Growing up in a kampong in Singapore in the 1960s, entrepreneur Ong Chu Poh learned early on what it means to show compassion, kindness and thoughtfulness.

On a routine trip to the market with his mother one day, Ong noticed a rock, about the size of a fist, in the middle of the gravel path. Busy pedestrians and cyclists were all trying to avoid the stone on their journeys.

“My mother asked me to move the stone to the side of the path, and I did so, but I was curious about her request. She simply told me that someone might trip over that rock and hurt themselves. When you can help someone with such a simple gesture, why not?” recalled the Founder, Executive Chairman and Group Chief Executive of SGX-listed ECON Healthcare (Asia) Ltd.

“My mother’s remarks left a huge impact on me - one that lasted till today - and over the years, her words have moulded my values of empathy, charity, generosity and respect.”

As a result, Ong was inspired to become a youth volunteer in the 1970s. Through that experience, he saw the need to improve healthcare services for the aged. Determined to make a difference and bring about better care for seniors, he left his job in a multinational company after raising enough capital to open ECON’s first nursing home in 1987, with a capacity of just 16 beds.

“It was very tough and I struggled, especially in the first two years. I was barely making ends meet and my savings were almost depleted,” Ong said.

“But I was fortunate to have a team of very dedicated and caring staff, and our efforts and sincerity eventually paid off. Over time, our business expanded through word-of-mouth referrals.”

In 2002, Ong received the Entrepreneur of The Year Award by Rotary-ASME. In the same year, he was awarded the Public Service Medal (Pingkat Batkti Masyarakat) by the Prime Minister’s Office of the Republic of Singapore for his dedication in serving the community. 

In 2014, he was also conferred the Public Service Star (Bintang Bakti Masyarakat) by the Prime Minister's Office of the Republic of Singapore for his contributions to communities in the city-state.

Today, more than three decades later, ECON Healthcare is the largest private nursing home operator in Singapore and Malaysia by revenue, with an approximate market share of 26.9% and 43.2% respectively, according to Euromonitor data.

Meanwhile, the Group has secured a first-mover advantage in China. It is - if not the only one - among the few Singapore-based nursing home operators to have successfully entered the country’s eldercare industry and established working relationships with relevant government ministries, state-owned enterprises and private organisations.

Its first private nursing home in Chongqing commenced operations earlier this year. Awarded the Top Ten Innovation Project in Yuzhong Free-Trade-Zone (FTZ), this maiden facility will be the model for future nursing homes in China

ECON Healthcare has also secured two more projects - Chengdu and Changshou - which will boost capacity by 680 beds for its China operations. These two centres target to start operating by 2022.

“Our China growth plans are on track. Our vision is to expand our total bed capacity in China to approximately 5,000 within the next three to five years as we scale our know-how and expertise across the region,” Ong noted.

By 2025, the Group is expected to have 15 nursing homes - nine in Singapore, three in Malaysia, and three in China.

Ties That Bind

Looking ahead, the Group aims to be a premium brand in healthcare services in the Asia-Pacific region, recognised by customers for its holistic approach, personal touch and technological advancements.

A key differentiator is its East-West focus, which adopts the best of Eastern and Western medical philosophies to boost care efficiency and outcomes, Ong said.

“We aim to meet the demands of ageing populations in Singapore, Malaysia and China,” he added.

In terms of values, ECON Healthcare places a premium on family ties and empathy. Its motto - Family Caring for Families - defines how the Group conducts itself and interacts with both internal and external stakeholders.

“Caring and providing support for families lies at the core of our business, and care starts from the heart. This was the lesson I learned from my mother, and which was borne out during the Group’s foundation years,” Ong noted.

“We see many families having to make the difficult decision of placing their elderly in a nursing facility when they are not able to adequately provide for them in their own homes. What we do is to care - offer them empathy, as well as the peace of mind and assurance that their loved ones will be well-looked after.”

As for its operations, ECON Healthcare will utilise an asset-light business model, Ong said. 

While focusing on its core strength of delivering quality nursing care services, the Group will leverage on its partnerships with landowners and/or governments who will bear the cost of constructing the facilities. The strategy also includes leasing suitable premises to set up these care centres and homes.

In Singapore, the Group will continue to participate in the Build-Own-Lease (BOL) scheme, which is the city-state’s key method in boosting nursing home capacity. Across the Causeway, the Group is exploring opportunities to develop a plot of land in Cheras into a senior care hub, riding on Malaysia’s ranking among the world’s top 10 retirement destinations.

“Our asset-light approach allows us to generate high investment returns and focus on the efficient deployment and optimisation of capital,” he added.

The Talent Imperative

In tandem with its growth ambitions, the Group faces talent recruitment and development challenges, Ong admitted.

“Singapore, like many developed nations, has a shortage of care staff. Being in the business of caring, our people are very important to us, and we continue to build upon our care and organisational culture, so as to nurture the ECON family,” he said.

“We make it a point to progressively cultivate our talent pool, for example, through e-learning platforms, which boost competency levels and career progression among our people, and aid in talent retention.”

COVID-19 has also thrown up a number of hurdles, not the least of which is ensuring the mental well-being of the Group’s employees.

“Not only do we have to step up our vigilance and react nimbly to various government containment measures during the pandemic, we have to safeguard the well-being and mental health of our people, who are at the frontlines caring for our seniors,” Ong pointed out.

“We continue to encourage and support our staff in our efforts to manage pandemic burn-out, so as to ensure they stay motivated, healthy and well.”

Beyond the day-to-day operations, Ong is also focused on grooming future leaders who can take the organisation to the next stage of growth. Two of his children are working in the Group - Deputy Chief Executive Ong Hui Ming and Head of Development Dr Ong Xin De, while the third is in the public healthcare sector.

“As I pass on my experiences and impart the values of family bonding, compassion and generosity to the next generation, I am also learning from them, in particular, how the young think,” he said with a laugh.

For the 67-year-old, the key touchstones remain filial piety and gratitude. His favourite Chinese proverb is 饮水思源 (yin shui si yuan), which means: “When you drink, remember the source”. 

“In this age of globalisation and constant change, it’s important that we do not forget our roots or those who have done us good. And most importantly, as long as we’re able to help others, let’s do that!”


ECON Healthcare (Asia) Ltd

ECON Healthcare is the largest private nursing home operator in Singapore and Malaysia by revenue, with an approximate market share of 26.9% and 43.2% respectively, according to Euromonitor data. It is - if not the only one – also among the few Singapore-based nursing home operators to have successfully entered China’s eldercare industry. While its first private nursing home in Chongqing commenced operations earlier this year, the Group has also secured two more projects - Chengdu and Changshou – which are targeted to start operating by 2022. By 2025, the Group is expected to have 15 nursing homes - nine in Singapore, three in Malaysia, and three in China. 

The company website is: www.econhealthcare.com

Click here for the company's StockFacts page.

For the year ended 31 March 2021 financial results, click here.

 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic
Photo: Company file

kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.

For previous editions of kopi-C: the Company brew, please click here.  

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