Bangkok, Thailand – January 20, 2025 –DKSH, a Strategic Healthcare Solutions Partner and leading provider of Market Expansion Services for pharmaceutical, over-the-counter (OTC), consumer health and medical device companies, and FrontierView, a leading business intelligence and advisory firm, have published a whitepaper with the title “Southeast Asia as a Growth Accelerator for Global Healthcare Firms”. It provides a comprehensive analysis of the healthcare landscape in Southeast Asia. The research offers valuable insights into the region’s healthcare market, with a particular focus on Thailand’s burgeoning sector, its key challenges, and the abundant opportunities that lie ahead. The whitepaper concludes that Thailand continues to be one of the most desirable markets for healthcare companies, driven by continued growth and industry development. However, it is also highlighted that challenges must be met collaboratively to ensure all citizens enjoy healthcare for all.
Thailand’s healthcare sector has seen increasing growth, largely driven by an increasing demand for medical tourism, the expansion of private healthcare services, and the exploration of public-private partnerships (PPPs). However, this growth is accompanied by several challenges, ranging from workforce shortages to financing gaps and regulatory pressures. As the industry continues to evolve, addressing these issues will be crucial in ensuring that Thailand’s healthcare system can meet both domestic needs and regional competition.
Patrik Grande, Vice President, Regional Head of Commercial Outsourcing APAC Healthcare, DKSH, said: “The whitepaper findings confirm our conviction that Thailand remains one of the most attractive markets in the region for pharmaceutical, consumer health and medical device companies. As the middle class continues to expand, and Thailand is moving to an elder society, the demand for private healthcare services is expected to rise steadily. As an industry, we need to collaborate to ensure that all patients and health seekers in Thailand have access to the right treatment and care.”
Public-private partnerships: a key strategy for long-term growth
As Thailand’s healthcare needs grow, the government is increasingly looking to public-private partnerships to address capacity constraints in the public healthcare system. One prominent example of this strategy is the Pluak Daeng 2 Hospital project where the government and the private sector work closely together. These collaborations help bridge the funding gap, allowing Thailand to enhance its public healthcare infrastructure without overstretching government resources. The private sector’s involvement not only relieves financial pressure on the government but also brings in the much-needed expertise, efficiency, and innovation that are crucial for managing Thailand’s increasingly complex healthcare demands.
Addressing Thailand’s healthcare system challenges
Despite the substantial growth in the healthcare sector, Thailand faces several challenges that must be addressed to ensure long-term sustainability.
- A significant issue is the shortage of healthcare professionals. Many doctors, nurses, and other healthcare workers are attracted to the private sector, leading to a disparity in the distribution of healthcare workers across the country. Public sector hospitals are struggling to meet the rising demand for care.
- Thailand’s social security system, which plays a crucial role in financing healthcare for the population, is under increasing strain. With declining balances and growing demand for healthcare services, particularly in public hospitals, the system is struggling to keep up. One potential solution is to increase investment in private health insurance to help bridge this financing gap.
- Regulatory challenges continue to hinder the healthcare sector’s growth. While Thailand has made strides in simplifying market entry through initiatives like the “ASEAN Joint Assessment pathway”, it still faces hurdles in local pharmaceutical and medical device production. Despite tax incentives and government efforts to encourage domestic manufacturing, Thailand remains heavily reliant on imports for medical products. The influx of foreign companies could further exacerbate these localization pressures.
- Thailand’s private healthcare sector is also facing the challenge of rising global interest rates, which have made it more difficult for private hospitals to secure financing for infrastructure and equipment. Many hospitals are opting to lease medical equipment instead of purchasing it outright, a reflection of the increasing cost of capital.
Balancing opportunities and challenges in the future
Thailand’s healthcare market offers immense opportunities, particularly with the ongoing growth of the private sector and the recovery of medical tourism. To maintain this positive trajectory, the whitepaper outlines that Thailand must tackle the challenges of workforce shortages, financing gaps, and regulatory inefficiencies. Public-private partnerships present a promising solution, but sustained collaboration between the government, private sector, and healthcare professionals is essential to ensure the long-term sustainability of the healthcare system.
“At DKSH, we continue to support the growth of Thailand’s healthcare sector through our expertise in commercial market expansion, regulatory compliance, and supply chain processes. We are dedicated to improving lives by increasing accessibility to healthcare. With a century of experience as the trusted partner for navigating and thriving in Asia, we have developed invaluable knowledge and insights. We are proud to have contributed our expertise in supporting this whitepaper, which will provide our partners with the latest strategies and insights to succeed in the dynamic Southeast Asian healthcare landscape,” added Patrik Grande.
To learn more about the healthcare challenges and opportunities in Thailand and other ASEAN markets, read the full whitepaper at https://bit.ly/hecwhitepaper.
