2. Speeches
Speech by Minister S Iswaran at the Joint Opening Ceremony of Medical Manufacturing Asia 2016 and Medical Fair Asia 2016
31 August 2016
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SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), AT THE JOINT OPENING CEREMONY OF MEDICAL MANUFACTURING ASIA 2016 AND MEDICAL FAIR ASIA 2016 AT 10.00AM ON 31 AUGUST 2016, MARINA BAY SANDS EXPO AND CONVENTION CENTRE
Mr Gernot Ringling, Managing Director of Messe Düsseldorf Asia,
Mr Jeremy Fong, Chairman of the Singapore Precision Engineering and Technology Association,
Excellencies, Distinguished guests,
Ladies and gentlemen,
Good morning.
Introduction
1. It gives me great pleasure to join you this morning at Medical Manufacturing Asia 2016 and Medical Fair Asia 2016.
Importance of the Medical Technology Sector
2. Medical technology (medtech) is an important growth sector for Singapore. From 2000 to 2015, our medtech manufacturing nominal value added grew from $0.8 billion, or 0.6% of GDP to $3.5 billion. This strong growth was made possible by three key factors. First, there is increasing demand for medtech products in Asia and around the world, driven by rising affluence in the region as well as ageing populations in many developed economies. Second, Singapore’s strength in related sectors such as precision engineering and pharmaceuticals has allowed our companies to move quickly into medtech and capture the opportunities that have emerged in this space. Third and significantly, the Government’s investment in research and development by the public sector has enabled the development of new and high-value medtech products. We are now seeing many new start-ups in the medtech space which are spin-offs from public research agencies and institutes of higher learning such as A*STAR, NTU and NUS.
3. Looking ahead, we expect the medtech sector to continue its strong growth. McKinsey estimates the medtech market in Asia-Pacific to grow to US$133 billion in 2020, from US$88 billion in 2015[1]. Coupled with Singapore’s branding as a trusted business hub for the region, we are well-positioned to participate in this wave of growth by strengthening our position as a gateway for medtech companies, both local and foreign, to access the growing markets in the region. Recognising this, global companies like Hill-Rom have established in Singapore their headquarter functions, and research and development facilities, such as the Respiration Care Development Centre and Patient Support Development Centre. Our home-grown medtech companies like Biosensors, which develops, manufactures and markets innovative medical devices for interventional cardiology and critical care procedures, are also making strides in international markets, such as the United States and Japan.
4. Singapore’s hosting of events such as Medical Manufacturing Asia 2016 and Medical Fair Asia 2016 enhances our value proposition for medtech companies seeking to enter the region. As the biggest medtech platform in Asia, the events showcase leading medtech technologies from Singapore and abroad, complementing other internationally established shows such as MEDICA[2] and the COMPAMED[3]. Indeed, today’s events have grown from strength to strength since their inception, with some 1,200 exhibiting companies from 45 countries this year.
Creating Value in our Medtech Sector
5. To meet the needs of customers in key markets, we need to ensure that our medtech sector continues to create value and develop innovative products. In that regard, the Government of Singapore is committed to investing in research and development in the medtech sector. Under the Research, Innovation and Enterprise 2020 Plan announced earlier this year, the health and biomedical sciences sector was allocated a budget of S$4 billion over the next five years, out of the total RIE2020 budget of S$19 billion. The funding will support research in five therapeutic areas, namely cancer, cardiovascular diseases, diabetes mellitus and other metabolic or endocrine disorders, infectious diseases, and neurological and sense disorders. It will also facilitate the translation of research into applications, and support our efforts in Food & Nutrition, Consumer Care and Health Services research.
6. Today, our medtech companies are achieving encouraging success in the global market. One example is InvitroCue, a bio-analytics company founded in 2012. InvitroCue uses A*STAR’s in-vitro cell based assay platform and imaging algorithms to help drug-makers determine which vaccines, products or devices are safe to use in humans. In the short span of 4 years, the company became A*STAR’s first publicly listed company in 2016, with its debut on the Australian Securities Exchange. InvitroCue successfully raised over S$3 million from its listing. The company has also begun the expansion of its cell-based laboratory facility in China.
Supporting our Medtech Sector through Collaboration and Development
7. The medtech sector is different from many other sectors in that there are high barriers to entry at many stages of its value chain. At the research and development stage, high barriers to entry arise due to long development timelines and strict regulations which are necessary to safeguard the testing of new devices, as well as the need to navigate the patents and intellectual property rights space. At the production stage, there are high barriers to entry arising from the need for highly specialised equipment to deliver the levels of precision required in the manufacturing process.
8. To help overcome these challenges, the Government of Singapore is providing support for our medtech companies in their development and collaboration efforts. At the product development stage, local medtech start-ups can apply for SPRING’s Technology Enterprise Commercialisation Scheme (TECS), which supports successful applicants for the development of new, innovative and potentially market-changing technology at the proof of concept and proof of value stages.
9. Neurostyle is one company which has benefited from TECS. The company has tapped TECS to develop one of their most innovative products, a Brain-Computer-Interface (BCI)-based Stroke Rehabilitation System, in collaboration with A*STAR’s Institute of Infocomm Research (I2R). The product can help improve motor-function recovery of post-stroke patients through synchronized brain and physical rehabilitation. Today, Neurostyle has grown from a small start-up to a company with distribution across ASEAN and the Middle East.
10. At the production stage, as technology continues to evolve and progress, the scale of devices is becoming more compact. This means that our medtech industry players need to continually retool to produce smaller devices and products, which demands ever-increasing degrees of precision in the manufacturing process. Our medtech industry players will also need to invest in production equipment that can be easily reconfigured to higher degrees of precision in order to keep up with rapid improvements in technology.
11. Fong’s Engineering and Manufacturing has transformed from a contract manufacturer mainly offering build-to-print manufacturing services, to a product developer of endoscope systems which focuses on research and development, and process development. Through its collaboration with the Singapore Institute of Manufacturing Technology (SIMTech), Fong’s Engineering successfully developed and commercialised a new endoscope system. Unlike the more common service provision business model of the industry, Fong’s Engineering’s unique value proposition today is its experience in designing and developing its own product line of flexible endoscopes. This shift in business model not only offers skilled jobs in the company for both existing and new staff, but also creates new opportunities for growth for the company.
12. Under EDB and SPRING’s Partnerships for Capability Transformation (PACT) programme, the Government also provides grant support for large organisations to work with local SMEs in the areas of knowledge transfer, supplier upgrading and development and test-bedding of innovative solutions.
13. One example is Univac, a precision engineering company offering a range of services from design, engineering, to manufacturing and fulfilment. It is currently targeting to support 20 medtech SMEs and start-ups at the onset of their product design and development phase, to increase the rate of success in later phases of prototyping, validation and market launch. Another example is Waters Technologies Corporation, a life sciences company offering a range of analytical system solutions, software and services for scientists. It is currently supporting 3 suppliers in the life sciences industry to move up the value chain and supply more high-value products or components. Over the next few years, the company aims to groom up to 9 suppliers. One such supplier is Delta Optics, a supplier of precision diamond-turned parts for medical products. The project with Waters required parts with very stringent quality and performance requirements. Without support from PACT, Delta Optics would have had to first invest heavily in new equipment, manpower and process development, with little certainty that it would eventually meet all of Waters’ requirements and be awarded the supply contract. Through PACT, Delta Optics was better prepared to take on this risky but potentially rewarding project.
Conclusion
14. Given the characteristics of the medtech sector, it is important for players in this space to come together to pool their expertise and strengths at various stages of the value chain. In that way, companies can leverage on one another’s strengths to bridge their capability gaps. This is where trade exhibitions like Medical Manufacturing Asia 2016 and Medical Fair Asia 2016 are especially relevant – they help to showcase the products and capabilities of various players in the medtech sector, so that interested parties can link up to capture new opportunities. I commend the Singapore Precision Engineering and Technology Association (SPETA) for co-organising Medical Manufacturing Asia 2016. Trade Associations and Chambers (TACs) are crucial partners in championing the business interests of their members, and I am heartened that TACs like SPETA are playing an active role to help members build up their capabilities and create opportunities to move the industry forward.
15. I wish you all a fruitful time at Medical Manufacturing Asia 2016 and Medical Fair Asia 2016, and to our foreign guests, we wish you a productive and memorable visit to Singapore.
16. Thank you.
[1] MedTech in Asia: Committing at scale to raise standards of care for patients, December 2015,
[2] MEDICA is the world’s largest event for the medical sector, with more than 40 years of history.
[3] COMPAMED is an internationally leading trade fair for the medical supplier industry and product development. This year, COMPAMED will be held in conjunction with MEDICA.