ThisBriefwaswrittenbyVanikaSharma,Consultant,InvestmentandEnterpriseunderthesupervisionofRupaChanda,Director,TIID;HeatherTaylor-Strauss,EconomicAffairsOfficer,TechnologyandInnovationSection,TIID;andYannDuval,Chief,TradePolicyandFacilitationSection(TPFS),TIID.NatnichaSutthivanaprovidedsecretariatsupportaswellascoverdesignandeditoriallayout.TheBriefwascopy-editedbyRobertOliver. 1.Introduction 32.FDIandHealth:Literaturereview 43.HealthsectorFDIdefinitionandtrends 63.1HealthsectorFDItrends 63.2MergersandacquisitionsinthehealthsectorinAsiaandthePacific 123.3Country-wisehealthsectorFDItrendsinAsiaandthePacific 134.Nationalinvestmentpoliciesinthehealthsector 174.1Restrictivepolicies 174.2Liberalizingpolicies 195.Policyrecommendationsforincreasedinvestmentinthehealthsector 24ion ngCOVIDpandemichasexposedthecracksinthecurrenthealthsectorFrom2019to2020,investmentinthehealth-caresectordroppedby45percentandcontinuedtodeclinein2021to34percentinthefirstthreequartersof2022.OGlobally,greenfieldinvestmentinthehealthsector,from2008to2021,fluctuatedconsiderably,fallingby28percentbetween2008and2012andthenincreasingby97percenttoUS$24billionby2021.GlobalpeaksandfallshavebeenreplicatedintheFDIreceivedbycountriesintheAsianandPacificregion,whiletheshareofglobalinwardFDIinthehealthsectorinAsiaandthePparedto2008.However,prospectsfor2022lookbetter,withanincreaseof78percentinthefirstquarteroftheyear,comparedtothesameperiodin2021.OOnindividualsubsectors,between2008-2021inAsiaandthePacific,thepharmaceuticalsubsectorattractedthehighestamountofgreenfieldinvestment,US$36billion,followedbythemedicaldevicessegmentwhichwasreceivedUS$20billionthenbiotechnologyandhealthcare,whichreceivedUS$17billionandUS$10.8billionrespectively.siaandthePacificaresubduedfortheremainderof2022,withasteadyvalueofUS$96millionworthofgreenfieldinvestmentsundertakeninthefirstquarterof2022inthepharmaceuticalsubsector.Formedicaldevices,however,thefirstquarterof2022witnessedasharpincreaseininvestments,reachingUS$1.2billion.Atthesametime,thebiotechnologysubsectoronlyreachedUS$55million.Investmentinthehealth-caresubsectorin2021wasalsomorepromising,withanuptickreachingclosetoUS$60million.OFDIflowsthroughcross-borderM&Ashavebeenonaconstantrisesincetheearly2000s,withthetotalvalueofprojectsincreasingfromUS$2billiontoUS$10.6billionfrom2001to2020.MostM&Adealsintheregiontookplaceinthepharmaceuticalssubsector–closeto2,500between2010and2020.Thiswasfollowedbythehealth-caresubsectorandthenbiotechnology.OMergersandacquisitionsintheAsia-Pacificregionhavebeenlargerthangreenfieldinvestmentforthehealthsector,whereownershipofassetsisvalued,giventhehealthsector’sstrategicimportanceinmostcountries.NDSOChinawasthelargestreceiverofinwardgreenfieldFDIduring2008-2020,followedbyOBetweenand2021,theUnitedStateswasthelargestinvestorintheAsia-Pacificregion’shealthsector,makingup35percentofallhealth-relatedgreenfieldStatesasthelargestsourcesofinvestment.Together,thosefivecountriesaccountedfor66percentofallhealth-relatedinvestmentsintheAsia-Pacificregion.OIntermsofintraregionalinvestors,firmsfromChina,Japan,theRepublicofKorea,SingaporeandIndialedinvestmentsinthehealth-caresectorintheregion.In2021,erAsiaPacificeconomiessawdecreasingoutwardinvestmentexplainedbythedelayedCOVID-19wave,whichhittheregionin2021.OInvestmentpoliciesintheregionhavevariedwidelyandhavenotallbeenpromotion-related.Tencountriesintheregion,namelyChina,India,Indonesia,theLaoPDR,Malaysia,Mongolia,thePhilippines,Thailand,VietNam,andMyanmar,imposesometypeofentryrestrictions(outofthetotal70surveyedbyUNCTADforWIR2021).Intermsofsubsectors,health-carefacilitiesandmedicalservicesstandoutasthemostprotected.OManycountriesintheAsia-PacificregionhaveinvestedinthehealthsectorasacoresSriLankaBruneiDarussalamBhutanTimorLesteandThailandhaveprioritizedFDIinthehealthsector.OCertainkeychallengesexistintheregion,suchasthelimitedcapacityofcountriesintheregiontoattractthequantityandqualityofinvestmentneeded.Theseincludepoorregionalanddomesticinvestmentecosystems,thelackofcapital,technology,skills,lowregulatorycapacity,andpoorinfrastructureandrelatedservices.OCountriesinAsiaandthePacificwillneedtocreateandimproveanecosystemofcoherentpolicyandtransparentregulatoryinstitutions.Intandem,Governmentswillneedtoinvestinskillsdevelopment,technologicalcapacityandhealthinfrastructurerelevanttoachievinggrowthinthesector.RegionalcooperationandpoliticalcommitmenttoopennessforinvestmentwillbecrucialtohelpingeconomiesbuildbackbetterandharnessthepotentialofFDI.ThehealthsectorhasalwaysbeenacorepriorityinmostnationaldevelopmentobjectiveforachievingtheSustainableDevelopmentGoals(SDGs).Theongoingaccesstohealthcare,testedtheresilienceofglobalsupplychainsofmedicalgoods,ecedentedstrainonnationalhealthsystemsThroughthisithasalsohighlightedtheimportanceofinvestingmoreinhealthandcreatingstrongerhealthssincebeforethepandemicconsideredinvestmentinthehealth-caresectorasimperative.However,decliningflowsintothesectorandtheaddedrelevancefromthepandemichasledtogreaterprioritizationofthesectorintermsofinvestmentandpromotionactivities.From2019to2020,investmentinthehealth-caresectordroppedby45percentandcontinuedtodeclinein2021to34percentinthefirstthreequartersoftheyear.Althoughinvestmentpromotionactivitiesareessentialinattractingthequantityandqualityofinvestmentneeded,therearesomekeychallengesthatInvestmentPromotionAgencies(IPAs)willneedtocreatethemaximumpositivebenefitsThesechallengesincludepoorregionalanddomesticinvestmentecosystems,lackofcapital,technologyandskills,lowregulatorycapacity,andpoorinfrastructureandrelatedrovedpolicyecosystem,investmentinskillsandharnessingdigitalavenuesforgrowth.Regionalcooperationandpoliticalcommitmenttoopennessforinvestmentwillbecriticaltohelpingeconomiesbuildbackbetterandtoharnessingthepotentialofforeigndirectinvestment(FDI).AllthiswillrequireanunderstandingoftheevolvinginvestmenttrendsandpoliciesinthehealthsectorinAsiaandthePacific,forwhichthispaperprovidesabriefbutcomprehensivereview.Theremainderofthispaperisstructuredasfollows.PartIIreviewsthelinkagesbetweenFDIandhealth;PartIIIdelvesintothesubsectorscomprisingthehealthsector,andtherecenttrendsinFDIinthehealthsectorinAsiaandthePacificandthepolicychangesimplementedinlightoftheCOVID-19pandemic;PartVproposespolicyrecommendationsforincreasinginvestmentinthehealthsectorinaconclusionandHealthLiteraturereviewTheliteraturehasoftenframedthediscussiononFDIandhealthunderthreebroadandinter-relateddimensions–access,qualityandpublic-privatecompetition.ThemainbenefitsofFDIinthehealthsectorcanbedescribedasincreasingaccesstohealthcarebymakingmoremedicalgoodsandservicesavailableinacountry.Theinflowofinvestmentcanincreasephysicalcapacity,alleviatesupplyshortages,andenlargethescopeofhealthservicesavailableinacountry,whilealsocontributingtomoretechnologyandmedicalknowledge.Theincreaseinphysicalcapacityandinfrastructurecanbeparticularlyusefulindevelopingcountriesthatmaysufferfromunder-investmentinthehealthsector,whilealsopotentiallybringinginmeansofproductionthatcanreplaceexpensiveimportsorfillgapsinthemedicalsupplychain.FDIisoftenregardedasacrucialopportunityforcountries'healthsystemsthatfaceconstraintsordifficultiesinpublicfinancingsinceitfreesuppublicresourcesthatcanberedirectedtootherurgentareasofneed.FDI-inducedincomegainscanfurtherleadtohigherprivateandpublicexpenditureonmedicalcare,whichisoftendependentontheabilitytopay(Burnsandothers,2017).ThisisalsoevidentinAsiaandthePacificwhereapositiverelationshipwasfoundinASEANbetweenthelevelofFDIandhealth-careexpenditures(Verma,2021).FDIinthehealthsectorisanessentialfactorinimprovingaccesstohealthandinfluencingthengaccesseffectofFDIonlifeexpectancyappearstobedrivenbyimprovementsinadulthealth,asopposedtochildorinfanthealth.AnexplanationforthisisthatincreasesinwagesforskilledlabourandimprovementsinworkingconditionsowingtoFDIarearguablymorerelevanttoadultsthanchildren,allowingthemthenecessarymeansAnotherbenefitofFDIinthehealthsectoristhatitcanleadtomarkedimprovementsoodsandservicesThiscanoccurthroughtechnologicalandknowledgeupgradingviadirectimpactsandspillovers.Directly,FDIcouldbringinnewertechnology,meansofproduction,andknowledgeandskillstransfer.Indirectly,inwardFDIcanleadtopositivespilloversthatraisequalityandstandardsinthehealthsectoranddriveinnovationthroughcompetitionbetweenexisting/domestichealthprovidersandincomingones.Thiscouldalsopotentiallyleadtotheprovisionofspecializedmedicalservicesandgoodsthatwerenotreadilyavailablebefore,contributingtobetteraccessandabroadenedscopeofthehealthsector.IntheIndianpharmaceuticalindustry,however,between1980and1994,knowledgespilloversfromMNCs’localresearchanddevelopment(R&D)activitieshadlimitedbenefitsfordomesticfirms.SignificantR&DspilloveronlytookplacebetweenMNCs,insteadofbetweenMNCsandlocalfirmsduetoarestrictedFDIpolicyenvironmentandweakintellectualpropertyprotectionprovisions(FeinbergandMajumdar,2001).Ontheotherhand,FDIinhealthcanposesomerisks.FDIinthehealthsectorcouldgiverisetogreaterinequalityinthehostcountriesandreducegovernmentfundinginthepublichealth-caresector.Essentially,FDIcancreatea“dualhealth-caresystem”wheretherichcanaccesshigherqualitycarefromtheprivatesector,whilelow-incomefamiliesonlyhaveaccesstocheaper,lower-qualitypublichealthcare(AkyuzandDemir,2020).Thiscanhappenwhenaninternalbraindrainiscreatedwithskilledworkersmovingfromthepublicsectortotheprivatesectorinsearchofhigherwages,betteropportunitiesandbetterinfrastructure.Inaddition,bettertechnology,innovationandinfrastructurefromtheprivatesectorcandistortgovernmentmotivestoinvestinthepublichealthsector,choosingtoredirectresourcestomoreurgentmatters.Thiscouldleavethepublichealthsectorlaggingbehindsignificantlyandhaveanegativeimpactthosedependentonthepubliccaterstothebulkofthepopulation(65percent)butisservedbyjust45percentofallregistereddoctorsandevenfewerspecialists(25-30percent).Theheavilysubsidisedpublicsectorisalmostentirelybornebybudgetallocations,withpatientspayingonlynominalfeesforaccesstobothoutpatientsandhospitalization.Ontheotherhand,theprivatesectorhasgrowntremendouslyoverthepast25years.Onaverage,theprivatesectorconstitutesaround55percentofallregistereddoctors,wholookaftersome25percentofthepopulation,mostonaself-payingfee-for-servicearrangementandincreasinglythroughsomethird-partypaymentTherefore,althoughFDIcanleadtoincreasedaccessandbetterqualityofhealthcareinthehostcountry,certainsafeguardsalsoneedtobeinplacetoensurethattheaccesstobetterqualityisnotunequal.Healthisprimarilyapublicgood,andFDIinthehostcountryshouldmeetthatcountry'ssustainabilitycriteriaforthehealthsector.Thiscanbeachievedthroughpropergovernanceaswellassoundregulationthathighlightscomplementaritiesbetweenthepublicandprivatehealthsectors.torFDIdefinitionandtrendsInvestmentsinthehealthsectorusuallyrefertoinvestmentsinthreekeycomponents(UNCTAD,2021).Theseare:(a)Themanufacturingcomponent–includingtheproductionofmedicalgoodsanddevicesandthemanufacturingofmedicalequipmentandpharmaceuticalproducts(includingfinaldrugsandtherawmaterialsusedtomakethem);(b)Theinfrastructurecomponent–includingtheconstructionofmedicalfacilitiessuchashospitalsandhealthcentres,andmedicalresearchcentres;(c)Theservicescomponent–includingtheprovisionandexportofmedicalservices,researchanddevelopmentinfieldssuchasmedicaltechnologyandmedicine,andmedicaltourism.Inthecontextofthissectionofthepaper,health-relatedFDIfocusesonfourrelatedsubsectors:pharmaceuticals,biotechnology,medicaldevicesandhealthcare.Nationaldevelopmentgoalsandcomparativeadvantagesinthevarioussubsectorshaveoftendeterminedwhichsubsectorhasbeenprioritizedforinvestment.Consequently,eachrespectivesubsector'slevelofFDIwilldifferwithineachcountryandacrosstheAsia-Pacificregion.3.1HealthsectorFDItrendsGlobally,from2008to2021,greenfieldinvestmentinthehealthsectorfluctuatedconsiderably,fallingby28percentbetween2008and2012,andthenincreasingby97percenttoUS$24billionby2021.GlobalpeaksandfallshavebeenreplicatedininwardFDIinthehealthsectorinAsiaandthePacifichasdeclinedovertheperiod(figure1).RecentincominghealthsectorgreenfieldFDIdeclinesintheregionhavealsobeensharperthanthoseexperiencedgloballybetween2018-2021.However,whileglobalFDIflowsinthehealthsectorrecoveredin2021,flowstoAsiaandthePacificdeclined.Similartosectortrends,globalsubsectortrendshavealsocloselymatchedtrendsintheregion.Forexample,globally,during2008-2021,thepharmaceuticalssubsectorhasreceivedthelargestshareofinwardFDI,followedbybiotechnology,medicaldevicesandthenthehealth-caresubsector.Regionally,pharmaceuticalshavebeenfollowedbymedicaldevices,andthenbiotechnologyhcareservicesIntermsofcountries,theUnitedStateshasbeenthelargestreceiverofgreenfieldFDIinthehealthsectorduringthesameperiod,butcountriessuchasChina,Singapore,AustraliaandIndiahavenotbeenfarbehind.Ontheotherhand,Asia-PacificregioncountrieshavelaggedassourcesofhealthsectorgreenfieldFDI.Forexample,in2020,thelargestsourcesofinvestmentinthehealthsectorweretheUnitedStates,Japan,Germany,theUnitedKingdom,andFrance–i.e.,onlyoneAsianeconomyinthetopfivesourcecountries.ApartfromJapan,loweronthelistlargeinvestorsfromtheAsia-PacificregionincludedAustralia,China,Malaysia,IndiaandtheRepublicofKorea.Figure1.GreenfieldFDIinflowintheworldandtoAsiaandthePacificinthehealthsector,2008-2021s500820092010201120122013201420152016201720182019202020Asia-PacficGlobalSource:fDiMarkets.1.GreenfieldFDIinAsiaandthePacificcinallfoursegmentsofthehealthsectorwasconsiderablyvolatilefrom2008to2021(figure2).Moreworrisome,greenfieldFDIinthehealthsectorwas49percentlowerin2021comparedto2008.Dropsininvestmentinthesectorbeganafterthefinancialcrisisin2009;althoughtheystartedtorecoverin2012,theydroppedagainin2015,andagainin2019.Morerecently,thegeneraldownwardtrendinFDIlevelsduringthepastfiveyears,combinedwithdramaticdeclinesingreenfieldinvestmentssincethestartoftheectorHoweverprospectsfor2022arelookingbetter,showinganincreaseof78percentinthefirstquarteroftheyear,comparedtothesameperiodin2021.ThepeaksingreenfieldFDIinflowtoAsiaandthePacificseenin2009,2014and2018canbeexplainedbylargeinvestmentsmadebyafewcompaniesintheregion.In2009,majorinvestmentstookplaceinChinaandtheRepublicofKoreabythepharmaceuticalcompanyNovartisinresearchanddevelopmentprojectsinthebiotechnologysector(accordingtofDiMarkets).Atthesametime,GeneralElectricHealthcare,amedicalequipmentcompany,alsoinvestedUS$1billiontosetupanadvancedresearchlaboratoryinIndia.The2014peakwastheresultofinvestmentsbytheJapanesecompanyToshibainMalaysia(launchofproductionatanewdiagnosticimagingsystemsmanufacturingbase)andChina(inthemedicaldevicessectorinanR&Dproject).Inthecaseof2018,itcanbeaccountedforbyaUS$5.5millioninvestmentbyPétersSurgical,aFrenchmedicaldevicesmanufacturingcompany,forexpandingitsmanufacturingfacilityinIndia. Figure2.GreenfieldFDIinflowtoAsiaandthePacificinthehealthsector,2008-202186428642020082009201020112012201320142015201620172018201920202021Source:fDiMarkets.2.GreenfieldFDIinhealthsubsectorsinAsiaandthePacificTurningtotheindividualsubsectors,during2008-2021inAsiaandthePacificthepharmaceuticalsubsectorattractedthehighestamountofgreenfieldinvestment,amountingtoUS$32billion.Itattractedmorethantwicetheamountofinvestmentwerefollowedbythebiotechnology(US$17billion)andhealth-caresubsectors(US$10.8billion).ThedecreaseininvestmentinthehealthsectorsincethestartoftheCOVID-19pandemiccanbeattributedmainlytocontractionsinthemedicaldevicessubsector,whichdeclinedsharplyin2019,comparedtosmallercontractionsinthehealth-careandbiotechnologysubsectors,andanincreaseinthepharmaceuticalssubsector(figure3). Figure3.GreenfieldFDIinflowtoAsiaandthePacific,bysubsector,2008-20..0 1234567891011121314PharmaceuticalsMedicaldevicesBiotechnologyHealthcareSource:fDiMarkets.TheproductionandexportofpharmaceuticalproductsconstitutesalargeshareinmostAsianandPacificeconomies.ChinaandIndia,inparticular,aretwooftheworld’slargestsuppliersofpharmaceuticals.In2019,investmentinthepharmaceuticalsubsectorinAsiaandthePacificamountedtoUS$3.3billion,largelytoaUSbillioninvestmentbytheRocheGroupinJapaninapharmaceuticalR&Dproject,buthadfallenby62percenttoUS$1billionby2021.ProspectsforthepharmaceuticalsubsectorinAsiaandthePacificaresubduedfortheremainderof2022,withasteadyvalueofUS$96millionworthofgreenfieldinvestmentsundertakeninthefirstquarterof2022inthepharmaceuticalsubsector.InvestmentinthatsubsectormighttakelongertobouncebackascountriesrethinktheirmedicalinsgiventhedisruptionsandshortagescausedbythelockdownsinAtthesametime,however,thepharmaceuticalsubsectoralsoformsalargepartofvaccinemanufactureanddistribution.Between2020and2021,therewassomeinvestmentintheregioninvaccineproductiontocombattheCOVID-19crisis.Forexample,theUnitedStates-basedcontractresearchorganisationPharmaceuticalProductDevelopmentisplanningtoopenanewmultifunctionallaboratoryinChina.Itwillofferbioanalytical,biomarkerandvaccinesciencesserviceswiththenewlaboratoryopenedin2020.TheGermany-basedpharmaceuticalsspecialistBayerisalsoexpandingitssiteattheBeijingEconomicandTechnologicalDevelopmentArea,Chinawiththeadditionofanewproductionandsupplyplant.ThecompanyisinvestingUSmillioninthenewplant,whichisscheduledtocommenceoperationbytheendof2022.ItisexpectedtoincreasetheannualoutputoftheBeijingsitebyabout40percenttoservethedomesticmarket.Inthefaceofthiscrisis,countriesarealsofocusingonensuringpreparednessforfacingfuturepandemics.SeveralFDIprojectshavealreadybeenannouncedandinitiatedforincreasingvaccineproductionanddistributioncapacityintheregion.Someoftheseprojectsarelistedinbox1.Themedicaldevicessubsectorintheregionhasexperiencedthelargestgrowthininvestment,amountingcloseto400percentfromUS$0.8billionin2008toUS$3.9billionin2018.However,thesubsectoralsoexperiencedthelargestdecreaseininvestment,afallof83percentbetween2018and2019.In2021,thisfallincreasedfurther,leadingtoan85percentdecreasesincethe2018level.InthefirstquarterreachingUS$1.2billion.Thisisnotsurprising,giventheexcessiveincreaseindemandformedicaldevicessuchasPPEsuits,ventilators,oxygenmasksandlatexgloves.Thedecreasein2020couldbeexplainedbytherethinkingofsupplychains.However,essubsectorsawasmallerdecreasein2021andanincreasein2022.Intheshortterm,contractionsininvestmentinthissectorarealreadybeingreversedbyanincreaseindemandformedicalequipment,asdevelopedcountriessetuptheirfactoriesformanufacturingmedicaldevices.Investmentinthissectorisalsosettoincrease,givenarapidlyexpandingmiddleclassandanageingpopulationinseveralAsiancountries.Investmentsinthissubsectorarealsoseenasimportantinthecontextoffuturepandemicsandsimilarinvestments,asannouncedbythepharmaceuticalsector,toensurethatregionalmarketdemandformedicaldevicesismetinthefuture(box1).BoxInvestmentsinincreasedpreparednessforfuturepandemicssolutions,isestablishingavaccineproductionsiteinSingapore.TheUS$448millionprojectwillsupplyAsia,withoperationscommencinginthefirstquarterofSingapore–Germany-basedBioNTech,abiotechnologycompany,planstoestablishanmRNA-basedvaccineandtherapeuticsmanufacturingfacilityinSingaporeby2023,toserveregionalandglobalsupply,withanannualproductioncapacityofseveralhundredmilliondoses.ofCyprus-basedR&DBiocogencyLaboratories,issettoestablishajointventurewiththePharmaceuticalIndustryDevelopmentAgencyofUzbekistantoestablishamedicinefactoryintheTashkentPharmaPark,Uzbekistan.TheUS$82millionprojectwillbecompletedin2025andwillservethedomesticmarket.hepharmaceuticalssectorapriorityinvestmentsector,providingincentivestoattractIaccordingtotherespectiveIPAwebsitesChina–Cytiva,aprovideroftechnologiesandservicesforthedevelopmentandmanufactureoftherapeuticsandasubsidiaryofUnitedStates-basedDanaher,willexpandoperationsatitsmanufacturingplantinChina.Itispartofthefirm'sUS$500millioninvestmenttoexpandits13manufacturingfacilitiesgloballyandcreate1,000newjobsacross10sitesinAustria,China,Singapore,Sweden,SwitzerlandandtheUnitedStatesby2025.TheexpansionwillhelpCytivatomeetgrowingglobaldemandforitsproducts,partlyasaresultofthecoronaviruspandemic.Source:fDiMarkets.InvestmentinthebiotechnologysubsectorinAsiaandthePacificwasatitspeakin2009,beforeacontinuedandsharpdecreaseuntil2012followingtheglobalfinancialcrisis.In2012,investmentswereattheirlowestinthissubsectoratUS$0.2billion.Sincethen,however,inwardinvestmentbeganrising,andreachedUS$2.1billionin2018.Thepandemiccausedanexpecteddecreaseininvestmentinthesubsectorin2019,butunlikealltheothersubsectors,thebiotechnologysubsectorsawanuptickininvestmentin2020and2021withUS$1.3billionininvestmentsin2021.Thebiotechnologysubsectoristheprimarydriverofinnovationinthehealthsector.Itsresilienceduringthepandemicshouldnotcomeasasurprise,astheracetounder-standinganddevelopingtreatmentsforthevirushasledtoanincreaseintheastheworldmovestowardsfurtheradvancesindigitaltechnologies,particularlydigitalhealthtechnologies.Althoughin2021,investmentsinthissectorfellcomparedto2020,andinthefirstquarterof2022investmentinthissubsectoronlyreachedUS$55million,theslow-downcouldbejustifiedbythefocusonmanufacturingmorevaccinesinsteadofdevelopingnewones.However,withtheslowdowninthecoronaviruspandemic,thefocuscouldshifttowardspreparingforfuturepandemics,leadingtonewinvestmentsinthebiotechnologysectorfornewervaccinesandmoreinnovation.Finally,thehealth-caresubsectorduringthisperiodreceivedthelowestamountofinwardinvestmentintheregion.Itwasatitspeakin2014,attractingUS$2.2billionieldinvestmentbuthassincerecordedasteadydeclineexceptforasmallincreasein2018whenitattractedUS$0.6billionworthofinvestments.Between2014and2021,investmentinthissectorsawadecreaseof99percent,whichisnot13million).However,investmentin2021wasmorepromising,withanuptickreachingclosetoUS$60million.Thehealth-caresectorfacesthehighestamountofFDIrestrictionsthataimtopreventcrowdingoutofsmallerdomesticfirms.However,asthepandemichasexposedthefaultlinesinthecurrenthealthsystem,withshortagesnotjustofmedicalequipmentbutalsoofmedicalservices,investmentinhealth-careservices,includingeducationandtraining,isgoingtobecomeanimp