SINGAPORE: A new report by CGS International uncovers that the private healthcare sector in Singapore is grappling with significant growth challenges, primarily driven by market saturation and tough competition from public healthcare systems.

According to this analysis, a notable trend has emerged where Singaporean patients are increasingly opting for longer wait times for non-urgent procedures and health screenings at public hospitals or crossing the causeway to Malaysia for more budget-friendly medical services. This relocation for cheaper healthcare options is particularly evident in Johor Bahru, where costs are substantially lower than in Singapore.

Moreover, the financial burden associated with rising healthcare costs is leading to a decrease in foreign patient numbers and further impacting the performance of local healthcare institutions. While the high expenses push some to seek care elsewhere, others prefer the public system, which, despite longer queues, offers reliable services at lower prices.

Nonetheless, Singapore continues to hold its ground when it comes to specialized medical services. It remains a formidable destination for complex medical procedures, especially in the realm of advanced treatments like proton beam therapy (PBT) and various niche specialties. The country attracts affluent patients from the region who desire top-tier healthcare options that may not be available in their home countries.

Looking ahead, CGS International indicates that the healthcare sector will likely remain under pressure, with limited prospects for substantial industry consolidation in the near term. As the market evolves, providers may need to adapt their strategies to appeal to both local and international patients more effectively.

In a detailed evaluation of the market landscape, CGSI identifies QNM as a key player in the sector, highlighting indicators of a positive earnings recovery in the first half of 2024, along with strategic growth moves such as the acquisition of a dental clinic in Singapore.

Conversely, RFMD is facing hurdles with its operations in China, with only marginal improvements reported in loss reduction and an ongoing struggle to boost revenue.

This analysis raises questions about the future of Singapore's healthcare system and challenges providers to rethink their approaches in order to thrive amid fierce competition and shifting patient preferences. As more Singaporeans seek out lower-cost alternatives, the ripple effects on both local and regional healthcare dynamics may be profound.