MPIC hospital unit eyes Asean expansion

MANILA, Philippines - The healthcare group of Metro Pacific Investments Corp. (MPIC) and its Singaporean sovereign wealth fund partner are looking at establishing a presence in Southeast Asian neighbors in the coming years even as the hospital chain continues to strengthen its market leadership locally.

The overseas expansion will cater to the needs of the developing healthcare sector in the region while taking advantage of possible synergies with other MPIC businesses also going abroad, an executive said last week.

“I think (ASEAN expansion) is one of the things we consider. Our partner also has investments in healthcare in other countries like Australia, India and China,” MPIC Hospital Group president and CEO Augusto P. Palisoc Jr. said in an interview.

“(The overseas expansion) will be opportunistic, depending on what deal comes up,” Palisoc said, adding that there are opportunities in Vietnam, Myanmar and Indonesia.

Last month, Government of Singapore Investment Corp. (GIC) poured in P10.2 billion for shares and exchangeable bonds in MPIC’s healthcare group, the market leader in the Philippines.

Palisoc said the deal marked the first ASEAN healthcare investment of GIC, one of the world’s largest asset management firms with more than $100 billion in assets under management.

Together, companies are open to expanding in ASEAN by partnering with a local company, Palisoc said. The region, which boasts of a population of 600 million, is one of the rapidly growing economies in the world.

Infrastructure conglomerate MPIC is also pursuing tollroad and water utility businesses in ASEAN countries, a move that is synergistic with plans of the healthcare group, Palisoc said.

Vietnam’s hospitals are mostly government-owned but it is opening up for private investments while Indonesia already hosts private healthcare chains and Myanmar has many family-owned healthcare centers, Palisoc said.

Despite difficulties in acquiring local hospitals, MPIC’s healthcare group is sticking to its target of reaching 3,000 beds in the Philippines.

“In terms of preference, I want local hospitals because we create more value that way and we will achieve objective of nationwide chain of hospitals,” Palisoc said.

However, MPIC Hospital Group has already acquired the large hospitals, prompting the company to engage in numerous discussions with smaller hospitals.