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Medical Equipment

Overview

Medical Equipment Market in Hong Kong Unit: USD thousands

 

2012

2013

2014

(estimated)

2015

(estimated)

Total Market Size

191,000

231,000

243,000

260,000

Total Local Production

250,000

260,000

270,000

280,000

Total Exports

1,812,000

1,699,000

1,780,000

1,820,000

Total Imports

1,753,000

1,670,000

1,753,000

1,800,000

Imports from the U.S.

418,000

335,000

350,000

360,000

Exchange Rate: 1 USD

7.8

7.8

7.8

7.8

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Hong Kong Census & Statistics Department & Industry Sources
Total Exports: Hong Kong Census & Statistics Department & Industry Sources
Total Imports: Hong Kong Census & Statistics Department & Industry Sources
Imports from U.S.: Hong Kong Census & Statistics Department & Industry Sources

Hong Kong relies heavily on imports to satisfy its medical equipment needs since the city’s medical equipment production is low. Total medical equipment imports in 2013 amounted to US$1.67 billion, representing a decrease of five percent over 2012. The United States was the market leader in the high-end market segment, capturing about 20 percent of the total import market in 2013, a decrease of four percent of total market share from 2012.

Hong Kong is also a sourcing point for medical products for mainland China. In 2013, transshipment of medical equipment to China through Hong Kong amounted to US$800 million; accounting for approximately 47 percent of Hong Kong’s medical equipment re-exports to all destinations.

Hong Kong’s population of 7 million enjoys a comprehensive range of medical and health services delivered by the public and private sectors. On the public side, the Hospital Authority (HA) manages 42 public hospitals and institutions, 48 specialist out-patient clinics, and 73 general out-patient clinics. The rest of the medical service needs are met by Hong Kong’s 11 private hospitals and hundreds of private out-patient clinics. The HA is the largest end-user of goods and services in Hong Kong’s healthcare sector.

In terms of public healthcare, the Hong Kong Government has increased funding over the last five years by 50 percent, raising its annual recurrent expenditure to US$6 billion in 2014-15. In late 2013, the HA received a grant of US$1.7 billion to improve and upgrade facilities, including the renovation of over 500 wards in 34 hospitals and the addition of 800 beds over the next 10 years. Other projects to be developed under the grant include the expansion of operating theatres, emergency departments, out-patient clinics, endoscopy centers as well as comprehensive upgrades to electrical and mechanical engineering installations in hospitals. The HA has recently started construction on two new hospitals (Tin Shui Wai Hospital and Hong Kong Children’s Hospital) as well as the expansion and redevelopment of several hospitals and relating facilities (United Christian Hospital, Kwong Wah Hospital, Queen Mary Hospital and Hong Kong Red Cross Blood Transfusion Service Headquarters). The HA is also conducting strategic studies on the construction of an acute general hospital in the Kai Tak Development Area. Looking further ahead, the HA also plans to redevelop two major hospitals (Queen Elizabeth Hospital and Prince of Wales Hospital). In the next five years, the Hong Kong Government will allocate funding of approximately US$50 million for the study and implementation of a pilot program to subsidize colorectal cancer screening. To strengthen care and support for mental patients, government has earmarked additional resources to provide new drugs for patients suffering from severe mental illness.

The Hong Kong Government is disposing more land for private hospital development. In 2013, a U.S. architecture firm teamed up with an Asian partner and successfully won a private hospital design contract in Hong Kong worth over US$6 million.

The Hong Kong Government is also interested in implementing the Health Protection Scheme (HPS) – a voluntary and government regulated health insurance program. Currently, a study is underway to analyze the provision of financial incentives and subsidies necessary to encourage people to purchase health insurance, thereby have access to private healthcare services. The Hong Kong Government will also consider providing tax incentives for subscribers of health insurance products.

The healthcare system of the Macau Special Administrative Region includes specialized and primary healthcare provided by two public hospitals: Hospital Conde de S. Januário and Macau University of Science and Technology Hospital (also known as MUST Hospital), and one private, non-profit hospital, Kiang Wu. Every Macau resident enjoys free primary healthcare services. Specialist treatment is also free of charge for 80 percent of public hospital patients. 13 non-profit medical service organizations are subsidized by the Government serving 500,000 patients per year. One of the best ways for American SME suppliers to sell medical products in the Macau market is through Hong Kong-based agents or distributors, given the relatively smaller size of Macau and the proximity of the two markets. Many of Hong Kong’s medical agents/distributors have established networks and excellent relationships with the medical industry in Macau.

Sub-Sector Best Prospects

Blood Analysis Devices
Blood Pressure Equipment
Cardiology Equipment
Dental Instruments
Imaging Products
Joint Replacement Products
Laser Surgery Equipment
Physiotherapy Equipment

Opportunities

Hong Kong’s public and private healthcare development projects represent outstanding business opportunities for U.S. suppliers of hospital systems, medical devices, laboratory equipment, instruments and hospital supplies.

A working group and a consultative group have been set up to make specific recommendations on the implementation of the Health Protection Scheme (HPS). If HPS moves forward, more people will be encouraged to make use of private medical facilities. Interested hospital developers, designers and equipment suppliers should start to make contacts with the authorities and industry players soon.

In neighboring Macau, The Macau Government’s total expenditure on medical and health services in 2012 was about US$500 million (the latest available figure), an increase of six percent over the 2011. Between 2014 and 2020, the Macau Government plans to inject US$1.2 billion to improve its healthcare system.

Hong Kong’s population aged 65 or above is expected to surge from the current 980,000 to 2.6 million by 2041. Macau has a population of 614,500, of which 8 percent (roughly 49,000) are 65 and above. The rapidly aging population from both cities will need elder care facilities, such as nursing homes and rehabilitation centers, as well as products for the elderly.

The people of Hong Kong and Macau are becoming more health conscious and focused on preventive care, which increasingly includes routine vaccinations, screening for various cancer, high cholesterol, high blood pressure and diabetes, prenatal care and regular wellness visits.

Owing to various government campaigns, the Hong Kong public is becoming more aware of oral health. Cosmetic dentistry has also become very popular in the last several years.

Web Resources

Trade Shows:

China International Medical Equipment Fair
Date: October 23-26, 2014
Description: The Fair is held twice a year, spring and autumn, in two different cities in China. The exhibition covers a wide array of products, including, medical imaging, diagnosis instruments, electronic devices, medical information technology, first aid and rehabilitation equipment and supplies.
Website: http://en.cmef.com.cn/

Hong Kong International Medical Devices and Supplies Fair
Date: May 18-20, 2015
Description: The Fair is organized by the Hong Kong Trade Development Council & co-organized by the Hong Kong Medical and Healthcare Device Industries Association (HKMHDIA). The fair showcases a wide variety of medical devices, supplies and concepts.
Website: http://www.hktdc.com/fair/hkmedicalfair-en/HKTDC-Hong-Kong-International-Medical-Devices-and-Supplies-Fair.html

Associations:

Hong Kong Doctors Union
Website: http://www.hkdu.org/
Description: Hong Kong Doctors Union is the only trade union for all doctors in Hong Kong. Its primary objective is to safeguard the welfare and rights of doctors.

Hospital Authority
Website: http://www.ha.org.hk
Description: Established in December 1991, the Hospital Authority is a Hong Kong Government body responsible for managing Hong Kong's public hospitals and clinics.

The Hong Kong Medical Association
Website: http://www.hkma.org/eindex.htm
Description: The Hong Kong Medical Association represents the interests of medical practitioners in Hong Kong. With a membership of approximately 8,500, which comprises the majority of registered medical practitioners in Hong Kong, the Association nominates members to serve various medical and related statutory and non-statutory institutions.

The Private Hospitals Association
Website: http://www.privatehospitals.org.hk
Description: The Hong Kong Private Hospitals Association represents the interests of the 13 private hospitals in Hong Kong.

Macau Health Bureau
Website: http://www.ssm.gov.mo
Description: The Macau Health Bureau is a public institution established to coordinate the activities between public and private health care organizations and is responsible for specialized and primary health care services, as well as disease prevention and health promotion.

U.S. Commercial Service Hong Kong

For more information, contact our colleague who covers this industry sector:

Contact: Ms. Olevia Yim, Sr. Commercial Specialist
U.S. Commercial Service Hong Kong
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: olevia.yim@trade.gov
Website: http://export.gov/hongkong