First Myanmar Investments Co Ltd (FMI) and Indonesian conglomerate Lippo Group have officially launched a healthcare joint venture with a $420 million national roll out in Myanmar.
The joint venture is targeting up to 20 hospitals in its national network over 10 years focusing on the first 12 hospitals within the next three to five years.
The launch was marked by the completion of a $10-million upgrade of equipment, systems and services at Pun Hlaing Siloam Hospitals in Yangon as the first hospital to support this network.
The Pun Hlaing Siloam Hospitals aims to grow into a $2 billion enterprise with $400 million in annual revenue supported by over 12,000 physicians, nurses and healthcare experts serving and treating over 4 million patients annually.
“Myanmar’s economy is rapidly growing and with this comes the demand for high quality international healthcare. The time is right for a premier nationwide hospital network to support the market,” said Dr James Riady, CEO of Lippo Group.
The joint venture was touted by the firms as “realisation of an Indonesian-Myanmar ASEAN brotherhood cooperation spirit.”
Indonesia’s state-owned mining companies Timah and Aneka Tambang and lender Bank Negara Indonesia are already in the process of expanding into the Southeast Asian frontier market. Also, state-owned construction firm Wijaya Karya clinched a $125-million deal last year.
The FMI-Lippo venture anticipates the government’s policy of increasing the standard of living through healthcare, education and investments.
Siloam Hospitals group said it will take Pun Hlaing Siloam Hospitals to full global JCIA clinical and service accreditation standards within 12 to 24 months.
“People will benefit from the enhanced level of patient-centric care available at tier-based prices, suiting their diverse medical needs,” Serge Pun, local tycoon and chairman of FMI, said.
Looking to cater to more patients, the bed-count of Pun Hlaing Siloam Hospitals has expanded to 174; with 38 of these beds priced at K10,000 per night.
Director General of Ministry of Health Prof Myint Han said the venture will help improve the position of Myanmar healthcare, putting it back on the map regionally and beyond.
“Apart from positively impacting the medical field, we will see other related benefits from the venture; increased employment opportunities, improved domestic revenue for the sector and stimulated growth activity in the businesses and communities around the hospital.”