Thailand’s healthtech gap could spark regional opportunity

Thailand has a strong healthcare sector, and its government has ambitious plans to expand its health economy to contribute 11% of GDP within the next three years. With robust infrastructure, an established medical tourism reputation, and a growing base of innovators, the foundation is there.

As traditional growth engines like tourism and manufacturing stall, health innovation can be Thailand’s next S-curve. This also gives the regional healthtech sector a huge opportunity to tap into.

Image credit: Arsal Ysfin

Thailand has some of the fastest-growing healthcare demand globally, but that’s bogged down by longstanding issues. Traditional healthcare systems have been unable to address gaps in infrastructure, shortages of healthcare workers, and a lack of inclusive access.

This has created an opportunity for tech-enabled solutions to transform the country’s healthcare sector, which can scale up to the rest of the region.

Innovation ingredients

Thailand’s population is aging rapidly, making the demand for healthtech solutions urgent. It also positions the country as a potential proving ground for healthtech innovations that could spread across Southeast Asia.

A World Bank analysis shows that the percentage of Thailand’s population aged 60 or older rose from 5% in 1995 to over 17% in 2017. That figure is projected to hit around 30% by 2035.

See also: Can one upcoming IPO transform Thailand’s tech ecosystem?

While the country’s Universal Coverage Scheme provides protection against acute health problems, it doesn’t cover long-term care, forcing many of the older population to pay out of pocket. As chronic illnesses increase, Thailand will face pressure on pension systems, a shortage of geriatric professionals, and a fragmented long-term care market.

But the country has the right ingredients to meet this challenge through innovation.

For one, it has a relatively high GDP per capita of more than US$7,000. It also has plenty of advanced hospitals – something few emerging economies have – alongside the regulatory ambition to make healthcare a growth driver.

The Bangkok skyline in the evening / Photo credit: doraemonz / Shutterstock

These factors form the building blocks for a health innovation hub, and there are early signs of progress from Thai startups.

Dose of reality