SINGAPORE (Feb 10): Demand for healthcare services seems to be outpacing supply, as an ageing population and the prevalence of chronic illnesses quickly fill up new hospitals and clinics with patients both local and from abroad.

It is unsurprising, then, that stock investors see the local healthcare sector as a defensive play, with the companies providing services that are required whatever the economic cycle.

The sector’s robust outlook has encouraged some companies to significantly expand their business, as well as attracted more players to list on the stock exchange. At the same time, industry observers expect more mergers and acquisitions, and the corporatisation of medical practices.

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