Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Ueno Shingo), through its group company SC Healthcare Holdings (hereinafter, 'SCH'), has acquired CompuMed Services Sdn. Bhd. (hereinafter, 'CompuMed'), a company that operates a managed care business in Malaysia, making it a wholly owned subsidiary.
Current state of medical care in Malaysia
In recent years, the increase in chronic diseases such as diabetes has become a social issue in Malaysia, and the improvement in the quality of medical services and the supply have not kept up with the growing demand for medical care, resulting in issues such as not being able to receive appropriate medical services and taking a long time to receive treatment. In addition, medical expenses are increasing by more than 10% per year due to the sophistication of medical services.
Malaysia does not have a public medical insurance system like Japan, and medical expenses are borne by individuals (patients), private medical insurance companies, and companies (hereinafter referred to as the 'three parties'), so the need for the three parties to reduce medical expenses is increasing year by year against the backdrop of rising medical expenses.
Functions of Managed Care Business
Managed care is a system that aims to provide high-quality medical care at a reasonable price and improve the health management of individuals. Managed care operators, who act as a link between the three parties and medical institutions, aim to optimize medical expenses by reviewing medical expenses, managing payments, and providing preventive and disease prevention services. For example, in Malaysia, managed care operators review medical expense claims sent by medical institutions to ensure that optimal treatment and medication are being administered, and promote health checkups and vaccinations for individuals to detect and prevent illness early, thereby reducing medical expenses.
Aim of investment
CompuMed operates a managed care business in Malaysia, providing detailed services that meet the needs of its clients, private medical insurance companies and companies.
By leveraging CompuMed's excellent customer base and high-quality customer service, SCH will secure approximately 40% of the managed care market in Malaysia, further strengthening its business foundation as the country's number one managed care operator.
Sumitomo Corporation's Healthcare Business Initiatives in Southeast Asia
Aiming to control medical costs in its healthcare business, Sumitomo Corporation entered the managed care business in Southeast Asia in 2019, which has more contact with patients as primary care, in Malaysia, and the clinic business in 2020 (hereinafter referred to as 'both businesses'). As a result of its efforts to provide online medical consultations and dispensing services that utilize digital transformation, and preventive health services such as health management programs in collaboration with the clinic business, both businesses are now the largest in Malaysia.
Future growth strategies
In the new medium-term management plan announced in May 2024, the healthcare business continues to be positioned as a growth business, and we will accelerate these efforts while considering expanding into business areas that provide specialized medical care, such as ophthalmology, orthopedics, and dentistry, in addition to primary care. In addition, we will develop services that utilize medical data accumulated in both businesses. For example, by taking measures to detect diseases early and prevent their progression in members at high risk of disease, we will reduce expensive treatments such as hospitalization and surgery, thereby reducing medical expenses. We aim to reduce medical expenses in Malaysia by approximately 30 billion yen by 2030, and will actively consider expanding our business to other regions in Southeast Asia, such as Singapore and the Philippines.
SUMITOMO CORPORATION 
