LAC Med secures imaging equipment supply contract worth up to RM20 million in Petaling Jaya

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LAC Med RM20 million imaging contract

Highlights

LAC Medical Supplies Sdn Bhd has secured a contract worth up to RM20 million to supply imaging equipment to Health Capitol Specialist Centre in Petaling Jaya, with an 84-month term and a seven-year renewal option.
The contract involves the supply of the Spectral CT 7500 and other innovative imaging systems, making Health Capitol Malaysia's first private healthcare facility to use the technology, subject to regulatory approval.
LAC Med's order book stood at RM230.5 million as at 30 Sept, with 59.8% of revenue derived from recurring income, but its shares closed 0.72% lower at 69 sen, giving it a market capitalisation of RM276 million.

This article was translated from the original. Read the original version by our correspondent here.

Contract details and scope of services

As reported by The Edge Malaysia, citing a Bursa Malaysia filing, the contract worth up to RM20 million was awarded by Health Capitol Specialist Centre Sdn Bhd to LAC Med's wholly owned subsidiary, LAC Medical Supplies Sdn Bhd, under a master services agreement signed on Saturday. The agreement runs for 84 months from the respective commencement dates for equipment supply, with an option to renew for another seven years subject to mutual agreement.

Under the agreement, LAC Medical Supplies will supply, install, test and commission medical equipment, as well as provide maintenance, technical support and related services throughout the contract period. However, the contract is subject to several conditions, including Health Capitol obtaining regulatory approvals and licences to operate its ambulatory care centre, completion of the facility, and a satisfactory credit assessment.

Health Capitol's ambulatory care centre will occupy four floors spanning more than 160,000 square feet at The Capitol development in Petaling Jaya. The facility will offer specialist consultations, diagnostic imaging, ambulatory procedures and day surgery.

Among the imaging equipment to be deployed is the Spectral CT 7500, a computed tomography system that captures additional spectral information during scans to enable further diagnostic analysis without necessarily requiring repeat scans. According to LAC Med, Health Capitol is expected to become the first private healthcare facility in Malaysia to use the technology. The facility will also include a magnetic resonance imaging system with minimal helium use, as well as X-ray, echocardiography and ultrasound systems.

Impact on business model and market position

LAC Med group chief executive officer Liew Yoon Poh said the contract marks a shift towards providing integrated medical technology solutions under long-term service arrangements. He said the strategy goes beyond merely supplying equipment by combining technology, system integration, clinical applications, training and lifecycle support into one integrated solution.

Liew said the collaboration expands the group's role beyond the initial deployment of technology, while building recurring revenue over the contract lifecycle and providing an important reference point as the company scales its business model with other healthcare providers. As at 30 Sept, the group's order book stood at RM230.5 million, with recurring income from related products and services contributing 59.8% of the total.

In June, LAC Med secured a four-year contract worth up to RM78.9 million to supply reagents and consumables for pathology chemistry tests to 10 government hospitals in Kedah. Established in 2004, the company supplies medical equipment and integrated healthcare solutions to public and private healthcare providers, with more than 2,600 medical technology systems installed for over 300 customers nationwide.

LAC Med was listed on the Main Market of Bursa Malaysia on 10 Dec 2025 at an initial public offering price of 75 sen per share. On Monday, LAC Med shares fell 0.5 sen, or 0.72%, to close at 69 sen, valuing the company at RM276 million, with the counter down six sen, or 8%, from its IPO price.

In our earlier coverage of Malaysia's equity market performance for the first nine months of this year, we highlighted the performance gap between sectors, including the surge in technology stocks and movements in the main indices. The article also explained how foreign fund outflows and macro risks such as global interest rates and inflationary pressures could constrain valuations and investor sentiment, while identifying preferred sectors such as healthcare.

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