Healthcare

Healthcare: Goldman updates that 3Q volume growth in Singapore healthcare market did not recover from 2Q’s weakness. International patients, particularly from Indonesia, have stayed slow in 3Q-to-date given weak IDR. Furthermore, cost inflation could pinch margins. Specifically, MOH had announced in August that eligible nurses in public healthcare facilities will get 0.5 months special bonus and 10% pay increases in addition to their normal yearly increment. The effect may spill over to private healthcare facilities in order to stay competitive to employees. With an almost saturated market, expansion into overseas is crucial. IHH and Raffles are expected to take the initiative to enter China market after the government opened doors to wholly-foreign owed private hospitals in Beijing, Tianjin, Shanghai, Jiangsu, Fujian, Guangdong and Hainan. IHH and Raffles Medical are the two stocks being watched. While IHH had gained some 15.9% in the last three months, Raffles Medical is almost flat at +0.8% during the same period. IHH has 6 Buys 7 Holds 9 Sells; Raffles Medical has has 5 Buys, 4 Holds, 2 Sells.