The latest report of Asia-focused management consulting firm highlights the future cost challenge and value opportunities in healthcare sector in Southeast Asia, including Indonesia which recorded highest prevalence of smoking among the six major ASEAN nations.
Solidiance’s latest white paper, “The ~USD 320 billion healthcare challenge in ASEAN”, explores the reasons behind rising healthcare costs, value opportunities, and measurable actions to improve the industry overtime.
The report, released on late March, found three risk factors that will drive the increase of healthcare cost challenge: smoking activities, overweight and obesity in ASEAN-6 countries: Malaysia, Singapore, Philippines, Vietnam, Thailand and Indonesia.
Indonesia was recorded with 39.9% smoking prevalence in 2015 while its overweight and obesity levels were at 24.4% and 5.7% respectively.
According to the report also noted the Indonesian elder population would grow by 3.97% annually (CAGR) until 2040, driving healthcare demand in the healthcare industry.
The divide between health expenditure and GDP per capita is expected to see unprecedented challenges as the health risk factors could meet the rising elder population by 2040.
Although growth in health spending per person has started outpacing GDP per capita since 2016, Indonesia still saw narrow gap (less than 2%) between health expenditure and GDP per capita in 2017, better than other five major Southeast Asia countries.
The Solidiance’s report mentioned the ASEAN-6 nations are facing an unprecedented rise in healthcare cost in the coming decade. The total healthcare spending could increase from currently around USD 420 billion to USD 740 billion by 2025. The USD 320 billion increment should be addressed by the governments and healthcare industry stakeholders to sustain the future of the healthcare industry.
Additionally, governments of the ASEAN-6 nations are no longer able to allocate big proportion of their budgets to healthcare spending due to other economic budgetary requirements, such as the need for economic stimulus, massive infrastructure plans and rising security tensions in the South China Sea.
In terms of healthcare spending versus achieved average life expectancy, ASEAN 6 nations are currently in a perfect ‘middle field’ between underdeveloped nations in third world countries and over-spenders among the wealthier nations.
Hence, to establish a more efficient healthcare system, ASEAN nations - with the exception of Singapore - must find ways to increase healthy living years of its people by tackling the key drivers of disabilities.
Download the full report on ASEAN healthcare challenge.
Revolutionizing Finance: An Overview of Digital Lending in Southeast Asia
Digital lending is poised to become the primary revenue driver for digital financial services in Southeast Asia (SEA) by 2025, outpacing digital payments. This growth is fueled by a 33% annual increase in digital lending, supported by technological innovations such as automated loan origination processes and seamless integration of financial services into digital experiences. These advancements have made it easier for consumers to access financing for various needs, including online shopping, travel bookings, and ride-hailing services.
IoT Integration in the SEA Automotive Lubricants Market
The Southeast Asia (SEA) automotive lubricants market is rapidly evolving with the integration of Internet of Things (IoT) technology. This transformation offers significant benefits, creates new opportunities in smart technology, and introduces innovative IoT solutions that can revolutionize the industry.
Embracing Robotization: Challenges and Opportunities in Industry 4.0
Robotization presents challenges and opportunities for businesses and the workforce, requiring companies to embrace this transformation.
Opportunities in the Indonesian Skincare Market
The rapid growth of the Indonesian skincare market presents significant opportunities for the beauty industry. Projections indicate a steady growth trajectory of 4.6% over the next five years, reflecting sustained consumer demand and market expansion. In this article, we will explore the various opportunities that the Indonesian skincare market presents for brands seeking to establish a strong foothold and thrive in this dynamic landscape.