Health and wellbeing to Hong Kong
(Last updated: 29 Nov 2012)
Trends and opportunities
The market
In Hong Kong, healthcare services are provided by both the public and private sectors. The public sector accounts for around 60% of total health spending in Hong Kong with the Hospital Authority (HA) the major buyer of medical equipment. The following table shows Hong Kong healthcare expenditure by both public and private sectors:
| Hong Kong healthcare expenditure (US$billion) |
2008
|
2009
|
2010
|
2011
|
2012f
|
2013f
|
| Government healthcare expenditure |
5.30
|
5.64
|
5.21
|
6.31
|
6.67
|
7.05
|
| Private healthcare expenditure |
5.54
|
5.92
|
5.48
|
6.64
|
7.05
|
7.45
|
| Hong Kong total healthcare expenditure |
10.84
|
11.56
|
10.69
|
12.95
|
13.72
|
14.50
|
(Source: Business Monitor International Ltd)
Key characteristics of Hong Kong’s healthcare system include:
- 41 public hospitals / institutions, 49 Specialist Out-patient Clinics, and 74 General Out-patient Clinics managed by HA and 13 private hospitals
- 27,000 beds are managed by HA, or about four beds for every 1,000 members of the public
- 2,800 beds in 13 private hospitals
- 12,818 registered doctors (end of 2011)
- 41,310 registered nurses (end of 2011)
A key driver of expenditure on medical services is an ageing population. In Hong Kong, the life expectancy for males and females stands at 80.5 and 86.7 years respectively according to the Hong Kong Department of Health’s Population and Vital Statistics for 2011.
In 2011, the medical device market in Hong Kong was valued at US$542 million, a 2.8% increase over 2010. Most medical devices in Hong Kong are imported. The bulk of import tends to be the more expensive advanced medical equipment. Major suppliers of medical equipment and products are from China, Japan, Singapore, Germany and the US.
Opportunities
Although China is a large manufacturer of medical equipment and devices, homecare and healthcare products, many Hong Kong and Chinese consumers prefer Western and Japanese products because of their reputation for quality and reliability. Imported high performance electro-diagnostic equipment such as cardiovascular equipment, computerised tomography, magnetic resonance imaging apparatus, ultrasonic scanning apparatus, etc. are well accepted by local public and private hospitals.
Demand for aged-care products and rehabilitation equipment is increasing due to an expanding ageing population.
The best opportunities for Australian suppliers are in the following product areas:
- Hi-tech laser equipment
- Advanced operating theatre equipment
- Ward equipment
- Isolation facilities
- Aged-care equipment
- Rehabilitation equipment
- Homecare/healthcare products
The Hong Kong Government is targeting private hospital development to enhance the overall capacity of the healthcare system and further improve the quality of healthcare services to cope with increasing service demand. In July 2012, the Government released tenders to Hong Kong and overseas companies to develop private hospitals at two sites in the New Territories, Wong Chuk Hang and Tai Po. The Wong Chuk Hang site is approximately 27,500sqm, and the Tai Po site is almost double at 55,000sqm. Each of the new private hospitals will have a minimum 300 beds. The hospitals are expected to commence operations within 60 months from the date of execution of the Memorandum of Agreement and Service Deed. Among the bidders were the Indian healthcare provider Fortis Healthcare, owner of the Quality Healthcare chain of clinics in Hong Kong; Parkway Health from Singapore and also The University of Hong Kong. The winner of the bid will be announced in early 2013. These upcoming projects will present opportunities for medical services, medical IT and advanced medical equipment.
Tariffs, regulations and customs
Hong Kong is a free port. There are no import restrictions or duties imposed on the importation of medical equipment and related supplies.
The Hong Kong Department of Health is phasing in a new administrative control system governing the supply of medical equipment in Hong Kong. Medical devices will be classified into Classes I, II, III and IV based on risk levels (where Class I is the lowest risk and Class IV is the highest risk). These risk categories will govern product registration and other regulatory requirements for medical equipment in Hong Kong. For details, please refer to the website of the Medical Device Control Office of the Hong Kong Department of Health at www.mdco.gov.hk.
Marketing your products and services
Market entry
The ‘personal touch' and an assurance of technical support is considered to be critical in this industry. The most common means of entry is through an agent or distributor. More than 40 major suppliers operate in the Hong Kong market; many are agents and/or distributors for more than one overseas manufacturer and supplier.
Direct selling to hospitals is not recommended unless the company has an established office in Hong Kong.
The most important qualities for medical products are:
- reliability
- durability
- ease of operation
- high quality after-sales service
Price competitiveness is not the most important selling factor. Competition is fierce given the large number of suppliers already operating in the market competing for business with 50 major hospitals. In Hong Kong, there is a shortage of technical support specialists, so those companies that can provide long-term training and technical support services will be received more favourably.
Distribution channels
Distribution of medical equipment in Hong Kong can be through a representative or directly through your own branch. For those companies that wish to control distribution or sell directly to hospitals, it is not uncommon to establish an office in Hong Kong. The most critical factor in selecting an agent is the ability to provide after-sales service.
The HA Procurement and Materials Management Section has strict procurement and tender guidelines. Full details, including application forms to be considered as a registered supplier, can be found on its website: www.ha.org.hk.
Relevant trade exhibition
Hong Kong International Medical Devices and Suppliers Fair 14-16 May 2013 - www.hkmedicalfair.com.
Links and industry contacts
Health and medical–related resources
Department of Health – www.dh.gov.hk
Federation of Medical Societies of Hong Kong – www.fmshk.com.hk
Infectious Disease Control Training Centres – http://icidportal.ha.org.hk/sites/en/webpages/aboutus.aspx
Hospital Authority – www.ha.org.hk
Hospital Authority Building
147B Argyle Street
Kowloon, Hong Kong
Tel: (852) 2330 6769
Fax: (852) 2890 7726
Hong Kong Medical Association – www.hkma.org/index.htm
5/F., Duke of Windsor Social Service Building
15 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2527 8285
Fax: (852) 2865 0943
Government, business and trade resources for Hong Kong
Australian Consulate-General Hong Kong – http://www.hongkong.china.embassy.gov.au/hkng/home.html
The Australian Chamber of Commerce in Hong Kong – www.austcham.com.hk
4/F, Lucky Building
39 Wellington Street
Central, Hong Kong
Tel: (852) 2522 5054
Fax: (852) 2877 0860
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.
Sources