“Radium Development Bhd plans a 140-bed hospital in Melaka, marking its entry into healthcare. Construction starts in 2025; operations expected by 2028.“
Kuala Lumpur, 07th Apr 2025, 11.15am – Property developer Radium Development Bhd is making its first foray into the healthcare sector with plans to develop and operate a 140-bed private hospital in Bukit Katil, Melaka, through its wholly owned unit A Famosa Specialist Hospital (Malacca) Sdn Bhd (AFSH).
In a filing to Bursa Malaysia on Friday, Radium said the hospital will be built on a 7.11-acre leasehold site, acquired from Winbond Properties Sdn Bhd for RM25.5 million. The sale and purchase agreement, signed on Sept 9, 2024, is still pending completion.
Although the total development cost was not disclosed, Radium stated that the project will be funded via a mix of internal funds and bank borrowings.
Construction to Begin in 2H 2025, Launch Expected in 2028
Subject to regulatory approvals, construction is slated to begin in the second half of 2025, with the hospital expected to open its doors by the first half of 2028.
Radium noted that no profit contribution is expected from this healthcare venture in the next three years as the project remains in its early development phase.
Strategic Move into Healthcare for Long-Term Growth
The group said its expansion into healthcare reflects its strategy to tap into a growing industry with the potential for recurring income and long-term financial sustainability.
“This move allows Radium to diversify into a high-potential sector, supporting stable and predictable revenue streams,” it said in the statement.
The venture will include not only hospital operations and medical services but also healthcare facility development, leasing, and infrastructure planning. Discussions are currently underway with a potential strategic partner, with both parties expected to finalise an agreement in due course.
Stock Performance
Shares of Radium Development closed unchanged at 49.5 sen on Friday, giving the company a market capitalisation of RM1.72 billion. Over the past year, the stock has gained 12.5%.
