Kuala Lumpur, Malaysia - Asia Pacific (APAC) companies are likely to be leaders in the global healthcare market in 2008 due to the region's high population growth rates, rising affluence and ageing societies.
Frost & Sullivan said that revenue for the Asia Pacific healthcare market is likely to grow 6.3 per cent to US$889 billion in 2008, compared to US$836 billion in 2007.
Ms. Reenita Das, Vice- President of Healthcare Asia Pacific at Frost & Sullivan said the region would continue to undergo a robust economic growth in 2008, attracting more investment in healthcare infrastructure.
Countries such as South Korea, Taiwan and Australia are estimated to have more than 10 percent of their population above 65 years old by 2010. In Japan, the ageing population is twice this amount.
"Asia- Pacific is moving into the "Golden Age" whereby ageing populations are increasing therefore, it directly contributes to the healthcare expenditure," Das said in a recent analyst briefing.
Das noted that China, South Korea and India have the highest healthcare spending growth rate in Asia due to their large population. Investments in healthcare infrastructures by the private sector had also contributed to the growth of the healthcare industry.
Currently, more private healthcare facilities are using sophisticated equipments for various procedures and are also increasing investments on local healthcare industries.
Governments in Asia are also gradually shifting the costs for healthcare development to the private sector.
Despite the industry's great potential, Das said that market participants to be aware of the varying healthcare regulations in different parts of a country, which may be a challenge.
"There is also a heavy reliance on public healthcare in many Asian countries, higher distribution and service costs, lack of developed infrastructure, intense competition from local companies and lack of market penetration in rural parts of Asia," she added.
With developed healthcare infrastructures in place, demand for premium healthcare products and services would be higher.
Therefore 2008 will be marked by a shift in focus from sick care mentality to healthcare philosophy and practice. Hence, there are more educated and well informed consumers, greater employer involvement in employees' healthcare, direct marketing to consumers and an overall wellness movement.
"A successful healthcare business model in 2008 is no longer about simply making and marketing medicines and devices; it will involve collaboration outside the core business focus," Das said.
About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth.
The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies.
Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com Frost & SullivanCorporate Communications
Healthcare, Asia PacificShereen GillDID: 603 6204 5909
Mobile: +6017 617 8300 shereen.gill@frost.com
Frost & Sullivan said that revenue for the Asia Pacific healthcare market is likely to grow 6.3 per cent to US$889 billion in 2008, compared to US$836 billion in 2007.
Ms. Reenita Das, Vice- President of Healthcare Asia Pacific at Frost & Sullivan said the region would continue to undergo a robust economic growth in 2008, attracting more investment in healthcare infrastructure.
Countries such as South Korea, Taiwan and Australia are estimated to have more than 10 percent of their population above 65 years old by 2010. In Japan, the ageing population is twice this amount.
"Asia- Pacific is moving into the "Golden Age" whereby ageing populations are increasing therefore, it directly contributes to the healthcare expenditure," Das said in a recent analyst briefing.
Das noted that China, South Korea and India have the highest healthcare spending growth rate in Asia due to their large population. Investments in healthcare infrastructures by the private sector had also contributed to the growth of the healthcare industry.
Currently, more private healthcare facilities are using sophisticated equipments for various procedures and are also increasing investments on local healthcare industries.
Governments in Asia are also gradually shifting the costs for healthcare development to the private sector.
Despite the industry's great potential, Das said that market participants to be aware of the varying healthcare regulations in different parts of a country, which may be a challenge.
"There is also a heavy reliance on public healthcare in many Asian countries, higher distribution and service costs, lack of developed infrastructure, intense competition from local companies and lack of market penetration in rural parts of Asia," she added.
With developed healthcare infrastructures in place, demand for premium healthcare products and services would be higher.
Therefore 2008 will be marked by a shift in focus from sick care mentality to healthcare philosophy and practice. Hence, there are more educated and well informed consumers, greater employer involvement in employees' healthcare, direct marketing to consumers and an overall wellness movement.
"A successful healthcare business model in 2008 is no longer about simply making and marketing medicines and devices; it will involve collaboration outside the core business focus," Das said.
About Frost & Sullivan
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth.
The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies.
Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com Frost & SullivanCorporate Communications
Healthcare, Asia PacificShereen GillDID: 603 6204 5909
Mobile: +6017 617 8300 shereen.gill@frost.com
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