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This article was contributed by the Sandpiper Health editorial team. Sandpiper Health is a specialist consultancy under Sandpiper Group, providing in-depth monitoring and analysis of the healthcare and life science sector, and helping pharmaceutical and medical technology companies, healthcare providers, patient and caregiver groups, as well as investors and professional organisations formulate effective stakeholder engagement strategies to achieve their business and communications objectives. To receive regular insights from Sandpiper Health on healthcare trends and policy updates in Asia Pacific, sign up to Asia Pacific Healthcare Outlook Monthly Newsletter.
Healthcare systems across the Asia Pacific and the Middle East region are evolving rapidly, driven by various economic, demographic and technological factors. While mature healthcare markets like Singapore and Australia boast advanced infrastructure and extensive coverage, making them good locations to deliver the latest innovative therapies and treatments, many other emerging markets are experiencing rapid growth but facing hurdles in expanding coverage. These factors are creating a variety of new opportunities for MNCs. Understanding the distinctions between these markets, alongside recent trends and gaps, is crucial for biopharmaceutical stakeholders aiming to capitalise on these burgeoning opportunities throughout the region.
China: A Rapidly Expanding Market
China’s healthcare market is witnessing rapid growth, propelled by economic expansion and increasing demand for high-quality healthcare services. The Chinese government, recognising the limitations of the public healthcare system highlighted by the COVID-19 pandemic, is increasingly focusing on the private healthcare sector. By leveraging industrial and institutional capital, China aims to bridge the gaps in its healthcare system through the development of private hospitals and online healthcare platforms. The government’s vision for the multi-layer medical security system is creating a variety of new opportunities for new insurance products and healthcare delivery services. Fast growth and new market niches leave room for MNCs to find ample opportunities in China as its healthcare sector matures.
Singapore: A Globally Recognised Model of Efficiency and Innovation
Singapore is renowned for its high-quality healthcare system and efficient delivery. Ranked first in the health component of the 2023 Legatum Prosperity Index, Singapore’s healthcare market is underpinned by a unique national health insurance system, the “three M’s” – MediSave, MediShield Life, and MediFund. This robust infrastructure supports the country’s pharmaceutical and biomedical industries, making them significant economic growth drivers. Singapore places a strong emphasis on healthcare research and innovation. The Ministry of Health’s Healthcare Industry Transformation Map 2025 aims to strengthen the research and innovation ecosystem, focusing on national clinical translational programs and platforms to expedite the adoption of value-based healthcare. These initiatives highlight Singapore’s commitment to remaining at the forefront of healthcare innovation. While Singapore’s market is already mature, innovation-oriented MNCs would do well to consider local opportunities to deploy new therapies and treatments.
United Arab Emirates (UAE): Balancing State and Private Healthcare
The UAE’s healthcare system is a mix of comprehensive, government-funded services and a rapidly developing private sector. Public-private partnerships are being explored to enhance healthcare delivery. In Abu Dhabi, a mandatory health insurance system has been implemented, transitioning to private providers while the government focuses on regulatory functions. This model ensures that employers fund insurance for all workers, including domestic staff, with additional funds for under-insured expatriates and serious medical conditions. Dubai’s healthcare innovation is exemplified by two designated healthcare free zones: Dubai Healthcare City and Dubai Biotechnology and Research Park. These zones, with their own regulatory bodies, foster high-quality healthcare and life sciences research. MNCs can explore exciting opportunities in the UAE’s growing private healthcare sector as the market matures.
Thailand: A Middle-Income Success Story
Thailand outperforms many high-income countries across various healthcare indicators. The country boasts a robust primary healthcare infrastructure, contributing to its high rankings in global healthcare indices. Thailand’s universal coverage, extended to non-citizens, addresses inequalities in healthcare access. The government’s focus on promoting medical tourism aligns with the Thailand 4.0 strategy, aiming to transform the country into a high-income nation by 2030. Tax breaks and subsidies for health-related industries under this strategy further bolster Thailand’s healthcare sector. This mature market is an exciting location for MNCs with products, therapies, and treatments that may be suitable for medical tourism.
Australia and Malaysia: Contrasting Mature Markets
Australia’s mature healthcare market is characterised by a universal health insurance scheme, Medicare, complemented by income and age-based rebates for private insurance. This diverse payment model ensures comprehensive healthcare access, even for underserved populations. Australia’s healthcare system also places significant emphasis on preventive care and aged care, with a booming industry addressing the growing demand.
Malaysia, although relatively mature, faces challenges such as an overburdened public healthcare system and incomplete coverage. The pharmaceutical market in Malaysia is growing fast as citizens become more health aware (driving demand for both prescription and OTC medications), non-communicable diseases are on the rise, and the population is ageing. In contrast with Australia, Malaysia lacks a national insurance program, relying instead on subsidised healthcare through public facilities with minimal out-of-pocket costs. The private healthcare sector, buoyed by investments from medical tourism, presents opportunities for growth. However, the concentration of quality healthcare services in urban areas and the brain drain of healthcare professionals to countries like Singapore and Australia pose significant challenges. MNCs should take these factors into account when planning their strategy for Malaysia, a mature market that is encountering challenges that could be opportunities for companies with relevant portfolios and services.
Looking ahead
The contrasting trends and gaps between mature and emerging healthcare markets present numerous opportunities. MNCs should monitor these trends closely, leveraging the latest opportunities to drive growth and improve healthcare outcomes across the Asia Pacific and the Middle East regions.
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