Official Launch Of The Hospimedica Asia 2000 And Parkway Medical Congress

29 Aug 2000

By Mr Lim Hng Kiang

Venue: Singapore International Convention And Exhibition Centre

Good morning,

Dr Hans Peter Georgi, Economic Minister of Saarland

Your Excellencies

Distinguished Guests

Ladies and Gentlemen

I am very pleased to be here this morning for the launch of the Hospimedica Asia 2000 and the 1st Parkway Medical Congress. Let me also extend a warm welcome to all our distinguished guests from overseas.

Hospimedica Asia provides the opportunity to showcase the latest developments and technology in hospital, pharmaceutical, medical and rehabilitation equipment and supplies. It also acts as a forum for healthcare experts from all over the world to discuss and share views on the latest issues and advancements in the medical field.

In its second edition last year, Hospimedica Asia '99 attracted a total of 192 exhibitors from 24 countries, including national groups from Germany, Austria, France, Israel and South Korea. Despite the economic downturn in Asia, more than 4000 trade visitors and buyers from 60 countries visited the trade fair. This represented an increase of 16% compared to 1997.

I am told that this year's event will see a 30% increase in the number of exhibitors and trade visitors. It is, therefore, not surprising that Hospimedica Asia has established itself as Asia's leading regional platform for the medical and healthcare industry. Singapore is, indeed, privileged and honoured to be the host for the event once again.

Healthcare development has seen dramatic changes in the last century. But we are about to see growth and transformation at a rate not experienced previously. With the dramatic advances in genomics and the related areas of biomedical research, we can expect to see a quantum leap in the capabilities of modern medicine in the forseeable future.

Today, research scientists are working on cures and novel treatment approaches for diseases, such as Alzheimer's disease, genetic disorders and cancer, which were only recently considered to be incurable illnesses. These new technologies and discoveries will, no doubt, create new markets and new demands.

Average life expectancy has been increasing. As the proportion of elderly increases, caring for them will increase the demand for healthcare services and resources. Increasing prosperity will also mean that more people can now afford better healthcare. All these will translate to more demands on the healthcare industry. This is especially true for Asia as the outlook for growth and investment opportunities for the healthcare sectors remain very positive.

The healthcare market in Asia currently constitutes 34 per cent of the global healthcare market valued at US$107 billion. With North-East Asia and South-East Asia on the road to economic recovery, this is expected to increase to 45% by 2005 as the prevalence of chronic diseases will cause healthcare spending to rise, amidst mounting pressure to seek new medical breakthroughs and cost-effective ways of treatment.

Furthermore, diseases and medical conditions in the region would not be optimally treated by the mere transfer of drugs and medical devices developed and tested in the West. Hence, there will be an increasing trend to develop, test and customise new products to meet the specific needs of the different ethnic populations and medical conditions predominant in this region. This trend will also create new opportunities for the region.

The Singapore Government has recently announced its plans to develop the Life Sciences industry as part of the transformation into a knowledge-based economy. Our objective is to make Singapore an international hub for the life sciences with world-class capabilities across the whole economic value chain. The focus will be primarily on four areas: medical devices, pharmaceuticals & nutrition, healthcare and biotechnology.

The healthcare industry is an important partner in our move towards the life sciences as it has the potential to help develop strong research capabilities, bring about better and cost effective treatment techniques and medical technologies, impart new capabilities through education, and generate new life sciences and medical industries.

In addition, a vibrant healthcare sector serving the international market will generate high value-added activities and employment, especially for research scientists, physicians and engineers. Furthermore, it will spur new discoveries, innovations, patents and new spin-off companies and encourage the development of better but cost-effective healthcare services.

Singapore is well placed to take advantage of these developments. Today, we are already a major Asian and world-wide manufacturing hub for multi-national life sciences companies. This is because over the years, we have managed to establish a good knowledge infrastructure in our education system, hospitals and research institutions. We intend to build upon these strengths through the constant upgrading of relevant knowledge and skills.

In particular, the Singapore Government will place special emphasis on the following strategic areas in our effort to enhance our position as a premier centre for the life sciences and medical services. These are:

- Building research and manpower capabilities;

- Developing good regulatory and physical infrastructure; and

- Encouraging venture capital investment and risk-taking.

Building research and manpower capabilities

Research & Development and skilled human resources are considered to be two of the most important factors in determining the success of the life sciences industry. Over the past decade, several research centres have been established to boost Singapore's manpower capabilities and infrastructure in this area. The Government continues to invest in the development of our research and manpower capabilities. We will create the environment and continue to look for ways to attract talent to Singapore to augment our manpower resources.

Developing good regulatory and physical infrastructure

The Government also recognises that it is important to have a good regulatory environment to nurture the life sciences and healthcare industries. In 1998, the Ministry of Health put in place the framework for clinical trials regulation through the introduction of the Singapore Good Clinical Practice Guidelines which were based on internationally accepted standards. A Genetic Modifications Advisory Committee has also been established to oversee and deal with bio-safety issues.

Encouraging venture capital investment and risk-taking

The third area of our emphasis is venture capital investment and risk-taking. The Government has set up several investment funds to co-invest and share risks with investors in the respective ventures. This catalyst will in turn encourage the development of new start-ups in the life sciences.

The health care system in Singapore is well regarded. Our medical services have over the years built up an international reputation for excellence. This has resulted in increasing numbers of foreign patients seeking treatment here. In fact, the healthcare sector has seen an increase in its foreign patient workload in line with the recent regional economic recovery.

The Government works in partnership with the private sector to position Singapore as a centre of medical excellence. Our strategy is to excel in areas that reflect national needs and priorities. We will build on our capabilities as a global centre for a high standard of patient care, education and medical research in fields such as ophthalmology, cardiology, oncology, and neurology.

As part of our efforts to establish Singapore as a centre of excellence in medicine and life sciences, we will continue to develop our healthcare services, including integrated healthcare delivery systems, healthcare management, reference laboratories, clinical trials management and healthcare informatics. The emphasis of the development will be on new, innovative and cost-effective service activities that will result in greater efficiencies and capabilities for the industry.

The primary role of the Government in the provision of healthcare is to ensure that all Singaporeans have access to good and affordable basic medical care. Today, the private sector provides for 20% of hospital care in Singapore. However, patients are increasingly opting for the more personalised service offered by the private sector. The Government believes that there is room to increase their market share of hospital services to 30% in time to come.

The private sector, therefore, has an important role to play in our pursuit of medical excellence. The private hospitals can complement the public sector by positioning themselves as providers of premier healthcare services in the region. The private sector is free to provide the full range of services its patients demand as long as the services meet the regulatory standards set by the Ministry of Health.

In addition, there is significant potential for research in the private sector. I would, therefore, like to urge the private hospitals to leverage on this and work in close partnerships with the public sector and the pharmaceutical companies in clinical drug trials to develop effective drugs for the Asian population.

In conclusion, the new Millennium indeed offers exciting times to investors in the life sciences and healthcare industries. Rapid technological advances will permanently transform the landscape of medical practice and open new frontiers for economic development and growth.

Singapore is committed to make the life sciences as the fourth pillar of its manufacturing sector. We will attract and encourage MNCs to invest and locate their R&D activities here in Singapore. My Ministry will also continue to engage the private sector in expanding their role in the healthcare industry in Singapore.

On this note, I would like to end by wishing all the participants a fruitful and enjoyable time for the remainder of your stay in Singapore. It is my pleasure now to declare the Congress open.

Thank you.