PROMINENT property developer S P Setia Bhd has found the right yet not so costly business to diversify its future revenue stream: to develop and operate an ambulatory care centre (ACC) in the vicinity of its prized township of Setia Alam.
Marking its maiden venture into the subsector of the healthcare industry, the move is very much in line with market trend, according to the group’s president & CEO Datuk Choong Kai Wai.
Yesterday (Feb 9), S P Setia inked an agreement with Qualitas Medical Group Sdn Bhd for the setting up of the said ACC project.
“ACCs are outpatient centres providing a range of comprehensive specialist and surgical services including wellness, diagnosis, treatment and rehabilitation,” explained Choong. “They act as a bridge between full-fledged medical centres and general practice clinics.”
He went on to stress the need for such service in view of the growing ageing population in Malaysia and for such services to be conveniently accessible in established townships that house multi-generational families like Setia Alam.
A recent World Bank report stated that more than 7% of Malaysia’s population was aged 65 and above in 2020. This is projected to double to 14% by 2044, hence making Malaysia an aged society and 20% by 2056 by which it will become a super-aged society.
Fuelled by increasing demand for healthcare services and the emergence of new care models beyond traditional hospital settings, Malaysia’s healthcare market is expected to grow by 127% to RM127.9 bil in 2027 (2017: RM56.3 bil) as the Government pushes ahead with higher public healthcare expenditure, according to Fitch Solutions Macro Research.
S P Setia has identified the first ACC to be established at Setia City Residences which is a three-tower integrated mixed-development that offers residential and commercial components. The facility 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 its strength to vary its income. ACC which requires relatively small capital investment is one such potential identified,” Choong further justified. “Accelerated by the recent pandemic, healthcare services have a strong prospect for now and the future.”
Qualitas’ founder, director and executive chairman Datuk Dr Noorul Ameen Mohamed Ishack said the regional healthcare operator’s expertise in operating and managing outpatient centres coupled with S P Setia’s experience as a township developer will form a strong and fruitful partnership for the ACC venture.
“The location of the ACC is strategic and we foresee that this collaboration will strengthen Qualitas’ offerings in the various areas we are present in currently and beyond,” he added.
Launched in 2004, Setia Alam is a multi-award-winning mega freehold township which is now about 90% developed with more than 22,000 units handed over. It is known for its ample green spaces, eco-friendly features and safe and secure environment.
At the close of yesterday’s (Feb 9) trading, S P Setia was down 1 sen or 0.8% to RM1.24 with 2.13 million shares traded, thus valuing the company at RM5.04 bil. – Feb 10, 2022
