Malaysian healthcare conglomerate LYC Healthcare and Singapore O&G (SOG) intend to set up a postpartum confinement centre of up to 130 beds in Johor as a 51/49 joint venture.
“With an increasing demand for postpartum confinement and related services in the Singapore and Malaysia market, we believe the Johor confinement centre will be able to meet the needs of both Singaporeans and Malaysians,” said SOG chief executive Eric Choo.
LYC Mother & Child Centre is one of the largest postpartum confinement operators in Malaysia. Launched Kuala Lumpur in April 2018 with 33 beds, since then it has expanded to Puchong and Bukit Jalilin. It now has 122 beds.
Catalist-listed since 2015, SOG holds a 10.2% share of the total private sector market share in Singapore.
In a statement, the companies explained that the thinking behind the venture is that Johor is an attractive location given its population, total live births and median income trailing closely behind Selangor and Kuala Lumpur. The establishment of the centre marks SOG’s first foray into the overseas market and LYC’s first foray on its postpartum confinement services beyond Klang Valley.
The Johor centre is expected to commence operations with an initial capacity of 60 beds, and eventually ramp up to a capacity of 130 beds.