SINGAPORE (THE BUSINESS TIMES) - Singapore's healthcare market is expected to grow to $29.8 billion in 2020, 9 per cent more than last year's $27.3 billion, according to a report published on Friday (March 13) by market insights firm Fitch Solutions.

The market will more than double to $68.7 billion by 2029, sadi the report.

As a proportion of gross domestic product (GDP), the Republic's healthcare spend - consisting of public and private healthcare expenditure - is expected to account for 5.9 per cent of GDP this year and could rise to 9 per cent by 2029.

The hike, in absolute terms, is largely thanks 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 spend 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 $11.4 billion this year to $18.8 billion in 2029.