Page 50 - ar2012

MARKET REVIEW AND OUTLOOK
ParkwayLife REIT Annual Report FY2012
The Asia Pacifc healthcare sector’s long term
prospects present further growth opportunities
for PLife REIT. In 2012, the Asia Pacifc healthcare
market was worth US$369.9 billion and is expected
grow at a CAGR of 12.8% to US$752 billion in 2018,
driven by rising demand for healthcare services. This
surpasses global growth rates which are expected to
average 6% over the same period.1
As the region continues on its economic development,
the fundamentals in quality healthcare demand
are expected to remain robust barring unforeseen
circumstances, driven by increasing affuence and
incidences of chronic illness, rise in medical tourism
and rapidly ageing populations.
Increasing Affuence to Drive Demand for
Quality Healthcare
According to World Bank statistics in 2012, GDP
in Asia Pacifc has grown by 133% from US$8.1
trillion in 2000 to US$18.8 trillion in 2011.2 This has
in turn translated into increased demand for quality
healthcare services, which have become relatively
more affordable with increasing affuence across the
region.
Another factor driving higher demand for private
healthcare in Asia Pacifc is the rise in chronic
illnesses, which is expected to continue rising3 as
a result of rapid lifestyle changes amidst increasing
urbanisation. Besides adding to the burden of public
healthcare systems, it is expected that more patients
will be seeking specialist consultation with private
healthcare providers, thereby adding to demand in
this medical care segment.
To meet the increasing demand for healthcare
services due to changing demographics, about
180 million new hospital beds are estimated to be
required over the next decade in Asia Pacifc, of
which over 40% of the supply is expected to come
from the private sector. As a result, private hospitals
in Asia Pacifc are expected to grow their revenues at
a CAGR of 17.1% between 2012 and 20183.
Medical Tourism as a Catalyst for Private
Healthcare Growth
On the back of rising affuence and ease of travel,
more medical patients are travelling within the region
to seek quality healthcare services which may not be
available in their home countries. Medical patients
from other parts of the world are also seeking private
healthcare services in the Asia Pacifc due to the
relatively shorter waiting times and cost effcient
procedures as compared to their homemarkets. Other
key factors include the accessibility to sophisticated
medical technology, rising awareness of middle class
seeking affordable and quality medical care, rise in
1Press Release: Rising patient demands and life expectancy in Asia Pacifc continues to drive healthcare sector. Frost & Sullivan
2 World Bank data 2012
3 Pharma and Biotech Industry Outlook. Frost & Sullivan
Philippines
Malaysia
India
Indonesia
China
Thailand
Singapore
Hong Kong
Japan
2016
2011
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Growth of Chronic Diseases in Asia
% population with at least one chronic disease 2011, 2016
Source: Frost & Sullivan (2012)
2000
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
2005 2001 2006 2002 2007 2003 2008 2004 2009 2010 2011
Asia Pacifc GDP
133%
US$ Trillion
Source: World Bank (2012)
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