KUALA LUMPUR, April 11 — TMC Life Sciences Berhad (TMCLS) said today that the United States’ tariff actions could increase medical equipment costs and disrupt global supply chains.
However, the private hospital operator believes that its diversified procurement strategies may help cushion the impact.
US President Donald Trump’s 10 per cent blanket tariff on most imports, combined with a dramatic 145 per cent duty on Chinese goods, as of today, has raised alarm across global industries, including health care.
“One immediate concern is the rising cost of high-tech medical equipment and supplies,” Dr Ahmad Adzuan Abdul Rahman, Group CEO of TMC Life Sciences and Regional Senior Director at Thomson Medical Group, told CodeBlue in a statement today.
Many devices sourced from the US or assembled through supply chains involving China and other component-supplying nations are expected to face significant price hikes, according to the hospital group.
TMC Life Sciences, which operates Thomson Hospital Kota Damansara (THKD) in Selangor, said that while some items may be affected by the tariffs, there are viable alternative suppliers in place. The group relies on a mix of American, European, and Asian medical technologies.
“Over the past years, we’ve diversified our procurement to include high-quality alternatives from Europe, Japan, and China, among others. That strategy will help buffer us from short-term shocks,” Dr Adzuan said.
He noted that US manufacturers may lose market share in the region as cost-sensitive buyers shift to more affordable suppliers. “For commoditised products such as basic disposables and standard imaging tools, there may even be downward pressure on prices.”
Dr Adzuan added that some Chinese manufacturers may redirect supply to Southeast Asia if they lose access to the US market, potentially offering short-term price advantages for hospital operators in Malaysia.
However, he cautioned that substitutions in the health care sector are not always straightforward.
“The global supply chain is complex, and we are cautious about drawing quick conclusions. Substitutions are not always one-to-one, especially in health care, where regulatory approvals and service reliability matter just as much as price.”
Beyond supply concerns, TMC Life Sciences warned of potential macroeconomic risks.
“Malaysia’s private health care sector is tightly linked to broader economic confidence. Any chill in the global economy could filter down to us,” Dr Adzuan said, pointing to possible declines in health insurance uptake and discretionary spending on private medical services.
TMC Life Sciences’ network comprises its flagship THKD, TMC Care Pharmacy located adjacent to the hospital, five fertility centres, an obstetrics and gynaecology clinic, and a traditional Chinese medicine centre.
The group is currently undertaking a major expansion, which includes upgrading THKD to a 559-bed facility and developing Thomson Iskandar, a large-scale health care hub in Johor Bahru. The project will feature the 500-bed Thomson Iskandariah Hospital, 400 medical suites, training and research institutes, and a 33-storey commercial tower.
Like many health care stocks on Bursa Malaysia, TMC Life Sciences’ share price took a hit following Trump’s reciprocal tariff announcement on April 2, falling from 40 sen to 37 sen by April 9.
However, the stock has since rebounded slightly, closing at 39.5 sen yesterday. The company currently has a market capitalisation of RM696.8 million.
