2013-12-13 11:16:50 - New Healthcare research report from Business Monitor International is now available from Fast Market Research
Despite its small market size, Hong Kong's drug procurement is intensely regulated by the Hospital Authority (HA). As a result, companies that are able to supply to the HA stand to benefit. We highlight that Hong Kong is lagging behind other Asian countries such as Singapore, South Korea, China and Japan in terms of support for pharmaceutical research and development, which could limit investment into the sector.
Headline Expenditure Projections
* Pharmaceuticals: HKD10.31bn (US$1.33bn) in 2012 to HKD10.94bn (US$1.41bn) in 2013; +6.1% in local currency terms and +5.9% in US dollar terms. Forecast unchanged from Q413.
* Healthcare: HKD112.43bn (US$14.49bn) in 2012 to HKD120.53bn (US$15.51bn) in 2013; +7.2% in local currency terms and +7.0% in US dollar terms. Forecast unchanged from
Full Report Details at
- www.fastmr.com/prod/752027_hong_kong_pharmaceuticals_healthcare_ ..
Hong Kong's Pharmaceutical Risk/Reward Rating (RRR) score for Q114 is 60.2 out of 100 in our newly improved RRR system. The country scores above average for most of indicators and sub-indicators, including per capita pharmaceutical expenditure, sector value growth and pensionable population. Consequently with this high score, Hong Kong is ranked seventh, above Malaysia, out of the 19 key Asia Pacific markets.
Key Trends And Developments
* In October 2013, India-based Fortis Healthcare decided to sell its stake in Quality Healthcare Medical Services in Hong Kong to UK-based Bupa for US$355mn.
* In the same month, Dr. Ko Wing-man, the secretary for Food and Health, stated that the government's voluntary health insurance scheme may cost consumers 10% more than the current private scheme but that it will have wider coverage.
* On September 28 2013, the government of Hong Kong launched an online mechanism to verify the resident status of patients visiting hospitals and clinics falling under the Hospital Authority (HA) and the Department of Health (DH) in Hong Kong. The move will enable the government to confirm patients' valid residential status, and charge them appropriate rates under its highly subsidised public healthcare services. The patients will have to show their Hong Kong identity cards to the hospital or clinic staff, who will charge them the appropriate 'eligible persons' or 'non-eligible persons' rate after verifying their residential status. All prospective patients with valid Hong Kong identity cards will be considered 'eligible persons' to receive healthcare services by paying subsidised fees.
BMI Economic View: The Hong Kong government appears on track to miss its land release target for FY2013/14, which suggests that the city's housing shortage will not be alleviated anytime soon. This is likely to translate into smaller property-related revenue collections for the government. On the expenditure front, the government may use the results of a recently commissioned report on poverty to bolster its intention to raise social welfare expenditure and possibly the minimum wage. Despite these developments, the government's proven record for maintaining fiscal discipline, even in times of economic stress, suggests to us that structural changes to the city's welfare expenditure are unlikely to materially affect Hong Kong's rock-solid fiscal health.
BMI Political View: Hong Kong's political landscape has become increasingly fractious over the past year as support for Chief Executive Leung Chun-ying from both the public and within the government continues to flounder. Although we have yet to see the political deterioration adversely impact the running of Hong Kong's economy, we highlight that the risk of economic fallout is on the rise. Also, as China starts to speed up development of its inland infrastructure and its ports start to pose greater competition to Hong Kong, the city may begin to see a diminished role within the global supply chain.
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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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