With the world’s population both growing and ageing, demand for healthcare services is expected to increase significantly in coming years.
Australia is known for its high-tech, high quality health products and services sector and has a range of country-specific advantages including state-of-the-art technology, high-level care service experience, transferable management know-how, and a reputation for being 'clean, green and healthy'.
The country was recently ranked as having the second best health system overall in the developed world, according to a 2017 report from the Commonwealth Fund, primarily due to health outcomes and administrative efficiency where it ranked first in both categories.
It is also regarded as one of the best places in the world to conduct clinical trials due to its world-class medical research and healthcare infrastructure and strong intellectual property regime. Being home to many foreign-trained doctors gives Australia an additional unique regional advantage against its competitors.
The healthcare sector - which covers medical centres, hospitals, aged care and all related health providers - is currently the nation’s fourth biggest contributor to GDP and employs 13 per cent of the Australian work force.
In the next few years, it is set to become the largest sector employing 15 per cent of the workforce. The roll-out of the government-led National Disability Insurance Scheme (NDIS) is forecast to add 160,000 full time jobs.
Private hospitals treat 40% of all patients and there is plenty of scope for this proportion to rise, providing good investment opportunities for private healthcare companies.
Foreign investment in Australia’s healthcare sector is growing quickly. Chinese investment alone has surged since 2015, reaching a total of AUD $5.5 billion in 2018, according to a report from KPMG and the University of Sydney Business School.
Advantageous international trade agreements combined with progressive domestic initiatives such as the Commonwealth Government’s Medical Research and Innovation Strategy and the National Innovation and Science Agenda are improving Australia’s comparative advantage in advanced health sector industries.
Australia’s export capacity is currently underdeveloped and represents strong growth potential. Foreign investment is important to build global partnerships with knowledge of foreign markets and access to international distribution networks.
As Asia’s middle class and ageing populations grow, the region will continue to experience rising long-term demand for health services, representing a significant opportunity for export by Australian companies. This growing population will not only increase demand for general health services, but also for smart, connected medical technologies, such as personalised implants, bionics and 24/7 monitoring devices.
China’s healthcare spending is expected to grow by 8.1 percent annually over the next five years, representing a significant opportunity for Australia’s health sector. The patterns that are emerging in China’s domestic healthcare sector are likely to strengthen investment demand in the coming years as healthcare assets become a key component of many investors’ portfolios.
FuturaCare has strong connection points between Australia and Asia. This enables us to support Asian investors to capitalise on investment opportunities in Australia, identify quality local assets and services that can benefit from external equity, and facilitate export through international distribution networks.
To find out more about the opportunities, contact us.