Singapore medical tourism faces tighter competition from Asian peers

Will the Lion be tamed by rivals?

According to DBS, although Singapore has established a strong foothold in the medical tourism market, she faces fierce competition from neighbouring countries for this lucrative pie.

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We believe Thailand, Malaysia and India provide the strongest competition to Singapore. The overall healthcare pie is undoubtedly growing, as major regional healthcare service providers have largely reported decent YoY revenue growth of 5-18% for 9MCY13, with IHH leading the pack.

In our view, Singapore has found a niche in its ability to not only offer high-quality and sophisticated surgical procedures and services such as organ transplants, but also providing patients with an ease of mind given the politically stable climate and safe environment here.

Despite its small size, Singapore has 12 Joint Commission International (JCI) accredited hospitals, versus eight in Malaysia, 26 in Thailand and 19 in India.

Locally, Singapore-listed healthcare service providers would have to contend with more competition next year, with the expected opening of Connexion, which comprise integrated healthcare (specialist medical centre and private tertiary hospital) and hospitality (hotel and conference facilities) complexes.

Farrer Park Medical Centre and Farrer Park Hospital, both part of the Connexion, come equipped with 189 medical suites (only a few units left unsold) and 220 beds, respectively.