The ~USD 320 Billion Healthcare Challenge in ASEAN

ASEAN's healthcare industry will face drastic increases in healthcare spending by 2025 given the rapid demographic transition among the Southeast Asian nations. In the massive challenge that lies ahead, ASEAN countries must address the issue

The six major economies in ASEAN – Malaysia, Indonesia, Philippines, Vietnam, Thailand, and Singapore – are facing an unprecedented rise in healthcare cost in the coming decade. Factors including fast growth rates of the elder population amidst high smoking, overweight, and obesity will lead to a massive increase in the need for care and healthcare spending in Southeast Asia. With healthcare cost outpacing economical 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 425 billion. That means an increment of ~USD 320 billion will need to be immediately addressed in order to sustain the future of the healthcare industry in Southeast Asia. This white paper explores the reasons behind rising healthcare costs and provides measurable actions for policymakers to take. Businesses could also step in to fill the market gap and become healthcare partners for the public sector in enhancing healthcare efficiency.