Generic drugs win big as Singapore reins in healthcare costs

The ageing population needs to be assured by affordable healthcare.

Singapore is fighting to keep healthcare costs in check as its population ages, and generic drug manufacturers can easily cash in on this struggle.

"Rising healthcare expenditure will place increasing pressure on both public and private health funding regimes as the country's population ages," noted a report by BMI Research. "Amongst the various tools, the use of generic drugs has become an effective strategy to reduce expenditure without compromising the quality of care."

BMI Research expects that generic pharmaceutical companies will enjoy robust commercial opportunities on the back of the widespread need to make medicines affordable for the population and healthcare providers.

"The country’s medical system will be increasingly geared towards the health needs of the elderly with additional resources in the 2018 budget channelled towards the consolidation of health and social services. To this end, Singapore’s healthcare and pharmaceutical market will experience robust growth driven by the country's concerted effort to improve the health and well-being of its elderly population," the report said.

Companies will also profit from a stable business environment with clear approval pathway and a hospital tender process for generic medicines.

"The government’s commitment towards ensuring the quality of lives of the citizens through providing sufficient medical care will therefore see its healthcare expenditures continue to grow at a rapid pace over the coming years," it said.