Healthcare players troop to China as local competition heats up

The Mainland offers attractive prospects.

A number of locally-listed healthcare firms have revealed expansion plans to China in recent weeks, as competition in the local market continues to tighten.

Among the firms that have chosen to break ground in the Mainland are Raffles Medical, Ramsay Health Care, and Q&M Dental.

According to OCBC Investment Research, China offers attractive prospects with healthcare spending expected to grow to almost a trillion dollars by 2019.

“We view the players’ development plans positively, especially for local players like RFMD, as competition in Singapore continue to increase from both the private and public sectors coupled with the risk of waning medical tourism. RFMD’s management also expects higher pricing and better profit margins from their Shanghai hospital project,” stated the report.

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