FPG suspends hospital project in Tongguan, southern China

Taipei, Jan. 23, 2003 (CENS)--Taiwan business tycoon Wang Yung-ching seems to be fighting a losing battle in his plan to help modernize medical service and cut tremendous waste in medical resources in mainland China.

Wang, founder and chairman of the Formosa Plastics Group (FPG), has instructed a freeze on the investment in a hospital in Tongguan of Guangdong Province in southern China.

The move came after that the FPG already suspended massive investment plans to build modern hospitals in Beijing as well as in Fuzhou and Xiamen cities of Fujian Province.

The NT$15 billion investment plan, which was designed to provide the latest medical treatment to mainland people by expanding its Chang Gung Memorial Hospital to the mainland, was forced to be suspended after existing hospitals in the three cities complained to Beijing authorities about the threats from FPG hospitals.

The project involving Tongguan hospital in Guangdong is responding to the request of the large number of Taiwanese investors in the area. There is now also a special school providing education to Taiwanese investors' children in the city.

Wang had promised to run the hospital as a nonprofit organization with all profits kept in Tongguan for future expansion. However, the project does not receive wholehearted support from Tongguan City Government, which sees no profits for itself in the project.

Due to the delay in assisting the FPG to acquire the needed land site for the project, the land prices in the area have skyrocketed. This makes it impossible for the FPG to make financially viable investment in the plan.

The problems prompted Wang to impose a suspension on the Tongguan project. He also ordered a stoppage in transferring the FPG's experiences gained from running the chain of Chang Gung Memorial Hospitals in Taiwan to the mainland.