IHH Healthcare - RHB Invest 2024-12-06: A Day Trip To IHH's Hospitals In Penang

• We came away feeling upbeat following our visit to IHH Healthcare’s hospitals in Penang.
• To recap, IHH Healthcare completed the acquisition of Island Hospital (IHSB) in November, solidifying its position alongside Gleneagles and Pantai Hospital in Penang.
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Key takeaways from the visit.

• We were pleasantly surprised by IHSB’s pioneering role as the top health tourism (HT) hospital in Penang. Its foreign-to-local patient mix of 60:40% is a key testament to providing the best-in-class patient outcome for healthcare travellers.
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Penang’s demographic.

• Penang is one of Malaysia’s most densely-populated states with 1.8m residents and has the fifth highest average household income in the country according to Department of Statistics Malaysia (DOSM). The state is not only a major tourist destination, but has also become the most established health tourism (HT) spot in Malaysia.
• Pre-COVID-19 pandemic, Penang generated HT revenue of MYR750m – accounting for 45% of the country’s HT revenue.
• A key factor of Penang being a top HT destination is its cultural similarity to Medan, Indonesia (the majority of residents in both areas are descendants of immigrants from Fujian, China, and speak the Hokkien dialect). This is on top of the short travelling distance between the two cities, as well as the availability of medical tourist-friendly hotels.

Consolidation of Island Hospital.

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Oong Chun Sung RHB Securities Research | https://www.rhbgroup.com/ 2024-12-06 SGinvestors.io

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