This article first appeared in Capital, The Edge Malaysia Weekly on July 7, 2025 - July 13, 2025

AS Kedah attracts a wave of foreign direct investments from multinational corporations as well as skilled talent to Kulim’s fast-growing industrial zones, ACE Market-bound private hospital operator PMCK Bhd is positioning itself to meet the rising medical needs of the burgeoning population of the northern state.

PMCK currently operates only one private hospital in Kedah — Putra Medical Centre (PMC) Alor Setar. The home-grown private healthcare provider is now making its biggest bet yet with a second full-fledged hospital — PMC Kulim.

PMCK founder and deputy executive chairman Datuk Dr Lim Kim Huat says the idea for PMC Kulim was conceived in 2019, following a feasibility study that had identified a significant gap in private healthcare services in Kulim and the surrounding districts such as Bandar Baharu, Baling and Kuala Muda.

“At present, hospital density in Kulim remains low, and many residents either rely on public hospitals or travel to Penang for private care,” he tells The Edge in an email interview.

The 73-year-old, who was born and raised in Ayer Hitam, understands that struggle, having experienced such conditions first-hand. Lim recalls a phone call from home when he was a second-year medical student — his late mother, Chong Yeon, had been diagnosed with cancer of the uterus. He dropped everything and rushed back.

For months, he ferried her on their small moped from Ayer Hitam to Penang Island for treatment, riding six hours along dimly lit, partially unpaved roads that snaked through Alor Janggus, Alor Setar and Simpang Empat. Back in the 1970s, the route to Adventist Hospital, that was run by a church, was narrow and dangerous, flanked by deep river canals on one side and speeding lorries on the other.

While the North-South Expressway cuts travel time down to about two hours today and makes the drive from Ayer Hitam to Penang less punishing, Lim believes that advanced medical treatment and the option for private healthcare should be made available to families like his, without the need for long, risky journeys.

“We see PMC Kulim as a strategic move not just in terms of business expansion, but also in fulfilling our responsibility to deliver quality healthcare to underserved towns,” says Lim, who sees Kulim’s unique position at the intersection of Kedah, Penang and Perak as a good base to serve a wider regional population.

Moreover, with the presence of industrial zones such as Kulim Hi-Tech Park adding to Kulim’s pull, demand for comprehensive healthcare services, including outpatient screenings and preventive care, should naturally grow.

“PMC Kulim will be our largest project to date, a 12-storey medical centre featuring up to 90 beds, labour rooms, an operating theatre and specialised clinics.

“It will also include a seven-storey mixed-use building with a food court and hotel, providing added convenience to patients’ families and generating a new income stream for PMCK,” he elaborates.

The PMC Kulim project, whose total construction cost is estimated at RM193 million, is being funded through a combination of internal funds, bank borrowings and proceeds from the initial public offering (IPO).

The ground-breaking for PMC Kulim began with site clearance in the fourth quarter of 2023, followed by earthworks a year later. Construction and pre-operational processes are targeted for completion by the third quarter of 2027, with operations expected to commence in the first quarter of 2028.

On June 30, PMCK said the public portion of its IPO was oversubscribed by 1.87 times ahead of its ACE Market debut this Wednesday (July 9).

Its IPO of 305.32 million shares, or 28% of its enlarged share capital, comprises 272.6 million new shares and an offer for sale of 32.72 million shares.

At an IPO price of 22 sen, PMCK will be raising RM59.9 million fresh capital, of which RM50 million will be used to repay bank borrowings used for expansion purposes, and another RM5.3 million to buy equipment for its facility in PMC Kulim.

Meanwhile, the offer for sale sees Lim and PMCK managing director Datuk Lee Gaik Cheng pocketing RM7 million in total.

Post-IPO, Lee’s direct stake will drop to 14.42% from 19.9%. LKH Holdings Sdn Bhd, in which the duo are shareholders, will see its stake reduced to 55.41% from 77.2%.

Lee points out that, as at 2023, PMC Alor Setar held about 24.2% of the licensed private hospital beds in Kedah — that is, 162 out of 669 total beds across the state.

“On a national level, we accounted for 0.86% of Malaysia’s total private hospital beds. In terms of revenue, we captured 0.26% of the total private health expenditure in Malaysia for the financial year ended April 30, 2024,” she says.

It is learnt that there are currently eight private hospitals in Kedah. PMC Kulim stands to be the first in Kulim.

Lee Yong Qian, alternate director to Lee, as well as strategic director of PMCK, opines that the group stands out as one of the most established private healthcare providers in the northern region, and its long-standing presence in Alor Setar gives it a strong home-ground advantage.

“PMC Kulim represents a significant growth opportunity for us to capture a wider share of Kedah’s private healthcare market.

“With its strategic location near the Kulim Hi-Tech Park, we are well positioned to serve both the local residential population and the increasing influx of professionals, workers and expatriates driven by the state’s industrialisation,” he says. 

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