Why Singapore healthcare firms are on an expansionary high

Dental medicine is thriving really well.

According to OCBC, healthcare companies have also largely embarked on expansionary plans to capitalise on the still-robust industry fundamentals.

For example, Q & M Dental is seeking to widen its network of dental clinics in Singapore, with a target to achieve 60 dental outlets in Singapore by 2015, subject to economic conditions.

Here's more from OCBC:

It also recently acquired its first general practice medical clinic as a means of diversifying beyond its core dental practice.

RMG highlighted that it will begin the construction of its Raffles Hospital extension this year to expand its capacity. IHH also has a strong pipeline of hospitals which are under construction, with the bulk of them located in Malaysia and Turkey.

In our opinion, these plans augur well for the medium-to-long term, but there will likely be some initial start-up costs which may impact near-term margins.

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