Singapore O&G has entered into a joint venture (JV) agreement with LYC Mother & Child Centre, a wholly-owned subsidiary of f LYC Healthcare for the purpose of setting up a postpartum confinement centre of up to 130 beds in Johor, Malaysia.
In a filing to SGX dated March 18, Singapore O&G stated that a special purpose vehicle will be set up for the proposed confinement centre, with O&G and LYC Mother & Child Centre owning 49% and 51% stakes respectively.
The proposed confinement centre will provide postpartum confinement care and related services catering to both Malaysian and Singaporean customers who wish to spend their post-childbirth confinement period in Johor. The JV agreement also provides for the establishment of similar centres in Malaysia, as may be agreed by Singapore O&G and LYC Healthcare.
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The confinement centre marks Singapore O&G’s first foray into an overseas market. It is expected to commence operations with an initial capacity of 60 beds, and eventually ramp up to a capacity of 130 beds. The location of the centre is expected to be near the Singapore-Malaysia border.
Eric Choo, CEO of Singapore O&G, says the company believes that the proposed centre will meet the increasing demand for postpartum confinement services in the Singapore and Malaysia markets.
“With the lifting of Covid-19 travel restriction later and shortage of confinement nannies in Singapore, Singaporeans can seek affordable and quality confinement services in the Johor Confinement Centre which will be located in close proximity to the Singapore-Malaysia border,” he says.
“The customers of the Johor confinement centre can expect to be attended to by qualified and professional caregivers providing round-the-clock nursing care for both mothers and babies,” he adds.
Shares in Singapore O&G closed 0.5 cents or 1.96% higher at 26 cents on March 18.
