What makes Singapore the best hub in Asia for MedTech manufacturing?

Asia's growing middle-class populations and rising demand for quality healthcare are set to make Asia-Pacific (APAC) the world's second-largest source of demand for medical technology (MedTech) after the United States. The region's MedTech market is expected to expand by a compound annual growth rate of 4.4 per cent to US$225 billion (S$295.9 billion) by 2030.

Singapore can play a role in helping MedTech manufacturers and startups navigate the region’s varying regulatory and market requirements to serve this demand. Well-connected to the rest of the region with a stable and facilitative business ecosystem and a strong talent pool, Singapore is home to all of the top 30 multinational MedTech companies such as Medtronic, Becton Dickinson and ThermoFisher.

These global companies have located a range of activities in Singapore, from research and development (R&D) to manufacturing and their regional headquarters (HQs). Here's what makes Singapore attractive to MedTech players:

1. A trusted location for manufacturers to supply high-value MedTech products for Asia and beyond

Manufacturing makes up about 20 per cent of Singapore's economy. The country is home to best-in-class manufacturing plants for several global MedTech players, such as Agilent Technologies. Its factory has been recognised as a leader in artificial intelligence (AI)-enabled manufacturing for scientific instruments by the World Economic Forum as part of its Global Lighthouse Network.

Chow Woai Sheng, Agilent’s Vice President of Global Instrument Manufacturing, highlighted the company's success in implementing AI technologies to transform their manufacturing processes. Agilent has deployed 250 industrial Internet of Things stations that utilise AI algorithms to learn from previous test results, identify patterns, and maintain automated tests. This implementation has led to a significant 23 per cent improvement in work cycle times. They have also successfully implemented concepts like the "lights-out factory" – a fully automated system that runs product testing without human intervention, resulting in a 33 per cent increase in overall productivity. Additionally, Agilent's AI initiatives have contributed to sustainability goals, reducing recycled waste by 53 per cent and improving productivity by 31 per cent through big data architecture and analytics.

In Singapore, corporates have access to resources that accelerate AI adoption. By participating in Google Cloud's AI Trailblazers Initiative, pharmaceutical giant GSK developed two prototypes. The first was an intelligent Good Manufacturing Practice assistant that sifts through text data from documents, instructions, and historical information to enhance decision-making. The second was an Investigation Report Maker that accelerates the process of compiling deviation investigation reports. Both prototypes have improved the efficiency of data retrieval by leveraging generative AI.

Alongside growing demand in Asia, Singapore's MedTech manufacturing output has increased from US$4 billion (S$5.33 billion) to US$15 billion (S$19.99 billion) in the last decade, across a range of product segments such as medical devices, digital health, life science tools and diagnostics. Despite Singapore's size (just slightly smaller than New York City), Singapore's MedTech sector punches above its weight on a global scale. For instance, the country manufactures:

One in seven hearing aids used worldwide
Nine in 10 gene expression chips and microarrays globally
One in 10 of the world's contact lenses

Discover why Singapore is the preferred base for MedTech companies keen to serve the region's growing healthcare needs

2. An advanced manufacturing ecosystem that promotes MedTech R&D and innovation

The synergy between R&D and manufacturing is a defining characteristic of Singapore’s MedTech sector, with about 70 per cent of manufacturers conducting R&D locally. This enables companies to accelerate the progression from concept to commercialisation and respond quickly to market demands.

Their efforts are bolstered by a world-class R&D ecosystem. In 2020, the Research, Innovation and Enterprise 2025 plan (RIE2025) was announced, outlining Singapore’s efforts to invest approximately S$25 billion — with an additional S$3 billion committed in 2024 — in four strategic domains. These are Manufacturing, Trade and Connectivity; Human Health and Potential; Urban Solutions and Sustainability; and Smart Nation and Digital Economy. This has catalysed a surge in local health and biomedical startups, from 59 in 2010 to over 300 in 2020.

The Agency for Science, Technology and Research (A*STAR)’s MedTech Catapult, a S$38 million initiative, facilitates the rapid design, development, and commercialisation of MedTech products by collaborating with contract manufacturing organisations, academic researchers, clinicians, and industry players. By providing in-house engineering expertise, product development, and regulatory support, MedTech Catapult helps companies translate intellectual property into market‑ready products.

Singapore's intellectual property regime has been consistently ranked among the top five globally since 2014. In addition, the Health Sciences Authority is internationally recognised as a world-class regulatory body and ensures that products "Made in Singapore" have become synonymous with quality and trust globally. It also adopts a science-based and forward-thinking approach to support the industry in navigating its regulatory requirements and bringing innovations to market.

MedTech multinational companies (MNCs) have set up over 20 R&D centres here, focusing on upstream clinical needs, product and process development, as well as software and digital capabilities. For example, WS Audiology (WSA)’s Singapore R&D team is developing both cutting-edge hardware and innovative software solutions to better address needs of Asian populations. By situating a significant portion of its R&D efforts in Singapore, WSA leverages the city-state’s robust talent pool and ecosystem to enhance its product development cycle, integrating research and production seamlessly to accelerate time-to-market for new products.

Singapore's investments in R&D have attracted industry partnerships and catalysed commercialisation of technologies. For instance, Agilent announced its collaboration with the National University of Singapore (NUS) to set up the NUS-Agilent Hub for Translation & Capture, a US$29 million (S$38.6 million) integrated translational R&D centre developing new methods of translating clinical research into diagnostics.

There are also open innovation models that encourage collaboration between industry leaders and nascent startups. For instance, the Medtronic APAC Innovation Challenge, backed by a US$50 million (S$67.7 million) investment, provides startups with global mentorship and development opportunities. One of the first local startups to win this challenge in 2022 — iMedrix — went on to partner with Medtronic to distribute cardio screening solutions to hospitals and clinics in Singapore.

Learn more about Singapore’s innovation initiatives for businesses seeking to create new market-ready solutions

Similarly, incubators and accelerators such as Johnson & Johnson’s JLABS provide essential support to MedTech startups, facilitating their access to resources, expertise, and networks crucial for growth. The company, in collaboration with AI Singapore, has also invested over S$48 million to pioneer an integrated eye health ecosystem that enlists AI-powered systems to improve the health outcomes of Singaporeans.

3. A robust supplier ecosystem that strengthens supply chain resilience

Supporting Singapore’s manufacturing and R&D ecosystem is a well-established supplier network that comprises more than 2,700 precision engineering and Electronic Manufacturing Services (EMS) providers. These suppliers provide a comprehensive suite of high-precision components and turnkey production solutions, experience in product design and innovation and proximity to international markets for their customers.

One example is local medical device Contract Design and Manufacturing Organisation (CDMO) Fong's Engineering, which has established long-standing manufacturing supply as well as product development partnerships with global MedTech companies in specialty areas such as Endoscopy, Power Tools and Surgical Equipment.

MedTech MNCs have also partnered with the local supplier ecosystem for better supply chain effectiveness. When US-based leading genomics company Illumina decided to localise its consumable packaging requirements in 2015, it managed to identify and forge a partnership with local company KPP Packaging - which has helped them reduce materials cost and shortened purchase lead times by 75 per cent.