SEA Health Tech Investment Insights

The key challenges in SEA Healthcare are caused by capacity shortages and fiscal constraints (2/2) 2 INSEAD Fiscal Constraints Government Health Expenditure per Capita, US$ PPP Government Health Expenditure as % of Total Health Expenditure 821.5 76.1% 510.7 178.0 182.7 118.6 Indonesia Vietnam Thailand Philippines World 48.4% 48.6% Indonesia Vietnam 59.5% 31.9% Thailand Philippines World Government health expenditure per capita, PPP is substantially below the world average Government health expenditure as % of total health expenditure is more than 10% below the world average in each country, other than Thailand. Government Health Expenditure as % of GDP ■2013 ■ 2014 ■2015 ■ 2016 3.0% 2017 2.4% 2.4% 2.7% 2.7% 2.6% 2.8% 2.7% 2.9% 2.9% 0.9% 1.1% 1.2% 1.4% 1.4% 1.2% 1.1% 1.4% 1.4% 1.4% Indonesia Vietnam Thailand Philippines 5.7% 5.8% 5.9% 6.0% 5.9% World Government health expenditure as % of GDP has stagnated over the years, suggesting an inability to spend more. Overall, governments are unlikely to have sufficient means to meet the increased demand for healthcare with equal increases of healthcare spending. Source: World Bank. Note: Unless otherwise stated, data pertains to the latest year available; in most cases this is 2017. 14

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