Asia Pacific Healthcare Market to See Robust Growth in 2008

KUALA LUMPUR, Malaysia--(Business Wire)--
Asia Pacific (APAC) companies are likely to be leaders in the
global healthcare market in 2008 due to the region's high population
growth rates, rising affluence and ageing societies.

Frost & Sullivan said that revenue for the Asia Pacific healthcare
market is likely to grow 6.3 per cent to US$889 billion in 2008 as
compared to US$836 billion in 2007.

Ms. Reenita Das, Vice- President of Healthcare Asia Pacific at
Frost & Sullivan said the region will continue to undergo a robust
economic growth in 2008, attracting more investments in healthcare
infrastructure.

Countries such as South Korea, Taiwan and Australia are estimated
to have more than 10 percent of their population above 65 years old by
2010. In Japan, the ageing population is twice this amount. "Asia-
Pacific is moving into the "Golden Age" whereby ageing populations are
increasing therefore, it directly contributes to the healthcare
expenditure," Das said in a recent analyst briefing.

Das noted that China, South Korea and India have the highest
healthcare spending growth rate in Asia due to their large population.
Investments in healthcare infrastructures by the private sector had
also contributed to the growth of the healthcare industry.

Currently, more private healthcare facilities are using
sophisticated equipments for various procedures and are also
increasing investments on local healthcare industries. Governments in
Asia are also gradually shifting the costs for healthcare development
to the private sector.

Despite the industry's great potential, Das said that market
participants to be aware of the varying healthcare regulations in
different parts of a country, which may be a challenge. "There is also
a heavy reliance on public healthcare in many Asian countries, higher
distribution and service costs, lack of developed infrastructure,
intense competition from local companies and lack of market
penetration in rural parts of Asia," she added.

With developed healthcare infrastructures in place, demand for
premium healthcare products and services would be higher. Therefore
2008 will be marked by a shift in focus from sick care mentality to
healthcare philosophy and practice. Hence, there are more educated and
well informed consumers, greater employer involvement in employees'
healthcare, direct marketing to consumers and an overall wellness
movement.

"A successful healthcare business model in 2008 is no longer about
simply making and marketing medicines and devices; it will involve
collaboration outside the core business focus," Das said.

About Frost & Sullivan

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Frost & Sullivan
Corporate Communications -Healthcare, Asia Pacific
Shereen Gill
DID: 603 6204 5909
Mobile: +6017 617 8300
shereen.gill@frost.com

Copyright Business Wire 2008