TE Asia Healthcare Partners, backed by private equity firm TPG Capital, expects to achieve a valuation of US$1 billion in five years as it expands in Southeast Asia, according to its CEO.
The Singapore-based company plans to invest US$90 million mainly in Malaysia and Indonesia this year, building new cardiac hospitals and repurposing an existing medical facility in Kuala Lumpur into an orthopedic centre, Eng Aik Meng said.
According to Bloomberg, that would take TE Asia’s total investment to US$260 million by the end of this year, he said.
The healthcare firm plans to double that investment in the next three to five years as it seeks to set foot in more countries and offer a broader range of specialised medical services, Eng said.
“If we continue at this pace, this is easily a US$1 billion company” in five years, he said.
Demand for healthcare services, especially in specialised fields, is set to rise as countries in Southeast Asia become more affluent. The average healthcare spending in the region was at four per cent of gross domestic product in 2018, compared to 5.4 per cent in China and about 10 per cent globally, according to a report by the World Bank.
TE Asia, which has an annual revenue of more than US$150 million, focuses on oncology, cardiology and orthopedics. It will raise funds for its future investment from external investors when needed, Eng said, adding that he does not rule out the possibility of a listing.
