Southeast Asia has experienced stable economic growth over the past 30 years and its GDP is expected to outpace that of developed economies in the coming decade. This economic progress is reflected in the healthcare sector, which is evolving due to shifting demographics, increasing wealth and national strategies aimed at transforming healthcare. The proportion of people aged 60 or above in Southeast Asia is projected to rise from 11.2% in 2020 to 22.2% by 20501.
However, Southeast Asia faces significant deficits in medical infrastructure and healthcare professionals, with the number of hospital beds and qualified physicians per 1,000 population falling well below OECD benchmarks. This demographic shift, coupled with existing deficiencies, highlights the urgent need for substantial investments in healthcare infrastructure to address future challenges. Additionally, the growing elderly population will increase the demand for chronic disease management, long-term care, and specialised medical services.
Rising income levels and a growing affluent population are driving demand for higher quality healthcare. The middle-income class, which accounted for 30% of Southeast Asia’s population in 2020, is expected to reach 65% by 20303 due to urbanisation and rising consumption levels. This economic shift is driving the need for advanced healthcare services, better facilities and innovative medical technologies. As more people can afford higher-quality care, there will be a greater emphasis on private healthcare services, specialised treatments, and comprehensive health insurance coverage.
We have also observed government healthcare initiatives in Southeast Asia and they converge on three main themes: value-based care, digitalisation and precision medicine. By prioritising these areas, Southeast Asia countries are not only improving their healthcare systems but also setting a strong foundation for future growth.
Value-based care focuses on patient outcomes and cost-effectiveness, rewarding healthcare providers for the quality rather than the quantity of care. The digitalisation of healthcare infrastructure is a major trend, with opportunities in AI-enabled telemedicine platforms, electronic health record systems, and digital health start-ups.
Precision medicine, which tailors treatments to individual patients based on genetic, environmental and lifestyle factors, offers the potential for highly effective therapies with fewer side effects. Given this transformative landscape, we expect numerous investment opportunities poised to shape the future of healthcare in Southeast Asia.
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Opportunities in AI-enabled digital health technologies
Southeast Asia’s healthcare landscape is undergoing rapid transformation, driven by technological advancements that address longstanding challenges for patients, providers and payers. In Southeast Asia, we observe three key verticals in digital health, healthcare software as a service (SaaS), and digital diagnostics and therapeutics, which leverage artificial intelligence (AI) to streamline processes, improve outcomes, and reduce costs.
AI-powered telemedicine is transforming patient care by enabling virtual consultations, reducing waiting times and simplifying patient journeys. In Southeast Asia, where rural areas often face healthcare access challenges, AI-driven telemedicine ensures broader reach and efficient care delivery. It also balances healthcare labour supply and demand across diverse regions, while AI streamlines documentation and administrative tasks, cutting costs through remote monitoring and virtual visits.
Healthcare SaaS solutions using various AI models provide real-time access to electronic health records (EHRs) for providers, improving operational efficiency. In Southeast Asia, these solutions simplify the procurement of medical supplies across fragmented markets and optimise revenue cycle management.
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By automating insurance processes, AI reduces complexity for providers and payers, ensuring smoother operations and consistent premiums, which is crucial for the region’s varied healthcare systems.
Digital therapeutics leverage AI to enable earlier diagnoses and interventions, improving patient outcomes. In Southeast Asia, where healthcare infrastructure varies widely, AI-driven diagnostics detect anomalies and provide real-time findings, enhancing physicians’ decision-making. For payers, AI develops accurate risk models, leading to fairer insurance premiums based on comprehensive health data.
Another emerging area includes AI-enabled wearables, which are increasingly pivotal in both consumer and hospital-grade healthcare applications across Southeast Asia. Consumer-grade wearables, such as smartwatches and fitness trackers, allow individuals to monitor vital health metrics like heart rate, activity levels and sleep patterns, empowering users to take proactive steps toward maintaining their health.
On the other hand, hospital-grade wearables and patient monitoring systems are enhancing clinical care by providing real-time health data to physicians, enabling more accurate monitoring of patients’ conditions. These technologies help reduce nursing workloads by automating routine checks and providing continuous patient monitoring, which, in turn, reduces hospital stays and improves patient outcomes through timely interventions. The integration of AI into these devices further enhances their capabilities, making them essential tools for both personal and clinical healthcare management.
Integrating AI into three digital health verticals addresses pain points for patients, providers and payers in Southeast Asia, creating a more efficient, accessible and cost-effective healthcare system. These advancements promise a collaborative and patient-centred future while offering significant investment opportunities in the rapidly expanding digital health sector across the region.
Rise of precision medicine driven by genomics
In Southeast Asia, personalised medicine is rapidly emerging as a transformative force in healthcare. By tailoring treatments to individual genetic profiles, it potentially offers effective therapies with fewer side effects. The region’s genetic diversity fuels groundbreaking research, enhancing patient outcomes and creating lucrative investment opportunities in innovative medical technologies. This burgeoning field positions Southeast Asia at the forefront of personalised healthcare advancements.
We observe that precision medicine has been gaining traction, supported by government and private sector initiatives. Singapore is a leader in the region, leveraging next-generation sequencing (NGS) technology to accelerate initiatives such as the PRECISE-SG100K study, which aims to sequence up to 100,000 consented Singaporeans to identify the social, environmental, lifestyle and genetic factors associated with diseases prevalent in Singapore.
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Malaysia’s MyGenom is a large national genome project that aims to sequence 10,000 Malaysian genomes and generate a reference genome for the country for the identification of genes involved in both rare and common diseases.
In Thailand, the Genomic Thailand Initiative expects 50,000 human whole genome sequences to gain better preventive information and integrate genomic medicine into the health system.
Indonesia’s National Genome Project, another initiative that aims to gather genetic data from over 10,000 individuals, represents another significant step forward in building regional genomic databases in the region. These datasets are critical for understanding unique genetic traits and developing targeted treatments for diseases prevalent in Southeast Asia. While NGS enables comprehensive genetic analysis, experts highlight the need for robust follow-up frameworks to translate genomic data into actionable clinical outcomes. This gap presents an opportunity for further investment in infrastructure and expertise to integrate precision medicine into mainstream healthcare.
The rising incidence of cancer in Southeast Asia is driving the adoption of personalised medicine solutions, shifting the focus toward more patient-centred care. For example, a breast cancer patient in Southeast Asia can use genetic testing to assess the risk of recurrence, enabling the physician and patient to decide together on the most suitable course of action while considering potential side effects and the patient’s personal preferences. This patient-centred approach not only improves outcomes and reduces unnecessary hospitalisation but also gives patients the reassurance that their treatment is tailored to their unique genetic profile and health needs.
These advancements herald a new era of personalised and patient-centred care while presenting significant investment opportunities in the rapidly evolving precision medicine and genomics sectors across Southeast Asia.
Tying it all together
The convergence of shifting demographics, rising affluence, and targeted government initiatives is driving rapid growth in Southeast Asia’s healthcare sector. As the region moves toward more personalised and patient-centred care, innovations like AI-enhanced telemedicine, healthcare SaaS, digital diagnostics and therapeutics, wearables and genomics-based precision medicine are shaping the future of healthcare. These advancements promise to improve patient outcomes, reduce healthcare costs, and provide lucrative investment opportunities in the region’s growing healthcare sector.
Dr Basil Lui is a founding partner & CEO of August Global Partners
