Speech By MOS Koh Poh Koon at the Opening Ceremony Of Medtronic Asia Pacific Headquarters at Mapletree Business City Phase II

Excellencies

Mr Robert White, Senior Vice President and President, Asia Pacific, Medtronic

Distinguished guests,

Ladies and gentlemen,

Good morning.

Introduction

1.           I am pleased to join you this morning at the opening of Medtronic’s new Asia Pacific (APAC) Headquarters. This event marks a significant milestone in Medtronic’s growth in Singapore, and testifies to Medtronic’s commitment to address healthcare needs in Asia Pacific.

Medtronic and Singapore have enjoyed a growing and fruitful partnership.

2.           Medtronic and Singapore have enjoyed a growing and fruitful partnership over the years. In 2009, Medtronic established its first-in-Asia Cardiac Rhythm Heart Failure (CRHF) manufacturing facility in Singapore. This facility produces implantable medical devices such as pacemakers and leads, which are subjected to the most stringent regulatory standards, for global customers. Medtronic has also been working closely with our Singapore-based suppliers, including Univac, Intricon and Heraeus, to upgrade their capabilities to supply to the highly regulated and high value-add implantables segment. The manufacturing facility in Singapore currently employs 400 people, and has shipped more than 1 million units of pacemakers and leads globally. I am pleased to note that Medtronic will be introducing new products to be manufactured in Singapore, including next-generation magnetic resonance imaging (MRI)-safe pacemakers and cardiac monitoring devices.   

3.           Medtronic has also expanded its commercial activities in Singapore. The new APAC Headquarters will support about 80 locations across Asia and oversee one of Medtronic’s four major business regions, which accounts for about US$2 billion or 10% of the company’s global revenues. The APAC Headquarters will also house Medtronic’s Global Centre of Excellence (CoE) for Business Model Innovation, which aims to pilot and scale novel healthcare solutions and business models across the region.

4.           Medtronic’s effort to position itself for new healthcare solutions and business models parallels Singapore’s efforts to constantly renew our economy. The Committee on the Future Economy (CFE) is our latest national effort to envision new pathways and develop strategies to position Singapore’s economy well for the future. Healthcare is one of the growth sectors that the CFE is actively exploring.

Healthcare is a growth sector for Singapore, and we are committed to partnering industry to seize opportunities from evolving healthcare paradigms.

Ageing populations and rising healthcare costs are driving new healthcare paradigms.

5.           These developments are taking place amidst exciting global trends for the healthcare industry. For instance, ageing populations are a key challenge for healthcare systems globally. While Asia has a fairly young and growing population, the number of seniors aged 65 and over is expected to triple from 6% in 2000 to 18% by 2050.[1] Singapore is also ageing at one of the fastest rates globally – by 2030, the proportion of seniors aged 65 and over is estimated to reach one-fifth of our population[2].

6.           Ageing populations will drive greater demand for healthcare. For instance, global healthcare spend is predicted to grow at 5.2% annually, with Asia being one of the regions with the highest growth rates[3].

7.           These trends have resulted in a fundamental shift in healthcare systems towards a patent-centric and value-based approach. This new paradigm creates opportunities for the healthcare industry, such as developing solutions that address the entire care continuum.

Singapore will support the industry to capture new opportunities through fostering partnerships.

8.           The government will actively foster partnerships between industry players, as well as between the public and private sectors, to capture these opportunities. Such collaborations will enable different stakeholders to combine their perspectives and capabilities to achieve their desired outcomes. Creating value and catalysing effective industry transformation through such partnerships is also a key focus of the Industry Transformation Programme, which was announced recently at the Budget.

9.           In this regard, I would like to congratulate Medtronic on your upcoming Memorandum of Understanding (MOU) with SingHealth to develop a Centre of Excellence in the treatment of diabetes across Southeast Asia. Most of you will be aware that diabetes is a serious health issue for Singapore. This partnership is aligned with our vision for Singapore to partner industry to develop, pilot and scale new models of preventive and value-based treatments to capture new opportunities, while addressing our national needs.

Conclusion

10.       In closing, I am confident that this new Asia Pacific (APAC) Headquarters will support Medtronic's continued growth in the region. I wish the Medtronic management and team every success in the coming years.

[1] Source: http://www.eastwestcenter.org/fileadmin/stored/misc/FuturePop08Aging.pdf

[2] Source: National Population and Talent Division, Prime Minister’s Office

[3] Source: Deloitte 2015 Global Healthcare Report