Different segments will see varying impacts. Within primary healthcare, DBS is of the view that leakage in the treatment for basic illnesses like the common cold would be minimal given the low revenue per case and reduced inclination to travel overseas for healthcare when feeling unwell for modest savings.
Besides heading to Johor over the weekend to get their shopping and beauty services done, many Singaporeans also seek cheaper medical care or healthcare services across the Causeway.
DBS Group Research believes that healthcare businesses operating in Johor could be primary beneficiaries of the Johor-Singapore Special Economic Zone (JS-SEZ). Depending on the type of medical service, comparable offerings in Johor can lead to cost savings of between 30% and 80%, thereby lifting demand, says DBS.
