Raffles' Chongqing hospital an ‘early mover'

There are no other healthcare facilities nearby.

Raffles Medical's new 700-bed hospital could potentially gain from Chongqing, which is seen as a major beneficiary of China’s Silk Road initiatives given its strategic location.

OCBC Investment Research said it could be positive for the new facility, as there are currently no hospitals within its close proximity, enabling it to access the significant addressable patient population.

"Against this backdrop, we believe RMG’s hospital in Chongqing would be one of the early movers to ride on the area’s rapid growth and increased connectivity, serving a mix of upper-middle income local patients from across China, expatriate as well as international patients," said OCBC Investment Research.

The brokerage firm also noted that whilst higher costs are inevitable, Raffles' cost management remains in control.

"We are positive on this new development in China for the long run, which is further backed by a team experienced with the region," it said.

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