Key View
- Singapore’s medical device market will grow steadily over the medium term, supported by a stable economic backdrop, rising healthcare expenditure and an ageing population.
- Downside risks to our outlook arise from Singapore’s trade-dependent economy.
- Singapore’s implementation of the Cybersecurity Labelling Scheme for Medical Devices will present both risks and opportunities for medical device manufacturers.
- Singapore’s ageing population and growing chronic disease burden will drive demand for medical products, including patient aids, diagnostics and orthopaedics & prosthetics.
Singapore’s medical device market will grow steadily over the medium term, supported by a stable economic backdrop, rising healthcare expenditure and an ageing population. We have maintained our forecast in both US dollar and local currency terms and project that Singapore’s medical device market will expand by a compound annual growth rate of 7.5% in local currency terms and 8.9% in US dollar terms over the 2023-2028 period. This will take expenditure to SGD1.4bn (USD1.1bn) by 2028. The market will benefit from rising healthcare expenditure, largely driven by Singapore’s ageing population which will increase demand for healthcare services and products. The market will also benefit from Singapore’s stable macroeconomic environment, including steady GDP growth and moderating inflation, which will support spending on healthcare and medical devices, driving investments in advanced medical technologies.
Downside risks to our outlook arise from Singapore’s trade-dependent economy. This makes it vulnerable to economic slowdowns in other markets, including major medical device trading partners like the US, Japan and Mainland China. Slowdowns could negatively impact healthcare and medical device spending by reducing demand for imported technologies and products. Increasing trade barriers imposed by the US on China’s exports, such as higher tariffs and stricter regulations, could also weigh on market growth. These may lead to increased supply chain disruptions, which is significant given China is a key market to Singapore for both medical device imports and exports.
Singapore’s medical device market is poised for steady growth, driven by the nation’s aging population. As more Singaporeans enter the later stages of life, there is an increasing demand for advanced medical devices to manage chronic diseases and support geriatric care. The government’s commitment to healthcare innovation, coupled with a robust regulatory framework, ensures high-quality standards and fosters the adoption of cutting-edge technologies. This combination of factors positions Singapore as a burgeoning hub for medical device manufacturers and suppliers seeking to cater to the needs of older adults.
Healthcare expenditure in Singapore has been rising, with an emphasis on expanding and upgrading health services to meet demographic needs. As the government increases public health spending, more resources are funneled toward procuring sophisticated medical equipment. These purchases are essential for enhancing patient outcomes and improving the efficiency of healthcare delivery systems. Consequently, market opportunities for international and local medical device companies are expanding, further fueling sector growth.
In parallel with market expansion, Singapore is rising as a center for biomedical research and development. By fostering collaboration between public institutions and private enterprises, the nation leverages its strategic position to attract investment and talent. This focus on research and development stimulates innovation in medical devices, ensuring that emerging products meet the needs of an aging populace. The synergies between technological advancements and a supportive policy environment underscore the dynamic trajectory of Singapore’s medical device market.
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