Singapore - Government optimistic about growth in medtech sector

SINGAPORE: Singapore's medical technology sector continues to show strong growth despite the uncertain global outlook. The sector grew by 12 per cent last year, and prospects ahead look bright.

Manufacturing output from the sector has grown from S$1.5 billion in 2000 to S$4.3 billion last year.

The new MedTech Hub was launched on Thursday by Trade and Industry Minister Lim Hng Kiang. He said the government is optimistic about the long-term prospects of the medtech industry.

The global medtech industry is expected to grow at a rate of 10 per cent per annum. Today, it accounts for about S$423 billion in annual revenues globally.

"Asia Pacific is the fastest growing medtech market, and it is expected to account for a quarter of the global market share by this year. An ageing population, a prevalence of chronic diseases and the growing affluence of its middle class have collectively led to an increase in demand for high quality medtech products," said Mr Lim.

The MedTech Hub is expected to help attract more global companies to set up in Singapore. It will host a cluster of medtech companies such as manufacturers, suppliers, service providers and shared utilities, all in one location.

Manohar Khiatani, CEO, JTC Corporation, said: "Companies in the 7.4-hectare MedTech Hub will be able to enjoy cost savings through minimal retrofitting cost, supply chain efficiencies and sharing of common facilities which include sterilisation facilities and specialised logistics."

Biosensors International Group is the first company to book a spot at the new hub, pumping S$76 million into a new plant there.

Biosensors currently has two manufacturing facilities in Singapore - one in Kaki Bukit and another in Kallang. The company expects to move all these operations to its new building at the MedTech Hub by the end of 2014.

Jack Wang, president and CEO, Biosensors International Group, said: "Our business is doing well and expanding fast, (and) that is the reason why we are looking for new space to expand."

All in, medtech companies in Singapore currently provide 9,000 jobs, which represent over 60 per cent of the total number of jobs in the biomedical sciences cluster.

- CNA/cc

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