Japanese firm Mitsubishi has acquired a minority stake in Singapore-based Fullerton Health.

The financial terms of the transaction were not disclosed.

The healthcare solutions provider plans to use this investment to power its expansion in existing markets, particularly Singapore, Indonesia, and the Philippines.

The company is also exploring entry into new markets across the region.

Fullerton Health operates in nine markets across the Asia-Pacific.

It owns and manages third-party administrators, health maintenance organisations, primary care, specialist care and ancillary care clinics, diagnostic imaging centres, executive health screening centres, and corporate in-house clinics.

The company expects growth driven by demand from corporate clients and insurers for cost containment and maintaining care standards.

Fullerton Health intends to use its regional footprint and digital and AI capabilities to introduce regional and local solutions via an integrated platform.

The latest move follows a series of minority investments, including that of Far East Drug.

Fullerton Health group CEO and executive director Ho Kuen Loon said: “This partnership reflects strong alignment between Mitsubishi Corporation and our existing shareholders on the long-term value and industry leadership potential of Fullerton Health.

“With a shared commitment to impact and innovation, we are well-positioned to achieve our aim to positively impact 10 million lives in the coming years.

“We will do this by scaling sustainably, strengthening our market leadership, and delivering greater value to all our stakeholders.”

Meanwhile, in a statement, Mitsubishi highlighted Southeast Asia’s societal challenges, including rising healthcare costs due to the increasing prevalence of chronic diseases.

With limited public health insurance, employers often provide private health insurance as an employee benefit.

This scenario has made optimising medical expenses while maintaining care standards a priority for companies.