The unmissable Asia healthcare opportunity

BCG's latest report, The Unmissable Asia Healthcare Opportunity, highlights the region's $5 trillion healthcare market potential by 2030, driven by demographic shifts, investment, and innovation.

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This article includes key excerpts from the report, offering insights into growth drivers, investment opportunities, and the evolving healthcare landscape in Asia

The healthcare (HC) markets across Asia are highly heterogeneous, reflecting wide variations in government spending and HC infrastructure. For instance, Indonesia spends only 3.7 per cent of its GDP on HC compared to more developed markets like Singapore at 5.5 per cent. Another metric that proves this disparity is HC spending per capita, with countries like India spending only $74 per capita, falling significantly behind nations such as Thailand and Malaysia, spending $364 and $487 per capita respectively. (Refer to Exhibit 11)

Some countries lagging in WHO standards as compared to their developed counterparts have massive gaps in capacity and manpower to fill. For example, only 18 per cent of Indonesia's hypertensive patients receive drug treatment, far below the 74 per cent treatment rate in the United States. Other markets such as the Philippines (34 per cent) and Thailand (35 per cent) also face significant treatment gaps. Countries like India and Indonesia have fewer HC resources, with just 0.8 and 0.7 doctors per 1,000 people, respectively, compared to the WHO recommendation of 2.5. (Refer to Exhibit 12)

These differences underscore the need for tailored HC service models and investment strategies that consider each country's unique economic and demographic landscape.