Singapore healthcare firms bombarded with expansion-driven costs | Healthcare Asia Magazine
, Singapore

Singapore healthcare firms bombarded with expansion-driven costs

All eyes are on cost management.

It’s expand or lose out for Singapore’s healthcare firms, and while a number of healthcare firms in the city-state are doing just that, they have to first struggle with expansion costs.

For instance, in a report by OCBC, IHH Healthcare Berhad’s core operational profit decline of 11% to RM177m presented a case of profit erosion from inevitably higher financing and depreciation expenses due to the acquisition of Global Hospitals and new hospitals.

Similarly, Q&M Dental Group also found that its revenue growth was not enough to compensate for the drag by finance costs in 4Q, which had increased due to the acquisitions. As a result, 4Q15 PATMI declined 40% to S$2.1m, OCBC said.

Nonetheless, OCBC said there should be meaningful upside from these expansion plans especially after the ramp-up phase, if successful cost management is in place as well.

Meanwhile, Raffles Medical Group have had a fairly smooth sailing expansion path, as results were within expectations with an 11.6% YoY increase in its 4Q15 PATMI to S$21.3m.

Join Healthcare Asia Magazine community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!