Burma - HealthcareBurma - Healthcare
Overview
Myanmar's healthcare sector is one of the most promising areas for U.S. exporters to consider. The National League for Democracy (NLD)-led government has made healthcare a top priority with increased budget allocations, healthcare related investments promotion, and planning and implementation of the National Healthcare Plan (2017-2021). Aware of the current challenges and needs in the sector, the Ministry of Health and Sports (MOHS) still set an ambitious target of achieving universal health coverage by 2030 by focusing on three main elements: population coverage; service delivery; and financial protection.
To achieve the target, MOHS formed the National Health Network with the goal of providing access to better services and reducing out-of-pocket spending by Myanmar citizens. The Government of Myanmar also increased its budgets for healthcare sector development from Myanmar kyats (MMK) 881 billion ($672.9 million) in Fiscal Year (FY) 2016-2017 to MMK 1.076 trillion ($840.2 million) in FY 2017-2018, approximately 5.2 percent of total government spending. The plan is to continue increasing the budget up to MMK 1.131 trillion in FY 2018-2019.
The country’s public health sector accounts for 86 percent of total healthcare services with 1,120 public hospitals accommodating 56,700 beds. Recently, a five year strategic plan (2019-2023) was launched by the Myanmar Health Assistants Association to improve the public health sector in Myanmar by aiming to implement 12 public projects in 76 townships across the states and regions in the country, including disease control, reproductive health, maternal/child/newborn and adolescent health and nutrition campaigns.
There are now more than 249 private hospitals across the country and the number is steadily growing. In addition, there are approximately 200 private specialist clinics, more than 5,000 private general clinics, and 800 private dental clinics, according to a report by the Department of Medical Services. Private healthcare sector expenditures are gradually increasing due to the rising awareness for healthcare by the growing middle class. In 2014, the Government of Myanmar passed legislation allowing foreign investors to invest in private hospitals, clinics, diagnostic centers, medical devices, and health-related education facilities.
To enforce national health coverage, a new health insurance policy was launched in 2015 and to speed up engagement and a new scheme was introduced in 2016 with more expansive coverage and higher benefits. There are 11 private insurance companies deliver the health insurance with competitive attractive packages. Despite improvements, higher income consumers still tend to travel abroad for medical treatment. For low and middle income consumers, medical treatment abroad remains out of reach.
Leading Sub-Sectors
Medical Services: The Myanmar healthcare industry is facing a significant shortage of facilities, technology, and qualified nurses and healthcare professionals. People who can afford high quality medical services travel to neighboring countries such as Singapore, Thailand or India for medical check-ups and treatment, and spend approximately $600 million per year. This points to a massive need for reliable and high quality medical services in the country. To that end, the Government of Myanmar permits foreign medical professionals to work in Myanmar through joint venture businesses. In addition, U.S. health education providers can find business opportunities in Myanmar since training and capacity building services for medical staff is in high demand.
Medicines: Myanmar has a very competitive pharmaceutical market compared to other ASEAN countries and the market is attracting a growing number of foreign pharmaceutical companies as it is dominated by imports. According to a local market research agency, Myanmar's total pharmaceuticals spending has been increasing at 11 percent every year and it is expected that the pharmaceutical market’s value can reach $1.1 billion by 2023.
Myanmar imports about 80 percent of pharmaceutical products from other countries; locally produced supplies account for the other 20 percent of the demand. Local supplies are mainly produced by the state-owned Myanmar Pharmaceutical Factory. The market itself is very price sensitive and Intellectual Property Rights (IPR) remains a concern.
There are more than 100 pharmaceutical distributors currently operating in Myanmar. Switzerland’s DiethelmKellerSiberHegner (DKSH) and Thailand’s Maxxcare are leading the distribution channels. Other drug distribution companies such as Zuellig, Sanofi, Pfizer, MSD, GSK, Novartis, Roche, Bayer, Servier, and Mundipharma also play key roles in Myanmar’s drug market. In addition, there are many generic brands from India, China, Thailand, and Vietnam, which possess a substantial portion of the market share.
Pharmaceutical sales grew from $440 million in 2016 to $487 million in 2017, an increase in +10.7 percent.
F = BMI forecast. Source: WHO, BMI
Medical Devices: The country presents tremendous business opportunities for U.S. exports of medical equipment and supplies as the government tries to improve current healthcare facilities. Myanmar’s private health sector also depends on imported medical equipment and supplies to meet the increasing local demand for high quality health services.
Currently, the 1992 National Drug Law is the only legislation in effect and it does not cover medical devices. The Food and Drug Administration (FDA) is now drafting rules and regulations to regulate the use/production of medical devices in collaboration with the U.S. Agency for International Development and other NGOs. The new draft regulations are expected to be implemented at some point in 2019.
Opportunities
Given the overall needs throughout the healthcare sector, Myanmar offers significant export and investment opportunities for U.S. firms, especially in medical services, technical expertise and medical devices. The Government of Myanmar encourages foreign investors to consider investing in joint ventures in hospitals, clinics, diagnostic activities, medicine/pharmaceutical production, healthcare infrastructure, medical devices, and the establishment of private medical institutes and training facilities. Demand for high quality medical equipment and services will only increase as Myanmar’s middle and upper-class populations continue to grow and spend more for better healthcare.
Web Resources
Ministry of Health and Sports
Food and Drugs Administration, Myanmar
Healthcare Procurement and Tenders
Government Health Plans
Myanmar Red Cross Society
Myanmar Medical Association (MMA)
Myanmar Medical Council
Myanmar Dental Association (MDA)
Contact Information
U.S. Commercial Service
Dr. Khine Wah Lwin
Senior Commercial Specialist
Email: KhineWah.Lwin@trade.gov
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.
Myanmar's healthcare sector is one of the most promising areas for U.S. exporters to consider. The National League for Democracy (NLD)-led government has made healthcare a top priority with increased budget allocations, healthcare related investments promotion, and planning and implementation of the National Healthcare Plan (2017-2021). Aware of the current challenges and needs in the sector, the Ministry of Health and Sports (MOHS) still set an ambitious target of achieving universal health coverage by 2030 by focusing on three main elements: population coverage; service delivery; and financial protection.
To achieve the target, MOHS formed the National Health Network with the goal of providing access to better services and reducing out-of-pocket spending by Myanmar citizens. The Government of Myanmar also increased its budgets for healthcare sector development from Myanmar kyats (MMK) 881 billion ($672.9 million) in Fiscal Year (FY) 2016-2017 to MMK 1.076 trillion ($840.2 million) in FY 2017-2018, approximately 5.2 percent of total government spending. The plan is to continue increasing the budget up to MMK 1.131 trillion in FY 2018-2019.
The country’s public health sector accounts for 86 percent of total healthcare services with 1,120 public hospitals accommodating 56,700 beds. Recently, a five year strategic plan (2019-2023) was launched by the Myanmar Health Assistants Association to improve the public health sector in Myanmar by aiming to implement 12 public projects in 76 townships across the states and regions in the country, including disease control, reproductive health, maternal/child/newborn and adolescent health and nutrition campaigns.
There are now more than 249 private hospitals across the country and the number is steadily growing. In addition, there are approximately 200 private specialist clinics, more than 5,000 private general clinics, and 800 private dental clinics, according to a report by the Department of Medical Services. Private healthcare sector expenditures are gradually increasing due to the rising awareness for healthcare by the growing middle class. In 2014, the Government of Myanmar passed legislation allowing foreign investors to invest in private hospitals, clinics, diagnostic centers, medical devices, and health-related education facilities.
To enforce national health coverage, a new health insurance policy was launched in 2015 and to speed up engagement and a new scheme was introduced in 2016 with more expansive coverage and higher benefits. There are 11 private insurance companies deliver the health insurance with competitive attractive packages. Despite improvements, higher income consumers still tend to travel abroad for medical treatment. For low and middle income consumers, medical treatment abroad remains out of reach.
Leading Sub-Sectors
Medical Services: The Myanmar healthcare industry is facing a significant shortage of facilities, technology, and qualified nurses and healthcare professionals. People who can afford high quality medical services travel to neighboring countries such as Singapore, Thailand or India for medical check-ups and treatment, and spend approximately $600 million per year. This points to a massive need for reliable and high quality medical services in the country. To that end, the Government of Myanmar permits foreign medical professionals to work in Myanmar through joint venture businesses. In addition, U.S. health education providers can find business opportunities in Myanmar since training and capacity building services for medical staff is in high demand.
Medicines: Myanmar has a very competitive pharmaceutical market compared to other ASEAN countries and the market is attracting a growing number of foreign pharmaceutical companies as it is dominated by imports. According to a local market research agency, Myanmar's total pharmaceuticals spending has been increasing at 11 percent every year and it is expected that the pharmaceutical market’s value can reach $1.1 billion by 2023.
Myanmar imports about 80 percent of pharmaceutical products from other countries; locally produced supplies account for the other 20 percent of the demand. Local supplies are mainly produced by the state-owned Myanmar Pharmaceutical Factory. The market itself is very price sensitive and Intellectual Property Rights (IPR) remains a concern.
There are more than 100 pharmaceutical distributors currently operating in Myanmar. Switzerland’s DiethelmKellerSiberHegner (DKSH) and Thailand’s Maxxcare are leading the distribution channels. Other drug distribution companies such as Zuellig, Sanofi, Pfizer, MSD, GSK, Novartis, Roche, Bayer, Servier, and Mundipharma also play key roles in Myanmar’s drug market. In addition, there are many generic brands from India, China, Thailand, and Vietnam, which possess a substantial portion of the market share.
Pharmaceutical sales grew from $440 million in 2016 to $487 million in 2017, an increase in +10.7 percent.
| 2017 F | 2018 F | 2019 F | 2020 F | 2021F | |
| Drug sales, USD billion | 0.49 | 0.52 | 0.57 | 0.61 | 0.67 |
Medical Devices: The country presents tremendous business opportunities for U.S. exports of medical equipment and supplies as the government tries to improve current healthcare facilities. Myanmar’s private health sector also depends on imported medical equipment and supplies to meet the increasing local demand for high quality health services.
Currently, the 1992 National Drug Law is the only legislation in effect and it does not cover medical devices. The Food and Drug Administration (FDA) is now drafting rules and regulations to regulate the use/production of medical devices in collaboration with the U.S. Agency for International Development and other NGOs. The new draft regulations are expected to be implemented at some point in 2019.
Opportunities
Given the overall needs throughout the healthcare sector, Myanmar offers significant export and investment opportunities for U.S. firms, especially in medical services, technical expertise and medical devices. The Government of Myanmar encourages foreign investors to consider investing in joint ventures in hospitals, clinics, diagnostic activities, medicine/pharmaceutical production, healthcare infrastructure, medical devices, and the establishment of private medical institutes and training facilities. Demand for high quality medical equipment and services will only increase as Myanmar’s middle and upper-class populations continue to grow and spend more for better healthcare.
Web Resources
Ministry of Health and Sports
Food and Drugs Administration, Myanmar
Healthcare Procurement and Tenders
Government Health Plans
Myanmar Red Cross Society
Myanmar Medical Association (MMA)
Myanmar Medical Council
Myanmar Dental Association (MDA)
Contact Information
U.S. Commercial Service
Dr. Khine Wah Lwin
Senior Commercial Specialist
Email: KhineWah.Lwin@trade.gov
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.