Country Focus: Thailand’s prescription for medical innovation and recycling

As Thailand stands at the crossroads of economic advancement with promising opportunities, its medical devices and recycling sectors are expected to take it to the lead in Asia, according to Angelica Buan in this report.

Asia’s medical hub

Thailand has emerged as a prominent medical hub in Asia due to its robust healthcare infrastructure and a global reputation for highly skilled medical professionals. The country boasts over 1,000 public and 300 private hospitals and has successfully implemented a universal healthcare system since 2002. This policy's success is evident as over 99% of the Thai population now enjoys coverage under public healthcare, as reported by the Board of Industries (BOI).

The medical industry's growth in Thailand is driven by its rapidly ageing population, which is projected to surpass that of Europe and the US by 2045, and the widespread availability of healthcare services.

Thailand's medical facilities and a sufficient number of skilled healthcare specialists have fuelled medical tourism. This trend is anticipated to bring a revenue of approximately 150 billion Baht to the country by 2037, a significant increase from the 23.5 billion Baht generated in 2019, according to a report by Kasikorn Bank.

The influx of international patients seeking medical treatment has not only prompted technological advancements but has also led to an increase in clinical research studies, as noted by the BOI. This growing demand also opens doors for new companies interested in entering the Thai medical market.

The thriving medical industry in Thailand also supports a sizable market for medical devices. The country's medical devices sector ranks as the 8th largest in the Asia-Pacific region.

With over 500 local medical device manufacturers, there is ample potential for investment in this sector. While many devices are produced locally, there is still a need for imports, providing opportunities for both local and foreign investors. The pharmaceutical sector is another area experiencing growth in healthcare expenditures, positioning Thailand's pharmaceutical market as one of the strongest in the Asia-Pacific region.

Medical devices, a lucrative market for plastics

Kungsri, Thailand’s fifth largest bank, forecast in its plastics industry outlook for 2021-2023, a 2-3% yearly increase in both domestic sales and export volume of plastic products. Key downstream sectors like medical devices, packaging, electronics, construction, and auto parts are set to support this growth, constituting about 80% of domestic plastic consumption. The local market, according to Kungsri, consumes 80% of Thailand's plastics converters' output. This serves end-consumers directly through products like kitchenware, bags, and straws, as well as supplies to major sectors like medical devices and others.

Medical devices, a lucrative market for plastics

Kungsri, Thailand’s fifth largest bank, forecast in its plastics industry outlook for 2021-2023, a 2-3% yearly increase in both domestic sales and export volume of plastic products. Key downstream sectors like medical devices, packaging, electronics, construction, and auto parts are set to support this growth, constituting about 80% of domestic plastic consumption. The local market, according to Kungsri, consumes 80% of Thailand's plastics converters' output. This serves end-consumers directly through products like kitchenware, bags, and straws, as well as supplies to major sectors like medical devices and others.

The BOI highlights Thailand's flourishing medical devices sector, with a nearly US$20 billion trade value, among the strongest in ASEAN countries. Abundant raw materials, especially rubber and plastic for singleuse items, a skilled labour pool for semi-tech and hightech device production, and government support are driving this sector's growth, projected at 6.5% annually in 2022-2023.

Smart remedy for healthcare challenges

Hong Kong-headquartered consultancy YCP Solidance's April 2021 white paper titled The Future of Smart Hospitals in Thailand highlights how technology adoption and the development of smart hospitals with digitalised systems can effectively address challenges stemming from an ageing society, rising healthcare costs, and evolving medical needs in Thailand.

Smart hospitals in Thailand serve critical medical objectives: enhancing operational efficiency, improving patient outcomes, reducing patient volume, enhancing diagnostic accuracy, boosting revenues, and more. Both public and private hospitals are striving to enhance efficiency and cost management while maintaining high standards of care. As a result, ongoing digital initiatives are being pursued across the country's healthcare institutions.

The Ministry of Public Health initiated the eHealth strategy from 2017-2026, leveraging information and communications technology (ICT) to enhance health services, management, and communication.

Digitalising hospitals holds immense potential. For instance, these systems can optimize the healthcare professional-to-patient ratio to ensure adequate care. With only 0.5 physicians per 1,000 people and Thailand transitioning to an ageing society with a rise in non-communicable diseases (NCDs), patient volume is increasing. Smart systems can not only manage operational costs but also expand services to underserved areas. Smart hospitals focus on objectives like seamless patient flow, clinical excellence, mobile asset management, patient experience, remote monitoring, and data management.

Various platforms are already deployed in public hospitals, including smart queue kiosks, mobile apps, assistive robots, self-payment kiosks, chatbots, remote care systems, telemedicine, blockchain data management, and more. While Thailand is on track for full implementation of smart systems in healthcare facilities, the pace of adoption varies between public and private hospitals, necessitating diverse approaches for technology vendors to cater to different care providers' needs, YCP stated.

Going circular with recycling

Plastics hold an indispensable role that extends beyond Thailand's medical devices sector. The country boasts the largest petrochemical sector in Southeast Asia and the 16th largest globally.

In 2018, this sector, including plastic resins, generated 11.8 million tonnes of products. The plastics industry's significance is reflected in its contribution of nearly US$37 billion to Thailand's economy in the same year, constituting 6.71% of the country's GDP, according to a World Bank study.

However, the widespread production of plastics, both in Thailand and globally, has led to a growing issue of mismanaged waste, resulting in detrimental economic and environmental consequences.

A 2021 study by Lourens J. J. Meijer et al reveals that Asia, particularly, contributes to over 80% of plastic leakage into marine environments, with Thailand ranking sixth among the top ten contributing countries from the region.

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(PRA)

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