TE Asia Healthcare Partners, backed by private equity firm TPG Capital, expects to achieve a valuation of US$1 billion ($1.33 billion) in five years as it expands in Southeast Asia, according to its chief executive officer.

The Singapore-based company plans to invest US$90 million mainly in Malaysia and Indonesia this year, building new cardiac hospitals and repurposing an existing medical facility in Kuala Lumpur into an orthopedic center, Eng Aik Meng said in an interview. That would take TE Asia’s total investment to $260 million by the end of this year, he added.

The healthcare firm plans to double that investment in the next three to five years as it seeks to set foot in more countries and offers a broader range of specialized medical services, Eng said.

“If we continue at this pace, this is easily a US$1 billion company” in five years, he said.

Demand for healthcare services, especially in specialized fields, is set to rise as countries in Southeast Asia become more affluent. The average healthcare spending in the region was at 4% of gross domestic product in 2018, compared to 5.4% in China and about 10% globally, according to a report by the World Bank.

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TE Asia, which has annual revenue of more than US$150 million, focuses on oncology, cardiology and orthopedics. It will raise funds for its future investment from external investors when needed, Eng said, adding that he doesn’t rule out the possibility of a listing.