Singapore told to harness medical tourism

It is missing out on the region’s lucrative market, which could grow to $172.1b by 2032.

Singapore should leverage its advanced medical capabilities to attract high-net-worth people who don’t mind the cost of premium treatment, analysts said, as the city-state continues to sit out the fight for medical tourists in Southeast Asia.

“Patients from regional markets particularly Indonesia and China seek complex medical procedures and value quality,” Bijay Singh, head of Business Unit Healthcare at DKSH Holding Ltd., told Healthcare Asia.

Singapore faces increasing competition from more cost-efficient hubs like Malaysia, Thailand, Indonesia, and Vietnam, which all offer medical procedures at a fraction of Singapore’s cost.

In Singapore, a bilateral breast reduction mammoplasty — removing more than 500 grams per breast — costs as much as $13,164 (S$17,600) for surgeon fees alone, according to the Ministry of Health’s fee benchmarks as of January.

Malaysia offers treatments in Tier 2 cities that are up to 80% cheaper and has simplified processes for medical tourists,  Singh said in an emailed reply to questions.

Singapore shifted its focus away from medical tourism more than a decade ago amidst criticism that public resources were being diverted to serve non-citizens. In October 2023, Health Minister Ong Ye Kung cited medical tourism’s negative effects on local care.

Many top doctors preferred to work in the medical tourism sector, which offered better financial rewards, he said in a speech at an economic policy forum at that time. “Citizens began to notice the disparity in service levels between what they were experiencing and what the medical tourists experienced, and were not happy.”

But Singapore may be missing out on Southeast Asia’s medical and wellness tourism market, which according to a Global Market Insights report was valued at $51.5b in 2023 and is expected to grow 12.7% annually to $172.1b by 2032.

Singh said Singapore’s strength lies in its cutting-edge treatments like proton therapy and its specialised expertise in oncology, cardiology, and organ transplants.

The city-state is also investing in fertility treatments amidst declining birthrates and an ageing population. Local hospitals could enhance their appeal by offering integrated healthcare tourism packages, he added.

“Singapore can also concentrate on the corporate healthcare market,” Singh said. “This is complemented by its English-speaking [people], which appeal to Western-based firms and expatriate patients in Southeast Asia.”

The Johor-Singapore Special Economic Zone, established in January, is expected to further drive patients to hospitals in Johor Bahru​, amidst the rising cost of living that has affected Singapore’s attraction, according to a report by CGS International Securities Singapore Pte. Ltd.

Indonesia has simplified its processes with a special economic zone in Batam for medical tourists, while Thailand is renowned for its affordability and high-quality services, especially in cosmetic surgery and wellness treatments, Singh said.

Improving appeal

Singapore should adopt a flexible pricing strategy for different patient demographics to stay competitive, Alec Lee, managing director for healthcare at US-based market intelligence firm FrontierView, told Healthcare Asia.

“An example of this could be maintaining premium rates for complex procedures while offering flexible pricing models for routine treatments or follow-ups,” he said in an emailed response. “Partnerships with insurance companies and medical tourism facilitators for financing options would be an added push in increasing overall appeal.”

Bundling services such as accommodation, transportation, and post-treatment care could also provide better value for foreign patients, he pointed out.

Lee said Singapore’s robust regulatory framework is an advantage in attracting foreign healthcare investments.

“Singapore’s adoption of a holistic and flexible approach, combined with an awareness of lower complication rates and reduced need for repeat procedures can help justify premium pricing, while demonstrating value for money,” he added.

The government could also increase the city-state’s appeal by expanding packages and strengthening partnerships with global health insurers, Singh said.

Government support through agencies like the Economic Development Board and Singapore Tourism Board could help promote healthcare services internationally, Lee said.

“Public-private partnerships in medical education and research can bridge resource gaps and enhance the country's reputation as a leading medical hub, ultimately attracting more foreign patients,” he added.