Asia as a region is the fastest growing part of the global economy. In 2001, the region accounted for 26.8% of global GDP (measured using purchasing power parity). By 2013, that share had risen to 36.6%. The rapid income growth means that healthcare spending in the region is also growing faster than anywhere else.
The sharpest ever rise in the healthcare spending for the past 4 years (2009-2012) was observed in a few Asian countries including Indonesia (67.8% CAGR), Philippines (52.1%), Myanmar (50.5%), Malaysia (43.6%) and Vietnam (42.7%). The trend in the region is anticipated to continue throughout to 2018 thanks to the region’s rapidly growing economics, expansion of the affordable social class.
Over the next 5 years, the South East Asia region is undergoing an unprecedented change in the healthcare systems, as Indonesia, Vietnam and Philippines are undergoing a dramatic expansion of healthcare access through creation or consolidation of universal healthcare schemes. These are adding to the already existing systems in Thailand and Singapore. Based on these fundamental changes in pricing, reimbursement and market access, what is the best way for a pharma or devices company to respond to the market over the next decade?