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New Straits Times
12-05-2025
- Health
- New Straits Times
Johor poised for major hospital expansion amid rising healthcare demand
KUALA LUMPUR: Johor is set for a major expansion in both public and private hospital developments, driven by rapid population growth, accelerating urbanisation, and increasing demand for high-quality healthcare services. According to Samuel Tan, founder and chief executive officer of Olive Tree Property Consultants, the state's growing population—driven by local expansion, migration, and its close ties with Singapore—is generating an urgent need for additional hospitals. "The expanding population is putting pressure on existing healthcare infrastructure. We're seeing a growing demand for hospital beds, medical specialists, and advanced treatment facilities," Tan told Business Times. He further noted that Johor's economic diversification, continued industrialisation, and enhanced cross-border connectivity are reinforcing the urgency of healthcare infrastructure development. "While each district has at least one hospital, the increasing number of workers, tourists, and investors in Johor makes it clear that more healthcare infrastructure is necessary," he said. Tan added that strategic planning and sustained investment will be critical to ensure Johor's healthcare system can meet future public health needs and support long-term socio-economic development. "As Johor continues to grow, ensuring equitable access to healthcare across both urban and rural areas is essential. This is not just about adding more hospitals—it's about building a modern, integrated healthcare ecosystem that can support the region's future growth," he said. Johor's healthcare landscape and the role of JS-SEZ Tan pointed out that Johor already has a relatively well-developed healthcare landscape, featuring a balanced mix of public and private institutions. The private healthcare sector, in particular, is known for its efficiency, quality of care, and appeal to medical tourists. Johor's healthcare profile is further elevated by the Johor-Singapore Special Economic Zone (JS-SEZ)—a strategic cross-border initiative formalised on Jan 7, 2025. The agreement, signed by Prime Minister Datuk Seri Anwar Ibrahim and Singapore's Deputy Prime Minister Lawrence Wong, included six memoranda of understanding and a letter of intent. As part of the JS-SEZ, the Johor state government is actively inviting international healthcare and pharmaceutical companies to invest within the zone. Several stakeholders have already expressed interest in developing hospitals, clinics, and pharmacies. "Medical tourism will be a key growth driver under the JS-SEZ," said Tan. "Singaporeans and international patients are increasingly choosing Johor for medical treatment due to its lower costs, availability of skilled professionals, and state-of-the-art medical technology." He added that rising healthcare costs in Singapore further enhance Johor's appeal as a cross-border healthcare destination. Ongoing and upcoming hospital projects Urbanisation and industrial development across Johor, especially in Johor Bahru, are amplifying demand for modern healthcare facilities. This is compounded by rising incidences of chronic diseases and an ageing population requiring long-term care. Johor Bahru currently hosts several established private hospitals catering to both local and international patients, including KPJ Johor Specialist Hospital, Regency Specialist Hospital, Columbia Asia Hospital, and Gleneagles Medini. On the public side, Hospital Sultanah Aminah (HSA) remains the largest government hospital in the state, while Hospital Sultan Ismail (HSI) functions as a major referral centre, particularly for cancer and specialised care. To alleviate pressure on these facilities, new hospitals are in development. Among them is the 304-bed Pasir Gudang Hospital in Bandar Seri Alam, Masai—slated for completion in June 2025 at a cost of RM380 million. It is expected to significantly ease patient congestion at HSI. Another major initiative is Hospital Sultanah Aminah 2, a public-private partnership project set to begin construction in 2026. The new hospital will offer 1,500 beds and will be developed on a 28.33-hectare site provided by the Ministry of Defence. "With these developments, Johor is not only enhancing its healthcare system for residents but also positioning itself as a hub for medical tourism, elderly care, and wellness," Tan said. Future outlook: Elderly care and preventive healthcare Looking ahead, Tan believes Johor is well-positioned to become a centre for elder care, rehabilitation, and retirement living. He also highlighted a shift toward preventive healthcare, with trends like genome sequencing and lifestyle-based disease prevention gaining traction. "These emerging approaches are expected to reduce long-term medical costs and help ease the burden on healthcare facilities," he said. According to the Department of Statistics Malaysia (DOSM), the percentage of Malaysians aged 65 and above is projected to rise from 8.1 per cent in 2024 to 14.5 per cent by 2040. This demographic shift underscores the urgent need to expand healthcare infrastructure and services to meet the demands of an ageing population. Malaysia continues to be recognised globally for its robust healthcare system. Tan pointed out that in the 2019 International Living Annual Global Retirement Index, Malaysia scored 95 out of 100 and ranked first in the "Best Healthcare in the World" category. "Malaysia remains a top choice for international patients seeking affordable, high-quality medical care—and Johor is emerging as one of its most important healthcare frontiers," Tan concluded.
The Star
05-05-2025
- Business
- The Star
Office market stable amid hybrid work, ESG trends
PETALING JAYA: The Malaysian office market is expected to remain stable this year, underpinned by demand for newer high-grade offices featuring sustainable designs and up-to-date specifications. Savills Malaysia Sdn Bhd group managing director Datuk Paul Khong said older Grade B and Grade C offices would struggle with major tenant retention issues and would continue to rely on lower rentals to stay competitive. 'Overall market stability is underpinned by moderate incoming supply, a steady performance in the prime market rents and a gradual uplift in occupancy,' he told StarBiz. On a micro level, Khong said shifts in workplace dynamics and the growing focus on corporate social responsibility have pushed organisations to right-size and consolidate into high-quality spaces. 'Flexible office space is gaining traction as evolving work habits reshape the market. 'Post-pandemic, hybrid work, flexible leases and modular layouts drive demand and create more opportunities for co-working operators with landlords.' Looking ahead, Khong expects demand for new offices to remain strong, supported by tenants' growing appetite for modern high-quality buildings with ESG (environmental, social and governance) features. 'The ageing office segment will need major refurbishments to continue staying relevant,' he said. Meanwhile, Knight Frank Malaysia believes the outlook for the next 12 months suggests continued stability in Malaysia's office sector, with a tenant-favourable market environment expected to persist as businesses reassess long-term space needs and embrace more flexible, future-ready office strategies. 'With an annual change of 2.6% and a quarterly increase of 0.8%, Kuala Lumpur's (KL) office market is showing signs of steady, measured recovery.' However, Knight Frank noted that high supply levels and evolving workplace expectations may continue to weigh on rental growth. 'Occupiers are likely to prioritise flight-to-quality strategies, while landlords may focus on improving building specifications and sustainability features to remain competitive in an increasingly discerning market.' Olive Tree Property Consultants founder and chief executive officer Samuel Tan remains cautiously optimistic on the outlook for Johor's office sector in 2025. 'Strategic initiatives like the Johor-Singapore Special Economic Zone (JS-SEZ), ongoing infrastructure projects such as the Rapid Transit System, elevated automated rapid transit and the influx of data centres are all key catalysts driving the demand for office spaces.' Moving forward, he said multinational corporations (MNCs) and service providers are expected to set up regional or representative offices in Johor Baru to ride on the promising growth within the state. 'Some Singapore-based companies and startups, capitalising on lower operation costs, could be keen to set up offices in the JS-SEZ.' Meanwhile, Olive Tree Property Consultants director Tan Wee Tiam said the escalating trade war triggered by the US' reciprocal tariff is another key consideration for companies intending to set up or expand their office space within the JS-SEZ. 'The risk is compounded by the extremely fluid trade policy adopted unilaterally by the United States. 'Investors do not like uncertainties. 'As a result, while many companies may be keen to use the JS-SEZ as a platform to ride on the growth, many would adopt a wait-and-see stance, at least in the short term, for more clarity to unfold.' Wee Tiam added that tenants, especially MNCs, are increasingly looking for high-quality office spaces that adhere to ESG standards. 'In general, office tenants, especially MNCs, are increasingly seeking offices with modern amenities, energy efficiency and sustainable features.' Meanwhile, Tan said the adoption of hybrid work models has led to increased demand for flexible workspace solutions. 'Companies are looking for adaptable office environments that can accommodate fluctuating occupancy levels and foster collaboration. 'Landlords of older buildings would need to consider refurbishments or repositioning strategies to attract and retain tenants.' On the sector's performance for the first quarter of this year (1Q25), Knight Frank said KL's prime office market continued to improve, as occupier activity strengthened in select sectors despite headline vacancy rates remaining elevated at 24.6%. 'The city's rental levels held steady at RM6.01 per sq ft per month, with no quarter-on-quarter change – underscoring market resilience in the face of ongoing global and regional uncertainties. 'Notably, improving occupancy has been observed, bolstered by expansions from technology firms and MNCs aiming to reinforce their regional footprint in Malaysia.' Khong said the general office sector in Greater KL moved positively during 1Q25, with good improvements in both net absorption rates and office rentals. 'This was well driven, mainly by demand for high-grade office spaces due to improved investor sentiments. 'Greater KL continued to record a net absorption of 0.46 million sq ft in 1Q25, a strong performance compared to an annual absorption of 1.2 million sq ft for 2024.' Khong highlighted that the key drivers during the quarter were 'flight-to-quality' in tenant movements, right-sizing efforts and a growing emphasis on ESG trends.
