KUALA LUMPUR: Regional healthcare provider, Columbia Asia Group of Companies, will spend about RM1.5 billion to build 15 new hospitals in the region.

Kahar Mohamed, Columbia Asia's vice-president for treasury services, said on Tuesday, March 16, the number would include the three hospitals in Malaysia that are still under development.

"These hospitals are in various stages of development. We estimate the cost to be between RM68 million and RM70 million to build a hospital," Kahar told reporters after the signing ceremony of a syndicated financing agreement here today.

Columbia Asia Sdn Bhd today secured RM250 million in syndicated funding based on the Islamic principle of Ijarah Muntahiah Bitamlik from Bank Muamalat Malaysia Bhd and Bank Kerjasama Rakyat Malaysia Bhd.

It will be used to finance its three existing hospitals and another three, which are in various stages of development in Malaysia.

The three existing hospitals are in Puchong, Taiping and Nusajaya, while the other three in Bukit Rimau, Balakong and Setapak, are still under construction and scheduled to be opened between July this year and early next year.

He said Columbia Asia was eyeing suburban areas to build the hospitals in, in order to reach out to average citizens.

"The increasing demand for affordable healthcare services across Asia has resulted in a substantial increase in the number of people who are medically insured by employers and insurance companies," Kahar said.

Beside Malaysia, Columbia Asia also operates in India, Vietnam, Sri Lanka and Indonesia,  and has 16 hospitals already in operation.

Incorporated in 1996, Columbia Asia Sdn Bhd is 70%  held by Columbia Asia Group of Companies, and the balance by the Employees Provident Fund.

Columbia Asia owns the Malaysian and Indonesian hospitals and gets a fee for operating the hospitals in Vietnam and India. — Bernama