Kangsheng Medical Group will increase investment in Vietnam to deepen regional layout | Lianhe Zaobao

Despite the expected net loss in the fiscal year 2025, the Singapore Exchange-listed company Thomson Medical Group will still increase its investment in Vietnam to USD 381.4 million (SGD 491 million) and choose to deepen its regional layout rather than seek new acquisitions. Thomson Medical Group's CEO, Wang Junli, told The Business Times during the Vietnam Vanguard Summit held in Ho Chi Minh City this month: "If I am going to invest more funds, I would rather enhance our capabilities than dilute our focus by building too many hospitals." The group completed the acquisition of FV Hospital in 2023. This was the largest healthcare transaction in Vietnam's history, resulting in a loss for Thomson Medical Group in the fiscal year 2025. According to Wang Junli, the Vietnamese hospital is currently expanding a new wing covering an area of 1 hectare, which is expected to be completed by the end of 2027, with an investment amount reaching tens of millions of dollars. This expansion will focus on enhancing oncology, medical diagnostics, and advanced surgical capabilities, while also expanding social health insurance coverage and introducing installment payment plans to improve the affordability of medical services. Wang Junli stated: "Vietnam is expected to become a strong regional medical center." FV Hospital has attracted a "considerable number" of patients from Cambodia. He believes that as the group continues to invest in Vietnam, the Vietnamese hospital will attract more patients. Further Reading Thomson Medical first reveals specific compensation, Executive Vice Chairman Lin Weijie’s total compensation for the last fiscal year was SGD 967,000 Observing the Trends: Southeast Asia's Competition for Medical Tourism, Is Singapore's Advantage No Longer? Therefore, the group will focus on its existing businesses in Singapore, Malaysia, and Vietnam, and will not actively seek other large acquisitions in the region in the near term. The healthcare market in Singapore has become saturated, whereas the healthcare markets in Malaysia and Vietnam have more considerable growth potential in the future, mainly due to the favorable demographic structures and continuously upgrading consumption patterns in both countries, which support market expansion. For example, the group announced last year the launch of the Johor Bay Mega Project, covering an area of 10.5 hectares, with a total development value exceeding 18 billion Malaysian Ringgit (5.5 billion Singapore Dollars). The project will integrate a general hospital, specialized medical centers, and ancillary living and healthcare facilities. The healthcare service provider, controlled by Singaporean tycoon Lin Rongfu, is expected to continue incurring losses in the fiscal year 2026 as the group expands its facilities, develops digital health solutions, and enhances cross-border capabilities. Kang Sheng Medical Group's stock price closed flat at 0.063 SGD on Friday (January 9), with a weekly increase of 3.28%. Over the past year, the stock price has risen by 28%