Medical cost growth across the Asia Pacific (APAC) region is projected to slow to 9.7% in 2027, according to a report by Aon. However, Singapore is expected to experience an increase in healthcare cost pressures, with its medical trend rate rising from 13.0% in 2026 to 14.7% in 2027. This contrasts with Malaysia, where the rate is anticipated to decrease from 16.0% to 14.7% over the same period.
The report highlights that, despite a regional moderation, APAC’s medical costs are still expected to rise nearly four times the forecast inflation rate of 2.5%. Singapore and Hong Kong are noted as exceptions to the broader trend of slowing growth in the region. Cardiovascular disease remains the leading driver of medical claims, followed by respiratory conditions and cancer.
Employers are increasingly adopting wellbeing programmes, plan design changes, and flexible benefits to manage rising healthcare costs.
As medical trend rates hold steady or decline in major markets, the global average is expected to reach 9.0% in 2027. However, structural pressures such as chronic disease and ageing populations continue to drive costs, necessitating proactive, data-led approaches to cost management.
