Key View:
- Ongoing drugmaker investment will boost Singapore’s status as a key pharmaceutical hub.
- The government of Singapore will continue to take a proactive role in developing the market’s biomedical manufacturing industry.
- Through AstraZeneca’s investment, Singapore’s position as an important trading hub for the pharmaceutical sector in the Southeast Asia region will continue to strengthen.
Ongoing drugmaker investment will boost Singapore’s status as a key pharmaceutical hub. On May 20 2024, AstraZeneca announced its plans for a new USD1.5bn manufacturing facility in Singapore dedicated to the full production process of antibody drug conjugates (ADCs), which are advanced cancer treatments. This marks the drugmaker’s first manufacturing facility in Singapore and will be its first end-to-end ADC production site globally. The investment is also supported by the Singapore Economic Development Board (EDB). While the exact incentives offered by the government have not been disclosed, this may include tax benefits or other subsidies. The site will handle all stages of ADC manufacturing, including antibody production, drug-linker synthesis, conjugation and filling. The greenfield investment reflects Singapore’s strong biopharmaceutical manufacturing capabilities and is expected to create jobs and economic opportunities. Pascal Soriot, the CEO of AstraZeneca, highlighted Singapore’s excellence in complex manufacturing as a key factor for the investment. Moreover, the facility aligns with AstraZeneca’s sustainability goals, aiming for zero carbon emissions from the start of operations. Design and construction are set to begin by the end of 2024, with operational readiness targeted for 2029.
The government of Singapore will continue to take a proactive role in developing the country’s biomedical manufacturing industry. By investing state funds in R&D, easing regulations to encourage foreign investment and pursuing global trade agreements, Singapore’s government will maintain its commitment to developing a world-class biomedical manufacturing hub. The latest manufacturing index data reveals that this approach is continuing to pay dividends with the biomedical industry, which comprises the biopharmaceutical and medical technology sectors, being a key contributor to Singapore’s economy. In 2022, the industry accounted for 2.3% of Singapore’s GDP and manufactured close to SGD39.0bn (USD28.9bn) worth of products for the global market. Seven of the top 10 biopharmaceutical companies have best-in-class manufacturing facilities in Singapore, producing a wide range of drugs from active pharmaceutical ingredients (APIs) to biologics and cell therapies.
According to BMI’s Pharmaceutical Manufacturing Key Projects Data, several of the global top pharmaceutical firms such as Merck, GlaxoSmithKline and Sanofihave pharmaceutical manufacturing projects in the country. In addition to AstraZeneca, in January 2024, AbbVie announced a major expansion initiative for its manufacturing operations in Singapore with an investment of USD223mn. This strategic infusion of capital is intended to bolster AbbVie’s worldwide production network with an emphasis on the development of biologic drugs. Singapore also hosts regional headquarters for several biopharmaceutical and medical devices companies, with many establishing regional and international distribution offices in the market as well.
