IHH Healthcare subsidiary, Parkway Healthcare breaks ground on 250-bed hospital in Yangon, Myanmar

Monday, January 25, 2016

IHH Healthcare Berhad (“IHH” or the “Group”), through its indirect wholly-owned subsidiary, Parkway Healthcare Indo-China Pte Ltd, today broke ground for a US$70-million, 250-bed hospital in Yangon, Myanmar. The new hospital, Parkway Yangon, is Parkway Pantai’s first hospital in Myanmar and represents a continuation of its trans-boundary expansion in providing superior clinical care and outcomes in regional markets where the demand for quality healthcare is growing.

The project will be developed and operated by a joint venture consortium, Andaman Alliance Healthcare Limited (“AAHL”), comprising Parkway Healthcare Indo-China Pte. Ltd. with a 52.0% stake, Singapore-incorporated Macondray Holdings Pte Ltd with 10.5%, Myanmarincorporated AMMK Medicare Company Limited with 21.5%, and Myanmar-incorporated Global Star Company Limited with the remaining 16%. The hospital is located at downtown Yangon on a 4.3 acres plot of land leased for 50 years at prevailing market rate, with the option of two 10-year extensions. This represents a significant commitment to invest in the local community through a “build-operate-transfer” model. Investment for the project has obtained approval from the Myanmar Investment Commission.

The ground-breaking ceremony of Parkway Yangon was graced by H.E. U Myint Swe, Chief Minister for Yangon Region and H.E. Dr Than Aung, Minister for Health.

Dr Tan See Leng, Managing Director & Chief Executive Officer of IHH and Group Chief Executive Officer & Managing Director of Parkway Pantai, said, “This exciting joint venture will bring high-quality healthcare to the people of Myanmar when it opens in 2020. We believe this hospital will greatly support Myanmar’s national health policy, Health Vision 2030, which aims to deliver world-class healthcare outcomes, research and services, and improve the health of the citizens of Myanmar. Leveraging our more than 40 years’ experience in operating premium hospitals across 9 countries, we are committed to working closely with the local Ministry of Health and our business partners to help achieve this noble vision and elevate national healthcare standards in Myanmar.”

The establishment of Parkway Yangon will be a catalyst for the training of healthcare professionals such as nurses and allied healthcare practitioners. This will create more job opportunities for the community. The integration into the healthcare ecosystem will also stimulate the transfer of knowledge, sharing of best clinical practices and levelling of medical expertise.

The new hospital will be a boost to ongoing efforts in uplifting medical services to world-class standards. This will provide an alternative for the many citizens who currently travel out of the country each year for healthcare.

Doctors from Mount Elizabeth Hospital, one of the key hospitals under the Parkway Pantai network, have been actively engaging with specialists in Myanmar in various community outreach initiatives like exchange of medical expertise and outreach to the masses through disease prevention and health promotion activities. The presence of Parkway Yangon will further these corporate social responsibility efforts to include partnerships with training colleges, scholarships, and overseas training fellowships for local Myanmese.

“I am confident that this hospital project will raise the healthcare standards of Myanmar and benefit our people. It will also boost the Myanmar economy as it will bring about huge investments in infrastructure and technology. Our people will have access to a standard of care comparable to international hospitals in the region without leaving the country,” said U Aung Moe Kyaw, Director of AMMK Medicare Company Limited.

As the Myanmar government takes steps to improve healthcare infrastructure and expand basic health coverage, demand for private health services in the country is expected to rise. Myanmar's long-term income growth potential and gradual emergence of a middle class, coupled with the rapid influx of foreign tourists and expatriates, are expected to bode well for private healthcare providers like IHH.