From China Global Television Network

China says it is continuing to open up its economy, including the healthcare sector. Earlier this month, the Singaporean private healthcare provider the Raffles Medical Group opened its first specialist hospital in China. It's located in Chongqing Municipality in the southwest, and the company hopes it's just the beginning.  

A health screening in the comfort of a modern, well-equipped hospital. Raffles already operates medical centers in six cities in the country, but this tertiary hospital takes its standing in China to a new level. And it was by no means an overnight success.

DR LOO CHOON YONG EXECUTIVE CHAIRMAN, RAFFLES MEDICAL GROUP "China has been liberalizing since I first came to China in 1984. It was the early days of reform to a market economy. I think it has been very successful. I have seen progressive, opening up of the market in other sectors as well as health care. We took a while to study the system, the players, the regulators. So I think it's possible, but it takes a lot of patience."

The 700-bed hospital is in the Liangjiang New Area – one of the three districts in the Chongqing Pilot Free Trade Zone. Invited by the local government, Dr. Loo says preferential policies are still being worked out at this stage from foreign talent and tax incentives to pharmaceutical imports – and all under the umbrella of "opening up". Analysts, though, have cautioned about the hospital's start-up costs.

DR LOO CHOON YONG EXECUTIVE CHAIRMAN, RAFFLES MEDICAL GROUP "We intend to work with insurance companies so that with the insurance policies, the 50 percent of Chinese people can afford us if they become a member or they take out an insurance policy. That way we can serve 700 million people – wonderful. In Chongqing itself, there will be an addressable market of 17 million people."

WEI LYNN TANG CHONGQING "For many of these foreign players, it's been a long time coming to wholly own an entity in some of China's key sectors such as health care. And for Raffles Medical Group, the biggest advantage is: its ability to now control decision-making and managing systems to its own standards -- all to ensure the quality of its service."

Singapore's Raffles Hospital is just one of the success stories of the Chongqing Pilot Free Trade Zone since the special area was established in April 2017. Last year, it attracted more than 400 foreign enterprises, helping to drive up foreign direct investment in the municipality.

ZHANG KUI, INNOVATION DIRECTOR CHONGQING COMMERCE COMMISSION "In the finance industry, we have approved the first Taiwanese-funded bank in Chongqing. Our first Sino-Foreign joint venture securities firm is also underway. Meanwhile, we also have a hospital from Hong Kong and a Middle School from America who have settled here. Therefore, we are opening wider to the outside world in key areas."

Raffles estimates its 800-million-yuan Chongqing hospital will break even within three years – slightly longer than the average in Singapore. But, as Dr. Loo says, the group is in China for the long-run.

 

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