Malaysia's $900m hospital deal signals battle in medical tourism

Analyst predicts more M&As in growing sector after IHH's buyout in Penang

20240919 Island Hospital Penang - Peel Wing

Island Hospital in Penang. The northern Malaysian state has become a hot spot for medical tourism. (Photo courtesy of IHH Healthcare)

NORMAN GOH and HAKIMIE AMRIE, Nikkei staff writers

KUALA LUMPUR -- Over the past decade or so, Malaysia's IHH Healthcare has built its hospital network across Asia through acquisitions, becoming one of the region's biggest private hospital groups with over 80 hospitals across 10 countries, including India and Singapore.

In its latest acquisition, announced earlier this month, the company showed its ambition to attract more foreign patients to its home, Malaysia, spending more than $900 million for a major hospital in the country's medical tourism hot spot as competition intensifies.

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