Enviro-Hub to open 25 retail pharmacies in Malaysia by end-2022

Kuala Lumpur

ALTHOUGH there are over 1,000 retail pharmacy brands in Malaysia, comprising multi-store chains and standalone companies, the newest kid on the block - R Pharmacy - believes there is a gap it can fill in the market.

R Pharmacy is a new joint venture in which Singapore Exchange-listed Enviro-Hub Holdings has an indirect 40 per cent stake.

The first branch of R Pharmacy opened on Saturday (Apr 16) in Klang Valley, with 5 more already under development.

The plan is to open a total of 25 outlets by the end of 2022.

Adrian Toh, chief executive officer and executive director of R Pharmacy, is banking on his company's service standards and ability to build relationships in order to stand out from the competition.

"Unlike the old days where pharmacies were a place for one to get consultations and knowledge on health, today the majority of us just go in, grab what we need, and leave," he said in an interview with The Business Times.

"That's the reason we are positioning R Pharmacy as a neighbourhood pharmacy that offers consultation service to the customers.

"We even have a consultation room for those who want to talk to our pharmacists privately."

He says there are about 1,450 retail pharmacy brands including big chains such as Watsons and Guardian, as well as independent pharmacies in second- or third-tier cities across Malaysia.

Among them, 1,400 brands have less than 5 stores nationwide, and only 9 brands have more than 31 stores.

Toh, who is also the chief investment officer of Enviro-Hub, revealed that the estimated investment for the 25 R Pharmacy outlets in the first year is around RM15 million (S$4.81 million) - all funded using internal resources.

Despite such intense competition, he still sees opportunities in Malaysia and is confident that R Pharmacy, which targets the neighbourhood community, will be able to stand out from others through its omnichannel sales and service-oriented strategy.

Other than physical presence, R Pharmacy also plans to extend its offerings through its mobile app, which will offer e-prescriptions and a delivery service.

Toh said there are several reasons why Malaysia was picked as the "ground zero" of its pharmacy business.

These reasons include Malaysia's population of over 32 million, the increasing number of people aged 65 and above, as well as the pharmacy business' synergy with Pastel Glove.

Last August, Enviro-Hub acquired Pastel Glove, a Malaysia-based glovemaker with an annual production capacity of 1 billion pieces.

The venture into Malaysia's retail pharmacy business is in line with Enviro-Hub's plan to streamline its business segment to focus mainly on recycling and healthcare, said Toh.

"The glovemaking arm could produce R Pharmacy's own brand consumer gloves and sell it through the pharmacy at a competitive price, but still maintain the profit margin," he added.

In a separate media statement, Enviro-Hub chairman Raymond Ng said the opening of R Pharmacy reaffirms the group's big push into the health supplies industry.

"By reinventing the way we think about pharmacies, I believe we can understand our customers better and connect them to more superior products and services, as well as set a new benchmark for quality retail healthcare," he said.