Would RafflesMed’s expansion plan prove counterproductive?

They’re currently bombarded by expenses from all fronts.

Singapore’s largest healthcare provider is enlarging its coasts both locally and abroad, as it diversifies in the face of the city-state’s dimming medical tourism.

However, the expansion plans leave RafflesMed with increasing cost pressures, according to analysts from OCBC.

According to OCBC, nurses and staffs have to be trained before RafflesMed can cut the ribbon on its new centres, and thus expenses have to be incurred before seeing any meaningful revenue contribution.

Meanwhile, OCBC says the management is focused on rolling out productivity improvements in order to offset cost pressures.

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