Healthcare poses a problem – and a promise

A new book, “Economic Transformation and Business Opportunities in Asia”, published by Palgrave Macmillan, may shed light on the future of Asian economies, including that of Thailand, amid rapid digitisation and other major trends. The book by Dr Pongsak Hoontrakul, a retired academic, attempts to link economic-development theories with investment and business strategies and offers practical case studies.
The author argues that the different paces of economic transformation in Asia result in different levels of prosperity and different levels of progress among their emerging middle classes. In addition, demographic trends, digitisation rates, consumer preferences and levels of sophistication differ greatly among Asian nations, so policymakers in each country face diverse challenges in formulating national strategies.
Different stages of economic development also create different business opportunities. Vanity capital, longevity and leisure economies have emerged as new niches to be pursued. In Thailand’s case, longevity and leisure economies present potential new paths to 
economic transformation.
Beyond the subject matter of this book, it could be argued that Thailand has the potential to tap into new opportunities in healthcare and its related service sectors. Given an unstoppable growth of the budget burden resulting from the existing universal-healthcare programme, there is an opportunity to kill two birds with one stone.
As the country edges closer to a full-blown ageing society, shouldering the fiscal burden from the fast-growing public-healthcare bill will become a daunting task. But Thailand is blessed with 
relative strength in the medical-healthcare sector, as evidenced by steady growth in medical tourism over the past decade. Several million foreigners 
annually come to Thailand for treatment while on holiday.
The country’s top hospitals-cum-medical schools, Siriraj, Mahidol, Chulalongkorn and Rama, are among the best in the region, and so are many Thai doctors and nurses. In fact, the country is just at the beginning of a long value chain that can be further expanded and boasts a high degree of international competitiveness.
Dr Pongsak argues that Asia’s so-called longevity dividend, massive wealth accumulation from the boom years and capital markets affected by quantitative-easing policies are fuelling the region’s “envy market”. The term denotes the non-luxury and mid-market segments with high growth potential that cater to people seeking fresh lifestyles and better quality of life. As Thais and other nationalities live longer, they seek new and innovative lifestyles and a higher quality of life, and these will in the near future be enabled by large numbers of in-person service providers, not to mention robotic assistants.
In other words, new healthcare and service-driven economic development and its accompanying business strategies can serve as a blueprint for Thailand and other nations seeking ways to remain relevant in the fast-changing world of digitisation and other leading trends.
While the “Thailand 4.0” initiative is timely in its promise to ensure the country stays competitive, policymakers must also take into account negative consequences. The increased use of sophisticated technologies, especially automation and robotics, for manufacturing, service industries and other purposes, will lead to fewer jobs for people, shrinking the labour market and hampering economic growth. 
However, a blueprint with a focus on healthcare and related service sectors will bring positive results. New jobs can be created through practical training and other adjustments. In short, the country’s future prosperity might lie somewhere between Thailand 4.0 and this potential new source of wealth.