Raffles Medical’s China business is underperforming but group says time is needed to deliver

[SINGAPORE] The China business of Raffles Medical Group accounts for 30 per cent of the group’s assets but only 10 per cent of revenue.

The Singapore group said overseas investments generally require more time to build scale, patient volumes and clinical capabilities before delivering stronger returns.

The medical group was commenting on Saturday (Apr 18) to questions from shareholders and Securities Investors Association (Singapore) ahead of its annual general meeting on Apr 24.

It was queried about the slow increase in its China business, which had raked in only S$25.4 million more in revenue over a seven-year period to S$65.4 million in FY2025.

Also, the group’s Singapore asset base is about 2.2 times that of its China assets, yet Singapore revenue is 10.4 times China revenue.

“This suggests a significant disparity in asset productivity between the two markets,” observed the questioner.

China is constrained by geopolitical and technological challenges, replied the board, adding that the market is an important one for the group as 30 per cent of its population can afford better healthcare.

Senior management has watched the liberalisation and development of the private healthcare market for more than 30 years before considering venturing into the north Asian market, the board noted.

“While we work upon initiatives that can deliver nearer-term impact, we also focus on longer term operational efficiency, increasing utilisation and strengthening margins,” it added.

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Besides serving international expatriate families, Raffles Medical is also increasingly serving the locals as it has obtained the access to the local government insurance.

Raffles Medical closed S$0.01 or 1 per cent lower at S$1.02 on Friday.