01 October 2021 | Friday | News
ASEAN is the world's third most populous economy. By 2030, population will reach 723 million and the gross domestic product is expected to be US$4 trillion. The World Economic Forum projected that emerging ASEAN will be the engine of growth over the next decade. The demand for healthcare will rise with the rapid growth of population and economy. FHC's growth strategy includes a strong focus in ASEAN to bring more value toward healthcare systems in the region by improving access and enhancing affordability.
Vietnam – Strategic entry into Indochina
In Vietnam, FHC is acquiring 100% stake in South Asia Services Limited Liability (SAS) from Willis Tower Watson. This is part of FHC's active strategy to expand its footprint in Indochina. Besides presence in Vietnam, SAS also has clients in Cambodia and Laos. We expect to sign the agreement within the next week and envisage the transaction to be completed by end of October.
South Asia Services Limited Liability (SAS) is a leading corporate health benefits third party administration (TPA) company, providing services for healthcare claims management, customer care, and healthcare benefit support solutions to corporations in Vietnam, Laos and Cambodia. With the track record of servicing the health needs of workers in Vietnam since 2003, SAS has a well-entrenched network. It works with over 10 of the largest insurance brands in the country to manage and administer medical benefits for corporate employees. SAS is FHC's first entry into Vietnam. Fullerton Health will leverage on its strong medical network management capabilities, IT infrastructure and digital innovations to bring about better cost management and unlock more value for all stakeholders in the healthcare ecosystem.
"We are excited to have Fullerton Health enter the Vietnamese market and expanding in Indochina. They have the experience and core competencies to bring TPA services in this region to the next level, generating more value for all stakeholders within the health system," shared Mr Cedric Luah, Managing Director, Head of Health and Benefits in Asia Pacific for Willis Towers Watson. Mr Ho Kuen Loon, FHC Group CEO, added, "We have been growing our presence in Indochina with our first entry last year delivering diagnostic services in Phnom Penh. Today, we are privileged to service the people of Vietnam toward better health through our acquisition of SAS."
Indonesia – Serving more patients and strengthening our vertical integration footprint
In Indonesia, FHC has entered into binding agreements to acquire a majority stake in Gunung Sahari Laboratory Centre (GS Lab) in Indonesia. GS Lab has over 36 years of track record in Indonesia and is one of the most trusted names in the laboratory business amongst doctors.
GS Lab services over 100,000 patients a year and has 4 laboratories across Greater Jakarta offering more than 200 different types of tests. FHC already owns a stable of services within the Indonesian market covering healthcare provision through more than 100 medical clinics, medical assistance, and evacuation as well as third party administration (TPA) of corporate health benefits. This acquisition will give Fullerton Health and our network of services direct access into laboratories, allowing us to achieve greater operational efficiencies and savings within the group, which allows us to provide more affordable healthcare in Indonesia
Mr Ho Kuen Loon says, "This is the Asian century. Being a Singapore- headquartered company, we are excited about the growth potential nearer to home. ASEAN is brimming with opportunities and we have found strong partners with reputation, heritage and network to join us in our purpose of making healthcare affordable and accessible to all."
With the completion of both acquisitions in October 2021, FHC will have broader and deeper presence in seven ASEAN countries, namely Singapore, Philippines, Indonesia, Malaysia, Vietnam, Cambodia and Laos. In addition, the Group has presence in Mainland China, Hong Kong SAR and Papua New Guinea.
Australia – Completion of Divestiture
With a focus on ASEAN, FHC has divested its remaining interest in Fullerton Health Australia (FHA) to existing shareholder Quadrant Private Equity on 30 September 2021. During FHC's 8-year journey in Australia and New Zealand, FHA increased access to care and contributed toward the community. Since FHC's entry into Australia in 2013, FHA grew from 27 clinics and 250 employees to over 100 medical centres with 2,000 employees. FHC deeply appreciates the staff and management of FHA, in particular Managing Director Mr Steven Harvey, who have contributed significantly in building up the business over the years. FHC wishes FHA every success under the full ownership of Quadrant Private Equity, and that FHA will scale greater heights and become an even more prominent healthcare player in Australia and New Zealand.