| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: Singapore's output in biomedical sciences industry more than tripled between years 2000 and 2009 to about S$21 billion.
During that period, the sector grew by a compound annual rate of 14 percent, said the Economic Development Board (EDB).
Compared with 2008, output rose about 2.5 percent last year despite the economic recession.
2009 was a rough year for many sectors, but the biomedical sciences industry still pulled in investments.
Among them, names like GlaxoSmithKline, Medtronic and Lonza increased their presence in Singapore.
Singapore is now home to 40 global companies with over 50 plants focusing on biomedical sciences manufacturing.
The EDB said total fixed asset investment amounted to about S$1.2 billion last year, with total business spending of S$700 million. Together, they contributed S$1.3 billion in value add to Singapore's economy a year.
Despite the bright outlook, there are challenges.
Julian Ho, EDB's assistant managing director, said: "The industry is going through some upheavals with some overcapacity in the biopharma or the pharmaceutical industry. In that regard, pharmaceutical output growth will probably moderate and investments will also be moderating. The patent cliff that we talked about....many products will go off patents in the global industry and that will affect Singapore."
But EDB is still confident of meeting its output target of S$25 billion for the biomedical sciences sector by 2015.
This year, EDB expects output to increase 5 to 10 percent over 2009, as more manufacturing plants come on stream.
Medical technology is seen as a growth segment. EDB expects rapid growth in the medtech segment, which contributed S$3 billion to the biomedical manufacturing output in 2009.
The remaining S$18 billion came from the pharmaceutical segment.
Alvin Liew, economist at Standard Chartered, said: "They need to move up the value chain and that requires things like research and development, and also to develop into different areas like medical technology.....ride on our expertise within the precision engineering and using that kind of skills and apply them to medical technology."
Economists said there is more upside to the biomedical sciences industry in view of the ageing population and higher demand for medical care.
They said growth in the sector is also unlikely to be derailed by short term challenges, barring another credit crisis which could put a squeeze on funding.
Going forward, observers said some key issues include attracting more skilled talent and getting Singapore companies to step up and be champions of the industry.
To that end, EDB said it hopes to have a fair share of local companies in the industry in the next 5 to 10 years.
- CNA/ir
|
