Fitch: S'pore healthcare market set to grow by 9% this year

Singapore's healthcare market is expected to grow to $29.8 billion this year, a 9 per cent rise over last year's $27.3 billion, said a report by market insights firm Fitch Solutions yesterday.

By 2029, the market will more than double to $68.7 billion, the report added.

As a proportion of gross domestic product (GDP), Singapore's healthcare spending - comprising public and private healthcare expenditure - is expected to account for 5.9 per cent of GDP this year and could go up to 9 per cent by 2029.

The hike, in absolute terms, is largely attributed to rising government spending on healthcare, as well as Singaporeans' increased use of healthcare services, given the ageing population and a trend towards earlier diagnosis of conditions, closer monitoring and better follow-ups.

Government healthcare spending was estimated at $18.4 billion this year, and is expected to nearly triple to $50 billion by 2029, the report said.

For its 2020 forecast, Fitch pointed to infrastructure costs from fresh plans announced last week to build a 12th hospital in the east, redevelop Alexandra Hospital and build 12 more polyclinics across the country.

Meanwhile, it estimated a more modest rise for private healthcare expenditure, from a forecast of $11.4 billion this year to $18.8 billion in 2029.

THE BUSINESS TIMES