Why Private Equity Firms in Singapore Are Investing in Healthcare Startups?
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Singapore's Thriving Healthcare Sector
Singapore has a well-developed healthcare
system that is highly regarded globally. Singapore has made significant
investments in healthcare infrastructure, research and development, and medical
education, resulting in a healthcare system of exceptional quality that offers
comprehensive medical care and cutting-edge technology. The government has also
implemented policies to encourage innovation in the healthcare industry,
including tax incentives for research and development and the establishment of
research grants and funds.
Growing Demand for Healthcare Services in Asia
The demand for healthcare services in Asia
is growing rapidly due to several factors.
·
The rise in the number of aging
people in numerous Asian nations is creating a higher need for healthcare services.
·
Diabetic and cardiovascular
diseases are on the rise, requiring ongoing medical attention.
·
Health care demand is
increasing in many Asian countries due to the growing middle class.
Encouraging
Business Environment
Entrepreneurship and innovation thrive in
Singapore's business-friendly environment. The country has low taxes, minimal
bureaucracy, and a highly educated workforce. Singapore is also a hub for
business in Asia, making it an ideal location for private equity in Singapore’s healthcare startups to help establish
them.
Healthcare Investment in Singapore
In the 2021 World Index of Healthcare
Innovation, Singapore achieved the 12th rank. It provides its population with
comprehensive healthcare coverage comprising various levels of care. In comparison
to its ASEAN counterparts, Singapore has the highest annual healthcare spending
per capita, which is expected to increase faster than its GDP due to the
country's aging population and changing demographics. The Ministry of Health
predicts that Singapore's National Health Expenditure could reach $43 billion
by 2030, with healthcare expenditure, encompassing both public and private
sectors, making up 5.9% of GDP, and possibly rising to 9.0% by that same time. The
primary reasons for the rise in healthcare expenditure are the augmented
government funding for healthcare and the higher utilization of healthcare services
by the local community. This trend is primarily attributed to an aging
population and a growing preference for early diagnosis of chronic conditions,
continuous monitoring, and follow-up.
End
Note
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