II. Core Market Entry Strategy & Model Selection
To effectively manage the complexity and diversity of the Southeast Asian market, Jianpei Technology will adopt a "Hub-and-Spoke" Strategic Deployment Model.
2.1 Strategic Choice of the Hub-and-Spoke Model
2.1.1 Singapore: Governance, Compliance & R&D Center (The Hub)
Selecting Singapore as the regional headquarters and governance hub is a strategic necessity. Singapore offers a clear, robust, and highly mature regulatory environment for medical AI, including:
- Strict Personal Data Protection Act (PDPA)
- GL7 Guidelines specifically for AI-SaMD issued by the Health Sciences Authority (HSA)
Strategic Value
Centralizing core IP management, advanced algorithm maintenance, and regional regulatory compliance in Singapore achieves the following objectives:
| Objective | Description |
|---|---|
| Build Regional Trust | Obtaining rigorous HSA certification (GL7) provides a powerful endorsement for product acceptance in other SEA nations (Spokes) |
| Talent Optimization | While AI/ML engineer salaries in Singapore are high (avg S$153,200+ for seniors), centralizing high-end R&D avoids redundant investment across markets |
| Data Governance | Centralized management of regional data compliance ensures adherence to laws like the PDPA |
2.1.2 Indonesia: Scale, Localization & Spoke Hub (The Spoke)
Indonesia possesses the largest economy and population in Southeast Asia. Its national health insurance scheme (JKN, Jaminan Kesehatan Nasional) covers over 220 million people, driving massive demand for basic healthcare services.
Key Barrier: TKDN
In Indonesia, the primary hurdle to market entry is not pure technical compliance but localization requirements—TKDN (Tingkat Komponen Dalam Negeri, Local Content Requirement) regulations. This is a strictly enforced prerequisite for market entry; non-compliance results in exclusion from multi-billion dollar government procurement opportunities.
Solution: Operating through a local entity (PT PMA) for localized customization, data processing, and even system assembly is the key step to bypassing TKDN barriers and capturing public procurement opportunities.
2.2 Market Entry Phased "Wave" Plan
Jianpei Technology's entry plan should be divided into three phases, each with clear market targets, product focuses, and execution tasks:
| Phase | Duration | Target Markets | Main Tasks | Core Output |
|---|---|---|---|---|
| Phase I | 0-12 Mo | Singapore, Thailand | Establish regulatory baseline, set up regional HQ, launch core product PoC | HSA GL7 compliance docs, Thailand ICR appointment, Digital Cloud Film launch |
| Phase II | 12-36 Mo | Indonesia, Malaysia | Deep localization (TKDN), large-scale clinical partnerships, JKN integration; First Malaysia Sabah client launch | TKDN certification, PT PMA fully operational, Primary Care Intelligent Diagnosis system live; Full deployment of "Dr. Wood" at Sabah Hospital |
| Phase III | 36+ Mo | Philippines, Vietnam, Wider ASEAN | Regional platform expansion, data reuse, deepen regional distributor partnerships | Regional ecosystem built, AI models continuously optimized based on local data |
::: important Malaysia Priority Adjustment Given the clear potential for a large-scale hospital client in the Sabah region, the Malaysia market has been accelerated from Phase III to Phase II, serving as a priority market alongside Indonesia. See Malaysia Sabah Special Strategy. :::
2.3 Financial Model: Pivoting to consumption-driven pricing
Considering the price sensitivity of the SEA market and the urgent need for hospitals to cut costs, the traditional high-CapEx (Capital Expenditure) sales model for medical equipment will pose a major barrier.
Pricing Strategy Transformation
Traditional Model New Model
┌──────────────┐ ┌──────────────────────────────┐
│ Selling "AI Robots" │ → │ Cloud-based, Pay-per-use, or │
│ High CapEx │ │ Subscription (SaaS/PaaS) │
└──────────────┘ └──────────────────────────────┘Advantages of the New Model
| Advantage | Description |
|---|---|
| Lower Entry Barrier | Hospitals do not need expensive facility upgrades or massive staff increases |
| Immediate Value | Rapid realization of efficiency gains and cost savings |
| Market Penetration | Mitigates market access and infrastructure barriers in middle-to-low income countries |
| Primary Care Reach | Facilitates rapid adoption of AI solutions in primary care and public hospitals |
Change History
| Version | Date | Description | Author |
|---|---|---|---|
| 1.0 | 2025-12-16 | Initial Version | Gemini |
| 1.1 | 2025-12-16 | Accelerated Malaysia from Phase III to Phase II; Added link to Sabah (HUMS) special strategy | Gemini |