1. Support growth of more efficient healthcare supply chains. Demand for affordable healthcare services in Asia is growing fast. Better supply chain performance will reduce cost, lead time and obsolescence and improve accessibility to markets, especially for smaller hospitals located away from major urban centers.
2. Expand awareness of best practices in supply chain management in the region. McKinsey & Co. estimates that supply chain expenses represent 25% of pharma and more than 40% of medical device costs. By adopting best practices from industries with more mature supply chains, the healthcare sector has the potential to significantly expand margins.
3. Support knowledge sharing and capacity building in the healthcare industry. As a distributor for many of the leading global healthcare suppliers, IDS Medical plays an important role in sharing updates on new products and technologies with its network of 10,000 customers. IDS Medical also provides training to its customers' staff on new products and equipment. This is especially important for the smaller hospitals in its network.

1. Global knowledge and network: IDS Medical will benefit from IFC's global healthcare sector expertise and network, as IDS Medical plans to expand to other emerging markets such as Cambodia and Myanmar.
2. Long-term capital: In line with IDS Medical and Fung Group's expressed preference for 1-2 sovereign wealth fund type investors, the Company will benefit from IFC's ability to provide long term capital and fund a substantial portion of the targeted investment amount.

This is Category B project according to IFC’s Policy on Environmental and Social Sustainability. The project is expected to have limited environmental and social impacts and none are expected to be significant. Operations typically consist of rented office space with limited storage facilities, maintenance of small equipment at some of the office locations and installation and maintenance of equipment at client facilities. Delivery of supplies occurs by small vehicles / trucks and this activity is outsourced. Thus potential impacts and risks associated with activities are limited. Key issues associated with the project include issues related to the management of human resources and ensuring the provision of quality products to clients.