This is the biggest threat to Singapore's healthcare sector in 2013

Will companies survive the blow?

According to OCBC, they see rising cost pressures as the main risk for the healthcare sector, as some of the healthcare companies recorded higher operating expenses as a percentage of revenue for 1QCY13. 

This was due largely to an increase in staff and rental costs. Hence we expect companies to strive to grow their revenues further in order to drive their operating leverage. 

Here's more from OCBC:

Healthcare companies have also largely embarked on expansionary plans to capitalise on the still-robust industry fundamentals. For example, Q & M Dental is seeking to widen its network of dental clinics in Singapore, with a target to achieve 60 dental outlets in Singapore by 2015, subject to economic conditions.

It also recently acquired its first general practice medical clinic as a means of diversifying beyond its core dental practice. 

RMG highlighted that it will begin the construction of its Raffles Hospital extension this year to expand its capacity. IHH also has a strong pipeline of hospitals which are under construction, with the bulk of them located in Malaysia and Turkey. In our opinion, these plans augur well for the medium-to-long term, but there will likely be some initial start-up costs which may impact near-term margins. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

VSTPL’s failures placed the trust at a higher risk of being used as a conduit for illegal activities, says MAS.
The growth rate estimate is lower than the 2021 forecast of 6.6%.
The bank assured customers that it employs a multi-layered defence system against fraud.
This after S-REITs delivered a modest 6% in total returns in 2021. 
Banks are asked to remove links in emails and SMS sent to customers.
It will redeploy the proceeds from this divestment into higher-yielding assets.
The US, the UK, and Australia were their top destinations during the year-end. 
The company offered 0.6 million units at $5 each.
96% of respondents also believe that this is essential to their organisation. 
The record surpassed Bloomberg's estimate of 13.5%.
 Sembcorp Industries had the most growth.
Globally, the percentage of workers who had the same sentiment was lower at 51%.
Two operators, Daenerys and Deodi, have shut down their ATM machines in the city.
Jalan Tembusu, meanwhile, saw a strong performance due to the opportunity present in the area.
Users can now link accounts from Bank of China, DBS, Maybank, OCBC, StanChart, and UOB.