plans does he have to ride Asia’s growing healthcare needs?
At the tender age of 28, Kiat Lim was appointed executive vice-chairman of mainboard-listed Thomson Medical Group (TMG), which is controlled by his father, Peter Lim, lauded within the financial community as the “Remisier King”. The younger Lim does not shy away from the fact that it is a position of privilege but embraces the role, fully conscious of the weight of expectations on his shoulders.
In an interview with The Edge Singapore at the Lim family office at CapitaSky, the younger Lim — now in his early 30s — stresses that TMG, with a market value of around $1.3 billion, has immense potential that has yet to be fully recognised. “Honestly speaking, a billion is not enough. I think this stems from a point where there’s really so much more we can do,” he adds.
TMG’s key asset in Singapore is the Thomson Medical Centre, renowned as a leading maternity hospital. It also operates dozens of smaller speciality clinics and other healthcare facilities in Malaysia.
For starters, TMG is looking for new growth opportunities within Southeast Asia, outside of Singapore and Malaysia. The first market it has identified is Vietnam, where the company acquired Far East Medical Vietnam. The latter operates the FV Hospital, dubbed “Vietnam’s Gleneagles”. The deal, at US$352.8 million, marks Vietnam’s largest healthcare deal and was among the largest transactions of its kind in Southeast Asia. The deal was first announced last July and completed in January.
According to Lim, TMG had always planned to make Vietnam its third market in the region and the management team came across the deal “by chance”. During their separate visits to Vietnam, Lim and TMG group CEO Melvin Heng noticed a recurring mention of FV Hospital as a local industry benchmark. As the team was looking into it, just a month and a half later, the hospital was up for sale.
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Lim says FV Hospital’s technology, operational frameworks, culture and standards were outstanding — even on par with TMG’s own hospitals in Singapore and Malaysia. This set a high bar for any other potential acquisition in Vietnam, he adds. Furthermore, TMG’s management has a good rapport with the team led by CEO Dr Jean-Marcel Guillon, who founded FV Hospital and is staying on. “It was a mixture of luck and good timing for both sides,” he says.
Capturing rising wealth
As healthcare is a structural growth story, Lim is approaching the acquisition with a mid- to long-term view of seven to 10 years rather than looking for a quick flip. “Ultimately, business decisions require conviction, and we’re confident this was the right move to position ourselves for long-term growth,” says Lim.
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Vietnam’s promising statistics and tailwinds for the healthcare sector reinforce Lim’s belief in its potential. The country is one of the fastest growing markets in Asean — in the first three quarters of 2024, its GDP growth accelerated to 6.7% y-o-y, well above the 4.4% growth in the same period last year.
Vietnamese are increasingly affluent, with the number of US-dollar millionaires growing by over 98% in the past decade, according to consultancy firm Henley & Partners. Ho Chi Minh City — where FV Hospital is located — is at the centre of this wealth boom. In addition to the 19,400 millionaires, the firm discovered that the country has 58 centi-millionaires and six billionaires.
FV Hospital in Vietnam. Photo: FV Hospital
Naturally, with better income, people become more willing to pay for higher healthcare standards. Healthcare expenditure per capita in Vietnam registered a higher CAGR of 9.2% between 2017 and 2022 compared to other countries in the region.
TMG hopes to capitalise on this trend. One way is to have Singaporean doctors practise in Vietnam to offer services and specialities currently limited or unavailable in the country or services Vietnamese patients traditionally seek abroad. “By bringing these services closer to home, we can significantly lower patient costs by eliminating the need for travel, accommodation and other associated expenses,” says Lim.
Founded in 2003 by Guillon and a group of French doctors, FV Hospital is a multi-specialised healthcare facility with over 1,600 staff, including more than 200 Vietnamese and expatriate doctors. In addition to its hospital operations, the company runs an outpatient clinic known as FV Saigon Clinic in the heart of District 1, Ho Chi Minh City’s traditional business district. It also runs a chain of four chiropractic clinics across Vietnam.
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In 2022, FV Hospital delivered revenue, ebitda and profit after tax of $110 million, $26 million and $16 million, respectively. FV Hospital was acquired at 16.8 times EV/Ebitda or around 29 times P/E.
In addition to the acquisition of FV Hospital, TMG is investing US$45 million to build a new wing dubbed “H Building”. Targeted for completion by the end of 2025 or early 2026, the expansion will increase the gross floor area of the whole facility, which is now 26,000 sqm, by 35%.
Lim has many plans for the new wing, including housing an oncology centre that will be the first in Vietnam to offer the latest CyberKnife treatment. However, he notes there is no reason to rush, reiterating its long-term horizon. “I want to make sure that the planning is robust enough to future-proof ourselves because this is the last bit of land we have within the hospital. That said, even within the existing infrastructure itself, there is a lot more ‘intensification’ we can do.”
JS-SEZ a ‘bonus’
In Malaysia, TMG’s operations are under TMC Life Sciences (TMC) and Vantage Bay Healthcare City (VBHC). Bursa Malaysia-listed TMC operates Thomson Hospital Kota Damansara, a tertiary hospital, and TMC Fertility Centre. TMC also owns Thomson Iskandar Medical Hub, an RM1.56 billion ($470 million) development project at Stulang that is slated to be completed in 2030.
Located minutes near the causeway linking Johor and Singapore, the Thomson Iskandar development will feature the 500-bed Iskandariah Hospital, 400 medical suites, medical and allied health training institutes, research facilities and a 33-storey commercial block.
About 1.5ha is currently zoned for a hospital within the entire development. “We are looking to break ground hopefully within 2Q2025. I say ‘hopefully’ because these were plans for the hospital we made in the past. This has now been recalibrated as we realised that past plans may not be as relevant now,” explains Lim.
The project was initially planned to be completed in 2020. However, the company’s plans were disrupted following changes, including in 2017 when TMC mutually called off its partnership with Thomson International Health Services and Thomson International to develop the project.
The current plan is for the hospital to be operational after the completion of the Johor Bahru-Singapore Rapid Transit System Link (RTS Link). As at July, The RTS Link has reached 83% completion and is scheduled to start operations on Jan 1, 2027.
Johor will also be a long-term market for TMG. “Honestly speaking, I feel that the Johor hospital will be the group’s marquee asset. We are set to become the closest private hospital to Singapore, positioned as a Singapore-branded private hospital just across the border.”
“This proximity, combined with the rising cost of healthcare in Singapore and the advantage of currency arbitrage, provides a clear value proposition for Singaporeans and international patients. In fact, we’re already seeing insurers redirect patients away from Singapore due to high costs, making Johor an attractive alternative,” he adds.
Unlike its Singapore hospital, which primarily provides healthcare services for women and children, the Thomson Iskandar hospital will be a full-fledged tertiary hospital, capable of providing comprehensive, specialised care across various disciplines and handle complex cases such as cardiothoracic surgeries.
Lim reiterates that the Johor hospital’s strategy is straightforward — to cater to Singaporeans and other international patients by offering top-notch healthcare at a fraction of the price.
“Right now, the biggest hurdle is the traffic congestion at the causeway. The completion of the RTS Link will be a game-changer, lifting the barrier that keeps people away from getting more care and services in Johor Bahru. This will not be limited to Singaporeans. We think we can even tap on international patients due to its proximity to Changi Airport,” he says.
The Johor-Singapore Special Economic Zone (JS-SEZ) is another tailwind, as it is expected to drive biomedical and healthcare-related activities in the region. When asked if the delay in signing the JS-SEZ deal – initially slated for Dec 9 — had an impact on TMG’s plans, Lim says he had always thought of the integrated zone’s success as a bonus, not a necessity, as Johor’s appeal is clear. “We’re extremely bullish on Johor, not just as a group, but as a family. We see great upside for the state,” says Lim.
Long gestation period
As mentioned, TMG’s primary focus in Singapore is obstetrics and gynaecology (OBG) and paediatrics, delivering one-fifth of the newborns in a given year. While this remains true, the company is actively expanding into other areas. One key pillar is in-vitro fertilisation (IVF), which Lim describes as a significant growth driver. TMG already has one IVF clinic on the island but is set to launch the second in 1H2025.
Newly Renovated Registration and Lobby Area for Thomson Medical Centre. Photo: TMG
In addition, the hospital is focusing more on other clinical specialities, such as orthopaedics and ophthalmology. It is looking to expand its ambulatory surgery centres after opening two specialist clinics this year at Woodleigh Mall and Paragon Medical Centre.
“We are exploring partnerships with insurers to integrate more network-based insurance options. This might be standard for many medical groups but not us, given that OBG services in Singapore have traditionally been cash-paying. Our focus on OBG meant that, unlike other hospitals, we have not fully utilised our operating theatres. This is why we are thinking of branching out into more specialities — to fully utilise our assets,” Lim explains.
Lim says his team has been “working tirelessly” since he took over. “I have to thank my incredible team for their hard work and patience with my demanding timelines — I’m known for [having] only two timelines: ‘ASAP’ or ‘yesterday’. This is something that I learnt from a ‘certain someone’,” he quips, hinting at his father’s working style.
Hopeful of appreciation
TMG’s acquisition in Vietnam came in handy quickly. In its most recent FY2024 ended June 30, revenue from its business in Malaysia increased by 5.5% y-o-y. Still, its Singapore operations fell nearly a quarter from $260.4 million to $200.3 million, as TMG no longer provided pandemic-related services such as vaccination.
With the numbers included in 2HFY2024, Vietnam chipped in with revenue of $50.4 million, which helped offset the drop in Singapore. This kept TMG’s overall FY2024 revenue largely steady at $351.2 million, down just 1.3% over FY2023. On the other hand, earnings for FY2024 dropped 52.5% y-o-y to $19.5 million due to one-off transaction costs and unfavourable forex related to the acquisition in Vietnam.
Nonetheless, some members of the investment community like TMG’s growth story. The Vietnam facilities can tap the “strong captive market” of patients from Cambodia, Myanmar and Laos, says Eric Ong of Maybank Securities, who has a “buy” call and 6 cents target price. He observes that TMG is now trading at a premium versus its peers but is “somewhat justifiable” given the portfolio of assets and relatively good potential, including the Thomson Iskandar Medical Hub in Johor.
However, investors are not overly enthusiastic about TMG shares, with prices down 20% year-to-date. Lim believes there are two reasons for this share price underperformance, the first being a long gestation period for its initiatives. “It will take time for us to see the operational fruits of our labour. These initiatives take time, especially the greenfield projects,” he adds.
The second reason is the free float. Lim admits that TMG is tightly held, affecting liquidity and trading. As indicated in the company’s most recent annual report, his father, as of Sept 13, had a deemed interest of 77.5% plus a direct interest of another 12.23%, giving a total interest of 89.73%.
“On top of that, Singapore’s debt capital markets and equity capital are not the best right now. That said, we hope shareholders appreciate the efforts taken,” says Lim.
Growing the family business
Aside from TMG, Lim also serves as chairman of RSP, a multidisciplinary architectural and engineering design firm founded as Raglan Squire and Partners in 1956. RSP’s projects include iconic landmarks across Singapore, such as the Republic Plaza, Lasalle College of the Arts, and Jewel Changi Airport. Today, RSP has offices in 17 cities and over 1,000 staff.
In 2013, RSP was acquired by Peter Lim’s investment firm Rowsley for $187 million, placing it under the company’s design and engineering segment. However, after the company’s corporate restructuring, RSP and other non-core assets were privatised in 2018. Lim was appointed as RSP’s chairman from 2022 onwards, although he has been involved with the company since the privatisation.
Since then, Lim has embarked on the rebranding exercise for RSP, moving away from its traditional image to a modern player in the global design scene. “I may not be an architect or operational in RSP, but I’ve always approached my role from a client’s perspective. By putting myself in their shoes, I’ve worked to elevate our image and align it with the calibre of our work.
“Before I took over, the company had a conservative approach rooted in the legacy of a firm older than the Republic of Singapore. While this heritage is valuable, I felt it was time to modernise and inject more flair into our presentations, marketing and overall corporate image,” says Lim.
As such, Lim initiated significant changes, including revamping its marketing and operations. “It wasn’t easy, especially with the fear of losing our identity or risking investments in regions like the Middle East. But the results have been rewarding, even with challenges in markets like China and Vietnam.”
These strategies had paid off — in the last five years, the company had tripled its revenue in Dubai, resulting in its 2024 revenue being just shy of $100 million. Following this, Lim is confident that the company will be able to cross the $100 million mark next year. “This is no longer a peak; it is a new baseline.”
Is the end goal to list RSP publicly? Lim says no. He says he has grown emotionally attached to the family business over the years. “RSP was founded by my father’s well-respected close friend who has since passed,” Lim shares.
While RSP remains under Lim’s strategic oversight, he clarifies that most of his focus is on TMG, where he is deeply involved in the day-to-day operations and high-level strategy. “In everything I do, I aim to inspire the team to push boundaries. At the heart of it all, it’s about bringing these companies to the next level — because, in my view, we’re just getting started,” he concludes.
