Medical Equipment

Overview

Medical Equipment Market in Hong Kong

	2010	2011	2012 (estimated)	2013 (estimated)
Total Market Size	271,000	233,000	245,000	270,000
Total Local Production	210,000	230,000	250,000	280,000
Total Exports	1,606,000	1,787,000	1,965,000	2,160,000
Total Imports	1,667,000	1,790,000	1,960,000	2,150,000
Imports from the U.S.	477,000	494,000	540,000	600,000
Exchange Rate: 1 USD	7.8	7.8	7.8	7.8

Notes:

1. Unit: USD thousands.
2. Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
3. Data Sources:

Medical equipment for the purposes of this profile refers to the instruments and apparatus found under HS code 9018, 9019, 9021; breathing appliances under HS code 9020; radiotherapy apparatus under HS code 9022; thermometers under HS code 9025; furniture under HS code 9402; all with applications in medical or dental field.

Hong Kong relies heavily on imports to satisfy its medical equipment needs since the city’s medical equipment production is insignificant. Total medical equipment imports in 2011 amounted to US$1.79 billion, representing an increase of seven percent over 2010. The United States was the market leader in the high-end market segment, capturing about 28 percent of the total import market in 2011, an increase of four percent of total market share from 2010.

Hong Kong is also a sourcing point for medical products for mainland China. In 2011, transshipment of medical equipment to China through Hong Kong amounted to US$1.08 billion; accounting for approximately 61 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 41 public hospitals and institutions, 49 specialist out-patient clinics, and 74 general out-patient clinics. The rest of the medical service needs are met by Hong Kong’s 13 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 will increase its recurrent expenditure by eight percent from last fiscal year to US$5.8 billion in 2012-13. Capital investments in the sector by the Hong Kong Government will include US$64 million to upgrade medical equipment for public hospitals. The Centre of Excellence in Pediatrics at Kai Tak with more than 400 beds will come online in 2016. The construction of a new public hospital in Northwestern New Territories (Tin Shui Wai) is underway. The Government will soon embark on the United Christian Hospital expansion project, first announced in late 2011. In addition, the Government plans to allocate US$1.3 billion to redevelop Queen Mary Hospital (one of Hong Kong’s two teaching hospitals) and Kwong Wah Hospital. The redeveloped Queen Mary Hospital will provide upgraded cardiology, intensive care, accident and emergency services.

As to private hospital development, the Hong Kong Government has set aside four possible sites and in 2010 invited expressions of interest from local and overseas parties to develop these sites into private hospitals. Currently, the Government is formulating detailed development plans for these sites and aiming to tender out the first two sites in the first quarter of 2012.

Currently, only about 35 percent of Hong Kong’s population is covered by private health insurance. The Government has earmarked US$6.5 billion for healthcare reform, which encourages the public to purchase private medical insurance, and utilize private healthcare services, thus relieving the pressure on Hong Kong’s overburdened public healthcare system. Details on this Health Protection Scheme will be announced in 2013.

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. 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

Apnea Monitors
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.

As noted above, the Hong Kong Government will increase its recurrent healthcare spending to US$5.8 billion in the fiscal year 2012-13 with an aim to increase in-patient service capacity, strengthen its neonatal intensive care, end-stage renal care, diabetic and hypertensive service. Another key medical improvement program that Hong Kong will undertake is the enhancement of magnetic resonance imaging and computerized tomography scanning services for the diagnosis of critical illnesses.

The Hong Kong Government is working with the public and private healthcare sectors and IT service providers to develop a territory-wide electronic health record (eHR) sharing system.

In neighboring Macau, a total budget of US$500 million has been allocated to the Health Bureau in 2012, with particular emphasis on implementing its “Perfecting the Medical and Healthcare System” plan; strengthening training for doctors and nurses, and reduction of specialist out-patient services waiting time.

Hong Kong’s population aged 65 or above is expected to surge from the current 900,000 to 2.1 million by 2030. Macau has a population of 552,300, of which 8 percent (or 44,200) is 65 and above. The rapidly aging population from both cities will need elderly 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
Website: en.cmef.com.cn/
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.

Hong Kong International Medical Devices and Supplies Fair
Website: www.hktdc.com/fair/hkmedicalfair-en/HKTDC-Hong-Kong-International-Medical-Devices-and-Supplies-Fair.html
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.

Associations:

Hong Kong Doctors Union
Website: 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: 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: 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: 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: 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
Contact: Ms. Olevia Yim, Senior Commercial Specialist
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: olevia.yim@trade.gov