Malaysian hospital group IHH weighs entry into Indonesia and Vietnam

Prem Kumar Nair, CEO of the IHH Healthcare, said that there are "still a lot of opportunities" in the company's existing markets. However, countries such as Malaysia could reach a "saturation point" over the next five to 10 years, a factor in pushing the company to enter newer, growing markets.

The company boasts a capacity of over 12,000 beds in its hospitals across 10 markets, including Malaysia, Singapore, India, and Turkey.

Its hospitals include some of Southeast Asia's most prestigious names, such as Mount Elizabeth in Singapore and Gleneagles in Malaysia. In India, the company acquired Fortis, the country's second-largest player, back in 2018.

In the Vietnamese market, IHH's Singapore unit recently signed a memorandum of understanding with FPT Long Chau, a local pharmaceutical chain, aimed at further developing health care services in the country.

Competitors are already entering the nation through acquisitions. In October, Singapore's Raffles Medical Group said it would acquire a majority stake in the American International Hospital in Ho Chi Minh. In addition, Thomson Medical made an entry by acquiring the country's largest private hospital, Far East Medical Vietnam, for US$382 million last year.

"Of course, we will have to look at the Vietnamese market," Nair said, "But the factors are all the same -- the availability of good doctors and nurses, ability to get equipment and drugs. There are many things that go into looking at a market and seeing whether it's suitable for us to go in."

While looking at opportunities which exist in new markets, its core strategy remains increasing its presence in its existing markets, according to the CEO. Nair said that IHH is planning to add nearly 4,000 beds, or more than 30% of its capacity, globally over the next five years.