Columbia Asia to spend RM1.5b on hospitals

REGIONAL healthcare provider Columbia Asia Group of Companies will spend about RM1.5 billion to build 15 new hospitals in the region.

Vice president, treasury services, Kahar Mohamed, said it would include the three hospitals in Malaysia that were still under development.

"These hospitals are in various stages of development. We estimated the cost to be around RM68 million and RM70 million to build a hospital," he told reporters after the syndicated financing agreement signing ceremony in Kuala Lumpur today.

Columbia Asia Sdn Bhd today secured RM250 million in syndicated funding based on the Islamic principle of Ijarah Muntahiah Bitamlik from Bank Muamalat Malaysia Bhd and Bank Kerjasama Rakyat Malaysia Bhd.
It will be used to finance its three existing hospitals and another three which are in various stages of development in Malaysia.

The three existing hospitals are in Puchong, Taiping and Nusajaya while another three -- Bukit Rimau, Balakong and Setapak - are still under construction and scheduled to be opened from July this year to early next year.

He said Columbia Asia was eying suburban areas to build the hospitals in order to reach out to the average citizens.

"The increasing demand for affordable healthcare services across Asia has resulted in a substantial increase in the number of people who are medically insured by employers and insurance companies," Kahar said.

Beside Malaysia, Columbia Asia also operates in India, Vietnam, Sri Lanka and Indonesia with 16 hospitals already in operation.

Incorporated in 1996, Columbia Asia Sdn Bhd is 70 per cent held by Columbia Asia Group of Companies, and the balance by the Employees Provident Fund.

The local entity owns the Malaysian and Indonesian hospitals and gets a fee for operating Columbia Asia hospitals in Vietnam and India.

BERNAMA