4 December 2024 | 11:01 pm GMT +7
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      Embracing wellness

      ASEAN’s evolving demographics and lifestyle is driving changes in the healthcare sector. Life longevity in Southeast Asia is expected to exceed other areas in Asia in the long term, challenging healthcare providers to equip themselves with skills and resources in caring for elderly people. As communicable diseases have successfully been placed under control and infant mortality ratio improves, focus in many ASEAN countries has shifted to treating chronic diseases and injuries which are top death causes.

      Stress is getting widely recognized as a serious and costly issue such that more people are keeping themselves as healthy as possible to combat it. Individuals strive to prioritize overall wellness for productivity and quality of life. Attention is gearing towards healthcare prevention rather than illness cure.

      Economic growth has stirred greater demand for quality and innovative healthcare services. Increasing disposable income of ASEAN market allows people to avail themselves of higher-value products and services. Today, a visit to a medical facility does not necessarily spell bad news. Healthcare services have expanded to elective treatments and aesthetic surgery, assisted reproductive technologies, sports skills rehabilitation, and weight loss centres, among others.

      Healthcare spending

      World Health Organization data estimates that average total healthcare expenditure per capita in ASEAN is US$ 630, about 4,7 percent of GDP. Singapore and Brunei top the list with expenditure per capita of US$ 3,969 and US$ 1,449, respectively.1 ASEAN is expected to boost health spending in order to provide better healthcare services and catch up with the average spending rate in fully developed countries.

      In Singapore where ageing population rises, Singapore launches "Healthier SG," a healthcare reform program focused on prevention. Family doctors and health packages will be provided for every resident, emphasizing building patient-doctor relationships and healthy lifestyles.

      The program is driven by an aging population and rising chronic diseases. Key strategies include: mobilizing family doctors, developing individual health plans, activating community partners, national enrollment, and strengthening support factors.2 Malaysia increased its healthcare budget for 2024 to US$ 1,132 billion (RM 4.9 billion).3

      Private sector is pouring money. Bangkok Dusit Medical Services has invested in highly profitable non-core medical businesses. Makati Medical Centre, one of the leading hospitals in the Philippines, is investing in new laboratories to revolutionize diagnosis and treatment of diseases. Last year, Viet Nam unveiled VinMec, the country’s largest and first hotel-like hospital featuring five-star hotel standard, 25 VIP rooms, and two presidential suites.

      The Philippines' Department of Budget and Management (DBM) announced an allocation of US$ 415.64 million (PHP 22.98 billion) for the improvement of healthcare facilities and services in 2024. This funding is expected to enhance the quality of life for the population by providing better access to quality healthcare services.4

      Parkway Pantai, one of Asia’a largest private healthcare providers, is in a joint venture with the Brunei Investment Agency in managing a 21-bed specialty cardiac centre. Integrated Healthcare Holding partnered with Singapore government in leasing capacity and services from private healthcare operators.

      Medical tourism

      The ASEAN region has transformed into one of the world's leading medical tourism destinations, capturing a 31% market share in 2020. Thailand, Singapore, and Malaysia lead the market as the most advanced countries in the region, with Vietnam experiencing the fastest growth, particularly in the medical tourism sector, which is increasing by 18%-20% annually. The Philippines, on the other hand, holds strong appeal and is an attractive destination for investors.

      Vietnam's rapid growth in the medical tourism sector indicates significant potential in healthcare and new opportunities for investors. Meanwhile, the advancements in Thailand, Singapore, and Malaysia serve as inspiration for other countries in the region to continue enhancing their economic performance.5

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  • The healthcare services sector is expected to continuously propel ASEAN’s growth and economic activity. ASEAN commits to liberalise healthcare and facilitate movement of medical, dental and other healthcare practitioners.

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