It may be hard to believe, but there are some people out there with wide smiles during the Covid-19 pandemic.
Not because they are sadists who enjoy people suffering or anything, but because they’ve actually profited from this devastating outbreak.
And we’re not talking a few measly thousands, we’re talking billions here.
S’pore Richest Man Just got Richer by $5 Billion As His Company Make Healthcare Equipment
Singapore’s richest man, Li Xiting, just got a whole lot richer due to the surge in demand for medical equipment.
Xiting is the chairman of Shenzhen Mindray Bio-Medical Electronics Co, a company that makes health monitoring systems, defibrillators, anesthesia machines, infusion systems, and most importantly, ventilators.
Mindray’s shares have climbed 40% due to a global shortage in the life-saving devices.
A Crucial Device
Ventilators are crucial during the Covid-19 outbreak because it helps people breathe when they are not able to do so on their own.
Though most Covid-19 patients have mild symptoms, there are many who have suffered severe breathing difficulty due to the disease.
Thus, ventilators help to get oxygen into the lungs and body and get rid of carbon dioxide.
Numerous countries are scrambling to acquire more ventilators before they run out because they don’t want to end up with the nightmare situation that doctors in Italy have faced; having to choose who lives or dies because there aren’t enough ventilators for everyone.
Top Five Gainers
That’s why Xiting’s company is doing so well right now. Xiting, who is a Singapore citizen and the richest man in the country, added US$3.5 billion (S$5 billion) to his net worth this year and had a US$12.5 billion fortune as of end-Thursday, according to the Bloomberg Billionaires Index.
Now, he’s among the top five gainers in the world. Jeff Bezos – the world’s richest person – is up by US$3.4 billion, while Bill Gates is down US$15.3 billion, according to The Straits Times.
Increase in Orders from USA and Europe
Even though their ventilators didn’t have approvals in the US market until last month, the Food and Drug Administration authorized their use under an emergency rule designed to help ease the shortage.
This move has boosted the prospects of Mindray, according to The Straits Times.
The Chinese firm said orders from Europe especially have increased dramatically, with Italy purchasing the first batch of almost 10,000 pieces of equipment including ventilators and monitors.
Their board secretary, Li Wenmei, said that global demand is at least 10 times what’s available at hospitals – New York Governor Andrew Cuomo says the city is just six days away from exhausting its supply.
Now that’s scary.
Moreover, the Society of Critical Care Medicine estimates that 960,000 patients would need ventilator support in the US, but the nation only has about 200,000.
This explains the spike in the Chinese company’s earnings, not just from US purchases but from many countries all over the world.
Diamonds Are Not Forever
This boom won’t last, though, says Bloomberg Intelligence’s Lu.
She said that while the demand will grow for such breathing-support devices as societies age, it won’t match the scale seen during the Covid-19 pandemic.
“Sales will definitely drop after the outbreak.”
Xiting is only one of the few who have profited from the pandemic, however.
Singapore reported the biggest economic decline in a decade in the first quarter, and expects a severe recession for the year.
Yes, while one man swims in a pool of his money, many will have to worry about keeping their jobs during the Covid-19 crisis.
As my grandfather used to say whenever he refused to buy me ice cream: Life, son, isn’t always fair.
