In various parts of the world, the healthcare industry is not only massive in scale but also continuously growing because of population expansion and aging. Just by looking at the United States as an example, one can grasp the magnitude of the industry. In 2021, healthcare expenditures in the US accounted for over 18.3 percent of the country’s GDP, which is staggering.

Hong Kong is also facing the problem of an aging population, and while that poses challenges for the city, it is conducive to the development of the local healthcare industry. Aside from an aging population, there are numerous other factors favoring the growth of the healthcare sector, which the Hong Kong Special Administrative Region government must take into consideration in a comprehensive and strategic way when formulating policies to develop the local healthcare sector. 

But most importantly, the government needs to think ahead for it to be able to promote the development of the healthcare industry and make it a major driving force for economic resurgence.

Let’s start with internal factors. First, Hong Kong has the highest life expectancy in the world, and it is projected that in the coming years, the phenomenon of population aging will become more prominent, as is the case in many other developed economies. 

Hong Kong has a competitive edge in the field of life and health sciences, and the government only needs to combine it with the healthcare industry

The proportion of the population aged 65 or above is expected to increase from 20 percent in 2021 to 32 percent in 2041. The aging population and the enhanced health awareness of Hong Kong residents will create significant demand for high-quality and advanced healthcare services and products. According to official data, the total expenditure on public and private healthcare services in Hong Kong for the period of 2020 to 2021 was approximately HK$200 billion ($25.57 billion), accounting for 7.3 percent of the local GDP.

Meanwhile, Hong Kong serves as a prime destination for initial public offerings by biotechnology companies. According to the Hong Kong Stock Exchange, Hong Kong is the largest IPO center for biotech companies in the Asia-Pacific region and the second-largest in the world, surpassed only by the US.

As to external factors, Hong Kong is an integral part of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), and its rapid development presents numerous opportunities for the healthcare industry in Hong Kong. With the approval of the Guangdong provincial government, some designated medical institutions operating in the Chinese mainland cities in the GBA can now use pharmaceuticals registered in Hong Kong and medical devices used in public hospitals in Hong Kong. As of January, 23 types of drugs and 13 types of medical devices under this category had been approved for use in medical institutions operating in the mainland GBA cities. 

Additionally, an increasing number of Hong Kong retirees are choosing to settle on the mainland side of the GBA. I firmly believe that demand for healthcare services provided by Hong Kong operators will continue to grow.

It would be a waste if Hong Kong were to overlook these favorable factors. With a forward-thinking approach, the government could fully leverage these advantages, prioritize the development of the healthcare industry and treat it as one of the key target sectors when formulating future economic policies. Doing so will not only stimulate the overall economic development of Hong Kong but, more importantly, meet the increasing demand for high-quality healthcare services from Hong Kong and the whole GBA.

With a forward-thinking approach, the government could also facilitate the integration of innovative technology and healthcare. The role of technology in the healthcare industry will become increasingly crucial, and the development of technology-dependent solutions such as smart hospitals and telemedicine will provide unique and sustainable solutions to cope with the growing demand for healthcare services. 

Hong Kong has a competitive edge in the field of life and health sciences, and the government only needs to combine it with the healthcare industry.

The author is a specialist in radiology, Master of Public Health of the University of Hong Kong, and an adviser to Our Hong Kong Foundation

The views do not necessarily reflect those of China Daily.