business

Hong Seng acquires HS Bio to procure Covid-19 test hits for Sabah's outbreak

KUALA LUMPUR: Hong Seng Consolidated Bhd (HSC) through its wholly-owned subsidiary HS Bio Supplies Sdn Bhd (HS Bio) has acquired 51 per cent stake in Pantasniaga Sdn Bhd (PSB), to jointly enhance the supply of polymerase chain reaction (PCR) test kits for Covid-19 in Sabah and other states.

PSB has been supplying PCR test kits for Covid-19 with the know-how and experience to build test labs for the Covid-19 test screening samples.

HS Bio even though relatively new but has been working hard into its foray in the healthcare sector.

Through the acquisition of PSB, HS Bio will be involved in serving the nation to help government agencies procure PCR test kits for Sabah's Covid-19 outbreak.

"We believe with our healthcare spectrum, we will be able to support our government's efforts to the fight the outbreak as it is facing an uphill task and corporate citizens should rally and do its part," HSC executive director Kenny Khow said in a statement.

"At the same time, we will continue to be engaged in supporting our government agencies in their efforts with the procurement of supplies or building of test labs to supplement the PCR test kits which has already been approved and registered with Malaysian authorities.

"We now have the sufficient resources, expertise and network in fulfilling these essential tasks," he said.

In its effort to undertake comprehensive end-to-end healthcare, HS Bio has collaborated with the Malaysian Medical Association linked eMedAsia Sdn Bhd for the digitalisation of private healthcare.

The company is also in progress to be the distributor for empirically proven supplements and Covid-19 vaccines from China through its consortium agreement with Royce Pharma, which is one of the oldest and established local pharmaceutical company in Malaysia.

"As PSB already performed and fulfilled a few supply contracts for Malaysian government agencies, HS Bio will be continuing our support to procure and supply the PCR test kits with the ongoing outbreak in Malaysia as well as neighbouring countries," said Kenny, who is also the director for HS Bio.

PSB has also received letters of offer and secured a supply contract of approximately RM25 million to a Malaysian government agency to curb the immediate crisis in Sabah.

The company expect similar contracts in the near future as each batch is exhausted quick due to intense testing being carried out in hotspots like Sabah.

The contract is expected to contribute positively for the Group's earnings.

HSC had also on 19th October 2020 announced its diversification into the gloves manufacturing, healthcare and medical supplies and services.

The company also venturing into hire purchase services which are in high demand now.

The Group is on track with its plans to strengthen and expand itself by reducing reliance on existing core business of search, advertising and data.

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