This article first appeared in City & Country, The Edge Malaysia Weekly on April 7, 2025 – April 13, 2025

Kuala Lumpur-based Radium Development Bhd (KL:RADIUM) is diversifying into the healthcare sector with the development of Radium Hospital @ Ayer Keroh in Melaka through its wholly-owned subsidiary, A Famosa Specialist Hospital (Malacca) Sdn Bhd, says group managing director Datuk Gary Gan.

The project covers 7.11 acres and is adjacent to Melaka International Trade Centre. Construction of Phase 1 is expected to begin in the second half of this year pending approval from the authorities, and is scheduled to be operational by 1H2028, he adds.

“Phase 1 is planned [to be] a hospital with 140 beds. We will unveil the master plan for future development in due course,” Gan says in an interview with City & Country.

According to him, its business partner is M Life Healthcare Sdn Bhd, led by Dr Arun Kumar, who has over 33 years’ experience in the healthcare industry.

Arun started his career as an ear, nose and throat clinician at public institutions before moving into private healthcare. He later ventured into healthcare management, taking on the role of senior director at Manipal Group Malaysia, where he played a key part in developing and managing Manipal Hospital, Klang (now known as Bukit Tinggi Medical Centre) as the person-in-charge (PIC) and medical director.

Arun was instrumental in Ramsay Sime Darby’s acquisition of Bukit Tinggi Medical Centre in 2021. He remains the licence holder and PIC of the hospital.

Radium has been actively exploring new property-related ventures that generate recurring income to contribute to business and revenue sustainability. The hospital, Gan says, aligns with this strategy by adding a new asset class to its portfolio.

“These [will] include healthcare real estate assets such as medical office buildings, outpatient clinics, ambulatory surgery centres, assisted living and speciality hospitals in the future. This also opens up an avenue to develop mixed-use developments that integrate medical facilities with residential, retail and commercial spaces to create vibrant healthcare hubs.”

Gan sees healthcare as a growing sector, driven by global trends such as an ageing population, advances in medical technology and increasing healthcare spending.

As healthcare is a fundamental need and the demand for medical services is resilient regardless of economic conditions, he believes it will provide a dependable revenue stream over the long term. This diversification will also enable the group to mitigate the impact of downturns in the property development sector and improve overall financial stability, he adds.

“Additionally, this is in line with our ethos, ‘Building Good’, enabling us to create a positive social impact by improving access to healthcare services, advancing medical research and contributing to the development of life-saving treatments and cures,” Gan explains.

“This project also reflects Radium’s Rule of 8 belief, which guides us in whatever we do. Beyond physical structures, we believe that we have a duty, as a developer, to facilitate the nurturing of communities that thrive.”

The developer’s corporate belief — Rule of 8 — emphasises that people are at the core of its business. The eight principles of Rule of 8 that guide Radium’s decisions are Build Together, Build Different, Build Standards, Build Trust, Build Spectrum, Build Experiences, Build Sustainability and Build Value.

Gan says the new hospital is an embodiment of these aspirations, while also supporting the country’s National Health Agenda and aspirations to be a hub for medical tourism in the region.

He reiterates that while healthcare is a new venture for Radium, its approach of partnering the right experts remains the same.

“We recognise that hospital management requires specialised expertise, which is why we have teamed up with M Life Healthcare and Dr Arun Kumar, a seasoned healthcare professional, to manage the operation of this hospital,” he says.

“This hospital will operate as an independent entity under the healthcare division of the Radium Group, with a dedicated team of medical and healthcare professionals managing its day-to-day operations. Radium’s role is to provide the strategic direction, infrastructure and resources to ensure the hospital’s long-term success. This partnership allows us to maintain our strength in property development while leveraging healthcare expertise to build a strong, sustainable private healthcare brand in Malaysia.”

According to Gan, Melaka was chosen as the site for its first hospital because it is a rapidly growing city with a population of around one million and a rising demand for specialised healthcare services. He observes, however, that there is still an unmet demand for quality healthcare services in the state despite the presence of several public and private hospitals there.

“Based on the 12th Malaysia Plan mid-term review report, the Ministry of Health had set a target of having 2.06 beds per 1,000 residents, which would mean that Melaka would require about 2,116 beds for a population of 1,027,500,” he explains.

“With the public sector having 1,050 beds, there is a shortfall of approximately 1,066 to be filled by the private sector. Based on the capacity of the existing private hospitals, there is still a shortfall of about 182 beds.”

Gan believes Radium Hospital @ Ayer Keroh will help bridge this gap, while also catering to demand from nearby areas in Johor and Negeri Sembilan. Melaka’s strong medical tourism sector further supports the feasibility of this endeavour, he adds.

Gan says the developer has a long-term vision for its expansion into healthcare and is currently exploring other projects.

Gan says challenges in the sector are strict regulatory compliance, licensing and adherence to high medical standards.

“Competing with established healthcare providers, attracting top medical talent and ensuring operational efficiency are key challenges. Additionally, navigating partnerships with medical institutions and government agencies will be crucial for long-term success. I am, however, confident in the team behind this project, and certain that this venture will be successful.”

He expects the hospital to strengthen Radium’s brand positioning in the immediate term and demonstrate its commitment to building sustainable communities beyond just homes.

“It will also unlock new opportunities for partnerships, including collaborations with healthcare providers, medical institutions and government agencies. Beyond FY2025, we hope Radium’s healthcare venture will contribute to economic growth, by creating jobs in construction, healthcare and operations, while addressing the shortage of private hospital beds and improving access to quality medical services, especially as the nation moves towards [becoming] an ageing population,” he says.

“It will also contribute to medical tourism, supporting Melaka’s position as a hub for international patients. Ultimately, this venture aligns with Radium’s vision of not just building properties, but enhancing lives — and we look forward to seeing its impact unfold in the years ahead.”

In the long term, Radium intends to establish a footprint in cities with a shortfall of hospital beds due to increasing demand for quality and accessible healthcare services.

The company is also gearing up for two property launches with a total gross development value (GDV) of RM870 million in the Klang Valley this year, according to Gan. These are a joint venture project in Kepong, Kuala Lumpur, with Kadar Jutajaya Sdn Bhd, and a project in Pandan Indah, Selangor. Both are scheduled to be launched in the second half of the year.

The Kepong project on 5.31 acres will have a GDV of RM400 million. It will comprise 558 condominium units, sized from 950 to 1,250 sq ft, as well as 239 Residensi Wilayah units of 800 sq ft each. The condos will start at RM620,000 while the Residensi Wilayah units will be sold at RM300,000 each. Facilities will include an outdoor pickleball court, infinity swimming pool, a gymnasium, barbecue area and linear garden.

The Pandan Indah project, which will sit on land measuring 2.56 acres, will have a GDV of RM470 million. It will offer about 1,128 residential units — 340 Servis Apartmen Mampu Milik (SAMM) homes with a built-up of 550 sq ft and the rest being homes of 750 to 1,050 sq ft each. The selling price of the residential units starts at RM520,000 while the SAMM units are priced at RM250,000. The project will also have commercial lots.

Facilities include a gymnasium, viewing deck with an outdoor lounge area, mini theatre, private sky dining at the rooftop and a grass lawn with glamping pods.

Both projects, Gan says, target first-time homebuyers, property upgraders, property investors, empty nesters and single occupants.

As for Radium’s total undeveloped land bank in Kuala Lumpur, he says it stands at about 21 acres, inclusive of the Kepong and Pandan Indah land, as well as a 13.16-acre plot at the former Cheras Velodrome site.

“This marks an increase of over 300% from our previous land bank of 5.31 acres, following the acquisition of a 13-acre leasehold land in Cheras for RM458 million and a 2.56-acre leasehold land in Pandan Indah, Selangor, for RM45 million, both in 2024.”

The company’s ongoing projects include Chancery Ampang (GDV: RM468.4 million, of which RM134.25 million has been signed, RM3.43 million booked), Radium Adesa (RM613.8 million; RM502.21 million signed, RM6.65 million booked), Vista Adesa (RM366.3 million; RM217.37 million signed, RM36.71 million booked), and Radium Arena (RM518 million; RM89.4 million signed, RM42.15 million booked). All are in the Klang Valley.

“Demand for affordably priced, well-located homes will continue, particularly among first-time buyers benefiting from improved financing options. Our approach emphasises affordability without compromising on liveability, ensuring that more Malaysians can achieve their home ownership aspirations,” he says.

“While external factors such as interest rate trends and global economic conditions may introduce some uncertainties, we are confident that Malaysia’s property sector will continue to show stability and long-term growth potential.”