Singapore’s pharmaceutical market is expected to increase from $903m in 2016 to $1.15bn in 2021 in value, representing a compound annual growth rate of approximately 5%, according to a report by GlobalData.
Titled ‘CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Singapore’, the report states universal access to health insurance schemes and world-class biomedical sciences research facilities to be the main factors driving Singapore’s healthcare market.
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Despite a smaller population compared to other developed countries, Singapore ranked fourth globally in 2010 for its healthcare infrastructure.
It has also emerged as a regional hub for manufacturing and R&D activities for several multi-national pharmaceutical companies, states Sama Khan, Healthcare Analyst at GlobalData. The country boasts of several medical technology hubs, including MedTech, Biopolis and Tuas Biomedical Park, where pharmaceuticals and medical devices are developed.
Furthermore, Singapore ranked first in the 2016 Business Environment Risk Intelligence (BERI) among 50 countries. A pro-business corruption-free environment with strong government support, low labour costs and low corporate tax has created a favourable environment for pharmaceutical companies.
The Singapore Government also provides universal healthcare coverage. The per-capita expenditure on health increased from $1,656 in 2009 to $2,752 in 2014 and is expected to increase further due to a growing elderly population.
A favourable economic environment, efficient healthcare infrastructure and increasing public healthcare expenditure will drive the market growth in the future, Khan adds.
