The Edge Markets

S P Setia ventures into healthcare industry

PETALING JAYA (Feb 10): S P Setia Bhd, through its subsidiary Setia HC Ventures Sdn Bhd, has signed an agreement with Qualitas Medical Group Sdn Bhd (Qualitas) to jointly develop and operate an Ambulatory Care Centre (ACC) in Setia Alam, Shah Alam.

In a media statement, S P Setia president and CEO Datuk Choong Kai Wai said he is confident with the success of the new venture, given the ageing population in Malaysia and the need for such services to be conveniently accessible in established townships housing multi-generational families like Setia Alam.

“This is the first venture by the group into healthcare, which is a growing business, given the market trend. ACCs are outpatient centres providing a range of comprehensive specialist and surgical services including wellness, diagnosis, treatment and rehabilitation. They act as a bridge between full-fledged medical centres and general practice clinics,” Choong said.

Taking cognisance of such developments, the group has identified the first ACC to be established at Setia City Residences in Setia Alam. Setia City Residences is a three-tower integrated mixed development that offers residential and commercial components. It is connected via a link bridge to Setia City Mall, the largest mall in Shah Alam.

“The group has been exploring new businesses that will complement the group’s strength to vary its income, and an ACC, which require relatively small capital investment, is one such potential identified. Accelerated by the recent pandemic, healthcare services have a strong prospect for now and the future,” he shared.

According to a World Bank report, more than 7% of the country’s population was aged 65 and above in 2020. This is projected to double to 14% by 2044, making Malaysia an aged society and 20% by 2056, a super-aged society.

Malaysia’s healthcare market is expected to grow by 127% to RM127.9 billion in 2027 from RM56.3 billion in 2017 as the government pushes ahead with higher public healthcare expenditure, according to Fitch Solutions Macro Research, fuelled by increasing demand for healthcare services and the emergence of new care models beyond traditional hospital settings.

Qualitas’ director and executive chairman Datuk Noorul Ameen Mohamed Ishack foresees that the collaboration with S P Setia will strengthen Qualitas’ offerings in the various areas.

“Qualitas is honoured to be identified by Setia as its first partner in its healthcare foray… Qualitas’ expertise in operating and managing outpatient centres and S P Setia’s experience in successful townships will form a strong and fruitful partnership for such ventures,” Noorul Ameen said.

Qualitas is a regional healthcare operator with more than 20 years of experience to date. It is well established in Malaysia, Singapore and Australia, with a growing presence in the Asia-Pacific region.

Meanwhile, Setia Alam is a multi-award-winning mega freehold township launched in 2004 and is now about 90% developed, with more than 22,000 units handed over.

“The ACC has been identified as one of the place-making elements to boost the Setia Alam township, which has proven to be a well-sustained development for the past two decades. We anticipate emulating the same in other Setia townships and projects in the near future,” added Choong.