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(Last updated: 23 Jan 2008)
Trends and opportunities
The market
As one of the fastest ageing population in Asia, Singapore faces the challenge of developing public policies to accommodate this changing age structure.
It is forecasted that by 2030, 19 per cent of Singapore population will be over the age of 65, compared to the current seven per cent.
With an ageing population and rapid advancement in medical knowledge and technology, the demand for and the cost of healthcare is on the rise. Singapore’s challenge is to ensure that Singaporeans continue to have access to good and affordable healthcare as the country moves into the next millennium.
The government promotes healthy living and preventative care but key challenges remain to keep cost affordable amid increasing demand. The government ensures that good and affordable basic medical services are made available to all Singaporeans through the provision of heavily subsidised medical services at the public hospitals and government clinics. All private hospitals, medical clinics, clinical laboratories and nursing homes are required to maintain a good standard of medical services through licensing by the Ministry of Health.
In Singapore, there is a dual system of healthcare delivery. Eighty per cent of the primary healthcare services are provided by the private practitioners while the government polyclinics provide the remaining 20 per cent. There are approximately 1900 private clinics run by about 1800 medical practitioners.
It is the reverse situation with 80 per cent of the hospital care being provided by the public sector and the remaining 20 per cent by the private sector. There are a total of about 11,795 hospital beds in the 29 hospitals and speciality centres in Singapore. Seventy-four per cent of the beds are in the 13 public hospitals and speciality centres with bed complements between 180 to 2550 beds. The other 16 private hospitals tend to be smaller, with capacity ranging from 10 to 500 beds.
In 1999, the public healthcare delivery system was re-organised into two vertically integrated delivery networks, National Healthcare Group (NHG) and Singapore Health Services (SHS), enabling more integrated and better quality healthcare services through greater co-operation and collaboration among public sector healthcare providers.
This system will minimise duplication of services and ensure optimal development of clinical capabilities. Patients are free to choose the providers within the dual healthcare delivery system and can walk in for a consultation at any private clinic or any government polyclinic.
Singapore has been at the forefront of developing medical tourism. SingaporeMedicine is a multi-agency government initiative aimed at developing Singapore into one of Asia’s leading destinations for international patients. This initiative moves in-line with the development of the biomedical science industry. Tourists from as far as Middle East to neighbouring countries such as Malaysia and Indonesia seek treatment in Singapore. The city attracted 370,000 medical tourists last year and is targeting one million medical visitors by 2012.
In 2004, Singapore’s total market size for medical devices was estimated to be A$700 million. This figure is expected to grow in view of Singapore’s strategic direction as the region’s medical and research hub. Public hospitals are required to use generic products. It is estimated that total over-the-counter (OTC) drugs amounted to US$139 million in 2002 (latest available figure).
Health products and pharmaceuticals
There is a growing awareness and interest in leading a healthy lifestyle among Singaporeans, thus driving the demand for health supplements and health-related products.
Singapore is a major re-export point to neighbouring countries in South East Asia, besides being a substantial consumer of pharmaceutical products within the country.
Traditional Chinese medicine
There is a growing understanding of ailments/diseases and the modern drugs available to cure these diseases. This awareness is largely driven by national health campaigns organised by the Singapore Health Promotion Board. These campaigns are on an ongoing basis targeted at promoting consumer awareness of various common diseases such as diabetes and breast cancer via public talks and seminars, print, radio, TV advertising and local health documentaries.
Singapore's healthcare system services are based on Western medical science, however, it is common practice among the various ethnic groups to occasionally consult traditional medicine practitioners for general ailments. Of particular interest is traditional Chinese medicine, which is facing a growing acceptance by the healthcare industry and patients.
Medical centres and equipment
Singapore has 20 hospitals with a total of 11,855 beds, of which, 13 are public sector hospitals and the rest private. The hospitals are divided into three categories: restructured, private and extended care.
Polyclinics provide outpatient medical treatment, antenatal and postnatal care, family planning services, immunisation, developmental screening of children, health education, psychiatric and dental treatment.
There are also three community hospitals providing an intermediate level of hospital care in a community setting for patients who require a longer period of convalescence and rehabilitation.
In addition to specialised hospitals and specialist departments in hospitals, there are a number of national specialist centres.
Singapore Health Services (Singhealth) and the National Healthcare Group are Singapore's only two clusters in the public sector. Parkway Group Healthcare is Singapore's largest private healthcare provided followed by Raffles Medical Group.
Opportunities
Singapore is heavily dependant on imported medical products. With the challenge of rising healthcare costs, there are opportunities for medical devices, disposables, drugs, equipment and health IT systems that are innovative and yet deliver cost and process efficiencies.
With the strong emphasis for world-class healthcare standards, there are also opportunities for education and training for healthcare professionals and patient care for chronic disease management.
Opportunities exist for Australian health providers and health equipment exporters, especially through building closer ties with emerging groups/investors with an interest in healthcare.
There is also potential for Australia to provide training in areas where skilled manpower is lacking. With the rapid expansion in health facilities, the most immediate challenge facing Singapore’s regional healthcare strategy is the shortage of suitably trained Singaporeans to provide the necessary healthcare and management expertise.
In addition to health technology, Australia is also well placed to be a major supplier of equipment for new and existing hospital facilities and for products and services to Singapore's healthcare and emerging aged care sector. Homecare or ‘do-it-yourself’ therapeutic equipment, health supplements and functional ointments are some examples.
Competitive environment
Singapore is a major manufacturer of pharmaceuticals that supply internationally. This is part of the ongoing effort of the Singapore Government’s bid to attract world-class pharmaceutical manufacturers to set up manufacturing or research and development facilities in Singapore with various government support measures, including financial assistance and tax incentives.
Leading companies such as GlaxoSmithKline, Schering Plough, Merck (Singapore) Pte Ltd, Wyeth and Aventis have invested over US$1.5 billion in plants here to produce active pharmaceutical ingredients and finished products distributed to worldwide. At present, seven of the world’s Top 10 pharmaceutical companies have either a manufacturing base or representative office in Singapore.
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