A white paper released by Asia-focused management consulting firm, Solidiance,
highlights a massive healthcare challenge of approximately USD 320 billion faced by six major economies in Southeast Asia (ASEAN 6) in the coming decade.
Driving the future demand in ASEAN 6’s – (Thailand, Malaysia, Indonesia, Singapore, Philippines, and Vietnam) – healthcare system are factors such as shift in age demographics and unhealthy lifestyle habits.
In Thailand alone, metabolic risk indicators such as smoking remained low however growth in overweight and obesity rates in 2016 showed one of the highest among the six ASEAN countries assessed at 31.6% and 9.2% respectively.
Solidiance’s latest white paper, “The ~USD 320 billion healthcare challenge in ASEAN”, examines factors affecting rising healthcare costs and provide measurable actions to improve the industry overtime.
Healthcare spending up to 740 billion in 2025
With healthcare cost outpacing economic growth in nearly all ASEAN nations, it is expected that by 2025, total healthcare spending could accelerate up to ~USD 740 billion from the current ~USD 420 billion.
Hence, an increment of ~USD 320 billion would need to be addressed by ASEAN 6 nations in order to sustain the future of the healthcare industry.
ASEAN 6 nations is set to undergo a profound population transition to an ageing demographic due to improvement of life expectancy and rising income levels.
Thailand’s elder population (age group 65 – above) is expected to witness a CAGR of 3.61% by 2040, three times exceeding the working age population. The rapid change in population structure will burden society with increased need for healthcare.
Moreover, the trend of healthcare cost outpacing GDP growth in nearly all ASEAN nations will put additional budgetary strain on government spending.
Healthcare costs in Thailand is progressing at a much faster rate compared to its GDP per capita, indicating a gap that will further add economic burden to the country.