Singapore’s Medical Device Market
The medical device market in Singapore
- Singapore's domestic medical device market is projected to register a compound annual growth rate (CAGR) of 8.4 per cent between 2018 to 2023, with the industry valued at almost US$1 billion in 2023, according to a report by Fitch Solutions Macro Research in July 2019.
- Medical device imports increased by 8.8% to US$4.2 billion for the 12 months ending April 2019 according to Fitch solutions while exports which consist of primarily re-exported goods rose by 6.8% to S$7.5 billion for the same period
- Singapore continues to attract the world’s top medtech companies; 25 multinational corporations (MNCs) have established research and development facilities in the city state including Becton Dickinson and Thermo Fisher Scientific as well as many other MNCs using Singapore as their regional headquarters such as Siemens and Medtronic
- Additionally, some 60% of the world’s microarrays and one-third of the world’s mass spectrometers are manufactured in Singapore.
- More than 60 multinational medical technology (medtech) companies leverage the country’s strong engineering capabilities and high-quality assurance to manufacturing high-value products, ranging from life science instruments to contact lenses. In addition,
- Singapore has a strong base for research and innovation that helps medtech firms in designing new business models in healthcare, such as the use of big data to provide better patient-centric care; there are over 220 medtech startups and small to medium sized entreprises in Singapore who export their products or services to the developing ASEAN and Asian markets
- Another advantageous factor for international investors is its intellectual property laws, which are among the strongest in Asia.
- There are over 18000 medical device and IVDs (classes B, C and D) registered in Singapore at the end of 2020:
| Risk Class | No. of devices registered on SMDR |
|---|---|
| Class B MD | 8172 |
| Class C MD | 4569 |
| Class D MD | 2136 |
| Class B IVD | 2375 |
| Class C IVD | 1237 |
| Class D IVD | 307 |
| Total | 18796 |
Regulatory authority and laws governing medical devices in Singapore
- Medical devices and IVDs are regulated by the Medical Device Branch of the Health Sciences Authority. The HSA implements and enforces the Health Products Act 2007 and subsequent legislation.
Singapore’s healthcare system
- Singapore has a universal healthcare program which is funded by a multipayer system, comprising of tax revenues and payments from individuals and their employers through mandated life insurance schemes and deductions made to the Central Provident Fund (a compulsory savings plan).
- The healthcare system is centered around three programs known as the 3Ms: MediSave, MediShield Life and Medifund which offer differing levels of healthcare according to contributions made
- Singapore’s healthcare market was forecast to grow to US$22 billion in 2020, according to a Fitch Solutions market insight report in March 2020. By 2029, the market is expected to more than double to US$51 billion.
- Singapore’s healthcare spending, comprising both public and private healthcare expenditure, was forecast to account for 5.9% of GDP in 2020 and could go up to 9% by 2029 which also includes infrastructure spending on a new general and community hospital expected to be completed by 2030
- Among its ASEAN peers, it 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.
Medical tourism
- According to the Medical Tourism Index, Singapore comes second place behind Canada. The country serves as a showcase for new medical technology and healthcare delivery, and attracted more than 500,000 medical tourists in 2019 with 60% coming from Indonesia.
- 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 here.
Industry associations
Key annual exhibitions and events
- Eldercare Exhibition & Conference Asia 2021 (Eldex Asia) (November 5-7, 2021)
- International Dental Exhibition and Meeting 2022 (IDEM) (April 2022)
- Medical Fair Asia 2022 (Aug-Sept)
General economic and demographic statistics
- Population of 5.7 million in 2020 according to Statista
- People aged 65 and over in 2020 constituted around 15.2% of the population according to Statista. Along with Japan, Singapore has one of the most rapidly ageing populations in Asia
- 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 geriatric medicine and rehabilitation medicine is expected to rise as is demand for homecare services.
- Gross Domestic Product (GDP) growth is calculated to be 5.0% in 2021 and forecasted to be 2.5% in 2025 according to the International Monetary Fund
- Unemployment rate of 4.38% in 2020 which was only a slight increase on the last 5-year annual average of 4% due to the COVID-19 pandemic.