Contents
Introduction 3
Medical travel 4
Reality: globalisation of healthcare; quality is Singapore’s edge 4
Hype — is the target of 1mn realistic? 5
Implications for Parkway and RMG 7
China medical devices: Growth underpinned by healthcare reform 9
Strong demand growth 9
Import substitution 10
Favourable product trend 10
Favourable regulation environment 11
Distribution channel 11
Industry overview: Robust growth potential 13
Growth driver 1: Demographic dividend 14
Growth driver 2: Increasing disposable income 14
Growth driver 3: Escalating direct government spending 15
Growth Driver 4: Improving insurance coverage 16
Weaknesses of China healthcare industry 17
Declining affordability 17
Unfairness 18
Limited number of healthcare professionals 19
Opportunities: New Medical Care Reform Plan 20
Appendix I: Details of the New Healthcare Reform 23
Universal medical coverage 23
Infrastructure investment, reverse the pyramid! 23
Basic medicine system 24
Reform of state-owned hospitals 24
Latest company views
Parkway Holdings 26
Raffles Medical 32
Mindray Medical International 36
Shandong Weigao Group Medical Polymer 39