Lippo Group to Expand Businesses in Myanmar, Cambodia in $1b Move
Jakarta. Indonesia conglomerate Lippo Group plans to set aside as much as $1 billion in its investment budget for expanding its health, hospitality, education and banking businesses in Myanmar and Cambodia, in a move to increase profits.
Siloam International Hospitals, a listed health-care unit of Lippo, would open 12 new hospitals in Myanmar. One of the hospitals will be inaugurated in 1 to 2 months and another in late 2015.
“We will invest around $400 million to $500 million for the hospitals in Myanmar. Spending on each hospital will be around $50 million to $60 million,” Lippo chief executive James T. Riady said on Monday. He spoke on the sidelines of the 24th World Economic Forum on East Asia at the Shangri-La hotel.
In Cambodia, Lippo would invest $300 million to $500 million and evaluating the potential to open a new bank, or to acquire existing banks.
“Cambodia is in need of a transformation in human resources. That’s why we will expand our business there. We also plan to expand our business in the banking field. We hope that we can make the plan work this year,” James said.
Siloam aims for Rp 3.6 trillion ($2 billion) in operational net income in 2015, which would be up by 48 percent from Rp 2.4 trillion in 2014.
Investor Daily and the Jakarta Globe are affiliated with Lippo. The Jakarta Globe is a media partner of the WEF event.
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