Raffles Med embarks on massive overseas acquisition spree as local growth falters

Medical tourism is waning.

Raffles Medical Group is placing its bets on overseas markets in its search for growth, after the private healthcare provider recently revealed a spate of acquisitions across the region.

For instance, the group recently acquired its first medical centre in Japan. The acquisition came hot on the heels of a deal which saw Raffles Med snap up a company that operates 10 clinics in China, Vietnam and Cambodia.

“While these clinics may not contribute substantially to earnings, the clinics will facilitate the group in gaining a foothold in new growth areas. We previously noted the risk of waning medical tourism to Singapore, and hospital services were being driven more by local demand during 2Q15,” OCBC Investment Research said in a report.

“Thus the move to diversify its presence overseas bodes well in diversifying the group’s earnings profile for the future,” OCBC said.