Medical Equipment
Philippines
Overview
(In $ Millions)
2004 2005 2006
Total Market Size 69 84 88
Total Local Production - - -
Total Exports 21 35 37
Total Imports 90 119 125
Imports from the U.S. 24 40 42
Trade statistics for 2004 and 2005 are official figures. Statistics for 2006 are unofficial estimates. Local production is negligible in this sector.
The medical equipment sector presents good opportunities for U.S. firms. Total imports increased by 32% from US$90 million in 2004 to US$119 million in 2005. The medical industry in the Philippines is almost totally dependent on imports. While demand decreased 7% in 2004 due to a depreciated peso, the market rebounded in 2005 with a 32% growth. Additional requirements for medical services, new technology, and equipment replacement spurred market growth.
The growth of medical tourism in the Philippines offers many good opportunities for U.S. sellers of medical equipment and instruments. Medical tourism is a fast growing industry in the region, and many countries, including the Philippines, are actively promoting it.
In 2005, the Philippines’ total imports of medical equipment was $119 million. The U.S. had a commanding 34% market share, followed by Singapore with 12%. Industry sources reveal that a substantial volume of Singaporean exports actually originate in the U.S., a fact which is not reflected in the official data.
The Philippines has 1,723 hospitals with more than 85,000 bed capacity. The Philippine Department of Health administers 72 hospitals all over the country. The Armed Forces of the Philippines administers 31infirmaries, while the other 559 government hospitals are managed and supervised by the Red Cross and its Chapters and the provincial, municipal, or city governments under the Department of the Interior and Local Governments (DILG).
The Philippine medical market is partial to American products. U.S.-trained Filipino doctors prefer the high-technology of American medical equipment and instruments, which justify their higher costs. American brands face Singaporean, German and Japanese competition.
Best Prospects/Services
The most promising subsectors are electro-medical equipment, ultrasonic scanning machines, X-ray and radiation equipment, dialysis instruments and apparatus, and medical and surgical instruments.
Opportunities
Several hospitals within and outside Metro Manila are improving facilities and adapting new technologies to address demand from foreigners and returning residents who avail themselves of healthcare services in the Philippines. The government’s Medical Tourism Program does not offer assistance in terms of technology; however, it helps promote the services to prospective clients outside the Philippines.
Industry sources expect a modest growth of 5% in imports and exports of Medical Equipment in the next three years, as many hospitals have only recently acquired equipment to upgrade their facilities.
Resources
Department of Health: http://www.doh.gov.ph
National Statistics Office: http://www.census.gov.ph
Philippine Medical Tourism Program: http://www.philippinemedicaltourism.info
Dey Robles, Commercial Specialist
U.S. Commercial Service Manila
Email: Dey.Robles@mail.doc.gov , Manila.Office.Box@mail.doc.gov