Its start-up costs in FY2020 from the two hospitals are projected to amount to $12 million, with $4 million coming from the Chongqing hospital.
“We invested in China because it is a huge market and there is a big demand to satisfy. Chongqing has 34 million people… Progressively, our revenue and profit will be diversified. It won’t be long before China will represent a very significant [perhaps even] 20-40% of our overall picture,” says Loo Choon Yong, executive chairman of Raffles Medical Group.
Loo believes that at least 10% of the market can afford care at its hospital, which is the only international hospital in Chongqing.
He adds that the group is signing up corporate contracts with multinationals that have operations in the region, and that it also has deals with insurance companies to be preferred provider.
While the RMG’s net profit and EBITDA were affected by its investment in China, it saw higher revenue of 6.4% in its Singapore’s hospitals.
Currently, most of the growth comes from local patients in Singapore.
