Healthcare Sector Update : The Wealth Effect - 09/08/2010

♦ Rising healthcare expenditure … Total health expenditure in Malaysia grew at a CAGR of 12.9% to RM35.1bn between 2000 and 2008, supported by: 1) higher Government and private sector spending; 2) growing population; and 3) growing personal wealth in Malaysia. Health spending as a share of GDP for the same period ranged from
2.9-4.8% of GDP, while per capita spending on health rose by RM381 in 1997 to RM1,268 in 2008, representing a CAGR of 10.5% over the period. Going forward, healthcare expenditure is expected to grow by 8-10% p.a..

Healthcare Sector Update : The Wealth Effect - 09/08/2010

Healthcare Sector Update - The Wealth Effect - 06/08/2010

♦ Rising income levels. In our view, the wealth effect will be one of the primary drivers for growth in healthcare expenditure in Malaysia. The Government has already stated its long-term plans under the New Economic Model to raise per capita income from US$7.6k currently to US$15k in 10 years.

Healthcare Sector Update - The Wealth Effect - 06/08/2010