Speech by Mr Lee Yi Shyan Minister of State for Trade & Industry and Manpower at the Official Launch of MedTech Manufacturing 2010 on 18 March 2010 at Suntec Singapore Level 2 Ballroom at 9:30am
Dr Ricky Souw, Chairman of the Singapore Precision Engineering & Tooling Association (SPETA),
Distinguished Guests,
Good Morning.
I am delighted to join you today for the launch of the inaugural MedTech Manufacturing 2010 Exhibition.
Bright Outlook for Global MedTech Sector
The long-term prospects for the global medical technology (or MedTech) industry look promising. A recent industry report[1] revealed that the industry has fared better, and has shown greater resilience compared with most other industries during the global economic downturn. Despite the recession, the revenue of American and European MedTech companies fell by less than 1 per cent in the first half of last year, compared to the same period in 2008.
Another survey[2] showed that more than 70 per cent of global medical devices companies are optimistic of their industry outlook for this year. This is a significant improvement from 2009, when only about half were hopeful of the sector’s prospects.
Looking to Asia for Growth
With a growing ageing population, rising affluence and lower costs, Asia presents a viable window of opportunity for MedTech companies. In this regard, Singapore has been the choice Asian base for global MedTech companies such as Baxter International, Becton Dickinson, Edwards Life sciences, and Siemens Medical Instruments. These MNCs chose Singapore for our close connectivity to high-growth economies such as China, India and ASEAN, our ease of doing business, strong IP and legal structure, and a highly-skilled workforce.
Singapore’s MedTech Industry – Key Sector of the Economy
As announced by EDB yesterday, Singapore’s MedTech sector is one of the fastest growing sectors in our economy. Last year, Singapore’s MedTech sector contributed more than S$3 billion in manufacturing output and about 8,300 jobs. And supporting this sector are our precision engineering companies, which are amongst the best cost manufacturing suppliers in Asia.
To meet the needs of their global MNC customers, our Singapore-based manufacturers constantly seek to enhance their capabilities to meet international standards in high-end precision manufacturing. Some are also involved at the start of the design and R&D stage. Others offer value-added advice on materials usage and design, while maintaining a high standard of IP protection for their customers.
Productivity and Moving Up the value Chain
As the global economy starts to recover, Singapore’s renewed focus on Productivity will serve our companies well. This national effort will help bolster our companies’ drive for greater efficiency and competitiveness, and help them stay ahead of the competition.
Productivity is not just about workers, more equipment and efficient processes. It is also about finding new ways for the whole enterprise to create more value, in other words, become more productive. An example of a company which has successfully moved up the value chain is CEL Coatings. Originally serving the HDD & Electronics industries, CEL Coatings has successfully diversified into higher value industries such as MedTech. The company currently provides coating services for high-end guide-wires using a newly-developed Teflon coating. By developing niche process capability, the company has enabled its workforce to engage in high-mix low-volume production, thus generating higher revenue with their resources.
Support for Singapore MedTech Companies
CEL Coating’s endeavors is representative of the MedTech industry’s constant efforts to upgrade and expand its capabilities. And there are various government initiatives to help them ride the next wave of growth. SPRING Singapore’s MedTech Capability Development Programme helps companies upgrade their capabilities in producing medical tool components, and developing new medical products. To-date, 22 projects have been supported grossing a cumulative value-add of S$200 million. A*STAR’s Biomedical Engineering Programme brings together clinicians and engineers to develop cost-effective and innovative solutions for healthcare systems. The programme awarded S$20 million to 8 research projects recently, and another S$10 million has been set aside for future projects.
IE Singapore also helps our MedTech companies internationalize though the International Partners, or iPartners programme. This programme helps our MedTech companies form alliances to bid for larger overseas projects, offering higher value one-stop shop service to their MedTech customers.
Today, four companies led by PLC Industries Pte Ltd, will ink a Memorandum of Understanding on their commitment towards forming the SG-Ophthalmic & Biomedical Consortium to serve the contact lens industry in US and Europe. I wish them the very best in their new venture.
Medtech Manufacturing 2010, MedTech Manufacturing Conference 2010 & GATE 2010 MedTech
This MedTech Manufacturing 2010 Exhibition that is being launched today is yet another opportunity for our MedTech companies to showcase their latest innovations, services and solutions. We are off to a good start with over 50 companies exhibiting at this inaugural event.
It is a welcome addition to the annual MedTech Manufacturing Conference and the business matching event known as the Global-Asia Trade Exchange (GATE) MedTech. Both events continue to provide opportunities for companies spanning the MedTech value chain to network. The conference will also discuss key industry issues such as business and market intelligence, and challenges in R&D expertise.
Conclusion
I would like to conclude by encouraging our local MedTech industry to continue with its efforts to upgrade capabilities and move up the value chain. On that note, I wish all of you here today a fruitful time at this event.
Thank you.
Distinguished Guests,
Good Morning.
I am delighted to join you today for the launch of the inaugural MedTech Manufacturing 2010 Exhibition.
Bright Outlook for Global MedTech Sector
The long-term prospects for the global medical technology (or MedTech) industry look promising. A recent industry report[1] revealed that the industry has fared better, and has shown greater resilience compared with most other industries during the global economic downturn. Despite the recession, the revenue of American and European MedTech companies fell by less than 1 per cent in the first half of last year, compared to the same period in 2008.
Another survey[2] showed that more than 70 per cent of global medical devices companies are optimistic of their industry outlook for this year. This is a significant improvement from 2009, when only about half were hopeful of the sector’s prospects.
Looking to Asia for Growth
With a growing ageing population, rising affluence and lower costs, Asia presents a viable window of opportunity for MedTech companies. In this regard, Singapore has been the choice Asian base for global MedTech companies such as Baxter International, Becton Dickinson, Edwards Life sciences, and Siemens Medical Instruments. These MNCs chose Singapore for our close connectivity to high-growth economies such as China, India and ASEAN, our ease of doing business, strong IP and legal structure, and a highly-skilled workforce.
Singapore’s MedTech Industry – Key Sector of the Economy
As announced by EDB yesterday, Singapore’s MedTech sector is one of the fastest growing sectors in our economy. Last year, Singapore’s MedTech sector contributed more than S$3 billion in manufacturing output and about 8,300 jobs. And supporting this sector are our precision engineering companies, which are amongst the best cost manufacturing suppliers in Asia.
To meet the needs of their global MNC customers, our Singapore-based manufacturers constantly seek to enhance their capabilities to meet international standards in high-end precision manufacturing. Some are also involved at the start of the design and R&D stage. Others offer value-added advice on materials usage and design, while maintaining a high standard of IP protection for their customers.
Productivity and Moving Up the value Chain
As the global economy starts to recover, Singapore’s renewed focus on Productivity will serve our companies well. This national effort will help bolster our companies’ drive for greater efficiency and competitiveness, and help them stay ahead of the competition.
Productivity is not just about workers, more equipment and efficient processes. It is also about finding new ways for the whole enterprise to create more value, in other words, become more productive. An example of a company which has successfully moved up the value chain is CEL Coatings. Originally serving the HDD & Electronics industries, CEL Coatings has successfully diversified into higher value industries such as MedTech. The company currently provides coating services for high-end guide-wires using a newly-developed Teflon coating. By developing niche process capability, the company has enabled its workforce to engage in high-mix low-volume production, thus generating higher revenue with their resources.
Support for Singapore MedTech Companies
CEL Coating’s endeavors is representative of the MedTech industry’s constant efforts to upgrade and expand its capabilities. And there are various government initiatives to help them ride the next wave of growth. SPRING Singapore’s MedTech Capability Development Programme helps companies upgrade their capabilities in producing medical tool components, and developing new medical products. To-date, 22 projects have been supported grossing a cumulative value-add of S$200 million. A*STAR’s Biomedical Engineering Programme brings together clinicians and engineers to develop cost-effective and innovative solutions for healthcare systems. The programme awarded S$20 million to 8 research projects recently, and another S$10 million has been set aside for future projects.
IE Singapore also helps our MedTech companies internationalize though the International Partners, or iPartners programme. This programme helps our MedTech companies form alliances to bid for larger overseas projects, offering higher value one-stop shop service to their MedTech customers.
Today, four companies led by PLC Industries Pte Ltd, will ink a Memorandum of Understanding on their commitment towards forming the SG-Ophthalmic & Biomedical Consortium to serve the contact lens industry in US and Europe. I wish them the very best in their new venture.
Medtech Manufacturing 2010, MedTech Manufacturing Conference 2010 & GATE 2010 MedTech
This MedTech Manufacturing 2010 Exhibition that is being launched today is yet another opportunity for our MedTech companies to showcase their latest innovations, services and solutions. We are off to a good start with over 50 companies exhibiting at this inaugural event.
It is a welcome addition to the annual MedTech Manufacturing Conference and the business matching event known as the Global-Asia Trade Exchange (GATE) MedTech. Both events continue to provide opportunities for companies spanning the MedTech value chain to network. The conference will also discuss key industry issues such as business and market intelligence, and challenges in R&D expertise.
Conclusion
I would like to conclude by encouraging our local MedTech industry to continue with its efforts to upgrade capabilities and move up the value chain. On that note, I wish all of you here today a fruitful time at this event.
Thank you.
[1] Ernst and Young - Pulse of the industry: medical technology report 2009.
[2] Survey by Emergo Group, a medical device consulting and research firm