But in Asia – and other parts of the world – IBA could, especially with highly populous regions that have growing primary healthcare markets. IBA Health’s South East Asian operations, which span India, China, Thailand, Singapore and Malaysia where it has its regional base, now account for about 30 per cent of the company’s business. It is also looking to The Philippines and Indonesia for future opportunities.
“If you look for a country and it has a population, whether they are rich or poor and being funded by the World Bank or not, they are an opportunity for us,” King claimed. “Particularly in the primary healthcare market in developing countries; they are going to leapfrog us, because we have all these archaic hospitals as a legacy.
“The opportunity is huge; it’s mind boggling really. There is more opportunity than you can shake a stick at. It is more a matter of which opportunities you take up.”
A quick comparison is indicative of the IT leapfrog trend that many observers, like King, have noted: Malaysia has 12 fully functional paperless hospitals, while Australia has none.
The cultural barrier
For many Australian companies, the perceived culture gaps with the myriad cultures within ASEAN are wide enough to dampen thoughts of northward expansion. But it is here that government assistance earns its keep in helping foreign entities make the right connections and decisions. For example, there is the Malaysian Industrial Development Authority (MIDA) which provides tax, R&D and recruitment benefits along with advice to those looking to operate in the country. Singapore and other nations have similar approaches.
Alternatively, organisations can use the services provided by Austrade in Singapore.
“There are quite a few ICT companies that come up to Singapore and make it their base. Often times they are coming through and have also been to Hong Kong and they are trying to make a decision between them,” Austrade senior trade commissioner, Cheryl Stanilewicz, noted.
“The number one thing for ICT companies is they are not just looking to get into Singapore, they are looking to expand into the region beyond. First of all you have ASEAN on your doorstep, but beyond that you are within seven hours flying time of India and China.”
Stanilewicz said Austrade Singapore had success with about 44 ICT companies in 2007 and is increasing this figure at about 10-15 per cent year-on-year. While acknowledging this might not continue because of the dour economic sentiment afflicting global markets, she was optimistic about Singapore and the greater ASEAN region, pointing to reports that five out of 10 Singapore banks will continue with IT updates despite the financial crisis.
