KUCHING (Feb 26): Private equity firm Ikhlas Capital Singapore Pte Ltd is investing RM74 million in Sarawak-based PMG Healthcare Sdn Bhd.

The investment was for a “significant minority stake” in PMG Healthcare, Ikhlas Capital chairman Tan Sri Nazir Razak told reporters after the signing ceremony on Wednesday. PMG Healthcare was established in 2012, operating 152 pharmacies, 28 medical clinics, and eight dental clinics nationwide.

“We believe we have in PMG Healthcare a company with a good track record, strong leadership, solid culture, and proven [merger and acquisition] capabilities in an industry that is both high-growth and important for society, especially its less fortunate constituents,” he said.

The bulk of PMG Healthcare's operations are currently located in Sarawak and Sabah, making it the largest integrated primary healthcare provider in the states. In Peninsular Malaysia, it has a total of 69 pharmacy outlets and one medical clinic.

Last September, PMG Healthcare acquired Johor-based AM PM Pharmacy, which added 46 outlets to its pharmacy network.

The group plans to aggressively expand its network nationwide, due to opportunities in a market currently undergoing consolidation, said PMG Healthcare founder and chairman Dr Chieng King Chong.

“We are targeting to open at least 30 to 50 outlets per year to keep the revenue momentum going,” said Chieng. Having Ikhlas Capital as a strategic investor is a major leap forward for the company, he noted.

“Ikhlas Capital brings more than just funding; their expertise and regional network are invaluable,” Chieng said. “As an Asean-focused firm, they align perfectly with our growth ambitions, offering strategic guidance for expansion and operational enhancements.”

Ikhlas Capital is a private equity fund founded by Nazir, CIMB Group Holdings Bhd's (KL:CIMB) former chief financial officer Kenny Kim, Indonesia’s former trade minister Gita Irawan Wirjawan, and the Philippines’ former secretary of finance Cesar Purisima.

The private equity fund raises funds principally from Asean families and institutions, and invests in well-managed, high-growth companies in the region.

“In PMG Healthcare, we see an exceptional Sarawakian business that can scale and morph into a national and even regional champion,” Nazir said, noting that Chieng and his team share that growth ambition.

Also gracing the event was Deputy Premier of Sarawak and Minister of Public Health, Housing and Local Government Datuk Professor Dr Sim Kui Hian, who believes that public-private collaborations are critical to sustainable healthcare solutions for the people of Sarawak.

“With this partnership between PMG Healthcare and Ikhlas Capital, the Sarawak government believes we can fill in the gap for access to primary and preventive care, health education, and public health programmes, in line with the state’s aspirations,” he added.