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25-Oct-02 Singapore, 25 October 2002 – Fusion Consulting this week announced findings that suggest the biotechnology industry in China will match Singapore in terms of technical achievements by 2004, and surpass the Republic to become a second tier global biotech player, after the United States of America, by 2008 at the latest. The global biotechnology industry has trebled in size over the past decade, and is estimated to be worth approximately US$39 billion by 2004, growing at around 16% a year on average, according to Fusion Consulting. China alone currently accounts for around 10% of the world total in biotech revenues. This figure may grow even further as the Chinese government, which lists biotechnology research and development as a priority development area in its Tenth Five Year Plan (2001-05), continues to raise its stakes in biotech research to help drive bio-medical industry revenues up to an estimated US$7 billion by 2008. The Singaporean government has also invested heavily in biotechnology. Over the past two years, it has set up two new university faculties and five new research centres, and funneled S$3 billion (US$1.7 billion) into a series of funds designed to promote research, attract international life-sciences firms and finance local biotechnology businesses. In addition, it will open the first phase of One-North in 2003, an industrial and research park that will cost S$15 billion (US$8.5 billion). “Investments are being poured into biotechnology by the two governments. The Singapore government is very specific and hands-on in its approach. For example, it headhunts individual foreign scientists to head up the new research institutes and university faculties. China, on the other hand, has an approach that is more broad-based and has a longer history. Biotech developments are founded on both the domestic industry (already employing over 20,000 scientists) and foreign firms (50% of biotech patents filed in China are now from foreign players). Foreign pharmaceutical and biotech companies do not need much encouragement to invest in China. All the major players are there already” said Mr. Peter Read, Director at Fusion Consulting. “There is virtually no doubt that China will eventually win the biotechnology race, through its sheer size and access to resources. But I don’t think Singapore or other countries that may currently have an edge over China should worry about that too much. Their strategy should be two-fold: First, focus on the areas where they have unique strengths; secondly build relationships with China and partnerships with Chinese biotech companies. Singapore has attracted some of the very top scientists engaged in stem cell research, in which it stands a good chance of becoming the world leader, especially if politically-driven reactions to concerns over ethics slow developments in the US. Bio-chips is another field in which Singapore may have a natural advantage, given its well-developed semiconductor sector. However China is also pouring funds into its own young semicon industry, and it is worth noting that the majority of the US biotech patents applied for by Chinese inventors this year have been bio-electronics related.” "We have to keep up with technology and build a stronger R&D and innovation infrastructure to remain a global player. We also have to stay relevant in the face of China’s vastly lower costs base, by staying efficient, continually upgrading our skills and building complementarities with the region and China itself," acknowledged Mr. Tharman Shanmugaratnam, Senior Minister of State, Ministry of Trade and Industry & Ministry of Education, at the opening ceremony of Reed Exhibitions’ Globaltronics on September 3, 2002. More about China’s Biotech Industry About Fusion Consulting For more information, please contact Fusion Consulting at
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