(PRESS RELEASE) COLOGNE, 18-May-2020 — /EuropaWire/ — KfW Group subsidiary Deutsche Investitions- und Entwicklungsgesellschaft – DEG announced it will help Myanmar improve its healthcare system by providing a $12 million long-term loan to Asia Royal Company Ltd. (Asia Royal). The money will be used to modernise and expand the hospital in Yangon, which is operated by Asia Royal.
As of today, Myanmar has less than one hospital bed for every 1,000 inhabitants, which is way below ASEAN Member States’ average of 2.5 beds.
Opened in the year 2000, the hospital specialises in cardiology as well as neurology and offers extensive outpatient healthcare services. An attached day clinic provides care for up to 1,000 patients a day. The majority of the hospital’s patients are on medium incomes.
The extension, which is due to open in September 2020, will almost double the hospital’s bed capacity in intensive care. Hospital and day clinic both take pressure off the state healthcare system. Asia Royal currently employs over 1,300 people, around 80 per cent of them women. The expansion will create another 300 new jobs.
Monika Beck, member of the Management Board of DEG: “We are delighted that our first private sector loan in Myanmar is going to Asia Royal. Enabling investments in the healthcare sector is very important to us, especially at the current time.”
Dr. Myat Thu, Managing Director of Asia Royal Hospital: “We are grateful to DEG for providing the hospital with development funds and technical assistance. We will use the funds effectively and efficiently in order to build our new extension as well as renovate existing premises where international safety and fire prevention measures will be implemented.”
As in many emerging markets and developing countries, treatment needs in Myanmar are changing, particularly with the growing middle class. Caring for patients with diabetes, for example, will be another key area for the hospital in future.
As part of its Business Support Services (BSS), DEG also advises Asia Royal on management issues and corporate governance.
DEG has been active in Myanmar since 2015. Until now, its investments there have been in infrastructure projects such as telecommunications masts.
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