Indonesia, 15 Mar 2022 - The projection of a global transition from pandemic to endemic status has continued to accelerate the development of technology, digitalisation, and the healthcare industry as one of the industries that attract the most attention. Deloitte’s research report in 2021 [1] showed that in the period 2020-2024, health spending is expected to increase by 3.9% per year, up by 2.8% from 2015-2019 globally. The COVID-19 pandemic has not only triggered a growing demand for health products and services but has also raised projections related to the healthcare industry that is expected to continue to grow even after the pandemic subsides. The report also showed that in the future, most people (75%) will be using telehealth services. Using the momentum, DBS Treasures and Bahana TCW collaborated to launch the Bahana Global Healthcare Sharia USD Equity fund, the first sharia investment instrument in Indonesia that focuses on the health sector on the offshore market and integrates the Environmental, Social, and Governance (ESG) factors into its management. The launch of the instrument completes a comprehensive range of investment products that serve as investment solutions for customers in managing and developing their wealth.Rudy Tandjung, Head of Consumer Banking Group, PT Bank DBS Indonesia, said, “DBS Treasures as a trusted wealth management partner continues to enrich investment solution options that are personalised and communicated to customers. Through the Bahana Global Healthcare Sharia USD Equity that will be available effectively starting 25 March 2022, DBS Treasures opens access for customers who want to diversify their USD denominated investments, focusing on the health sector that is strengthened by the rapid growth of technological innovation. Customers can optimise their portfolios by seizing opportunities at the right time through the digital flexibility of the omni-channel approach that includes phone instructions and the digibank by DBS application that makes the Single Investor Identity (SID) registration process easy so customers can buy, sell, and switch mutual funds online, anywhere and anytime.” According to DBS Group CIO Insights[2] data, globally, the healthcare sector is one of the vital sectors, with global health spending accounting for 11.4% of global GDP. One indicator of this sector's growth globally is the health spending in the US that has continued to increase in the three last decades and reached USD4 trillion in 2020, or 20% of the US GDP, making it one of the highest percentages of state spending alongside several other big countries such as Japan, China, and a number of European countries. Among the supporting factors are the growing aging population, the high demand for research and development (R&D) to drive medical progress, and health technology. Meanwhile, Danica Adhitama, Marketing Director, Bahana TCW, said, “In view of the changes in investment trends that are promising for investors, we collaborate with DBS Treasures to present the Bahana Global Healthcare Sharia USD Equity fund to fulfill the needs of investors who want to increase exposure in the offshore healthcare industry. Through this collaboration, Bahana TCW strives to present a more diversified investment product for domestic investors, particularly to satisfy investors’ interest in investing in global company stocks. This product is a sharia mutual fund that focuses on the US stock market that is currently concentrated in the healthcare sector. This product is also managed in accordance with the Environment, Social & [Good Corporate] Governance (ESG) principles.” The product, launched in collaboration with Franklin Templeton, a global asset management company with global experience and capability in strategic planning, is sharia compliant and follows the ESG investment principles in its portfolio management. The transition to an endemic status is supported by technological development that will encourage the manufacture of drugs with higher efficacy, more efficient patient data processing, advanced health services, health practitioners with higher-level skills, and convenience to improve the patient experience. These developments are expected to continue and diversify demands, making the healthcare and medical industry a very promising sector for all investors.
[1] 2021 Global Health Care Outlook: Accelerating industry change | Deloitte China | Life Sciences & Health Care
[2] CIOInsights1Q22_ai.pdf
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