Singapore - Medical DevicesSingapore - Medical Devices

Overview

$US millions (total market size = (total local production + imports) - exports)
Data Sources: Singapore Government Trade Statistics

In March 2019, Newsweek magazine ranked the Singapore General Hospital as the third-best in the world, crediting the hospital’s clinical research and outstanding nursing care while in 2017, Singapore took the top position in progress towards the health-related UN Sustainable Development Goals and in the Global Innovation Index 2017. A 2016 report published by Lancet medical journal also placed Singapore in the top ranks for global healthcare, along with Iceland and Sweden and the World Health Organization (WHO) ranked Singapore’s healthcare system as sixth globally, offering the fourth best healthcare infrastructure in the world. 

Singapore spends 4.6% of its GDP on healthcare and provides universal coverage for Singaporeans with multiple layers of care. Singapore ranked second in the Bloomberg Healthcare Efficiency Index 2016 and is increasingly acknowledged for having achieved excellent healthcare outcomes at modest costs.  The Economist Intelligence Unit (EIU) also placed Singapore second in the world for best healthcare outcomes. Among its ASEAN peers, Singapore spends the most annually in healthcare on a per capita basis and this is expected to rise faster than GDP given the aging population and changes in demographics. 

Singapore serves as the healthcare and medical hub of the region and offers Asia’s best healthcare system. The Joint Commission International (JCI) has accredited 23 Singapore hospitals and healthcare facilities.  Each year, Singapore draws over 350,000 patients with its high-quality healthcare. Prominent international healthcare and research organizations such as the American Association for Cancer Research, Duke University, Healthcare Information and Management Systems Society, and JCI have established a presence in Singapore. The research institutes work with scientists here to accelerate drug discovery and develop therapies for unmet healthcare needs.

The government is very committed to Singapore’s healthcare needs, installing a long-term plan to raise GDP spending on healthcare to 8%, up from 4.6% currently. The National Health Expenditure is expected to rise to US$9.6 billion per year by 2020. Singapore has strong fundamentals in healthcare excellence, providing strong infrastructure and universal health coverage. This emphasis on quality care has enabled the country to achieve high life expectancies, fourth in the world, and the lowest infant mortality in the world. The challenge is it has one of the fastest aging populations in Asia, which will translate to a greater demand for specialized elderly care amid rising costs. 

In 2018, imports of medical equipment and supplies to Singapore increased by 8% over the previous year.  This corresponds with the increased spending associated with the establishment of new hospitals and healthcare facilities. As more healthcare facilities come on stream and are equipped, it is anticipated that there will be further spending on medical equipment and this will taper off as the hospitals and healthcare institutions come on stream. U.S. medical equipment and supplies accounted for 30% of market share in 2018 and this has stayed consistent over the last few years. 

Based on available trade figures for 2017, 2018 and to date, U.S. exports of medical equipment to Singapore are expected to decline by approximately 4% in 2019 as is expected of total imports, by approximately 6%.  This marginal decline is due to most new hospitals already being equipped and coming on stream, as well as the slowdown in the regional economies.  At present, more than 75% of products imported into Singapore are subsequently re-exported.

Medical devices are regulated under the Health Products Act and Health Products (Medical Devices) regulations. Singapore’s Health Sciences Authority (HSA) oversees the system of statutory control aimed to safeguard the quality, safety and efficacy of medical devices available in Singapore. Almost all medical devices are regulated. Class A medical devices supplied in a non-sterile state are exempted, however, Class A sterile, Class B, C, and D medical devices are subject to product registration requirements. Classification rules are adopted from the guidance developed by the Global Harmonization Task Force (GHTF).

ASEAN has been developing a uniform system for registering and assessing medical devices across the ten-member countries. Various ASEAN economies have started adoption of the ASEAN Medical Device Directive (AMDD). This requires ASEAN countries to adopt uniform classification criteria for medical devices.  This bodes well for U.S. medical device manufacturers as they will be able to easily access a common medical device market with a market size of more than 600 million people.  Adherence to the basic principles of the AMDD in ASEAN will likely only take place in the next few years.
 

Leading Sub-Sectors

Healthcare demand and spending will increase due to an aging population, heavier chronic disease burdens, advances in technology and rising expectations.  There will be three shifts in the Health Ministry and these are: Beyond Healthcare to Health; Beyond Hospital to Community; Beyond Quality to Value.

Statistics have shown a rise in incidents of diabetes in Singapore where approximately 8% of the population is diabetic. The Ministry of Health is looking to arrest this and will dedicate resources to combat this growing trend. There are currently more than 400,000 diabetics, costing Singapore over US$740 million yearly. This is expected to rise to US$1.8 billion if the trend is not arrested. A holistic approach encompassing regular health screenings, lifestyle changes and exercise will be adopted. Opportunities therefore exist for U.S. suppliers of health and wellness products.

The mandate of the Health Ministry is to deliver affordable healthcare, ensuring good medical outcomes, reducing illness and promoting good health and ensuring that the country is resilient against communicable disease threats and civil emergencies.  A US$5.6 billion budget was allocated to address infrastructure concerns in the short and long term, as well as healthcare provision and subsidies for the poor. The three key areas of focus are healthcare infrastructure, healthcare delivery and managing the associated costs and issues related to an aging population. This budget also includes larger subsidies for surgical implants, the treatment and management of chronic diseases, as well as funding programs to promote healthy lifestyle and active-aging programs. As a result, U.S. exporters of medical devices, preventive and health screening products and disease management solutions would be able to benefit.

The Singapore government also remains committed to ensuring that the national healthcare system keeps pace with global medical advancements. To keep up with advances in biomedical science and encourage the development of new clinical treatments for Singaporeans, the Ministry of Health, in partnership with A*STAR (Agency for Science, Technology and Research) and several other governmental bodies, will invest $53 million in clinical and translational research. Another US$10.6 million has been set aside for the development of new clinical services. The aim is to augment Singapore’s medical capabilities in the public healthcare system and position Singapore as the premier regional medical services hub. U.S. exporters who are able to provide cutting-edge technology, laboratory and testing equipment, and services for the healthcare and research communities, will find Singapore a lucrative market.

The elderly, categorized as those over 65 years, currently represent 10.7% of the total population, higher than all the other ASEAN countries. Within the next twenty years, Singapore will experience what is known as ‘hyper-aging.’ Over a quarter of the population will be 65 years and older by 2030.  As such, more facilities for the elderly, such as nursing homes and rehabilitation centers, need to be built. The demand for services such as geriatric medicine and rehabilitation medicine are expected to rise as is demand for homecare services. U.S. firms specializing in elder-care products and services will find a robust and growing market in Singapore.

Opportunities

A Bloomberg interview in December 2017 highlighted Singapore’s plan to embrace technology and focus on personal health, as an expected doubling of senior citizens over the next twenty years forces the island state to confront politically sensitive decisions on healthcare financing. Broadly speaking, the opportunities are in health IT solutions that focus on cybersecurity and the protection of data contained in electronic health records and data sharing. Others include personal health management, health screening, disease management, preventive care products, access to homecare resources and support and advanced technologies that would enable seamless and integrated healthcare.   

According to Frost and Sullivan, Asia Pacific’s healthcare market is estimated to contribute close to 33% of the global healthcare market and estimated to be valued at $521 billion, with trends in the medical device industry in Asia mainly centered on imaging, cardiovascular, blood pressure monitoring and healthcare IT.  A key driver for the Southeast Asian region is the impending liberalization of the services sector this year under the ASEAN agreement. 

Singapore is renowned for its role as a healthcare hub for the region, treating patients from neighboring Malaysia, Brunei, Indonesia, Thailand, Philippines, and more recently, from the Americas, Europe, and the Asia Pacific.

Government hospitals account for 80% of all hospital beds in Singapore while the private sector accounts for 20%. Under Healthcare 2020, over 4,000 new public hospital and community hospital beds will be added and the government is on track to fulfilling this. Currently, there were an estimated 12,000 hospital beds, equal to a rate of 2.2 beds per thousand people. Three quarters or 9,700 will come from the public sector with the private sector accounting for the rest. 

Demand for medical equipment comes from public and private hospitals and clinics. The Health Ministry is the largest consumer, accounting for nearly 70% of local demand. All public and the majority of private sector hospitals are Joint Commission International (JCI) accredited.  Parkway Hospitals Singapore, the largest private sector healthcare provider in Singapore, is also a significant buyer of medical equipment. More than 80% of local demand is met through imports and there is a premium placed on American-made products. U.S. manufacturers with innovative products will find Singapore a good market place.

Singapore will invest in primary care infrastructure such as polyclinics and community health centers. Digital technologies that focus on cybersecutiy and the protection of medical health records are of interest given the recent 2018 Singhealth medical health recrods data breach. This is especially important as the National Electronic Health Record (NEHR) project, launched nine years ago and valued at US$144 million, is close to becoming a reality with each citizen having his or her own electronic medical record.

Between now and 2025, parts of the Singapore General Hospital, to be renamed the Outram Campus and Community Hospital, will expand with major redevelopment of Singapore’s oldest and largest hospital set to take place from 2025 to 2035. The new National Cancer Center will be housed there. Over the medium term, five new public hospitals and up to twelve more polyclinics will be built by 2030 to ensure that Singapore has adequate healthcare coverage. New and replacement nursing homes are currently being built and will bring the total to 25 by 2020.  The National Centre for Infestious Disease opened in April 2019 a new 330-bed hospital for infectious disease to address the reality of increasinginfectious disease threats due to more global travel and increased connectivity. A key feature is its high-level isolation unit for treating high-risk pathogens and bio-threat agents. In addition, a new 12-story, US$135 million National Heart Center building, three times larger than the size of the existing one, is currently being built at the Singapore General Hospital and is scheduled for completion next year, in 2020. Other infrastructure projects include the Woodlands Health Campus and the existing Tan Tock Seng Hospital. These are scheduled to progressively come on stream between 2022 and 2036.

Web Resources

Trade Shows
Vitafoods Asia 2019
September 25-26, 2019
 
Asia Pacific Medtech Forum 2019
October 8-10, 2019

Asia Derma 2019
October 31 – November 2, 2019
 
Edercare Exhibition & Conference Asia 2019 (Eldex Asia)
November 8-10, 2019
 
Asia Health 2020
March 24-26, 2020

MEDLAB Asia Pacific 2020
March 24-26, 2020
 
International Dental Exhibition and Meeting 2020 (IDEM)
April 24-26, 2020


Singapore Government Offices
Singapore Ministry of Health (MOH)
MOH Holdings (MOHH)
Integrated Health Information System (IHiS)
Health Sciences Authority (HSA)
Health Promotion Board (HPB)
Agency for Integrated Care (AIC)
Singapore Economic Development Board (SEDB)

 

U.S. Commercial Service, Singapore Contact

Ms. Luanne Theseira, Commercial Specialist
Email: Luanne.Theseira@trade.gov