Mr S Iswaran at the Launch of the MedTech Industry Transformation Initiative (MITI)

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SPEECH BY MR S ISWARAN, MINISTER (PRIME MINISTER’S OFFICE), SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY, AT THE LAUNCH OF THE MEDTECH INDUSTRY TRANSFORMATION INITIATIVE (MITI) ON FRIDAY, 27 SEPTEMBER 2013, 1000HRS, EMPLOYMENT AND EMPLOYABILITY INSTITUTE (e2i)

Mr Goh Eng Ghee, Acting Chief Executive, Singapore Workforce Development Agency 

Mr Gilbert Tan, CEO, Employment and Employability Institute (e2i)

Ms Joanne Cham Hui Fong, Assistant Secretary-General, National Trades Union Congress (NTUC)

Distinguished Guests 

Ladies and Gentlemen

 Good Morning. I am pleased to join you today for the launch of the MedTech Industry Transformation Initiative, or MITI.

Introduction 

2          With growing affluence and longer life expectancies, coupled with greater options afforded by advancements in technology, the healthcare spending in the Asia-Pacific region is growing rapidly.  According to the Economist Intelligence Unit, healthcare spending in Asia stands at US$1.5 billion in 2012.  It has grown 9.5 per cent annually over the last five years, and is expected to grow at 7.2 per cent over the next 5 years, outpacing the world’s healthcare spending over the same period.  The demand for quality medical products has grown, and will continue to grow, in tandem.

3          Medical products, such as stents and hearing aids, can make a profound difference in a person’s quality of life.  Hence, it is not surprising that the demand for high-quality medical products has been on the uptrend.  Singapore has been able to participate in the growth of this sector through a well-established MedTech manufacturing base supplying a range of medical products for global markets.  Over the last 10 years, Singapore’s MedTech industry has doubled its employment to almost 10,000 workers, and more than doubled its manufacturing output to $4.3 billion in 2012.  Looking ahead, the growing middle class, ageing population and rising incomes in Asia will continue to drive regional demand for quality medical products, and provide further growth opportunities for our MedTech industry.

Sustaining competitiveness

4          While the industry outlook remains positive, Singapore faces increasing competition as countries with lower cost structures build up their MedTech industries. For the Singapore MedTech industry to remain globally competitive, we need to differentiate ourselves in terms of innovation, quality and value.  We also need to up-skill the jobs in our MedTech industry to meet the aspirations and maximise the potential of an increasingly well-educated Singapore workforce, and to ensure that the growth of this sector is sustainable.

The MedTech Industry Transformation Initiative (MITI)

5          The Government is committed to work in partnership with the MedTech industry to ensure its sustainable and inclusive growth.  This can be achieved through process and job redesign to improve productivity.  With an increased value of output created by each employee, companies can in turn offer better wages to their employees.  MITI, which we are launching today, is one such partnership in this regard.  It provides a comprehensive incentive package to support the transformation efforts of MedTech companies in three aspects.

6          First, MITI supports companies’ efforts to review and redesign their work processes, as well as human resource practices such as job scope and progression pathways.  Second, MITI supports the acquisition and installation of hardware or software, such as automation tools or machinery, to reduce the man-hours spent on labour-intensive tasks.  Third, MITI supports the training or re-training of their employees to help them work effectively in their redesigned jobs, or take on new or additional responsibilities.

7          I am pleased to announce that the Employment and Employability Institute (or e2i) and the Workforce Development Agency (or WDA) will set aside $10 million over the next two years to fund MITI in support of this effort. 

Unveiling the Early Adopters of MITI

8          I would like to commend Baxter Healthcare, Becton Dickinson and Edward Lifesciences for taking the lead to participate in this initiative.  Baxter Healthcare, Becton Dickinson and Edward Lifesciences are major MedTech players in Singapore, collectively employing about 40 per cent of the workforce in the industry.  These three companies will be signing a Memorandum of Understanding (MoU) with e2i, WDA, as well as key partners in the industry today.  This MoU is a symbol of their strong commitment to MITI, and to ensuring the long-term competitiveness of their operations in Singapore and their status as employers of choice.

9          I am encouraged by the enthusiasm and commitment shown of all the parties involved in MITI.  This collective endeavour will certainly help to transform the industry, make our businesses more competitive, and bring significant benefits to our workers across the sector.  I would also urge more companies to come on board and join this initiative so that, together, we can take the Medtech industry in Singapore to greater heights.  Thank you.