MANAGEMENT942: Comprehensive Report on Singapore's Health Industry

This report provides a comprehensive analysis of the Singapore health industry, examining its strengths, weaknesses, opportunities, and threats (SWOT) within the context of political, economic, social, technological, legal, and environmental factors (PESTLE). The analysis highlights Singapore's position as a leading medical tourism destination and its focus on health product exports, driven by government initiatives and a robust financial sector. The report delves into market segmentation, technological advancements, and the impact of an aging population and rising chronic diseases on healthcare demand. It also discusses the legal and regulatory landscape, financial viability, and potential challenges such as high operational costs and strict regulations. The report concludes with a detailed SWOT analysis, identifying key strengths like well-trained medical personnel and advanced technology, while also pointing out weaknesses, threats, and opportunities for growth within the industry.

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Management 942
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Singapore was ranked as the first country in the Southeast Asian region to attract medical
tourists and also promoted the export of health products globally. The Singaporean government’s
initiative characterizes the health industry as one of the foundations of the new economy
projected to be one of the drivers of growth. Singapore also holds a vital position as it is one of
the remarkable financial centers. This is in connection with Singapore’s conventional focus on
services. However, recently Singapore has repositioned itself as the hub for medical products in
the region.
Political
The changing disease landscape spanning from infectious to chronic and communicable
diseases, the government is promoting various initiatives (Phua and Pocock, 2012). The
government provides clear guidelines and policies in connection to the burgeoning health
industry, which provides support to domestic and foreign health promotion services. This ensures
that they benefit from a well-established infrastructure with regards to the health products and
promotion of entrepreneurism in the health industry (PESTLE Contributor, 2015). Barriers to
entry are relatively low for new players in the health industry (Rahman, 2019). The Economic
Development Board provides help in advisory services for establishing an HSP. However, it is
crucial to fathom that they do not offer a financial incentive in doing so, not unless the state
endorses a particular program.
Economic
The market for medical tourism in Singapore can be classified as highly segmented,
where low-income patients cannot afford services in Singapore and instead visit Thailand or
Malaysia for such services (Phua and Pocock, 2012). Thus, the Singapore market is top-notch for

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health services where it comes with an expensive price tag that has little or no influence when it
comes to deterring high-income patients. Thus, such patients are able and willing to pay out of
pocket for various health services offered. What may be lacking is the market for middle-income
patients (BBC, 2018). Hence, the international trend of the increasing middle class and their
purchasing power parity may have ramifications for the health industry in Singapore, which
could be misleading not unless there are initiatives to deter the rising OPP services.
Technology
Singapore has advanced medical technology, which has played a vital role in developing
the field of biomedical sciences sector. The medical technology sector accounted for more than
Singapore $4.3 billion of the GDP in 2011 and created more than 9000 occupations (Song, et al.,
2014). Singapore boasts of excellent patent rights protection and enforcement (EDB Singapore,
2018), and this has led to more global companies investing in the country to establish research
centers. Moreover, Spring Singapore pledged a 60 million investment for startups in the Med-
Tech sector.
Social
In the advent of an aging population and the rise of chronic diseases, chronic diseases
have become the leading sickness compared to other years, where infectious diseases as the
primary cause of death and morbidity in many nations while translating to increased costs of
healthcare. The rising cases of people with chronic illnesses who need mental health provide an
avid opportunity for health service providers in Singapore who can anticipate increased demand
for mental health management services connected to chronic conditions and rehabilitative
services for the old individuals.

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Legal
Legislation
Singapore has an open immigration policy that permits experienced healthcare
professionals to practice in the country (Phua and Pocock, 2012). However, the state restricts
medical doctors unless they are trained in countries recognized by the Mutual Recognition
Agreement with only a few selected nations.
Financial viability
The company has maintained its financial records as healthy as its patients. Based on the
financial statements the company has a net cash and cash worth value of above S$ 100,000 on its
balance sheet for the three consecutive years. Moreover, the company has a negligible degree of
debt and no long-term debts. This will enable the company to indulge in activities
accommodating huge financial leverage if need arises particularly when the company is
expanding its scope of operations.
SWOT analysis
Strengths
Well trained medical personnel
State of the art medical technology
Adequate internal financial resources
Well established online portal for foreign patients
Opportunities
High reputation by Singapore in providing quality
care services
Singapore has been ranked as having the best
ease of doing business
A growing ageing population and the rising cases
of mental health among chronic patients
High potential to increase the market share in
niche sectors
Increased government commitment to providing
education and training of medical staff
Weaknesses
Ambivalence with regards to the ability of
management staff to venture in international
markets
Threats
High expenses regarding the cost of electricity
and telecommunications
Saturated market for foreign and domestic

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Low confidence in the ability of SMEs to have
workforce to use the emerging medical
technologies
Poor intra industry associations and restricted
participation in global health sector movements
patients
Strict regulations when hiring foreign doctors

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References
BBC, 2018. Singapore Country Profile. [Online]
Available at: https://www.bbc.co.uk/news/world-asia-15961759
[Accessed 4 April 2020].
EDB Singapore, 2018. Singapore flexes its standing as Asia’s technology capital. [Online]
Available at: https://www.edb.gov.sg/en/news-and-events/insights/innovation/singapore-flexes-its-
standing-as-asias-technology-capital.html
[Accessed 4 APRIL 2020].
PESTLE Contributor, 2015. PESTLE Analysis of Singapore. [Online]
Available at: https://pestleanalysis.com/pestle-analysis-of-singapore/
[Accessed 4 April 2020].
Phua, K. H. & Pocock, N. S., 2012. Transforming the ASEAN Economic Community into a Global Services
Hub:Enhnancing the Competitiveness of the Health Sector in Singapore, Jakarta: ERIA.
Rahman, M., 2019. PESTEL Analysis of Singapore. [Online]
Available at: https://www.howandwhat.net/pestel-analysis-singapore/
[Accessed 4 April 2020].
Song, H., Nan, S., Mitchell & Preson, 2014. Fundamental Analysis Department Healthcare Services
Industry Report, s.l.: NUS Investment Society.