Technology Administration

SINGAPORE'S BIOMEDICINE INITIATIVE:

PRESCRIPTION FOR GROWTH?

(White Paper)

Prepared by Mr. David Brantley

Technology Policy Analyst

Office of Technology Policy, Technology Administration

I. INTRODUCTION

II. GOVERNMENT STRATEGY

III. LONG-TERM OUTLOOK

ATTACHMENT A

ATTACHMENT B

ATTACHMENT C

ATTACHMENT D

ATTACHMENT E

ATTACHMENT F

(Many of the following links will take you web pages that are not part of the Technology 

Administration's site. Please read our disclaimers.)

I. INTRODUCTION

This report complements Technology Administration's interests in government policies 

which advance the goals of innovation, competitiveness and productivity. Because 

Singapore has grown a biomedical industry within a very short period largely through 

government policies, investments and incentives, useful lessons on technology-led 

economic development may be drawn from a closer examination of its model.

U.S. companies engaged in biomedical research, development, finance and production 

should have an interest in this report's description of who is engaged in Singapore's initiative 

and evolving opportunities for "partnership."

Individuals and organizations concerned with technology-led economic development may 

find Singapore's "systems approach," tax abatements, and other "fun and funding" 

incentives to be instructive.

Information used in this report was gathered during a round of meetings and interviews with 

government, research and development, and business executives that took place in 

Singapore in December 2001. A list of individuals interviewed is included as Attachment A. 

Secondary sources include a report by the Commercial Section of the U.S. Embassy in 

Singapore, web sites and a few journal articles.
The report is structured to discuss the goals, strategy and programs of Singapore's economic 

development "model" as applied to its biomedical initiative, to describe the current 

biomedical sector, and to evaluate short and long-term implications for America's 

biomedical industry.

Background

Despite a lack of natural resources, Singapore has achieved an impressive 8.37 per cent 

average annual GDP growth for the past 40 years.

1 Its economic success can be attributed 

to:

• Strategic location as a transportation, financial and commercial hub

• Significant investment in infrastructure

• A highly-motivated and well-educated workforce

• Consistently strong growth in foreign private investment

• Pro-growth and pro-business government policies and planning

As the government's development agency, Singapore's Economic Development Board 

(EDB) plays a leading role in policy formulation and planning. It was the EDB that 

developed the Industry 212 strategy in 1999 to make Singapore a "vibrant and robust global 

hub of knowledge-driven industries."

EDB's Industry 21 program is described as a "blueprint to strategically position Singapore's 

manufacturing and exportable services for the next 10 years"3 on five fronts:

1. To diversify among and within industry clusters for a balanced and robust mix of 

industries and markets;

2. To build up world-class capabilities and global coverage;

3. To promote innovation;

4. To develop local talent and attract foreign talent, and;

5. To create a conducive business environment and world-class infrastructure necessary 

for knowledge-driven activities

Other overarching parameters include:

o Dynamic mixed use

o Constant reinvention

o Seamless connectivity

Consistent with its tradition of kaizen (continuous improvement), the EDB is currently 

planning the following next steps to boost innovation, productivity and international 

competitiveness:

• Upgrade Singapore's scientific, technological and knowledge creation capacities

• Create advanced demand conditions
• Encourage private sector-led "cluster" development

• Widen the base of "clusters" in the economy around Singapore's unique advantages 

in the region4

Singapore recognizes its need to build innovation into its economic development strategies

(the underlying theme in many [if not most] recent EDB and government initiatives). While 

emphasizing manufacturing for others over the past 30 years, the highest priority had been 

productivity. Its success with manufacturing productivity is perhaps without equal.5 To 

move beyond manufacturing and become a "knowledge-based economy," however, 

performance must catch up with its economic ambitions by refocusing on innovation as a 

national priority.

In line with the Industry 21 initiative to build a "knowledge-based economy," the "life 

sciences cluster" was selected by the government as the "4th pillar of Singapore's 

manufacturing sector.6 " Although foreign pharmaceutical firms have been manufacturing in 

Singapore since the 1970s, the EDB applied a systems approach to move the life sciences 

sector up the value-added chain. Since biomedical technology was selected as a "pillar" in 

1999, progress has been dramatic.7

Strategic planning and development policies to create a biomedical sciences industry have 

been the core responsibility of EDB's Biomedical Sciences Group (BMSG). The BMSG is 

tasked with building Singapore into a "world class hub" for biomedical sciences, with 

capabilities across the entire value chain - from research to manufacturing to regional 

headquarters to innovation. The BMSG facilitates new companies' entry into Singapore by 

linking them with suitable local research organizations, facilities, and other supporting 

services. At the same time, the BMSG nurtures the growth of local start-ups and companies 

through a variety of incentives, grants and programs.8 Singapore's biomedicine initiative 

can be described as a well-studied, strategic choice applying a "systems approach"9 and an 

extraordinary commitment to mobilizing resources and action.

Why the biomedical industry? EDB Chairman Philip Yeo was quoted as saying "We were 

looking for something Singapore could be active in the post-genomic era. We've already got 

engineering industries, shipyards, semiconductors and chemical manufacturing, so we 

needed to do something else."10 That something else was biomedicine.

Launching the Biomedicine Initiative

The year 2000 marked the official launch of Singapore's biomedical initiative with the 

appointment of a Ministerial Committee, its Executive Committee, and the International 

Advisory Council for the Biomedical Sciences. Other Year 2000 milestones included:

• US$600 million funding for investments in world-class biomedical firms doing 

R&D in Singapore.

• Four new programs for biomedical sciences education:

o Postgraduate scholarships in key life sciences disciplines at leading 
universities overseas

o MBBS-PhD scholarships to train "clinician-scientists" at leading clinical 

medicine and biomedical research institutions overseas

o A fellowship program to support foreign PhD or post-doctoral students who 

commit to work in Singapore

o An exchange program for Singaporean researchers with leading international 

institutions and companies

• The Singapore Genomics Program

• A Biomedical Research Council under the National Science & Technology Board to 

coordinate public sector R&D activities

• A Bio-Ethics Advisory Committee to examine legal, ethical and social issues.

In its first full year as a strategic priority (2001), Singapore's biomedical industry's 

manufacturing output grew even while the technology sector shrank. Rising 3.2% to US$ 

3.67 billion, biomedical's value-added grew by 3.6% to US$ 2.2 billion. Manufacturing 

employment in the biomedical sector rose by 5.7% to 6,000 in 2001. The pharmaceutical 

sector's output of U.S.$2.8 billion accounted for 76% of the total Biomedical Sciences 

manufacturing output (although that figure should change if research and development 

efforts grow as planned).

Technology also kept pace with a 3.4% growth in manufacturing output to reach nearly 

$US$1 billion. US$470 million of investment in fixed assets was committed through 19 new 

projects to include investments by such U.S. companies Merck, Sharp and Dohme, 

GlaxoSmithKline, Baxter Healthcare, Eli Lilly, Novartis' "Institute for Tropical Diseases," 

Surromed, Quintiles and Chiron.11

By the end of 2001 and as of the period of this study, Singapore's biomedical initiative was 

well-established and drawing international attention.

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II. GOVERNMENT STRATEGY

A characteristic of Singapore's strategic approach is committing to the resources necessary 

up front, with flexibility to add resources or modify plans as needed. The EDB's "systems 

approach" features three primary components applied to every aspect of the biomedical 

industry: infrastructure, tax and capital incentives, and education and workforce initiatives.

A. Infrastructure

A major component of the "systems approach" is creating a total infrastructure package to 

support a biomedical industry and to attract international players - both corporate and 

individual. While it may be too early to fully evaluate the success of this "build it and they 

will come" assumption for the biomedical initiative, that strategy has proven effective in 

other sectors (e.g. shipping, air transportation, electronics manufacturing, tourism, chemical 
manufacturing, etc.).

1. Telecommunications and web resources

A major initiative running parallel to Industry 21 is Infocomm 21 for 

telecommunications described as a strategy to establish Singapore as "a dynamic and 

vibrant global Infocomm capital with a prosperous Net Economy and thriving 

InfoSociety."12 The first priority of Infocomm 21 is to guarantee that cutting edge 

telecommunications technologies are available to such other economic priorities as 

biomedical research and manufacturing. The strategy includes subsidies for 

broadband infrastructure and hardware, co-sharing the cost of international leased 

circuits, and "cyber-precincts" where commercial and industrial buildings are 

broadband-equipped.13 Singapore claims 99% nationwide broadband 

availability14 with a related goal of having the most integrated infrastructure for 

both broadband wire and wireless of any country.

It is worthy to note that Singapore is nearly a totally "wired" society with 99.9% of 

households having access to Internet dial-up. Most students are proficient with the 

Internet - officially encouraged by the government as an educational resource, and, 

in 2001, the government launched a program to create an "E-lifestyle" for all 

Singaporeans.15 The government's "Singapore ONE" is a web site which links by 

broadband to several educational and entertainment sites to introduce citizens and 

consumers to the benefits of being Internet savvy.16

The Internet is also being applied specifically to the biomedical sector. In addition to 

job search web sites, a comprehensive bio-med web site (http://www.biomedsingapore.com/bms/index.jsp), allows users with passwords to access an on-line 

database of information on other researchers with the idea of establishing contact 

and cooperation. This web site includes a wide variety of other information linking 

Singapore's biomedical R&D community to counterparts and partners throughout the 

world.

The web is also used as a marketing tool by the EDB for foreign bio-med firms 

seeking information on Singapore's investment and/or trading market, regulations 

and incentives (http://www.biomed-singapore.com/bms/sg/why_3.jsp). Singapore 

companies can electronically communicate their interests in linking through the EDB 

network of overseas staff.

Singapore has become a regional E-commerce hub featuring over 1.2Gbps of 

internet bandwidth. In May 2000, the Economist Intelligence Unit (EIU) ranked 

Singapore as the world's seventh most "E-business ready" nation (the highest 

ranking in Asia).17

In December 2001, Singapore deployed an ultra wide-band link between Singapore 

research centers and a network of U.S. institutions. Their investment of US$ 30 
million is intended to "boost research in Singapore and provide a test facility 

for 'Singapore ONE,' the national plan to link the entire island electronically." 

Singaren, the "Singapore Internet Next Generation Advanced Research and 

Education Network." connects researchers with the (U.S.) National Science 

Foundation, the exclusive 100 Mbps vBNS (the "very high performance Backbone 

Network Service)," and as a "peer network" with "Internet2" which links to 191 top 

U.S. research institutions through its Abilene center. Eight joint projects between 

Singapore and the U.S. are currently on-line, including the sharing of protein 

structural data.18

2. Research facilities

The government-built "Biopolis" is a dedicated science park providing state-of-theart lab facilities for biomedical sciences companies near research institutes and 

universities. Companies at the Biopolis leverage common facilities such as shared 

utilities and animal compounds. The Biopolis will also be the focal point of a 

"biomedical grid" IT infrastucture.

In addition to physical infrastructure, part of Singapore's "systems approach" is to 

assure a "full system life cycle" of supporting industries. For example, the Centre for 

Drug Evaluation19 performs the same functions as the (U.S.) Food and Drug 

Administration approving new drugs for local use based on primary data (and not the 

approval of FDA or a European counterpart). Current drug approvals take 8-12 

months, a rate that Singapore hopes will be attractive to potential investors.20 The 

Centre also provides pre-submission consultations on clinical trial protocols and 

other drug development issues related to registration requirements.

Another key to the biomedical life cycle is Singapore's possession of research 

samples. The Centre for Natural Product Research, supported by GlaxoSmithKline, 

focuses on the search for bioactive molecules from natural sources. State-of-the-art 

screening technology is combined with the vast biodiversity of Southeast Asia to 

discover compounds that will form the basis for new drug leads. Core research 

includes the acquisition and testing of diverse samples from natural sources, and 

preparation of high quality extracts. The group runs about 1.6 million primary assays 

each year in a variety of therapeutic areas.21

Planning is also underway for the "Singapore Tissue Network," a national tissue 

repository with state-of-the-art infrastructure for the accession of well-annotated 

human tissues for translational and population research.

Another significant link in the research process is "bioinformatics." Two 

bioinformatics research and training institutes support the research community and 

train local specialists - the Bioinformatics Centre of the National University and the 

Bioinformatics Institute of the Agency for Science, Technology and Research 

(A*STAR).22 Both have extensive links with U.S. and other foreign universities and 
research institutions.

3. Technology Transfer

The concept of transferring technology from one Singapore entity to another is a 

fairly recent development. Exploit Technologies Pte. Ltd.,23 created in 2001 by 

A*STAR, functions as a private agent for "managing" intellectual property created 

by the research institutes and centers, and facilitating technology transfer from 

Singapore's labs to industry producers. According to A*STAR's description, Exploit 

is expected to create new companies, generate employment and produce additional 

wealth in Singapore by collaborating with the research centers to:

o Develop an efficient system for the management of assets, intellectual 

property and technology;

o Create a "tech transfer environment" to motivate tech interests;

o Spur progress of incubator units or spin-off companies;

o Establish close links with industry to facilitate exchanges, interactions and 

matching of technology with needs;

o Promote new technology to industry.

4. Lifestyle

A centerpiece in the Government's drive to create an "innovation lifestyle" is the 

Jurong Town Corporation's (JTC) "One North" project (its name reflective of 

Singapore's location at 1o North of the Equator). The 540-acre development adjacent 

to Singapore Science Park, National University, National University Hospital and 

Singapore Polytechnic will become a "new town" (although it would be better 

described as an "enclave") where biomedical scientists and researchers will live, 

work and interact.

Marketing materials for One-North include such phrases as "an exceptional place of 

vision and inspiration" and "a lifestyle choice for the most creative minds of the new 

economy" suggesting that housing, recreation and neighborhood facilities 

themselves contribute to technology and innovation.

Other lifestyle experiments include an on-line newsletter for the biomedical 

community - from pre-K to research scientist (See newsletter 

athttp://www.newsletter.biomed-singapore.com/site/biomed/), and an "International 

Researchers Club" (social gatherings for "foreign researchers" and their families) 

formed by the government with the intent to "help our foreign researchers better 

integrate into our society."

A*STAR publishes a Web-based magazine titled Explosion with the purpose of 

demonstrating to young readers that science is fun and scientists are fun-loving. The 

magazine's introduction sums up its mission: "Singapore's future will depend on our 

ability to become a Science-oriented nation with a knowledge-based economy." (See 
magazine at http://www.a-star.edu.sg/explosion/iss1/).

5. Intellectual Property Rights Protection

Over the years, Singapore has achieved a credible track record for protection of 

intellectual property rights (IPR). In January 2000, Singapore became the first Asian 

country to become a signatory to the "Pharmaceutical Inspection Cooperation 

Scheme" or "PICS." PICS accession is important to establish Singapore's preferred 

status as a regional pharmaceutical and biomedical sciences hub, to facilitate mutual 

recognition process of Good Manufacturing Practices (GMP) inspection with other 

PICS countries, and to ensure acceptance of the quality of pharmaceutical products 

manufactured and exported from Singapore.

In addition, the Singapore government has in place one of the most comprehensive 

frameworks for intellectual property protection in Asia to include:

o Full compliance with the World Trade Organization's Trade-Related Aspects 

of Intellectual Property Rights (TRIPS) Agreement

o Expedient and efficient enforcement of IPR by one of the toughest judiciaries 

in the world

o Ongoing educational programs to raise the Singapore public's awareness of 

the importance of IPR protection

o Ranking by the "Political and Economic Risk Consultancy (PERC)" as 

having the best IPR protection in Asia since 199724

o Consultation with industry integrated into regular reviews of the 

government's IPR protection program to ensure that existing measures are 

relevant, effective and adequate to IT owners, and reflect technological 

advances or changing circumstances

o Accession to the World Intellectual Property Organization, the Paris 

Convention, the Budapest Treaty and the Patent Co-operation Treaty

o A world-class IPR administrative capability providing comprehensive 

information on patent filing and issues in Singapore25

Singapore recognizes the importance of IPR and protection as an incentive to foreign 

investments as well as to the recruitment and retention of world-class research talent. 

Its impact and importance as an IPR leader is multiplied because many other 

countries where IPR has been a barrier to economic development view Singapore as 

an appropriate policy model.

B. Tax and Capital Incentives

The Economic Development Board's (EDB) investment arm began investing in U.S. and 

European biomedical firms in 1987. It evaluates potential investments by analyzing the 

company's products, growth potential, and technologies. It is very careful to select 

companies that have established market potential, major market share, and limited 
competition. EDB invests modestly (up to 10% of the firm's equity, which does not give 

them controlling interest but does make them a substantial "partner"). When the firms are 

ready to expand, EDB (as investor) suggests that the company establish a permanent 

presence in Singapore.26

The EDB provides some of the initial funding for "venture capital" firms as well. There are 

currently more than 30 venture capital firms in Singapore having interests in biomedical 

sciences or healthcare. In addition, the Government of Singapore invests in international 

"life sciences" venture capital companies through its investment arm, Temasek Holdings. It 

was Temasek's investment in an American venture capital firm, for example, that assisted in 

attracting Chiron Corporation to joint venture in Singapore.

The preferred status of foreign investors adds to Singapore's appeal. The best public 

relations campaign for new targets of opportunity are Singapore's current bio firms. EDB 

investment incentives (such as subsidized facilities and infrastructure, 5-10 year tax 

"holidays" and liberal exemptions for such expenses as expatriate staff and capital 

equipment) have made for enthusiastic investors. Corporate investor loyalty is also 

reinforced through frequent close contact between company management and its EDB and 

NSTB "relationship" managers. The status of foreign investors is reflected in EDB's awards 

program at three levels: "Distinguished Partners in Progress," "Distinguished Friends of 

Singapore" and "Business Friends of Singapore."27

The government of Singapore is also relatively liberal with grant funding. EDB will, for 

example, match corporate investments in R&D under its "Scientific Capability Development 

Program." As an example of Singapore's financial support to its existing investors and 

partners, Johns Hopkins University received a US$2.2M grant from A*STAR for research 

(its debt obligation amounting to 10% of its income to be paid to A*STAR for royalties).

The Biomedical Research Council will provide any of the following research grants to 

individuals or firms whether Singaporean or foreign:28

i. Seed funding for an individual investigator for up to 3 years.

ii. Funding for an extension to existing research by established investigator(s).

iii. Funding for interdisciplinary collaborative project involving 2 or more research 

groups for 5 years.

iv. Five-year funding for a cohesive research unit where investigators engage in 

research that develops and/or strengthens core competencies.

What is the payoff or return on the Singapore government's investment? Expectations seem 

to focus on sustained growth, jobs, workforce development, and status. According to the 

Genome Institute's Liu, EDB expects its effort and investments "to make each institution 

internationally recognized and to add value to the economy." Liu adds that "investors are 

given very wide latitudes and time horizons reflecting the government's long term 

commitment to the industry and its stakeholders."29
Johns Hopkins Singapore Pte. Ltd., a wholly-owned subsidiary of the Baltimore university, 

provides an example of how investment, grants and tax incentives "leverage" further growth 

and investor loyalty. Its 50/50 "International Medical Centre" joint venture with the 

National University Hospital began with a very modest investment of US$60,000 

supplemented by a US$250,000 NUH investment, a US$1.275M NUH loan, and a 

US$3.3M EDB grant. In addition to joint ownership, Hopkins also benefits from a 

management contract and 100% control of the NUH Faculty HMO. Singapore benefits from 

its association with the number one hospital in the U.S. (according to U.S. News and World 

Report).30 Johns Hopkins is building on its limited initial investment in research (to include 

its Center for Clinical Investigations, and Center of Immunology, Virology and Viral 

Cancer) to grow new companies through its incubator joint venture with Becton Dickinson -

more evidence of long-term benefits of "partnerships" in Singapore.

C. Education and workforce initiatives

The Ministry of Education and the Agency for Science, Technology and Research 

(A*STAR) is now placing much greater emphasis on integrating life sciences into the more 

traditional hard sciences and math curricula and educational programs at all levels leading, 

at least indirectly, to a 50% increase in the number of university-level students enrolled in 

life sciences since Industry 21 was initiated.

An example of this emphasis at the primary and secondary levels is Science.01, a monthlong series of events and activities in science, technology and biomedicine that includes 

scientific research and discovery, as well as the application of scientific knowledge, 

engineering and technological innovation for the public good.31 In addition, public school 

(K-12) curriculum is changing to include classes and materials in the field of 

entrepreneurship in an attempt to blend science with business creation skills.

The "National Science Talent Search" identifies students aged 15-18 who have a strong 

aptitude for S&T and the potential to pursue careers in R&D. Each year, students are invited 

to submit a science or engineering research project to a panel of judges. The winners receive 

trophies, certificates, grants (of $10,000 to be used for S & T related activities, including 

study tours to universities overseas), and a scholarship for tertiary studies in science or 

engineering up to the PhD level.32

At the University level, the National Science Scholarship program awards an increasing 

number of scholarship combinations for students of "key disciplines"33 and to "selected 

overseas universities"34 Scholarship recipients are required to return to Singapore to serve 

"bonding" requirements at a relevant research institute, university, hospital or industry. 

A*STAR will assist in matching the employer with the student's interest. Another facet of 

this program is "attachment fellowships" to post graduate students in Singapore or overseas 

who "attach" themselves to foreign research institutions.

Singapore has traditionally looked to the West for linkages in business, education and 

technology recognizing that Europe and the U.S. represent the best in biomedical research 
and education.35 Each of the following Singapore institutions, for example, has been eager 

to seek collaborations with leading institutions worldwide:

Degrees Singapore 

partner Foreign Collaborations

Masters and PhD in 

BioInformatics

BioInformatics 

Centre

Stanford University, Uppsala and Karolinska 

Universities (Sweden), University of Western Cape 

(South Africa) and University of Sydney

MSc Bioinformatics 

Institute

University of Chicago, Stanford University, 

Rutgers, National Institute for Science and 

Technology (NIST)

MSc, Phd

Institute of 

Molecular and 

Cell Biology

Cal Tech, Salk Institute, National Neuroscience 

Institute (Singapore), Scripps Research Institute 

(USA), Canadian Medical Research Council, 

University of London, University of Gothenberg 

(Sweden), Eijkman Institute (Indonesia), 

University of Cincinnati, Institute of Human 

Virology (USA) and the Walter and Eliza Hall 

Institute for Medical Research (Australia), Harvard 

Medical School (USA), National Cancer Institute 

(Bethesda, USA), University of Cologne 

(Germany), University of New York

PhD in 

Immunology and 

post graduate 

medical training

National 

University 

Hospital

Johns Hopkins University

A new College of 

Life Sciences

Nanyang 

Technological 

University

MIT, Carnegie-Mellon

The "Biomedical Sciences Manpower Advisory Committee" of educators and industry 

representatives is tasked with projecting workforce needs.36 The "Biomedical Research 

Council" is charged with planning for, identifying and recruiting foreign talent. "Contact 

Singapore," a separate agency under the Ministry of Manpower, maintains an online jobs 

board for prospective foreign applicants as well as information on just about everything the 

applicant might want to know about working, studying and living there. This is 

supplemented by an exchange program of visiting scholars.

Critics have suggested that a move by a top researcher to Singapore would be "killing your 

career" by relocating far outside the R&D mainstream.37 The head of the Biomedical 

Research Council is confident, however, that "good people will draw good people."38 Other 

expatriate recruits suggest that Singapore's freedom to pursue research (and not worry about 

grant proposals), its first class facilities, and the expatriate lifestyle are sufficiently 
attractive.

Some also suggest that it will take 5-8 years of recruitment success and a substantial 

increase in local scientists to firmly establish a sustainable research base. The government 

has set aside US$300 million in scholarship funding over the next five years for Singapore 

students to study abroad, and to attach themselves to leading research institutions for a year 

or two to get high quality experience.

Some critics doubt Singapore will gain much from its huge investment in life sciences other 

than jobs and training. Retention of their world-class recruits is a major consideration. 

Scientific talent may view a position in Singapore as an interim step along a career path. 

One U.S. scientist says Singapore "has become a training camp for scientists from China. 

They use Singapore as a bridge to Europe, America and Australia."39

While aware that retention may prove difficult, one Singapore official counters that 

scientists are drawn to the combination of intellectual freedom, facilities and support that the 

biomedical initiative offers, a theory endorsed by Dr. Edison Liu, one of the biomedical 

initiative's leading talents recruited by EDB from NIH to head the Genome Institute.40

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III. LONG-TERM OUTLOOK

A. From Singapore's perspective

The matter of evaluating the success of or calculating a return on investment in Singapore's 

biomedical initiative may be somewhat premature. The sector is growing rapidly at present 

due mostly to the injection of government capital and foreign private investment. Several of 

those officials interviewed suggested that the number of researchers and firms must hit a 

"critical mass" before the industry sector becomes self-sustaining.

It would be fair to say that Singapore's investment in human capital, regardless how well 

planned by the EDB, is the most significant risk factor and, therefore, the most serious 

question about the future of Singapore's biomedical initiative. Expansion and retention of 

local and imported research talent will likely be the key determinant of the initiative's 

sustainability. Further analysis must include a discussion of return on investment, the 

development of local research capacity, and international competitiveness.

Of equal concern is the related need for local research and scientific management and 

administrative capabilities. Another well-planned and funded initiative to train 

administrators would be expected from the EDB/A*STAR in the not too distant future.

Can Singapore succeed? The same strategy was applied in the 1970s and 1980s to the 

electronics sector with dramatic (and sustained) results. The continued success of the 

electronics "pillar" has been due to EDB flexibility in adapting policies and incentives to the 
global market and industry changes, and, its commitment to "stay the course" despite 

economic and sectoral ups and downs.

Although early in the life cycle of this initiative, there have been several promising results. 

The Centre for Natural Product Research, for example, claims to have ten new drug leads 

from its screening of tropical samples.41 New and expanded investment in research, 

development and production by multi-national pharmaceutical and medical device firms 

reflects their confidence in Singapore's claim to be a regional hub. The Bioinformatics 

Centre has become a major node in the worldwide bioinformatics network, and a local 

leader in the application of IT technologies. The joint venture between Johns Hopkins 

University and U.S. medical device firm Becton Dickinson to create "bio-venture" spin-offs 

from Singapore research suggests that research, development and innovation can be 

sustained in the long-run with less government intervention (and continued corporate 

relations).

B. From the U.S. perspective

Why is the study of Singapore's biomedical initiative important to U.S. technology policy? 

Very simply, Singapore can provide some of the world's leading examples of technology-led 

economic development.

Its continuing interest in forming partnerships with European and other Asian (competitor) 

multinational firms and its ability to react quickly to market forces give Singapore the 

advantage of competitive connections, shared resources, speed and flexibility.

Its approach to ethical issues (such as stem cell research) may allow for advances in areas 

impacted in the U.S. by current policies.

Regulation of biologics and drugs may also prove a competitive advantage for Singapore. 

Although fully conforming to FDA regulations, Singapore's drug, biologics and device 

approval processes may prove competitive with FDA's due to less volume. Faster approvals 

for overseas distribution may prove attractive to U.S. companies concerned with "time-tomarket" realities in the Asia-Pacific region.42

There are several other advantages to a "partnership" which may take the form of joint 

ventures or cooperative agreements at institutional and corporate levels:43

1. Practically unlimited flexibility to design, staff, finance and quarter a research and 

development program in the least possible time and with the least possible 

investment. The EDB's "Whatever it takes" slogan is very real - if the foreign partner 

has what Singapore wants!

2. Availability of talent from worldwide sources. The biomedical initiative described 

above is evidence that the Singapore government is prepared to purchase, train, 

and/or subsidize whatever talent the R&D organization or academic institution 

needs. In the global account of intellectual capital, Singapore shows a continually 
positive balance. And. the rapid growth in graduating local researchers and scientists 

at the National University of Singapore and Nanyang Technological University 

mixes imports with locals into a diverse blend of talent.

3. Relatively easy and corruption-free business practices. An EDB "relationship 

manager" acts as agent and advocate for his or her investor clients, assuring that the 

company, its management and staff are well looked after. Moreover, its record on 

free trade and the world's most efficient air and sea transportation facilities make 

Singapore an attractive partner for manufacturing and distribution as well.

4. The range of tax incentives and subsidies available to the "right" foreign partners as 

well as an adequate and willing source of venture capital.

5. Singapore's status as regional centers for biomedical and healthcare technology, 

education and trade, and as an economic development model for virtually the entire 

non-Organization for Economic Cooperation and Development (OECD) universe (to 

include China).44 Both features make Singapore a natural partner in marketing U.S. 

products and services to three-fourths of the world's healthcare consumers.

The CEO of Johns Hopkins Singapore described the island/city/state as a "node in the global 

life sciences community."45 His enthusiastic endorsement of Singapore policies and 

performance was repeated often in the interviews leading up to this report. The U.S. has 

much to share (and, perhaps, something to learn) with Singapore as a partner in biomedicine 

research and development.

There are also significant lessons or "best practices" which justify consideration of 

Singapore's Economic Development Board as a "model" for economic development. Its 

success in building a biomedical industry practically from scratch is essentially due to the 

following:46

• Independence from politics and bureaucracy

• Ability to lead by coordinating various activities

• Ability to lead by achieving consensus among competing interests

• Pool of some of Singapore's best and brightest researchers, planners and thinkers

• Wide latitude to act to include creating or changing policies when appropriate

• Broad authority to commit government resources to include funding, staff, 

infrastructure

• Virtually unlimited investment capital47

• Understanding of and respect within the (global) private sector

• Dedication to principle and Singapore's economic success

• A global vision

U.S. economic development initiatives that might parallel Singapore's "systems approach" 

might include the regional biotech "clusters" at San Francisco, Pittsburgh and Research 

Triangle. In addition, some states are beginning to apply a "systems approach" to tech-led 

economic development, such as Ohio's "Third Frontier" project. An important role for the 

Federal government in these initiatives is the coordination of national and intergovernmental policies, rules, regulations and legislation to insure a climate conducive to 
research, innovation and global competitiveness - a role Singapore's EDB has become very 

effective in executing.

Another lesson that could be drawn from the Singapore model is their approach to creating a 

biomedical research workforce practically from scratch. Its strategy was essentially the same 

"systems approach" used to create their biomedical industry. It began with the EDB 

convening policy and decision-makers from universities, research institutes, government 

and private industry, then working hand-in-hand with advisors and investors to develop 

policies, programs and incentives.

While the U.S. may not need to go to the extent of recruiting researchers and scientists, it 

should, perhaps, examine the effectiveness of similar policies and incentives for 

encouraging American citizen students in critical fields of study. In addition to Singapore's 

many "fun and funding" programs at every academic level, the capacity for its researchers to 

take ownership of their research, their intellectual property, and, to spin off their innovations 

into private sector "bio-ventures" may ultimately prove the most attractive policy and 

incentive "models" for America's biomedical institutions and companies.

1

See Singapore Department of Statistics report for 1961-2000 

athttp://www.singstat.gov.sg/FACT/HIST/gdp1.html

2

For more information on Industry 21, visit their web site 

athttp://203.81.45.8/edbcorp/programmeindustry21.jsp

3

Ibid

4

Ibid

5 Singapore ranked fourth of 75 nations in the World Economic Forum's 2001-2002 Global 

Competitiveness Index

6 The other "pillars" being electronics, engineering, and chemical manufacturing

7 The EDB expects growth of 4% to 5% per year in the fields of pharmaceuticals, medical 

devices, healthcare service and biotechnology. In the year 2000, the biomedical industry's 

manufacturing output grew by 2.1% to US $3.5 billion. By the year 2010, EDB's goals are 

Singapore as a key business base for 15 world-class companies, and a regional center for 

clinical trials and drug development. "Biomedical Sciences Industry Maintained Growth 

Trajectory in 2001," A*Star press release dated February 6, 2002 at http://www.biomedsingapore.com/bms/detailed_press.jsp?artid=237&bSubmitBy=false

8 See below

9 See discussion at Attachment B

10 As quoted in "Medicine for the Economy" by Trish Saywell, Far Eastern Economic 

Review, November 15, 2001

11 Joint A*STAR and EDB press release "Biomedical Sciences Industry Maintained Growth 

Trajectory in 2001" February 6, 2002

12Presentation on "Infocomm 21 - Singapore's Strategic Plan for Infocomm in the New 

Economy" by Ms Yong Ying-I, CEO of Iinfocomm Development Authority 

athttp://www.ida.gov.sg/Website/IDAhome.nsf/Home?OpenForm

13"Multi-pronged approach to develop Singapore's InfoComm industry," a press release 
from the InfoComm Development Authority, June 5, 2000 

athttp://www.ida.gov.sg/Website/IDAhome.nsf/Home?OpenForm

14"Fact Sheet on Wireless Initiatives for Singapore" 

athttp://www.ida.gov.sg/Website/IDAhome.nsf/Home?OpenForm

15For more information, see "Helping Singaporeans Go On-Line" at Attachment D

16For more information, visit the Singapore One web site at http://s-one.net.sg/

17http://www.ebusinessforum.com/index.asp?layout=rich_story&doc_id=3331&country_id=

& title=The+EIU%27s+e%2Dbusiness+readiness+rankings%2C

18 For more information on SINGAREN, visit their web site 

athttp://www.singaren.net.sg/singaren/aboutus.shtml

19 For more information on the Centre, visit their web site at http://www.biomedsingapore.com/bms/ detailed_coprofile.jsp?artid=91&bSubmitBy=true

20 "Singapore can now approve drugs more quickly," Singapore Straits Times , May 6, 2000

21 For more information on the Centre, see its website 

athttp://www.cnpr.nus.edu.sg/Netscape/main_aboutcnpr.html

22 The Institute signed an MOU with Intel in January, 2002 to collaborate in the 

development of a biomedical grid, a early indication of their strategy for tech transfer 

through "partnerships" with industry leaders. For more information on the Institute, visit 

their web site at http://www.bii-sg.org/about.html

23 For more information, visit the Exploit web site at http://www.astar.gov.sg/exploit_focus.shtml

24 For subscription to the Asian Intelligence Unit, see http://www.asiarisk.com/

25For more information on the Intellectual Property Office of Singapore, visit their web site 

at http://www.ipos.gov.sg

26From a discussion of EDB strategies taking place during interviews with individuals 

shown at Attachment A

27 For a list of recipients, visit the EDB web site 

athttp://www.sedb.com/edbcorp/corprelpartners.jsp

28"New Grants to Boost Biomedical R&D" from a National Science and Technology Board 

press release, June 4, 2001

29From an interview with Dr. Edison Liu, CEO of the Genome Institute of Singapore, 

December 19, 2001

30 See U.S. News article on "Best Hospitals Honor Roll" 

athttp://www.usnews.com/usnews/nycu/health/hosptl/honroll.htm

31 For more information on Science.01, visit their web site 

athttp://www.sciencemonth.org.sg/

32 For more information on the National Science Talent Search, visit their web site 

athttp://nsts.w3labs.com/

33 For a list of key disciplines in biomedicine, see Attachment E

34 For a list of selected overseas universities, see Attachment F

35opus cit

36opus cit

37opus cit

38opus cit

39opus cit
40opus cit

41opus cit

42opus cit

43 "Viva la Singapore" by K. Bhalaji for Frost.com, February 2002 or see article 

athttp://www1.frost.com/prod/news.nsf

44Singapore is a leading player in two major regional economic blocs - the Asia-Pacific 

Economic Council (APEC) and the Association of Southeast Asian Nations (ASEAN). For a 

detailed treatment of Singapore's participation, see Attachment F

45His Baltimore-based university is a key player in Singapore's biomedical sector with 12 

applied research projects and two research facilities, clinical services, a joint PhD program 

and "International Medical Centre" (a "private medical wing") with National University 

Hospital, and a "bio-incubator" for spin-off companies.

46opus cit

47 One individual interviewed estimated the Singapore government's commitment to date at 

US$ 3 billion.

Top of Page

ATTACHMENT A

INDIVIDUALS INTERVIEWED IN SINGAPORE FOR THIS REPORT

Dr. Edison Liu

Executive Director, Genome Institute of Singapore (GIS)

Dr. Tony Buss

Head, Centre for Natural Product Research (CNPR)

Mr. Spencer Lim

Deputy Director, Development & Marketing Department,

Jurong Town Corporation (JTC)

Mr. James Wessel

President, Asia Pacific Region

Mr. David Capes

R&D Director, Asia Pacific Region

Becton Dickinson Singapore Pte. Ltd.

Mr. Howard Califano

CEO, Johns Hopkins Singapore Pte. Ltd.
Ms. Tricia Huang

Assistant Head, Economic Development Board (EDB)

A/P Tan Tin Wee

Director, BioInformatics Centre (BIC)

Prof. Miranda Yap

Director, Bioprocessing Technology Centre

Mr. Derrick Tan W.M.

Operations Manager, S*Bio Pte. Ltd.

Technology Administration would also like to thank Ms. Luanne Theseira-O'Hara, 

Commercial Specialist, U.S. Commerce Service at the American Embassy, Singapore 

for making these interviews possible and productive.

Top of Page

ATTACHMENT B

THE ECONOMIC DEVELOPMENT BOARD'S "SYSTEMS APPROACH"

A systems approach is defined here as active consideration of all the requirements, activities 

and effects of every dimension of a major undertaking viewed as a whole or "system." It is 

their systematic response to every facet of an undertaking that, to this author, is the primary 

reason for the Singapore "miracle."

As with its successful electronics manufacturing strategy of the 1970s and 1980s, the 

Economic Development Board (EDB) is responsible for planning and managing a systems 

approach to the biomedical initiative as a "pillar." EDB has employed a three-tier strategy to 

planning:

1. A "Ministerial Committee" supported by a working level "Executive Committee. 

This Committee assures political consensus through the policy and program 

development process.

2. A Life Sciences "International Advisory Committee" (IAC) consisting of key 

biomedical industry leaders and renowned biomedical scientists recruited from the 

US and Europe. The IAC acts as a "think tank" with the following key roles:

a. To advise on major global Life Sciences research and industry trends

b. To critique current initiatives and provide advice for improvements or 

enhancements

c. To share knowledge and experience in Life Sciences research and industry to 

guide Singapore's development in these areas
d. To provide inputs on legal and ethical issues in biomedical research, based 

on the experience of other countries

3. The EDB's Biomedical Sciences Group (BMSG) is responsible for planning and 

managing the "systems approach" across the entire value chain - from research to 

manufacturing and regional headquarters to include:

a. Conducting research into biomedical industries in Europe and the US to 

develop an effective "model" for Singapore. In studying American and 

European experiences, the EDB will identify strategies and policies that 

advance the industry and those which impede, then develop a "hybrid" model 

based on "best practices."

b. At the same time, the EDB/BMSG will:

 study export markets for biomedical products and services to assure 

that investors will have potential sales. The EDB/BMSG (in 

conjunction with the International Advisory Committee) will identify 

technological "niches."

 identify and establish contact with biomedical companies in Europe 

and the US which have demonstrated the potential for leading-edge 

research, products and technologies. These "niche" companies are 

then selected as targets of opportunity.

 identify and develop policies and incentives which serve to cause 

targets of opportunity to take an interest in Singapore. The strong 

enforcement of intellectual property rights by the Singapore 

government has proven to be an important investment incentive.

 provide assistance to companies that are considering Singapore as a 

location for investments in R&D, manufacturing or headquarter 

services.

 facilitate new companies' entry into Singapore by linking them with 

suitable local research organizations, industrial land/facilities 

agencies and other supporting services.

 nurture the growth of local start-ups and companies.

Top of Page

ATTACHMENT C

RESEARCH AND DEVELOPMENT

Examples of current research and development projects include:

Johns Hopkins University is on the verge of beginning clinical trials, and, is doing 

research into "complementary and alternative medicines," applying FDA's rigorous 

standards. This required developing an association with the alternative medicine group at 
NIH. They are also doing research on anthrax on behalf of the Singapore military.

The Center for Natural Product Research is owned by the IMCB and Glaxo with the 

latter having first rights for licensing discoveries based on the biodiversity in Southeast 

Asia. The Center has eight early phase drug leads to date, and is expecting investment 

from EDB and venture capital as it privatizes later this year.

S*BIO, a fully integrated drug discovery company conducts research and development 

based on Chiron Corporation's technologies in genomics and small molecule drug 

discovery. S*BIO is independently discovering and developing targets and drug leads 

and therapeutic, diagnostic, vaccine candidates and products. By locating in Singapore, 

S*BIO can tap into modern genomics and drug discovery technologies to understand the 

molecular basis of diseases prevalent in Asia.

Schering-Plough broke new ground in 2001 on a S$170 million bio-tech lyophilization 

plant for the finishing processes for biological drugs such as Remicade (Crohn's disease) 

and PEG-Intron (anti-viral/anti-cancer). Schering-Plough invested in manufacturing of 

biotechnology-derived products because of its good experience in Singapore with 

manufacturing of pharmaceuticals, the availability of skilled manpower and strong 

infrastructure.

ES Cell International, another local start-up that is currently developing and 

commercializing human embryonic stem cell technologies, this company's pioneering 

work will contribute to developments in biopharmaceuticals, tissue engineering and 

transplantation medicine. ES owns 6 of the 64 stem cell lines sanctioned by the 

Administration in 2001 and plans to establish a production facility to supply laboratories 

worldwide.

Cell Transplants Inc. is developing an innovative cell-based treatment for muscular 

dystrophy and has set up a pilot production facility in Singapore to extend the use of its 

cell-based treatments to other diseases including cardiovascular diseases.

Top of Page

ATTACHMENT D

"HELPING SINGAPOREANS GO ONLINE"

A PRESS RELEASE Issued by the Corporate Communication Department Infocomm 

Development Authority of Singapore

Over the next 3 years, the Infocomm Development Authority of Singapore (IDA) will take 

an intensive and targetted approach to help Singaporeans go online. This was announced 
today by the Minister for Communications and Information Technology, Mr Yeo Cheow 

Tong, at the launch of eCelebrations Singapore. A total of S$25 million has been set aside 

to support the 3-year culture promotion initiative spearheaded by the IDA. Under this 

initiative, IDA will undertake several programmes in phases to target low-income 

households, different ethnic groups and the late adopters of infocomm technology. These 

programmes are aimed to raise their awareness about how infocomm technology can 

enhance their quality of life.

Programmes to improve accessibility

Help will be extended to 30,000 low-income households with a combined income of less 

than $2,000 each. IDA will equip these families with used computers bundled with free 

Internet access and some basic training. This will be done through the community self-help 

groups such as the Chinese Development Assistance Council (CDAC), the Singapore Indian 

Development Association (SINDA), Mendaki, and the Eurasian Association.

To encourage active industry participation, IDA will seek tax incentives for vendors and eservice providers that donate equipment, professional services and Internet access to the 

community through civic organisations.

Basic public infrastructure will be enhanced by the provision of free broadband access to the 

Singapore ONE clubs at community centres. IDA will also work with other government 

agencies such as the Housing Development Board (HDB) and private sector property 

developers to facilitate the deployment of public infrastructure for Internet access, for 

example, Internet kiosks; and infrastructure that supports e-Commerce fulfillment, for 

example, locked boxes to hold deliveries.

Programmes to bridge the language barrier

IDA will work with industry and community groups to develop relevant content in different 

languages to cater to different population segments. We will sustain the promotion of the 

National Chinese Internet programme and elevate the ongoing community Malay and Tamil 

Internet initiatives to national levels. Incentives will be provided for the development of 

useful applications and relevant content to bridge the language barrier and generate interest 

in infocomm among all Singaporeans.

Programmes to motivate widespread adoption of an e-lifestyle

Beginning 1 March 2000, e-Celebrations Singapore, a month-long public outreach 

programme, aims to get everyone to go online. The interactive and experiential activities 

will raise awareness of how infocomm technology can change people's lifestyles and 

prepare Singaporeans for the technological challenges ahead. For the inaugural year, a total 

of 27 events have been organised to reach out to both individuals and businesses, urging all 

to get connected and reap the benefits of online services.
The e-Ambassadors programme aims to recruit 2,500 volunteers amongst early adopters of 

infocomm technology to guide late adopters in their use of infocomm services and 

applications at the ONE Learning Place, Singapore ONE clubs and public libraries. The eAmbassadors will be recruited from community groups such as the People Association's 

Youth Movement (PAYM), the Retired & Senior Volunteer Programme (RSVP) and the 

Parents Advisory Group for the Internet (PAGi). IDA will provide funding for skills 

certification training and accord the e-Ambassadors due recognition for their volunteer 

services.

e-Shopping and e-Transactions

IDA will initiate virtual shopping malls where online shoppers can buy basic necessities like 

groceries, lifestyle items such as music, movies and games, and services like on-line tuition. 

The aim is attract 200,000 shoppers to shop online. To further encourage merchants to get 

their customers to adopt online shopping, tax incentives will be explored with the relevant 

government agencies. IDA's efforts will be focused on building consumers' confidence in 

online shopping. For a start, TRUSTe, the online privacy seal pogramme will be made an 

industry 'trustmark' seal.

"For Singapore to realise the vision of an Information Society, a broad-based movement by 

multiple players and groups in society is required. While IDA can support and complement 

the movement, it will not be able to develop a vibrant Information Society on its own. 

Getting people and industry involved in the process of transformation is important. It is the 

active and committed Singaporean who will make the difference," said Ms Yong Ying-I, 

Chief Executive Officer of IDA.

The initiatives announced today by Minster Yeo to help Singaporeans go online, is the 

second in a series of recommendations under the Infocomm21 Masterplan. The first 

announcement made in January 2000, was on the liberalisation of the telecommunications 

market. The Infocomm21 Masterplan contains a series of initiatives by the government to 

develop and establish Singapore as a key global info-communications centre.

Top of Page

ATTACHMENT E

KEY DISCIPLINES (BIOMEDICINE)

Bioinformatics

Biochemistry

Biomedical Engineering

Biophysics

Chemistry and Biology
Genetics

Immunology

Neuroscience

Pharmacology

Developmental Biology

Structural Biology

Tumor Biology

Molecular and Cell Biology

Microbiology

Virology

Other Biomedical Sciences

Top of Page

ATTACHMENT F

SELECTED OVERSEAS UNIVERSITIES

Brown University

California Institute of Technology

Cambridge University

Carnegie Mellon University

Case Western Reserve University

Columbia University

Cornell University

Duke University

Eindhoven University of Technology

Georgia Institute of Technology

Harvard University

Imperial College of Science, Technology and Medicine

Johns Hopkins University

Massachusetts Institute of Technology

Northwestern University

Oxford University

Princeton University

Purdue University-West Lafayette

Stanford University

Technical University of Munich

University of British Columbia

University of California- Berkeley

University of California - Los Angeles

University of California- San Diego

University of California- San Francisco
University of Colorado-Boulder

University of North Carolina-Chapel Hill

University of Illinois, Urbana-Champaign

University of Pennsylvania

University of Melbourne

University of Michigan-Ann Arbor

University of New South Wales

University of Texas - Austin

University of Toronto

University of Washington

University of Wisconsin-Madison

University College London

Washington University in St. Louis

Yale University

Top of Page

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