KUALA LUMPUR (Aug 16): Medical bed manufacturer LKL International Bhd (KL:LKL) said on Friday it has signed a pact with Karl Group to explore opportunities and collaborate on manufacturing hospital furniture in the Philippines.

Under the memorandum of understanding (MOU) signed, LKL will be responsible for providing technical expertise and technology, supporting training and capacity building, and assisting in identifying potential investors and financial support, the company said in an exchange filing.

“The MOU provides the company an opportunity to further solidify and expand its existing business operations in the Philippines,” LKL said in an exchange filing. “LKL sees this partnership as a strategic move to enhance its market presence and meet the growing demand for quality hospital furniture and healthcare solutions.”

The Philippine Economic Zone Authority is seeking to attract potential investors and local manufacturers to set up medical devices and hospital furniture manufacturing in the country home to over 119 million people. Currently, the Philippines imports more than 90% of its medical devices and hospital furniture.

The Philippines also has over 9,700 healthcare units, including 1,915 public and private hospitals with a total capacity of 22,773 beds. The Philippines' Department of Health aims to build at least 6,000 functioning primary healthcare facilities nationwide by 2028 to boost the delivery of healthcare services.

Karl Group, founded by Dr Luis Ramon V Rodriguez, provides healthcare products and services as well as runs a medical college.

“LKL’s aim to set up local manufacturing hub of the hospital furniture shall benefit the company as the pioneer of locally made hospital furniture in the country,” the company said in another statement.