Deep Dive

In 2016, Sunway Group established its first Sunway Pharmacy outlet at a Caltex petrol station in the Klang Valley. The move reflected a deliberate attempt to enter high-frequency healthcare touchpoints, complementing its existing exposure to property development and hospital operations.

In contrast to hospitals, which are capital intensive and episodic in demand, pharmacy retail provides recurring engagement with consumers. This allows early-stage interaction with patients before they enter formal medical facilities, strengthening brand trust and patient acquisition pathways.

In 2021, Sunway accelerated its expansion through acquisition. Via Sunway Holdings, it entered into a sale and purchase agreement with Multicare Health Pharmacy. At the time, Sunway operated approximately 12 outlets, while Multicare had built a network of nearly 76 stores nationwide.

From 2021 to 2023, the acquisition was executed in three phases. This approach allowed Sunway to scale rapidly, increasing its store count to nearly 90 while integrating Multicare’s operational capabilities. Beyond physical expansion, the deal provided access to established pharmaceutical expertise and a nationwide logistics network.

A key structural distinction lies in regulatory positioning. As a community pharmacy operator, Sunway Multicare outlets are required to have registered pharmacists on-site, enabling the sale of Group B prescription medicines and pharmacist-only Group C products. This differentiates the model from personal care retailers such as Watsons and Guardian, which focus primarily on over-the-counter and lifestyle products.

In 2024, Sunway completed the integration of its pharmacy operations under a unified brand, rebranding the network as Sunway Multicare Pharmacy. The combined entity surpassed 130 outlets across Malaysia, marking its transition into a scaled national player.

From 2024 onwards, Sunway Multicare expanded beyond traditional pharmacy retail. The group introduced rehabilitation equipment rental services, including wheelchairs, hospital beds, and oxygen concentrators. It also extended into physiotherapy and recovery services, broadening its role within the healthcare continuum.

At the same time, the company launched initiatives such as medication return programmes and corporate health benefit schemes. These efforts shifted the business model from transactional retail towards recurring service-based healthcare engagement.

Structurally, Sunway Group made a deliberate decision not to house Sunway Multicare under Sunway Healthcare. Instead, it was placed within the group’s investment and portfolio segment.

This separation reflects margin discipline. Pharmacy retail is typically a high turnover but low margin business. Integrating it into a high margin healthcare division would dilute profitability metrics, particularly for a listed entity included in the FBM KLCI index.

By positioning Sunway Multicare within its investment portfolio, the group preserved the earnings profile of its healthcare arm while retaining operational flexibility. This structure also enabled integration with digital platforms such as the Sunway Super App and membership ecosystem.

From 2024 onwards, Sunway Multicare became increasingly embedded within Sunway’s digital infrastructure. Transactions across its network, including medication purchases, equipment rentals, and rehabilitation services, generate structured health data.

This data integration creates a closed-loop healthcare ecosystem. Patients who receive treatment at Sunway Medical Centre can subsequently fulfil prescriptions at Sunway Multicare, access rehabilitation services, and potentially enter long-term care programmes within the same ecosystem.

The result is a shift from episodic healthcare revenue to lifecycle-based value creation. Each interaction contributes to a broader dataset, enabling more personalised and continuous healthcare management.