MEDICAL FAIR ASIA 2012: Preview Remarks by Gernot Ringling

MEDICAL FAIR ASIA 2012, September 12-14, 2012, Suntec Singapore
Pre-register your visit at www.medicalfair-asia.com.

The global medical industry is one of the world’s fastest growing industries, absorbing over 10% of gross domestic product of most developed nations. In Asia, the statistics are equally impressive with the boom in Asia mainly attributed to the ever increasing awareness and benefits of quality healthcare, upward trend of medical tourism, rising ageing populations, higher life expectancies, and economic development. Asia’s share of those aged 65 and above in the world population exceeded 50% in 2000 and is projected to grow to 61% by 2050. Ageing in Asian markets will therefore drive increased demand for quality healthcare products and services.

More significantly, changes in public policy, push for healthcare reform, and the influx of government investment in healthcare infrastructure have been growing priorities among economies in Asia. Take for example countries like Malaysia and Vietnam that are working towards consolidation of services through the upgrading of facilities and equipment; healthcare spending in Vietnam is projected to rise to USD 6 billion by 2014, with the government accounting for around 30% of total expenditure.

Eyes on Southeast Asia
The future for the medical industry in Asia looks positive with the stimuli for industry growth geared mainly towards greater investment in private sector delivery, public-private partnerships, and investments in the medical devices industry. According to consultancy Frost & Sullivan, by 2012, Asia Pacific is forecasted to be a USD 62.3 billion market, a contribution of 25.8% of the global market, with trends in the medical devices industry in Asia mainly centred on imaging, cardiovascular, and healthcare IT. A key driver for the Southeast Asian region is the impending liberalisation of the services sector by 2015 under the ASEAN agreement.

Rise in private healthcare spending
With a rapidly changing landscape of rising wealth and private sector innovation, private healthcare is increasingly within the reach of a greater number of people.

A recent study produced by the Deloitte Centre for Health Solutions indicates that Southeast Asia has the highest private health expenditure of any region in the world, at 63.1% of total health expenditures. This is largely due to the growing realisation that the private sector can yield greater efficiency, as evidenced by the increased frequency of public-private collaboration. Providers such as Parkway, Fortis, and the Bangkok General Group, for example, have over the last few years built up considerable expertise in Singapore, Malaysia, and Thailand. The growing phenomenon of medical tourism particularly in Singapore and Thailand has also accelerated private health expenditure.

For developing nations in the region, such as Cambodia, Indonesia, Laos, and Vietnam, these are mostly characterised by limited primary care, outdated clinics and hospitals, low-tech medical equipment, a lack of doctors, nurses and hospital beds, and overall lack of universal health insurance. However, at the other end of the spectrum, opportunities abound for the region to leverage on global healthcare partnerships to build world-class healthcare services and to cater to an increasingly wealthy populace with higher expectations of healthcare.

Singapore plays a leading role in the region
According to Frost & Sullivan, Singapore will increase its healthcare spend by 6% annually to reach USD 12.6 billion in 2015. The steady rise in healthcare expenditure is due to Singapore’s ageing demographic as the country is expected to be the fourth ‘oldest’ country in the world by 2050, with the average age exceeding 60 years old. There will also be more hospital beds in Singapore, which will also sAir Jordan