How will US tariffs affect Singapore’s biomedical sector?

Biomedical manufacturing output rose 89.6% in October 2025.

Singapore’s biomedical sector is expected to benefit after a sharp rise in pharmaceutical production as companies prepare for anticipated US trade policy changes, according to a BMI report.

Data from the Economic Development Board revealed that production increased by 122.9% year-on-year, driving overall biomedical manufacturing output up 89.6% in October 2025.

The rise was attributed to the elevated production of active pharmaceutical ingredients and biological products. Manufacturers increased output to build inventory ahead of US import tariffs originally scheduled for 1 October 2025.

However, the sector faces near-term challenges due to heavy dependence on major export markets.

The US and Mainland China accounted for nearly 38% of Singapore’s pharmaceutical exports in 2024, with China at 22.8% and the US at 14.8%.

“This significant exposure to both major markets creates downside risks to sustained manufacturing momentum, particularly as Singapore faces a 10% baseline US tariff,” BMI said.

Meanwhile, the market’s 17% corporate tax rate, strong intellectual property protections, and regulatory standing are expected to keep attracting pharmaceutical companies to set up regional operations.