THG allots $100m for Myanmar hospitals

Thonburi Hospital Group (THG), Thailand's third-largest private hospital group, says it expects to sign a memorandum of understanding with Ga Mone Pwint company (GMP Group) in Yangon next week to start building two superior-standard hospitals to serve demand in Myanmar.

Dr Boon Vanasin, the owner of the Thonburi group, which has a network of 22 hospitals in Thailand and abroad with a combined 3,000 beds, plans to spend US$100 million on the two hospitals.

He said THG expected to own 40% of the two new hospitals, with 60% owned by GMP Group, which was founded in 1991 by a Burmese businessman in control of retail, real estate and health care firms.

Construction of the two hospitals started in December 2014 and is expected to finish in a few years, with a combined 400 beds.

"THG is the first Thai company to invest in a full-operation hospital in Myanmar. These projects will help improve the standard of health care in Myanmar and help save on medical costs for locals because they won't have to travel to Thailand for high-quality care," said Dr Boon.

He said Myanmar people ranked No.1 for foreign patients travelling to Thailand for medical treatment, followed by Europeans and Arabs.

Dr Boon said THG also planned to build a new 200-bed superior-standard hospital in Mandalay to meet rising demand.

"In Myanmar we will focus on the middle and upper class as we see strong growth in this market," he said, adding Myanmar's hospital industry has grown more than 10% each year it measured and was expected to grow up to 15% this year as a growing economy allows locals to spend more on medical care.

Dr Boon said THG is also seeking opportunities to invest in other Asean member countries, especially once the Asean Economic Community becomes fully implemented.

Next year THG is planning an initial public offering to list on the Stock Exchange of Thailand, following its plan to expand business in order to grab profit from the growing medical-related industry.