In Singapore, we anticipate that operations will benefit from
an increasing birth rate, driven by favourable government
policies. As part of the government’s incentive to boost
the country‘s birth rate, several pro-family measures have
been implemented such as an extra S$2,000 Baby Bonus
and an additional S$1,000 Medisave grant for all babies
born after January 1 this year, and the extension of the
Baby Bonus scheme to every child, instead of the first
four children. Working fathers are eligible for up to two
weeks of Government-Paid Paternity Leave, comprising
one week of mandatory leave and an additional week of
leave, which employers can voluntarily provide. We are
cautiously optimistic that these measures will be positive
for Singapore‘s birth rate, thus benefitting the Group’s
business.
POSITION CORDLIFE STRATEGICALLY FOR
SUSTAINABLE GROWTH IN FUTURE
Moving forward, we will continue to be on track to expand
our businesses by tapping on developing markets in India,
Indonesia and the Philippines. We believe that the growing
affluence of the middle income population and their interest
in more diverse healthcare options will help drive further
growth. We will also widen our scope of products and
services by introducing new healthcare products catering to
the mother and child segment. Concurrently, we will remain
focused on our exploration efforts to continue expansion
into other fast-growing markets such as China, through
various paths including the formation of partnerships and
equity acquisitions.
In the past year, we have been actively expanding our
market presence in India, Indonesia and the Philippines
as we see tremendous growth opportunities in these
developing Asian countries. According to a Deloitte 2014
report, the expected CAGR of incremental storage units
for private cord blood banks in India, Indonesia and the
Philippines between 2013 and 2018 are 39%, 30% and 26%
respectively. By 2018, the penetration rates of private cord
blood banking in these countries are expected to grow to
3.6%, 0.7% and 0.4% respectively. The cord blood banking
operations in these markets are developing rapidly, thanks
to the fast-rising middle class seeking better healthcare
options for their children. We believe that the Group
will continue to benefit from these positive trends, thus
achieving robust growth in both revenue and new client
deliveries in the coming years.
China also offers excellent growth potential and remains as
one of the fastest soaring healthcare markets in Asia. The
country’s healthcare market continues to expand at a rapid
pace with robust growth of healthcare expenditure and
ample room for further expansion. Healthcare expenditure
is expected to be at RMB6.7 trillion
1
by 2020, accounting
for 6.5% – 7% of China’s GDP. In China, penetration rate
of private cord blood banking remains low at 2.1% in
2013, reflecting room for growth, which is expected to
do so at a forecasted CAGR of 21% between 2013 and
2018, according to Deloitte. China’s growing middle-class
population, indicative of a progressively larger customer
pool for cord blood banking operations, should see a rise in
penetration rate to 5.2% by 2018. In view of this, while we
continue to maintain cooperative relationship with CCBC,
we will also be dedicating our efforts to proactively explore
cooperation opportunities with other Chinese partners.
9
CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
CHAIRMAN’S
MESSAGE
