Chart of the Day: massive hikes in health cost loom as population ages

Total healthcare spending forecasted to grow 5.3% to US$2,506 from 2010 to 2016.

The Economist Intelligence Unit predicted that the total expenditure on healthcare per capita in Singapore would grow at a CAGR of 5.3% to US$2,506 from 2010 to 2016.

OCBC Investment Research expects this increase to be bolstered by a fast-greying population, rising middle-class affluence in the region and higher incidences of lifestyle-related chronic diseases.

Amongst medical group, Raffles Medical Group, it said is poised to benefit from this uptrend given its strong brand equity and expansion plans in the pipeline to alleviate its capacity constraints.

"This would be buttressed by its healthy balance sheet (net cash of S$63.9m as at 30 Jun 2012) and strong operating cashflow generating ability," said OCBC in a research note.

Source: OCBC