19 September 2001

Despite the gloomy economic situation that characterised the first half of 2001 throughout Singapore and the Asian region, Raffles Medical Group registered an impressive revenue growth of 31%.

Group turnover hit $38 million compared with $29 million in the same period last year. This can be attributed to the steady performance of its established business of providing primary healthcare services to individual and corporate patients as well as the opening of Raffles Hospital in March this year.

The revenue generated by the Group's extensive GP clinic network rose by 33%, rising from $18 million to $24 million. The strength of Raffles Medical Group's established core businesses is reflected in the significant increase of 42% in the clinic network's overall operating profits before tax from the previous year's $2.8 million to $3.9 million this year.

For the same period, the Group incurred taxes which could not be set off against the start-up costs for Raffles Hospital as well as the full provision made for its investment of $0.7 million in the healthcare technology company, Dr World Pte Ltd. As a result, profit after tax at the Group level dipped by 89%.

Executive Chairman Dr Loo Choon Yong said: "Given the economic climate of the first half of the year, our results are positive. I am satisfied with the performance of Raffles Hospital and optimistic that its performance will continue to improve as we continue to scale up services."

He added: "The second half of the year will be challenging as the region grapples with recession and the consequences of the tragedy in New York and Washington on the world economy. However, I am confident of our longer term profitability as our fundamentals are strong."

For clarification, please contact:

Ng Siao Sze (Ms)
Corporate Communications Manager
DID: 6311 1312
Fax: 6311 2378