Medical device market in the Philippines according to Market Research Reports, the global medical devices market is expected to reach almost $300 billion in international trade value by 2020. Advances in technology, rising healthcare expenditure, and an aging population are cited as the driving factors for the market’s steady growth over the coming years.
As for emerging markets, the Philippines is considered as a lucrative market for US suppliers when it comes to medical equipment. With local production limited to disposables, spare parts, and prototype units, medical devices in the country are almost 100 percent imported. The Philippines medical device market is also expected to grow at a steady pace, consistent with the aforementioned global trend.
If you are currently considering importation prospects or markets to access for international expansion, read on for the 3 things to know about the Philippines’ medical equipment sector.
1.Best Sales Prospects
According to investphilippines.org Philippines medical device market scale in 2011 was approx. US$400 Million. In 2011, Diagnostic imaging product is the main item, with 35.8% market share. Followed by medical devices with 21.9%, other medical devices 21.5%, auxiliary devices, dental products, and orthopedic implants accounted for 9.1%, 8.6%, and 3.2% respectively.
Ultrasound or ultrasonic scanning machines, magnetic resonance imaging (MRI) equipment, linear accelerators, and other high-tech products offer the best sales potential for suppliers. In order for Philippine hospitals (government and private) to deliver efficient healthcare services, they must keep up with new technologies and replace old equipment. High-value, low-volume products are at the top of the list of supplies that need to be upgraded for facilities to remain competitive.
This increased demand for high-tech products also ties in with the plans of the Philippines’ Department of Health (DOH) for building cancer centers nationwide. A total of around P9.18 billion has been allocated by the Department of Budget and Management (DBM) for upgrading equipment for cancer diagnosis and treatment in DOH hospitals and cancer centers across the country.
2.Market Leaders
USA, Germany, Japan, China, and Singapore are the top countries exporting medical devices to the Philippines. The medical device market in the Philippines is dominated by the US in particular, mostly due to buyer preference (i.e. US-trained Filipino doctors). Prominent brands include GE Medical, Medtronic, Terumo, BD Medical, 3M, Fresenius Kabi to mention a few.
Germany and Japan both enjoy 13 percent of the market, while Singapore has an 11 percent market share. Aside from offering high-quality products, suppliers are advised to offer good after-sales, flexible payment terms, and warranty services. Suppliers should also keep in mind that they need to appoint a market authorization holder if they want to sell medical devices in the Philippines.
3.Market Access
The Philippines imposes tariff duty (approx. 1-3 percent) and value added tax (12 percent) on imported medical devices. Sellers can opt to pass on VAT to supply chain to recoup some of the costs.
According to the FDA, only two documents are required from a company who wishes to import medical devices to the country. The first is an LTO or license to operate, and the second is the CPR or certificate of product registration.
Again, foreign suppliers need to appoint a market authorization holder to enter the medical device market in the Philippines. Market authorization holder will represent their interests in the country and usually handle all aspects of importation, as well as license approval.
The best supply chain for your medical devices, medical consumables, equipment and in-vitro diagnostics are private & government owned hospitals, outpatient clinics and diagnostic centers. As of 2016 there are 790 DOH licensed hospitals in the Philippines, major hospitals include St. Lukes Medical Center, The Medical City, Asian Hospital and Makati Medical Center. Chain outpatient clinics is also a good option to place your medical device innovation. Major players include The Medical City Satellite clinics, Healthway Medical Clinic, Family Doc, My Health Clinic, AC Health and Delos Santos Mega Clinic.
In-vitro diagnostics such as rapid test kit has a great opportunity in diagnostic centers. As of 2016 there are 620 DOH registered diagnostic clinics in the Philippines.
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