With research comes revelation
Fast-growing Asian markets present a panoramic window of opportunity for global medical technology (medtech) companies. As they seek to harness these markets, the industry needs to develop innovative products and solutions that can address the vast unmet healthcare needs of Asia's ageing population and fast-expanding base of sophisticated healthcare consumers.
Overview
Asia's fast growing healthcare market - and a series of win-win collaborations between international and Asian medtech companies - reflect the fact that the world is waking up to Asia as a potential hotbed for innovation. The demands of the region's ever-rising ageing population - and burgeoning middle-class - spell an ever-growing market for innovative and higher-grade devices.
Between now to 2050, Asia's ageing population is expected to dramatically increase by 314% - from 207 million to an eventual 857 million. With such an unprecedented pace of population ageing, governments in Asia face an uphill task in balancing economic growth and meeting the needs of their citizens - for both the younger generation and the elderly.
An ageing population in any country points to an imperative need for better healthcare facilities and services, which will not only meet the needs of the chronically-ill but also enhance the quality of living for those in their latter years. It is forecasted that Asia's healthcare market will grow from US$246 billion in 2009 to US$349 billion in 2012, presenting a prime market to tap into.
A 2008 research report from Swiss bank UBS found that Singapore is set to be the world's third-fastest ageing nation, with the proportion of those 65 and above doubling to 20% in 2020. The elderly, UBS found, will use between three and five times more health-care services compared to the younger population.
The rapidly growing purchasing power of Asian citizenry, as they enter middle-class income thresholds, enables the elderly to demand sustainable chronic care solutions -- each cohort of the elderly is more educated than the previous one. But it's not just the old folks who will become more discerning; Asia's middle class is one of the fastest growing population groups in the world. According to the World Bank, South- and East Asia's middle-class accounted for 1.4% of the global population and 2.1% of global income in 2000. By 2030, the Bank forecasts that the group will account for 8.9% of the population and 7.7% of global income.
After the February 2010 publication of Health, United States, 2009, the latest annual report by the U.S. National Center for Health Statistics, a spokesman for the government department told the press that, "Technology is really what's driving our medical care system." It now appears that the industry will increasingly be driven on Asian roads.
As global medtech companies seek to navigate the diversity and complexities of Asian regulatory landscape and clinical needs, Singapore represents a sound strategic partner. Besides having talent access in the region, companies can also rely on a stable pro-business, pro-innovation environment that will help drive both innovation and top-line growth in Asia.
Facts on the ground
Reading like a who's who of the industry, Singapore hosts more than 30 leading medtech companies that produce approximately US$1.5 billion worth of medtech products annually. These companies develop and manufacture a wide range of products; think contact lenses, research instruments, scientific analytical equipment, syringes, catheters and hearing aids. Today, Singapore manufactures 10% of the world's contact lenses, 50% of the world's thermal cyclers and more than half of the global supply of microarray.
Towards the end of 2009, global medtech leader Medtronic set up its international head office in Singapore, co-located with its first-in-Asia cardiac device manufacturing facility. "By setting up our ASIA (ASEAN, South Korea, India, Australia and New Zealand) and International headquarters in Singapore, we are well placed to leverage on the significant growth of the medical device industry in Asia and serve even more patients and customers in the future," said Mr Jean-Luc Butel, Executive Vice-President and Group President of Medtronic International.
Companies are recognising Singapore's neutral vantage point, a base from where they can connect with clinicians across Asia, and gather and review Asia's healthcare needs. But strategic location is just one string to the nation's bow; Singapore's ever-more-potent scientific and engineering capabilities are transforming the country into a hotbed for the development of ideas, with the clinical capabilities to translate those ideas into viable solutions.
As word gets out about Singapore's scientific and engineering expertise, and its emerging biomedical-hub status, companies like Welch Allyn, a New York-based medical diagnostic equipment maker, are starting to tap into the local resource pool and design next-generation products specifically for Asian and emerging markets.
Within six years of R&D operations in Singapore, Welch Allyn moved into its expanded facility in January 2010 and in February 2010, the company launched its first Singapore-led, designed and developed product specifically for growing frontline care markets in Europe, Asia and Latin America in 2010. This portable electrocardiograph (ECG) offers the speed and power of a fully featured ECG in a compact size, while enabling clinicians to connect patient data to an electronic health record system via a direct connection to a PC or through the network.
Hill-Rom is another medtech company that leverages Singapore to carry out new product development. In 2008, Hill-Rom set up its Asia Pacific Innovation Centre (APIC) in Singapore to focus on applied development in micro-electronics, embedded software and electro-mechanical systems to develop new Hill-Rom beds and therapy surfaces. In April 2010, Hill-Rom expanded APIC with two new centres of excellence - the Patient Support Development Center that will collaborate with hospitals in Asia to develop new products for Asian patients, and a Respiratory Care Development Center that will identify and develop innovative global respiratory care products.
The Singapore difference
To nurture a pro-innovation environment for both local medtech companies and the growing number of international arrivals, Singapore is strong on both 'soft' and 'hard' infrastructure. The former includes the nation's protection and enforcement of intellectual property rights, core capabilities in science and engineering, and its base of voice-of-customer and regulatory specialists. The latter is hard to miss during an extended visit to the country. In one-north, a purpose-built area dedicated to R&D, Singapore has built up key research campuses - the Biopolis and Fusionopolis - that co-locate corporate labs with public-sector research institutes to facilitate private-public partnerships and entrepreneurial networks, which go on to seed new innovation.
To address companies' need for talent who are familiar with medtech innovation processes as well as unmet clinical needs in Asia, EDB and A*STAR have partnered Stanford University to launch the Singapore-Stanford Biodesign program that will provide post-graduate training to nurture next-generation Asian medical device innovators.
"Singapore will benefit from the 10 years of experience we have in training young engineers and physicians in the Biodesign," said Dr Paul Yock, Director, Stanford Biodesign Program. "Stanford will gain a highly effective portal to the Asian medical technology scene. Emerging medtech innovators in the US need to develop a global focus and expertise; Singapore is a terrific starting point for us in Asia."
In addition, EDB further launched the Medtech IDEAS programme (Medtech Innovate, Design, Engineer for Asia in Singapore) in April 2010. This programme will set aside 150 training places to nurture multidisciplinary teams of engineers, voice-of-customer and regulatory experts in Asian medical-device innovation in medtech companies' global and Singapore-based R&D labs.
If successful, heady medtech solutions like Essilor's Asian eye lens will start pouring in. Back in 2006, Essilor's Singapore R&D first began developing ophthalmic lens customised for the anatomical idiosyncrasies of the Asian face. In 2009, the Azio 360° lens was successfully launched across the region. It is not too grandiose a statement to say that the lens provides regional consumers with greater clarity of vision.
Singapore is committed to become the "Biopolis of Asia", a leading international biomedical sciences cluster. The government has so far invested over S$5 billion in building up industrial, human and intellectual capital in this area, and seeks to develop the sector ever further. With the region's healthcare needs yet to be fully met, medtech companies can look forward to more growth opportunities to enhance their economic presence.
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Posted by Stellina, Singapore
That many people increasingly turn to Singapore when they require specialist healthcare services show that Singapore is growing to be a medical hub, which is heartening to see! With more medtech companies turning to Singapore to set up base, it will no doubt send the message and further emphasize Singapore's expertise in developing medical technology, reinforcing its image as a medical hub.
Posted by Lian, Singapore
This is interesting-- the CIA World Factbook reports that Singapore's got the 4th Highest Life Expectancy, and Lowest Infant Mortality Rate. And the World Health Organization reports that compared to many of the other developed/developing countries, Singaporeans spend a lot less on healthcare per capita... it's good to know we're covered pretty well here and we enjoy a longer life =)
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OCT 201128
Posted by Segun, UnitedStates
Singapore definitely appears an admirable model. Singaproe has less coporate tax than the US. The economic enviroment and politic stability is conducive for business. My only worry is, with the increasing number of elderly, many retirees, I hope the working population is able to support the social and economic benefits of the aged population. I would presume, they should be working towards making Singapore immigration-friendly so they may attract highly skilled immigrants to help sustain if not boost the economy. I also understand that their healthcare policies is founded on the principle of primary/preventive health, with appropraite investment in secondary and tetiary levels of care.
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SEP 201128
Posted by Philip, Singapore
On the contrary, healthcare cost is going to go up for several reasons:
1) Complaints and suing of doctors cases increase, doctors will have to pay higher premium for their medical practise insurance, this cost will go to you.
2) HSA medical products registration which again will increase the medical cost and less equipment will import to Singapore which again lower the medical care standard as older model equipment is used, which again increases the likelihood of medical mistakes. And this in turn hospitals and doctors got sued. FYI, Singapore is the only ASEAN country that implement this registration process.
3) Shortage of healthcare professionals.
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SEP 201114
Posted by kiara, UnitedStates
have very good medical insurance in about seven more years
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