Thomson Medical diversifies beyond obstetrics amid falling birth rates, narrows FY2026 losses

Thomson Medical Group (TMG) is expanding its focus beyond obstetrics and gynaecology (O&G) due to falling birth rates in Singapore. Group CEO Melvin Heng explained that while the business has higher revenue intensity and reduced discounts to corporate customers, profitability has been affected by higher drug and consumable costs, increased headcount, and higher depreciation and amortisation expenses.

The company has been investing in capabilities to support its transformation and has been adding services such as general surgery, gastroenterology, ENT, and orthopaedics. These new specialties complement the group's existing strengths rather than just adding services. Heng noted that Singapore's declining birth rate, which reached a record low of 0.87 in 2025, is part of the longer-term environment for a business with a heritage in maternity.

However, the group remains committed to women's and children's health and is increasingly focusing on providing healthcare services throughout patients' and families' lifetime. The transformation has improved the utilisation of operating theatres and positioned TMG as a top partner of choice for major insurers and payors in Singapore.

While the group's FY2026 financial performance shows stronger operating cash generation and declining financing costs, the company also acknowledged the impact of costs from acquiring Vietnam's FV Hospital in 2024. TMG's Malaysia business showed strong growth with revenue rising 19% to $125.3 million and profit increasing almost fivefold to $5.3 million, driven by the oncology centre's earnings contribution.

The group is also developing a $5.5 billion mega project in Johor Bay, which will include a multidisciplinary hospital, aged care, and assisted living facilities, alongside luxury residences and hospitality offerings.