Limited Growth Potential In The Short Term
BMI View: Government commitment to healthcare will be a key driver of growth for Myanmar's pharmaceutical and healthcare sector. However, we believe that the potential in Myanmar's healthcare system can only be realised over the long term as decades of military rule has meant that the healthcare sector has been severely underfunded.
In December 2012, several healthcare developments surfaced in Myanmar. Myanmar's military chief, Vice-Senior General Min Aung Hlaing, stated that the country intends to use nuclear technology for medical and research purposes. In addition, a team of US-based scientists coordinated by the World Health Organization launched a study focused on drug-resistant malaria in Myanmar, with the aim to track the spread of the disease in the country.
Due to the decades of military rule, a large proportion of public expenditure has been devoted to defence. In 2010, government spending on healthcare reached MMK97.1bn (US$100mn) representing 12.2% of the total healthcare expenditure (MKK798bn (US$822mn)). Highlighting a shift in this, in March 2012, Minister of Health Pe Thet Khin said the country intends to quadruple its health budget to hire more doctors and modernise hospitals. Subsequently in October 2012, the health minister stated that HIV programme in the country will be scaled up in terms of HIV testing and providing HIV drugs for pregnant women.
|Growth From Low Base|
|Myanmar Healthcare Expenditure (LHS) And Public And Private Health Expenditure (RHS) (MMKbn)|