(Last updated: 5 Jan 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 56 per cent of total health spending in Hong Kong. Healthcare in Hong Kong is dominated by the Hospital Authority (HA) and is the major buyer of medical equipment in Hong Kong. The following table shows the Hong Kong healthcare expenditure by both the public and private sectors. 

Hong Kong healthcare expenditure (US$bn)

(Source: Business Monitor International Ltd)

Key characteristics of Hong Kong’s healthcare system include:

• 41 public hospitals / institutions, 48 specialist out-patient clinics, and 74 general out-patient clinics are managed by Hospital Authority (HA) and 13 private hospitals
• 26,981 beds are managed by HA, or about 4 beds for every 1,000 members of the public
• 3,365 beds in 13 private hospitals
• 12,620 registered doctors 
• 40,011 registered nurses  

A key driver of expenditure on medical services is an ageing population. In Hong Kong, the life expectancy for males and females stood at 70.3 and 85.0 years in 2010 according to World Bank.

In 2011, the medical device market in Hong Kong was valued at US$542 million, 2.8 per cent increase over 2010. Most of the medical devices in Hong Kong are imported. The bulk of import tends to be the more expensive advanced medical equipment. The major suppliers of medical equipment and products to Hong Kong are from China, Japan, Singapore, Germany and the US. 

Opportunities

Although China is a large manufacturer of medical equipment and devices, as well as homecare and healthcare products, many Hong Kong and Chinese consumers prefer Western and Japanese products because of their reputation for quality and reliability. The 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.

There is also an increasing demand for aged-care products and rehabilitation equipment due to an increase in the ageing population in Hong Kong.

The best opportunities for Australian suppliers are in the following products:

• Hi-tech laser equipment
• Advanced operating theatre equipment
• Ward equipment
• Isolation facilities
• Aged-care equipment
• Rehabilitation equipment
• Homecare/healthcare products

There are projects for new hospitals and upgrades of existing ones, such as:

• Children Specialist Hospital
• North Lantau Hospital
• Tin Shui Wai Hospital
• Caritas Medical Centre Phase II
• Prince of Wales Hospital
• Tsueng Kwan O Hospital
• Yan Chai Hospital
• The Hong Kong Sanatorium and Hospital

The Hong Kong Government also plans to promote private hospital development to enhance the overall capacity of the healthcare system and further improve the quality of healthcare services to cope with the increasing service demand in Hong Kong.

The Hong Kong Government invited on December 14, 2009 Expression of Interest (EOI) from all interested parties to develop private hospitals at sites at Wong Chuk Hang, Tseung Kwan O, Tai Po and Lantau of Hong Kong. The EOI exercise has been closed on 31 March 2010. The Hong Kong Government will consider the suggestions and views in the submissions received with a view to formulating the land disposal arrangements for the four reserved hospital sites, including the means and timing for land disposal, the detailed service and special requirements, and the land premium. The first to go up for tender is expected in 2012 and the first hospital should be completed by 2016. 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 High/Medium/Low risk categories.  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 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 are considered to be critical in this industry.  The most common means of entry is through an agent or distributor as there are over 40 major suppliers in Hong Kong, most of whom 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 as there are over 40 major suppliers, mostly agents for major overseas manufacturers, competing for 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 & Suppliers Fair 
7-9 May 2012

Links and industry contacts

Health and medical–related resources

Department of Health – www.info.gov.hk/dh
Federation of Medical Societies of Hong Kong – www.fmshk.com.hk
Infectious Disease Control Training Centres – www3.ha.org.hk/idctc/default.asp
Hong Kong Medical Association – www.hkma.org/index.htm
Hospital Authority – www.ha.org.hk

Government, business and trade resources for Hong Kong

The Australian Chamber of Commerce in Hong Kong – www.austcham.com.hk 
Australian Consul General Hong Kong – www.australia.org.hk 

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote 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

• Business Monitor International Ltd Q1 2012
• Hong Kong Hospital Authority – www.ha.org.hk
• Hong Kong Medical Council – www.mchk.org.hk
• Medical Device Control Office of the Hong Kong Department of Health – www.mdco.gov.hk
• The Nursing Council of Hong Kong – www.nchk.org.hk