Johor Bahru, 02 September 2021 – Paragon Globe Berhad (“Paragon Globe” or the “company”) today announced that it has entered into a Memorandum of Understanding (“MOU”) with Selgate Properties Sdn Bhd (“Selgate Properties”) at a virtual ceremony. Selgate Properties is a property arm of Selgate Corporation Sdn Bhd, wholly-owned company by Perbadanan Kemajuan Negeri Selangor (“PKNS”).
The MOU is for a two-year collaboration between Paragon Globe and Selgate Properties (the “parties”) in which the parties intend to cooperate and collaborate in terms of developing several private specialist hospitals in Malaysia for the mutual benefit of both parties. The private specialist hospitals are intended to be operated by Selgate Corporation’s subsidiary, namely Selgate Healthcare Sdn Bhd (“Selgate Healthcare”).
Present to sign the MOU are:
- Dato’ Sri Edwin Tan Pei Seng – Executive Chairman
- Dato’ Sri Godwin Tan Pei Poh – Group Executive Director
- Noor Hisham Bin Mohd Ghouth – Executive Chairman
- Mohd Fauzi Bin Ibni Hajar – Chief Executive Officer
Dato’ Sri Edwin Tan Pei Seng, Executive Chairman of Paragon Globe, said: “As Paragon Globe aspires to become a significant player in the healthcare and wellness segment, the company looks forward to working with Selgate Properties and its sister company Selgate Healthcare by leveraging their experience and expertise in healthcare management, hospitals, clinics, dental, pharmacy, medical laboratories, and home nursing.”
Dato’ Sri Godwin Tan Pei Poh, Group Executive Director added that “Both parties desire to explore the potential business opportunities in the healthcare and wellness industry to enhance potential earnings as well as to sustain business growth in a long-term perspective,”
Noor Hisham Bin Mohd Ghouth, Executive Chairman of SELGATE Properties Sdn Bhd expressed that “SELGATE Corporation together with its subsidiaries, has successfully spearheaded the healthcare industry in Selangor. Over the past few years, it becomes more evident that we should remain focused on bringing about a strong recovery in the healthcare space. With this in view, we aim to diversify into the development of our own private specialist hospitals in Malaysia through our engine, SELGATE Properties.”
He also added that “we believe that this collaboration with Paragon Globe will thrive, and the benefits that come with it will echo through generations to come.”
Mohd Fauzi Bin Ibni Hajar, Chief Executive Officer, said: “We are elated and thrilled to collaborate with Paragon Globe, a company that shares our vision of being one of the pioneers in the healthcare industry. Leading the development of a hospital is an unprecedented challenge for me. However, bringing together the expertise, resources, and resilience of all the subsidiaries of SELGATE Corporation, will not be so grueling, and SELGATE Properties is willing to drive Malaysia’s private healthcare industry as far as its potential would allow.”
Previously, Paragon Globe has subscribed 55.9 million new ordinary shares in Builtech Acres Sdn Bhd (“Builtech Acres”), paving the way for the company to emerge with 99.06% of the shareholding in Builtech Acres.
Builtech Acres is the holding company of Sepang Medicity Sdn Bhd (“Sepang Medicity”) and holds two parcels of freehold land zoned for commercial use in District of Sepang, State of Selangor which measures approximately 24.81 acres in total.
The first tract of land (“Hospital Land”) measuring approximately 7.07 acres has been granted approval by the Ministry of Health Malaysia to establish and maintain a private hospital.
Builtech Acres had earlier entered into an agreement with Selgate Healthcare and Sepang Medicity on 7 November 2019 to build and operate a 121-bed private hospital for 15 years. Selgate Healthcare is the healthcare arm of Selgate Corporation Sdn Bhd. This private hospital project is currently under construction and is expected to be completed by 2023.