Clinical Laboratory Instrumentation Market in Singapore – Frost & Sullivan
A report by Frost & Sulivan
M a r k e t O v e r v i e w
Introduction
Singapore is one of Asia Pacific's most dynamic economies. A tiny island nation of 700 square kilometers, Singapore is an economic powerhouse that boasts the fifth highest per capita GDP globally of $21,825. Singapore’s free market economy has traditionally been driven by the export of chemicals, electronics, and services. However, a strong governmentdriven investment in technology and education has positioned it to be a strong global hub for talent, innovation, and enterprise. Most importantly, strong governmental support for the bio-business, biotechnology, and medical innovation has allowed Singapore to develop a high level of excellence in the healthcare industry with a well developed healthcare infrastructure and cutting-edge technology.
The healthcare delivery system in Singapore is split between private and public healthcare service providers. The government is responsible for the majority of public health services provided through hospitals, accounting for 80 percent of all hospital services provided. The converse applies for primary healthcare which is 80 percent private and operated through a nationwide network of over 2,080 private polyclinics and 17 outpatient polyclinics. This strong medical infrastructure has allowed Singapore to develop a mature and advanced clinical laboratory instrumentation market in line with the high demand for diagnostic services from both the private and public sectors.
The public healthcare delivery system in Singapore has been organized into two vertically integrated healthcare delivery groups; the National Healthcare Group (NHG) and the Singapore Healthcare (Singhealth). The NHG operates a key public pathology service, NHG Diagnostics, as well as key hospitals, namely the Tan Tock Seng hospital (TTSH), National University Hospital (NUH), and Alexandra Hospital while Singhealth operates Singapore General Hospital (SGH) and the Changi General Hospital. The public healthcare sector consists of private tertiary care hospitals such as Raffles Hospital and Mount Elizabeth as well as private stand-alone laboratories and laboratory chains such as Gribbles and Parkway.
The clinical laboratory instrumentation market in Singapore is mature with major segments such as clinical chemistry, immunochemistry, hematology, and urinalysis experiencing little or no growth and possibly a decline. Revenues have been generated from the upgrading or replacement of systems as well as the implementation of new technologies such as systems integration, modular automation, and total laboratory automation. However, this saturated market has become fiercely competitive with every new placement resulting in a gain for one market participant but a direct loss of revenue for another, particularly since there is no lack of capital and financing in the Singaporean market.
The total clinical laboratory instrumentation market in Singapore was valued at $11.4 million in 2005 and is forecast to grow by 4.4 percent in 2006. The market is expected to experience limited growth over the forecast period, mainly driven by an increased demand for new technologies, such as newer immunochemistry systems, systems integration and total laboratory automation solutions.
