Singapore is facing a decline in foreign patients when choosing cheaper alternatives.
Singapore's status as a leading medical tourism destination is under threat as the costs of players in regions such as Thailand and Malaysia continue to rise and intensify competition.
Bijay Singh, global head of health care at DKSH's business unit, said the strengthening of Singapore dollar makes health care more expensive for foreigners.
“Regional players are becoming stronger and Malaysia offers tax benefits for the medical tourism industry in two cities. Countries such as Vietnam and Indonesia are also becoming alternatives,” he said.
In addition to currency fluctuations, Alec Lee, managing director of healthcare research at Frontierview, noted that domestic inflation is raising hospital costs and further raising prices. “Singapore is not necessarily attractive, but it becomes more expensive. Regional competitors have also invested heavily in medical tourism hubs and effectively sold their services to keep patients away from Singapore,” Lee explained.
“Foreign patients now have more options, and many regional countries take advantage of this by offering competitive pricing and robust healthcare options,” Singh added.
Experts believe that Singapore’s strategy must develop. “Singapore should prioritize high-end cardiovascular and complex surgeries over primary care. This fuels Singapore’s advantages in advanced medical expertise,” Singer said.
Lee highlights stronger ties with insurance providers. “Partnering with private insurers is crucial to creating streamlined recommendation pathways. Ensuring that patients can get first-class care in Singapore through a seamless insurance process is key,” he said.
Reducing out-of-pocket expenses through policy incentives could be a game-changer. “Tax cuts and affordability mechanisms may help attract more foreign patients who are blocked by high costs,” Lee said.
Experts also believe that the potential of developing Singapore as a medical education center. “Singapore’s high level of expertise can be a training centre. Healthcare professionals from neighboring countries are invited to train, creating long-term relationships and strengthening the recommendation network,” Singh explained.
