IE Singapore leads healthcare services mission to Guangdong

Mission affirms China as a key long-term growth market for Singapore healthcare services players.

China's growing affluence, increases in healthcare spending, and government initiatives in healthcare reform are driving a growing need for quality healthcare services in the country, according to an IE Singapore report.

In 2009, the Chinese Central Government earmarked RMB 850 billion (S$173 billion) for healthcare reform, focusing on five key thrusts: expanding universal medical coverage, strengthening the primary healthcare infrastructure, developing a basic medicine system, reforming state-owned hospitals, and improving access to basic medical care. The move signals a commitment to improving China's public healthcare system and to provide equitable access to quality healthcare for all. To further drive public sector hospital reform, the government announced earlier this year that 16 Chinese cities will be identified to conduct pilot hospital reform projects, and several provinces have since responded with roll-out plans.

In view of this, International Enterprise (IE) Singapore is leading 17 representatives from ten Singapore-based companies on an official healthcare services mission to Guangdong province in China from 17 – 22 May 2010.

Urging Singapore healthcare industry players to tap on the growing market, IE Singapore Assistant Chief Executive Officer Mr Yew Sung Pei said, "We hope to have fruitful exchanges with key officials and players in Guangdong's healthcare Caijing Magazine, Vol 3, 2010, Hospital Reform sector to understand their needs and explore mutual collaboration. Singapore companies are generally more familiar with Shanghai and Beijing, but IE Singapore sees unexplored potential in other vibrant markets such as Guangdong, Jiangsu and Shandong provinces, where our value chain of players ranging from healthcare service providers, trainers and medical device players can contribute."

"The mission is a good platform for Singapore companies like us to introduce our services and capabilities to potential Chinese partners. With the drive towards healthcare reform and for improvement in quality of care in China, there will be a broad spectrum of healthcare-related opportunities. One area of potential growth will be in hospital administrator training, which is our area of expertise," said Professor Joseph Yeong, President of SGP International Management Academy, who is on the mission.

China's healthcare expenditure has grown steadily over the past 20 years at an estimated CAGR of 17%, outstripping GDP growth. The total Chinese market health expenditure is estimated at around RMB 925 billion (S$190 billion) with Guangdong province accounting for the largest share at 11%, followed by other affluent provinces such as Jiangsu and Zhejiang. The burgeoning demand has driven the public-sector dominated healthcare system to improve accessibility and quality of care, and has also created growth opportunities in private sector care provision, which has seen growth in recent years.

China's growing affluence also makes it an important market for Singapore companies seeking new, sustainable growth opportunities and partnerships. China’s projected GDP growth in 2010 is a healthy 9.5%, with 25 out of the country’s 31 provinces GDP growth rate exceeding the national average of 7.1%. This rising affluence and increasing urban lifestyles evident across 2nd and 3rd tier cities, coupled with a fast aging population, are spurring greater need for reliable and quality healthcare in many cities.

The Singapore delegation will visit 1st tier cities Guangzhou and Shenzhen as well as the rapidly developing 2nd tier city of Foshan. During the mission, they will be visiting government agencies such as the Guangdong Health Bureau, top public hospitals like The First Affiliated Hospital of Sun Yat-Sen University, private healthcare providers, and private sector players keen on healthcare partnerships.