Singapore healthcare companies eager to explore partnerships in Saudi Arabia

Singapore's Mach 7 Technologies signs Joint Venture with Saudi solutions provider Medisys.

Singapore company Mach 7 Technologies has just signed a joint venture agreement with Saudi solutions provider Medisys for the latter to distribute Mach 7 Technologies' PACS-neutral healthcare image management solutions in the Kingdom.

The signing took place Saturday afternoon during a media roundtable session organised by International Enterprise (IE) Singapore in Riyadh, to share how Singapore healthcare companies can contribute to the development of the Kingdom's healthcare sector. Apart from Mach 7 Technologies, the roundtable saw participation from Singapore healthcare companies, ParkwayHealth and ST Logistics.

Mach 7 Technology's proprietary software allows for clinical image data to be better integrated and managed, thereby enabling greater control of information for healthcare enterprises. Tom Riesenberg, CEO and president of Mach 7 Technologies, in IE Singapore's press statement on Sunday, said: "The synergy between Mach 7 Technologies and Medisys will greatly benefit the Saudi Arabia healthcare market.

Medisys provides world class HMIS (Health Management Information Systems) while Mach 7 Technologies provides PACS neutral image enabling technologies that easily integrate with the Medisys HMIS. Medisys' customers will improve patient care by having medical images linked to patient records for clinician viewing. Our goal is to bring vendor neutral image enablement to the entire Saudi Arabian market."

The signing follows a healthcare business mission to the Kingdom that was led by IE Singapore in February 2010, where Singapore companies spanning the healthcare value chain, from healthcare service providers, to supporting players in the fields of healthcare technology, training and logistics, met with potential Saudi partners.

Burgeoning Saudi healthcare sector brings opportunities

Saudi Arabia's healthcare market has recorded steady growth over the past eight years. The government, which currently funds most of the demand for healthcare capital and operating expenditures, has budgeted an additional 51% for healthcare and social services in 2010 compared to actual spending in 2009. This amounts to SAR$61.2 billion (US$16.3 billion).

The greater efforts to enhance healthcare in the Kingdom are largely in response to the increased demand for healthcare services by a growing population. The Kingdom's population is expected to grow by more than 20% from now to 2016, from 23 million to 30 million. Therefore, healthcare expenditures are expected to increase in this affluent but aging population. The government has since recognised the importance of increasing private sector participation in the health care system to offer a viable private sector alternative for the people of Saudi Arabia. The Kingdom's Ministry of Health is currently working with the Saudi Arabia Government Investment Authority (SAGIA) to prepare the sector for these changes.

The growing demand for healthcare in Saudi Arabia presents opportunities for Singapore companies to seek partnership with Saudi counterparts.

Hospital development, performance management and healthcare education and training have been identified as key areas where Singapore companies could contribute in the development of the Kingdom's healthcare sector. Parkway Holdings Limited, one of Asia's leading healthcare players, with over 30 years of experience in hospital management is one such example. The Group first forayed into the Middle-Eastern market in 2008 when United Eastern Medical Services LLC (UEM) selected Parkway to manage Danat Al Emarat Women & Children's Hospital, targeted for completion by end-2011 / early 2012.

His Excellency Dr Jamil M. Merdad, Saudi Arabia's Ambassador to Singapore highlighted that Singapore's reputation for clinical excellence is gaining increasing traction in the Saudi market. He noted that the recent February mission conducted by IE Singapore was well received and added, "Saudi citizens increasingly view Singapore healthcare service providers as a good alternative to other European or American providers, and we certainly welcome Singapore companies’ investments in our healthcare sector."

Apart from healthcare services, logistics and ancillary services management such as procurement and stockpiling of medical equipment and medicines are also critical aspects of the healthcare system. ST Logistics, which has a well-established track record in the healthcare sector, also hopes to find ways to establish partnerships to introduce new initiatives to contribute to enhancing the healthcare system in Saudi Arabia.

In order to keep up to date with the opportunities in the Kingdom, IE Singapore will continue to further business engagement in the Kingdom, providing market knowledge, insights and connections to facilitate Singapore companies' overseas expansion efforts.