Here's why Raffles should carefully watch currency weaknesses

It could shoo away foreign patients.

Singapore recorded a 7.8% growth in tourist arrivals in the past year, whilst January 2017 showed sustained momentum with a 4.8% year-on-year improvement. This is good news for Raffles Medical Group, as these figures point to a stronger medical tourism segment.

However, UOB KayHian said despite the firm tourist arrivals, Raffles should watch the currency weakness, especially with a strong SGD versus regional currencies such as the Malaysian ringgit and Indonesian rupiah.

Tourists in Indonesia and Malaysia account for a third of Raffles’ foreign patients.

"However, for RMG, the group has a large foreign-patient base from over 100 countries, which we believe could help RMG weather any weakness from several countries," UOB KayHian said.