Located near the Causeway linking Johor and Singapore, the Thomson Iskandar development will feature the 500-bed Iskandariah Hospital, 400 medical suites, medical and allied health training institutes, research facilities, and a 33-storey commercial block.
KUALA LUMPUR (Nov 6): TMC Life Sciences Bhd (KL:TMCLIFE) said on Wednesday that it will begin construction of its integrated medical hub, Thomson Iskandar in Johor Bahru, by late 2025, with completion targeted for 2030.
The tender process for construction is expected to commence in early 2025 and take approximately nine months to finalise due to extensive clarifications required, acting chief executive officer (CEO) Dr Melvin Heng Jun Li said during the company’s post 22nd annual general meeting (AGM).
The construction costs are now expected to appreciate by as much as 30% from the previously reported RM1.2 billion due to hikes in construction cost, he added.
That will bring the project cost to up to RM1.56 billion.
“We have all the necessary approvals, but we are reapplying to extend some of them to avoid any lapses during construction,” Heng said, referencing compliance certificates including CPAC (Cawangan Kawalan Amalan Perubatan Swasta), that will expire between 2026 and 2027.
Located near the Causeway linking Johor and Singapore, the Thomson Iskandar development will feature the 500-bed Iskandariah Hospital, 400 medical suites, medical and allied health training institutes, research facilities, and a 33-storey commercial block.
Heng expressed optimism about the location, noting its proximity to the forthcoming Johor-Singapore Special Economic Zone (JS-SEZ) expected to drive biomedical and healthcare-related activities in the region.
He added that the group has been discussing with related authorities, including the Medical Device Authority and Economic Development Board for Singapore, on such development.
“The (JS-)SEZ offers significant opportunities for companies in the biomedical sciences and medical device manufacturing. We hope that the SEZ may allow for some FDA/CE-approved devices and therapies to be introduced preferentially whilst undergoing local regulatory approval,” Heng said, highlighting growing interest from biomedical firms and manufacturers exploring the JS-SEZ’s potential.
TMC took a stake in the project in 2015, when Singaporean businessman Peter Lim, and the Regent and Crown Prince of Johor Tunku Ismail Idris injected the project into the listed entity via a share-swap deal worth RM400 million. The two individuals owned 70% and 30% respectively in the project entity, BB Waterfront Sdn Bhd.
There were initial plans to develop the project, with completion target of 2020, at a price tag of RM1.3 billion. However, changes occured in the project, including in 2017, when TMC mutually called off its partnership with Singapore-based Thomson International Health Services Pte Ltd (TIHS) and Thomson International Sdn Bhd (TISB), to develop the integrated medical hub project.
Expansion plans in regional countries
For the financial year ending June 30, 2025 (FY2025), TMC is also assessing opportunities for expansion within Southeast Asia, where it sees strong demand for premium healthcare services.
According to Heng, the group is particularly interested in Vietnam, Philippines, Indonesia, and Thailand, though plans are still in early stages.
“We started with Vietnam; we are still looking at markets that can take a premium healthcare company, maybe Indonesia, Thailand and Philippines will be the next possibilities. Countries like Laos and Cambodia, Myanmar, [and] Timor-Leste are a bit too nascent for us, so this is how we look at the region.”
Management keeps mum on CEO’s suspension
When questioned about the suspension of group CEO Wan Nadiah Wan Mohd Abdullah Yaakob, TMC Life Sciences non-executive chairman Datuk Seri Mohd Mokhtar Mohd Shariff said the company cannot comment further on the proceedings until they are concluded.
“We have been advised by the legal council not to comment on it. We have made relevant announcements to Bursa Malaysia, and are following due process,” he said.
“The domestic inquiry is still on. So, let them do their work. So we don’t want to predetermine or prejudge. So, we have been advised by the legal counsel that it takes its course and once it’s concluded, we will definitely do everything within the confines of the law,” he added.
To recap, TMC Life Sciences suspended Wan Nadiah’s employment on Jan 29, initiating a disciplinary process. After an initial show-cause letter, the company issued a follow-up letter in March, finding her responses inadequate. Wan Nadiah is currently subject to a domestic inquiry, following unsuccessful mediation efforts.
As at midday on Wednesday, TMC Life Sciences’ shares had slipped half a sen or 0.94% to 52.5 sen, giving the company a market capitalisation of RM914.49 million. Year-to-date, the stock has declined by 30%.