The world economy belongs to the pharmaceutical industry- this industry alone has a market cap of approximately 1.2 trillion US dollars. There is an expectation of a rise of up to 1.5 trillion US dollars in 2023. As far as Thailand is concerned, the pharmaceutical industry in this country is of the worth of 177 billion baht, i.e., 5.7 billion US dollars)- it makes Thailand the second largest country in the ASEAN region after Indonesia in terms of the market size of the pharmaceutical industry.
If you have ideas to open startups in the pharmaceutical industry, you have ample opportunities to have your own business. You can get assistance from the government of Thailand as well as from different startups accelerators.
Thailand- A Booming Land For Pharmaceutical Companies
Though Asia is always the biggest market for pharma companies, research and development are limited to Europe and the US. But today there is rapid growth in the marketing as well as researchin the pharma industry. Today the R&D is being shifted from Europe to Asia’s developingnation.
Thailand has one of the most significant contributions towards the pharma market, among ASEAN countries.In 2016 the Thai pharma market had a total contribution of 4.6 billion US dollars, which is expected to rise to 6.3 billion USD by 2021 and 8.4 billion USD by 2026. The market of the pharmaceutical industry in these areas is rapidly growing due to the rise in regular wages. Prioritization of health care sector by governments of these countries are also contributing to the growth of the pharma industry.
Active Pharmaceutical Ingredients (API)- Huge Opportunities
As per CPhI Pharma Reports: Opportunities & Threats 2020 and Beyond, the ASEAN economies have a reputable capacity in manufacturing generic drugs. But there is a meager percentage of manufacturers around Southeast Asia which have capabilities to produce active pharmaceutical ingredients (API).
As per data available by Thailand’s Food and Drug Administration (FDA Thailand), out of a total of 142 domestic pharma companies accredited with GMP standards, only 5% have the capabilities of manufacturing APIs. Therefore a significant part of generic drug manufacturing relies upon the import of APIs. If you have an idea and capabilities, you have a bright chance to have a startup in generic drugs in Thailand.
30 baht scheme
This scheme is one of the most popular and game-changing programs launched by the government of Thailand. Earlier, there was a 60:40 market share distributed among hospitals and over the counter (OTC). But now it is 70:30, 70 percent distribution for hospitals and 30 percent to the OTC (over the counter/drug stores) under this scheme.
New 30 baht card scheme-
It is reported that more than 70 percent of the population (approximately50 million people) are getting benefits under this scheme. The individuals who get benefit from this scheme come under the category which neither falls under the Social Security Fund nor the civil servant welfare fund.
Therefore if you are looking for startups in the pharmaceutical industry of Thailand, you can keep your ideas around these schemes.
Thailand Health Care on the World’s Map
Thailand comes on the six spots with a total 67.99 health Care index, as per the report published by CEOWORLD in August 2019. It plies that Thailand is providing the world’s sixth-best medical facilities to its people. The second ASEAN near to Thailand in Singapore, at 24the spot with a total point on health Care index as 48.54.
The health care index is considered as a statistical analysis of the overall health care facilities of the country. In includes:
- Health care infrastructure, including the condition AMD facilities at hospitals. It includes the building as well as all the amenities provided to the patient, medical professionals, etc.
- Competency of Medical professionals.
- Cost of treatment
- Availability quality medicine
- The readiness of the government.
It shows the confidence among investor AMD; therefore, IR would be an encouraging moment for you if you have ideas for startups in the pharmaceutical industry of Thailand.
Medical Fair Thailand 2019- As per the frost and civilian demands of health care services and equipment is expected to rise significantly. Pharmaceutical drugs and medical equipment with advanced technologies are expected to be in huge demand.
Assistance Granted by the Thai Government
Thailand has made its country as startups nation. The government and other body related to and authorized by the government. Some accessible assistance by the government and other, of you, have ideas and going for startups in Thailand
TCG credit Guarantee program-
A currently active program and the last date for applying to take a loan for the startups is 25the February 2021. This program is run by the Ministry of Finance, Government of Thailand.
This program encourages financial institutions to give a more significant amount of credit to the startups, SMEs, and Entrepreneur. One point you should be more at this point that you, as a startup, cannot get the loan directly under these programs. Still, the incentives by these programs encourage other financial institutions to give your more considerable amount of credit.
Interestingly, for this year, the ministry of finance allotted an 8 billion baht loan guarantee for startups, SMEs, and innovative startups. The credit guarantee period under this scheme shall be ten years.
Distribution of loan under this scheme:
- For startups, SMEs and entrepreneurs up to 5 million baht credit loans.
- For juristic startups, SMEs, and entrepreneurs, it jumps to 10 million baht.
- For Individuals and innovations, the credit guarantee loan can be up to 10 million baht.
- This amount can be up to 40 million baht for juristic individuals and innovations.
- It is one of the best credit guarantee programs which can help Startups with a very handsome amount of investment.
Other programs– Many different programs help startups by credit loans. Apart from the Ministry of Finance, there is an organization called the National Innovation Agency (NIA), which also works tremendously in assisting startups. NIA runs under the Ministry of Science and Technology, provided millions of baht as financial assistance under the credit guarantee program to startups comes with innovative ideas.