Johor Bahru could soon rival Kuala Lumpur and Penang as a major medical hub, as healthcare players, including Thomson Medical Group, eye the Johor-Singapore Special Economic Zone (JS-SEZ) for expansion.

Thomson Medical, controlled by Singaporean billionaire Peter Lim, is developing Thomson Hospital Iskandariah, a multi-specialty, 300-bed hospital that could scale up to 400 beds. The project will sit on a 1.5-hectare site and will be part of a larger 10-hectare landbank in Johor owned by the group.

The hospital will focus on key specialties such as oncology, orthopaedics, and obstetrics and gynaecology. Construction is set to begin by late 2025 or early 2026, with the full healthcare hub expected to be completed by 2030.

Group CEO Dr Melvin Heng noted that the JS-SEZ’s announcement was a key catalyst to revive the project after years of “starts and stops.” “The timing couldn’t be better,” he told The Business Times.

Thomson Medical is exploring partnerships for a second healthcare-related block adjacent to the hospital, seeking collaborators such as private medical groups, medical device makers, and clinical research organisations.

The project, initially estimated at RM1.2 billion (S$359.7 million) pre-Covid, will likely exceed this figure due to rising construction costs, which could climb as much as 30%, Dr Heng said.

Strategically located near the Johor Bahru-Singapore Rapid Transit System (RTS) Link, the Causeway, and the Johor-Batam ferry terminal, the hospital aims to tap into medical tourist flows from Singapore and Indonesia, while primarily serving Johor’s local community.

Dr Heng expects local patients to make up 60% to 65% of the hospital’s clientele, with Singaporeans accounting for 5% to 10%, calling it “quite significant” for a cross-border medical facility.

While congestion at the Causeway remains a concern, Dr Heng highlighted that both governments are working to ease traffic as part of broader JS-SEZ efforts.

“Between Kuala Lumpur and Singapore, there’s nothing strong,” he said. “Johor Bahru is the biggest city in between, and I think there’s plenty of room for growth.”

Thomson Medical’s move adds to a growing list of healthcare providers investing in Johor. These include IHH Healthcare, HMI Medical, KPJ Healthcare, and reportedly, Sunway, which is also eyeing a hospital in the area.

With Malaysia’s healthcare sector primed for expansion and medical tourism on the rise, Dr Heng is confident that Johor is well-positioned to become a leading medical destination in the region.

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