It comes with little surprise that Singapore consistently ranks as one of the top countries to do business in; the country’s infrastructure and well educated workforce attracts multinationals, SMEs and start-ups alike. What may shock some investors, however, is Singapore’s involvement in the medical devices industry – still a relatively young sector overall – and its push to become one of the top medical technology hubs in Asia. Singapore’s medical devices industry is currently aiming to hit SG $5 billion in manufacturing output. The government is targeting up to 1 million foreign patients a year, which will contribute SG $2.6 billion (US $1.55 billion), or about one percent, to Singapore’s GDP. Already there are 30 global medical technology companies, including the industry’s leading manufacturers, who carry out their operations and R&D in Singapore.
Singapore’s AdvantagesAt a time when major countries in North America and Europe have experienced economic slowdowns, the ASEAN economy has maintained robust growth, particularly in the healthcare industry. Of the 10 ASEAN members, Singapore is by far the most developed and efficient healthcare provider and annually spends the most per capita on health. The country also possesses excellent transportation and communication infrastructure, making it an ideal base for further pushes into the ASEAN region. Singapore’s medical technology sector contributes about SG $4.3 billion and around 9000 jobs to the country’s economy. To put this into perspective, 10 percent of the world’s contact lenses, over 70 percent of microarrays, and roughly half of the world’s thermal cyclers and mass spectrometers are currently produced in Singapore – numbers which are likely to rise. Medtech sectors which are already growing include cardiovascular, eye care, diagnostic, imaging, research tools, scientific instruments and orthopedics. This is largely due to the government’s interest in supporting the medtech sector, exemplified in numerous incentive schemes. The EDB’s Partnerships for Capability Transformation (PACT) was initiated in 2010 to develop the competencies of OEMs and to enable suppliers to meet manufacturing quality and certification requirements.
Healthcare Financing and Government SchemesIn terms of healthcare plans, Singapore can be placed eye to eye with some of the leading western nations, as almost 100 percent of its population is covered. Since almost all Singaporeans enjoy unrestricted access to healthcare facilities, there is little red tape, which makes for a viable industry landscape for businesses. Due to the well-developed healthcare financing schemes, it is almost guaranteed that medical treatment will be sought and paid for in case of need. For many healthcare providers and manufacturers, this means a steady and stable source of income. For start-ups and companies engaged in R&D, it presents an opportunity for their products. Singapore’s financing framework for medtech is in fact driven by two slightly different principles – namely individual responsibility and community and government support for those in need. The family centric approach of many Asian countries dictates that an ill person should first look to themselves or family members to finance treatment. For those in need who can’t afford treatment, government subsidies and community support ensure that basic healthcare remains affordable to all.
Overview of Healthcare PlansMedisave Medisave is a national medical savings scheme which lets individuals set aside part of their income into their Medisave Accounts. Every employee can contribute eight to 10.5 percent of their monthly salary to cover future personal or immediate family’s hospitalization, day surgery and certain outpatient expenses. How much an employee can contribute depends on their age group. Savings can be withdrawn to pay the hospital bills of the account holder and their immediate family members, in line with the financing framework outlined above. MediShield Life On November 1, 2015 MediShield was replaced was MediShield Life, which will offer the following:
- If a patient is faced with a large hospital bill, the plan offers better protection and higher payouts, which will ease payment demands (Medisave/cash) on patients
- Full coverage for all Singapore Citizens, including Permanent Residents, which covers aging citizens and those with pre-existing conditions
- Lifelong protection