Singapore's medical device market value to hit $1.3b by 2023: analyst

Increased government expenditure will support the segment.

Singapore’s medical device market value could reach $1.3b by 2023 with a 2018-2023 compound annual growth rate (CAGR) of 8.4%, according to a report by Fitch Solutions.

Increased government expenditure on the growing healthcare needs of the ageing population is expected to boost the medical devices space. Its drivers include a rapidly ageing population with a growing disease burden, high quality healthcare provision financed by a combination of private saving schemes and government subsidies.

During the Budget 2019, finance minister Heng Swee Keat announced that they will allocate about $6.1b of Merdeka Generation packages. Recent government moves also included $270m-worth of MediSave top-ups to be given to qualified senior from Pioneer Generation and the Merdeka Generation. Over $1b worth of 2019 MediSave top-ups and GST vouchers (GSTV) will benefit 1.7 million Singaporeans between July and November, the Ministry of Finance (MOF) revealed.

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Its imports are also projected to see growth, supported by new medical technologies to further expand healthcare for the edlerly. However, exports may face mounting headwinds throughout 2019.

Overall, a separate report from Frost & Sullivan stated total healthcare expenditure in Singapore is tipped to hit $33.6b (US$24.6b) by 2020. Private expenditure will account for $20.5b (US$15b) whilst public healthcare expenditure may reach $13.1b (US$9.6b).