A dive into Singapore’s medical industry trends that have been driving up prices and why investors should be looking for an alternative solution.
In recent years, the medical industry in Singapore has experienced significant growth and advancement. Ranking second globally out of 46 destinations, one of the reasons Singapore is highly regarded as one of the top choices for medical tourists seeking treatment for a wide range of conditions (including those that are rare or expensive to treat at home) is its exceptional healthcare infrastructure.
The country boasts a robust healthcare system that consistently ranks among the best in the world. Last year alone, Singapore’s total healthcare market is estimated to be worth approximately S$21.7 billion. *
However, the cost of healthcare in Singapore has been noticeably rising. WTW 2023 Global Medical Trends Survey reported that healthcare cost in Singapore is expected to grow 9.8% in 2023— the highest it’s been in nearly 15 years—as a result of widespread inflation and the increase in healthcare use.
One of the contributing factors to the increase in demand for healthcare is the ageing Singapore population which leads to a higher prevalence of chronic diseases and a greater need for medical care.
The vibrant city has one of the highest life expectancies in the world—at an average of 83.5 years in 2021 and it is expected to increase over time with medical advancement. On top of that, the proportion of the population aged 65 years and above is expected to grow from 16.6% in 2022 to 25.0% by 2030. **
The demand for healthcare services, coupled with a booming medical tourism sector, has contributed to the rising prices of medical suites in the country. Further driving up these prices is the shortage of medical suites supply in the market.
As of 4Q 2022, there were approximately 2,050 medical suites and in the last year, there has been no new supply of medical suites to meet the existing demand. In 2024, there will be an estimated 15 new units of medical suites within Woodleigh Mall.
Medical Tourism and healthcare demand in Malaysia
In recent years, Malaysia has also emerged as a popular destination for medical tourism ranking among the top medical tourism destinations in Asia, alongside Thailand, Singapore, and South Korea.
One of the main reasons why Malaysia attracts medical tourists is the cost-effectiveness of healthcare services. This affordability factor, combined with its excellent healthcare facilities and skilled medical professionals, makes Malaysia an attractive option for individuals seeking medical treatments.
Patients often find that they can save up to 60-70% of their medical expenses by choosing Malaysia as their healthcare destination. For example, a heart bypass in Malaysia would cost approximately US$14,000* compared to US$23,000* in Singapore.
Additionally, Malaysia’s geographical location, low language barriers, diverse culture and tourist attractions also contribute to its popularity as a medical tourism hub.
It doesn’t come as a surprise that Malaysia was awarded the ‘Health and Medical Tourism: Destination of the Year title for the fourth time at the International Medical Travel Journal (IMTJ) Medical Travel Awards 2020 having previously won it thrice in a row from 2015 – 2017.
Since the reopening of the borders on April 1, 2022, the number of medical tourists in Q2 2022 grew almost seven-fold (67,813) compared to Q1 2022 (10,178) and is expected to reach its 2019 numbers, with 1.3 million medical tourist arrival sooner than projected by Malaysia Healthcare Travel Council (MHTC).
Unlock a once-in-a-lifetime opportunity to own medical suites /clinics in Malaysia
Medical suites are specialized spaces designed for healthcare professionals to provide medical services to patients in a convenient and accessible manner. These suites are typically located within medical office buildings or healthcare facilities.
They have long been thought to make good investment assets since medical suits are untouched by cooling measures. The demand and rent for medical suites are influenced by various factors, including the healthcare industry’s growth, population demographics, location, and infrastructure.
One of the primary drivers of demand for medical suites is the overall growth and expansion of the healthcare industry as currently experienced in Singapore. However, prices have been driven up by the shortage of supply, making it difficult for investors as well as doctors and medical practitioners to enter the market despite its potential rental ROI.
However, the much more affordable entry price of medical suites in Malaysia presents itself as the perfect alternative solution in the form of KL Wellness City.
Singapore Medical Suites VS KL Wellness City comparison
KL Wellness City is a premier medical and wellness hub located in Kuala Lumpur, Malaysia, and its medical suites offer a compelling potential investment opportunity. With its state-of-the-art facilities and strategic location, KL Wellness City is well-positioned to tap into this growing market, attracting both local and international patients seeking advanced medical treatments as well as medical practitioners.
It is conveniently located in the heart of the city, giving it access to the city’s excellent infrastructure, international connectivity, and thriving tourism industry which provides a conducive environment for the success of medical investments.
The International Hospital @ KL Wellness City, a tertiary hospital that has an upgradable capacity of 1,000 beds, anchors the township as the central medical hub that supports its healthcare practitioners and the entire community.
With entry prices that are markedly lower than those of medical suites in Singapore and world-class facilities—including specialized clinics, advanced diagnostic centres, and state-of-the-art operating theatres—investors who capitalize on this opportunity early on can benefit from long-term capital gains.
Visit the KL Wellness City website to find out more about KL Wellness City.
*Medical Tourism Index 2020 – 2021
** Singapore Department of Statistics
*** CBRE, Health Promotion Board
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