Singapore has ample space for more global pharmaceutical and medical technology companies and the Economic Development Board (EDB) is anticipating prospects for further investments in the sector.

Despite the recent dip in figures in biomedical output, EDB is hopeful that research-focused initiatives here will help Singapore gain an edge over other locations in the region.

EDB is looking at a 5 to 10 per cent increase in biomedical production this year.

Beh Kian Tiek, EDB’s biomedical sciences director enthused: “There is potential yet for the 40 biomedical companies with more than 50 plants here now to grow operations further.”

“The opportunity for the health economy is large, and the base we're building here is attractive as Asia becomes more important to many of these companies,” he said.

So far, 30 biomedical players their regional headquarters here, including eight of the top 10 global pharmaceutical and biotech players.

GlaxoSmithKline's spokesman for Singapore agrees: “The Asia-Pacific economy is growing rapidly above the worldwide average. The healthcare spends, as a percentage of GDP is still very low. It is very likely that there will be more investment in healthcare over the next few years.”

Thanks to a high compliance standard and quality workforce, manufacturing investments are continuing to stream in for the sector.

A recent example is Pfizer’s move to invest US$100 million to raise the capacity of its nutrition plant here by 50 per cent while GSK Biological opened its first primary vaccines manufacturing plant here last June.

This manufacturing plant is GSK Biological’s first in Asian and production starts next year.

Mr James Nuben of Rikvin Consultancy said: “Singapore not only provides first-class facilities for the pharmaceutical and biomedical sector, we have a competitive workforce to go along with the facilities. Singapore is an ideal place over other Asian locations for such set ups.”

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Roche, has also moved from initial start-up and qualification phases into manufacturing mode at both its new facilities here this year and plans to bring in two additional products.

The Swiss drug giant is expecting its current headcount to grow from 380 to 400 by the end of the year.

However, the recent bulk of new investments have been focused on research and development, reflecting the key challenges that the global pharmaceutical industry is facing.

“The industry, as a whole, is suffering capacity overhang. To become more effective and efficient it will have to rationalise,” Mr Beh said.

Recent pharmaceutical moves such as Roche buying over Genentech, the Pfizer-Wyeth merger, and the Merck & Co and Shering-Plough merger, will naturally have an impact in Singapore.

In addition, chemical manufacturing will be phased out at Merck's site here as part of global restructuring.

Still, mergers can be good for Singapore, too, as the companies would shift more operations to Asia as they restructure.

“They will also look for more competitive locations. It's a timely reminder for us that the world doesn't stop for Singapore. We must constantly ask what we can do to help the industry, make sure we remain attractive to it,” he said.

“The companies constantly need new products for their pipeline and help with translational clinical research and more integrative research,” he said.

Mr Beh believes that Singapore’s Biopolis research base and natural population makeup are advantageous to companies looking to create products for an Asian market.

“While the costs of raw materials and utilities are an immediate concern, R&D productivity and innovation are a longer-term challenge which some companies have taken steps to address,” said GlaxoSmithKline’s spokesman.

Earlier this month, GSK and EDB jointly committed US$35 million for research on sustainable manufacturing processes in the pharmaceutical and fine chemical manufacturing sectors.

Roche had also said it has plans to link up with local research and medical institutions to setup a CHF$100 million (S$130.6 million) medical research hub.

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