SINGAPORE (June 26): UEMS Pte Ltd, a Singapore-based wholly owned subsidiary of UEM Edgenta Bhd (KL:EDGENTA), is evaluating several acquisition targets of varying sizes in Singapore and Taiwan, as it looks to expand its integrated facilities management (IFM) and healthcare support services businesses.

Negotiations remain at an early stage, according to UEMS Singapore and Taiwan chief executive officer Tan Cheh Tian, saying the company is actively pursuing acquisition opportunities in both countries.

Potential acquisitions may include companies that offer bundled IFM services such as mechanical and electrical (M&E) maintenance, pest control, and landscaping.

“We are [looking for acquisitions] as part of our next phase of growth plans,” Tan told Malaysian reporters during a visit to UEMS’ operations in Singapore on Thursday.

UEMS, which operates in both Singapore and Taiwan, has a combined workforce of over 10,000 people and generated nearly RM1 billion in revenue in 2024. Taiwan, with a larger headcount of 7,400, accounted for S$166.53 million (RM551.08 million) of revenue, while Singapore contributed S$140.9 million with 3,000 employees.

UEMS is one of two key players in Singapore's healthcare support services, with operations across the country's three public healthcare clusters — National Healthcare Group (NHG), National University Health System (NUHS), and Singapore Health Services (SingHealth). The clusters, split by geographical location, with NHG covering the central region, NUHS covering the Western and SingHealth the Eastern, are part of an organisational structure implemented by the Singapore Health Ministry to ensure an integrated, efficient and future-ready public healthcare system for Singapore.

UEMS provides services such as housekeeping, portering, linen and laundry management, and technical maintenance.

“In Taiwan, we are actually the number one service provider in all major hospitals, whether in the southern, northern or central regions,” Tan said.

Clients in Taiwan include Kaohsiung Veteran General Hospital, National Taiwan University Hospital, and commercial clients such as Taiwan Semiconductor Manufacturing Co (TSMC) and Taiwan High Speed Rail (THSR). UEMS controls a 40% market share in Taiwan’s healthcare support services sector, according to the company.

UEMS already dominates Singapore’s hospital support services, with a presence of up to 80% in restructured hospitals — public hospitals that are owned by the government or state-owned organisations but have been restructured to operate with greater autonomy, similar to private companies.

“IFM is an area that we wish to grow. That’s the reason why we are looking at good [acquisition] targets,” said Tan.

The group is not in facilities management in Taiwan yet, but "it is something that we are also looking at — possibly by acquiring a company to complement our existing services [healthcare and housekeeping operations],” she said.

UEM Edgenta managing director and CEO Syahrunizam Samsudin told The Edge recently that the company was actively negotiating mergers and acquisitions in Singapore. It was also considering a separate listing for the group’s international business or a dual listing in Singapore to support its overseas expansion.

Amid rising costs from Singapore's progressive wage model and Taiwan’s minimum wage hike this year, UEMS has sought to negotiate contract adjustments with clients to reflect higher operating costs. But this has been “an uphill task”. “Post-Covid, margins have been moderated. But we just have to manage the cost,” Tan said.

It was previously reported that gross profit margin for UEM Edgenta — where sovereign wealth fund Khazanah Nasional Bhd’s UEM Group Bhd owns a 69% stake — stood at 12-18% in Singapore, Dubai, and Taiwan, compared to about 10% locally. About 75% of the group’s RM2.8 billion in new contract wins in FY2024 were secured from its overseas markets.

With Singapore and Taiwan each offering “equal opportunities”, Tan said UEMS is pursuing strategic expansion while being selective with new tenders and potential partners. It is preparing for a government tender in Singapore, while exploring entry into the IFM segment in Taiwan.

“The journey never stops. We will keep on expanding in these two countries,” Tan added.

UEM Edgenta shares finished half a sen or 0.71% lower at 70 sen on Thursday, valuing the group at RM578 million.