This is a best prospect industry sector for this country. Includes a market overview and trade data URL:Austria-electric-power-equipment
Last Published: 2/12/2018

Overview
Medical equipment is a best prospect industry sector for the Philippines as development in the market continues to present opportunities for U.S. manufacturers and distributors of high-value, low-volume products of the latest technology and highest quality (such as electro-medical devices, imaging equipment, radiation equipment, dialysis devices, and linear accelerators).

 

2015

2016

2017

2018

Total Market Size

196,180

205,989

216,288

227,103

Total Local Production

-

-

-

-

Total Exports

202,585

212,714

223,350

234,517

Total Imports

398,765

418,703

439,638

461,620

Imports from the U.S.

96,422

101,243

106,305

111,621

Exchange Rate: 1 US$*

45.5028

47.4925

49.932**

-

 

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: No available data
Total Exports: Unofficial estimates; Total Imports: Unofficial estimates
Imports from the U.S.:  Unofficial estimates
* Listed exchange rates are not used in the above calculations. Exchange rate shows average value of Philippine Peso to U.S. Dollar. (Source: Central Bank of the Philippines)
**Exchange rate in 2017 shows average value of Philippine Peso to U.S. Dollar from May 1 to 12, 2017.  (Source: Central Bank of the Philippines)
 
The Philippine medical equipment market remains a lucrative one for American suppliers.  Highly dependent on imports, the market continues to expand at a steady pace. Medical equipment is almost 100% imported, as are approximately 50% of medical disposables.  Local production is limited to prototype units, spare parts (including improvised parts), and disposables such as surgical gloves, syringes, and needles.
Major factors impacting demand are population growth, steady economic growth (6.8% in 2016), and hospital expansion and upgrading. 
The current administration is keen on pushing for the deployment of more doctors in the Philippine countryside and on providing better pay for doctors and health workers to ensure better health for the majority of Filipinos. The increasing demand for health services is not being met by the current number of health facilities and medical workers.  The administration plans to build more health centers and hire medical practitioners.
In the private sector, two leading hospital developers, namely Metro Pacific Investments Corporation (MPIC) and QualiMed Health Network, continue to expand either through acquisitions of existing facilities or construction and development of new hospital projects.  Like MPIC, a third hospital investor, Mt. Grace Hospitals, is acquiring hospitals and infusing much-needed capital to upgrade and modernize them, including equipping them with state of the art medical equipment.
 
Official Department of Health statistics indicate that there are more than 1,800 licensed hospitals in the country, of which more than 60% are privately owned. Total bed capacity is more than 100,000.  Hospitals base buying decisions on quality and on price.
 
Buyer preference for U.S.‑ manufactured equipment is justified by product technology and quality, access to warranty parts and service, and available training for equipment handling.
American brands, however, face increasing third-country competition from China, Germany, Singapore, and South Korea. 
 
The market is price-sensitive, which explains the growing presence of inexpensive equipment from China or South Korea.  Hospitals with limited budget source medical equipment from these countries.
 
U.S. suppliers interested in selling in the Philippines should appoint a local distributor.  The import duty on medical equipment is 3 percent, plus a 12% value-added tax (VAT).
 
An ASEAN Medical Device Regulatory Harmonization Workshop which the Philippines hosted in 2015 is a continuing exercise in improving and standardizing the medical device regulatory process in the region.  Its ultimate objective is to facilitate the regulatory process for medical device registration in ASEAN member countries. 

Leading Sub-Sectors
Products with high sales potential for U.S. suppliers are high‑value, low‑volume, and high‑tech products like linear accelerators, electro-cardiographs, ultrasonic scanning machines (ultrasound), magnetic resonance imaging (MRI) equipment, dialysis devices, x-ray and radiation equipment, breathing appliances, and computed tomography apparatus (CT scan).  Demand also exists for clinical laboratory devices, supplies, and biological rapid test kits.

Opportunities
Requirements for efficient healthcare services, new technologies, and equipment replacement drive market growth. All hospitals must continue upgrading facilities to remain competitive.
Public hospitals tend to place a greater emphasis on preventive healthcare, while private hospitals concentrate on curative services. Private hospitals have traditionally been equipped with more sophisticated medical equipment due to their larger budgets.
Incidence rates for hypertension and heart diseases, lung and kidney diseases, and other respiratory diseases have remained high. Most hospital improvements concentrate on specialized services for radiology, cardiac, lung and kidney examinations, and pathology to address the problem.  We expect demand for ECGs, CT Scans, X-ray and Dialysis machines, and other laboratory instruments to continue to grow.
Current demand reflects healthcare requirements for growing incidences of hypertension, diabetes, respiratory ailments, and cancer.  Products with high sales potential include electro-cardiographs, ultrasonic scanning machines (ultrasound), magnetic resonance imaging (MRI) equipment, x-ray and radiation equipment, breathing appliances, computed tomography apparatus (CT scan), and linear accelerators.  Demand also exists for laboratory products, supplies, and biological rapid test kits.
Requirements for efficient healthcare services, new technology, and equipment replacement drive market growth.  All hospitals must continue upgrading facilities to remain competitive.
 
Medical device distributors expect 5-10% growth through 2018.
 
Web Resources
 
Department of Health
Central Bank of the Philippines
Philippine Health Insurance Corp
Philippine Statistics Authority
Metro Pacific Investments Corp
QualiMed Health Network
Mt. Grace Hospitals

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Philippines Medical Devices Trade Development and Promotion