The Pharmaceutical Market: Singapore

Singapore is ranked among one of the most open economies in the world, and remains a popular destination for companies using the country as a trading base for the South East Asian region. Incentives such as low corporate tax rates and strong intellectual property laws enabled Singapore to secure S$932.4 million (US$618.7 million) in commitments to invest in the biomedical manufacturing industry (pharmaceutical and medical devices) in 2007 alone. These investments have grown strongly each year but recent economic events could result in negative growth in the future.

as strong as Singapore's economy is in Asia, let alone the world, the fact remains that it is an export driven one, and the slowdown has already taken its toll on the manufacturing sector. This will inevitably result in a further contraction of growth in pharmaceutical output in the short term at least.

More recent data show a sharp decline in production, with the Economic Development Board (EDB) reporting a 30.6% decline in biomedical output (this includes both pharmaceuticals and medical devices) in October 2008, compared to the year before. More worryingly for these domestic manufacturers, it was the biomedical sector that led the decline in manufacturing during the period in question.

Business opportunities in Asian pharmaceutical markets are very different from a few years ago. The traditional tiger economies, characterised by economic growth, free market environment, developed industry and investment in health and health infrastructure have had a long haul back from the financial instability and economic downturn in the 1990's.