KUALA LUMPUR (March 10): TDM Bhd’s (KL:TDM) subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare) is collaborating with Bertam Specialist Hospital Sdn Bhd (BSHSB) to develop a 100-bed hospital in Bertam, Penang, with a gross development cost of RM146 million.

In a statement on Monday, KMI Healthcare’s subsidiary KMI Bertam Medical Center Sdn Bhd (KMI Bertam) signed a build-and-lease agreement with BSHSB. Under the agreement, BSHSB will manage the development and ownership of the hospital facility, and KMI Bertam will lease the hospital for 18 years, with an option to extend for another 12 more years.

KMI Healthcare is a subsidiary of TDM's healthcare division, which operates five specialist hospitals with 419 beds. TDM is an investment holding company, which is mainly involved in the oil palm plantation sector.

The hospital sits on a 2.1-acre site in Seberang Prai Utara, Penang with easy access via the PLUS highway and a five- to 10-minute drive from the Kepala Batas toll exit.

The construction is estimated to begin this year, with completion expected in 2028.

TDM said the project adopts an asset-light business model, enabling KMI Bertam to focus on delivering healthcare services, while BSHSB handles the development and ownership of hospital facilities, ensuring efficient capital use and operational flexibility in line with KMI Healthcare’s growth strategy.

"This agreement is a significant step in our mission to expand the KMI hospital chain and deliver quality healthcare to more communities. The Bertam hospital will not only serve the local population but also contribute to Penang’s medical tourism potential. We are proud to partner with BSHSB to bring this vision to life,” said KMI Health chief executive officer Rayney Azmi Ali.

The 100-bed hospital will offer advanced medical and surgical facilities, including centres of excellence (COE), diagnostic services, and patient-focused care units.

For its latest quarter, ended Dec 31, 2024 (4QFY2024), TDM recorded a total revenue of RM175.88 million. TDM’s healthcare business has overtaken plantation as the bigger earnings contributor, accounting for 55.12% of total revenue or RM96.95 million compared with the plantation segment's 44.88% or RM78.83 million.

For its financial year ended Dec 31, 2024 (FY2024), TDM recorded a total revenue of RM645.5 million. The healthcare segment posted earnings of RM354.28 million, accounting for 54.89% of total revenue, which is higher than the plantation segment's RM291.22 million (45.11% of total revenue).

Shares of TDM closed down 0.5 sen or 2.6% at 19 sen on Monday, with a market capitalisation of RM327.3 million. The counter has declined 13.64% this year.